The Latest Analysis

Global business sentiment improved last week, after having steadily weakened during much of the summer. Despite last week’s gain, confidence is near its lowest level since just prior to the U.S. presidential election in late 2016. The escalation in global trade tensions appears to have done damage to sentiment, most significantly in Asia. Expectations of business conditions into early next year has been hit especially hard, and they are now as low as they have been at any time during the current expansion. Despite the weaker confidence readings, business sentiment is still consistent with a global economy that is growing at the high end of its potential.