Election Anxiety Stalls Business Growth

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Experts say that uncertainty surrounding the upcoming presidential election has forced businesses into a holding pattern, delaying critical investments that could have an impact on profitability and the broader U.S. economy.

“This election cycle has created pretty remarkable uncertainty compared to prior elections,” Daniel Weitz, survey director at the Atlanta Fed told CNN. “We’re seeing far more companies hitting pause than usual.”

Small business sentiment has fallen to an all-time low, according to the National Federation of Independent Business’s monthly survey. A separate Federal Reserve survey shows that nearly one-third of financial decision-makers have either “postponed,” “scaled down,” “delayed indefinitely,” or “permanently canceled” investment plans due to election uncertainty.

This indecision is predicted to dampen revenue and employment growth, particularly among firms that have held off on both short- and long-term projects.

Consumer spending is also being affected, with many individuals delaying major purchases such as homes and cars.

Some potential home buyers are waiting to see if the Harris administration will fulfill its campaign promise of providing down-payment assistance for first-time buyers. Others are optimistic that a Trump victory could lead to lower taxes. Yet, a significant number simply wish for the entire situation to be resolved quickly.