The Latest Analysis

Global business confidence remains weak, as has been the case for the past year and shows no indication of improving. Sentiment is consistent with a global economy that is expanding below its potential. The decline in sentiment this past week is likely overstated given the holiday-shortened week in the U.S., which reduced the survey’s response rate. Weighing on business confidence are the U.S. trade war with China and Brexit, although other geopolitical factors may be impacting sentiment such as the unrest in Hong Kong and impeachment proceedings in the U.S.