Presidential Campaign Rancor Begins to Infect the Economy

The heated presidential election campaign may be starting to cast a chill over the U.S. economy.

Manufacturing companies this month reported the smallest improvement in business since 2009, with a growing number citing political uncertainty as a reason for the sluggishness. Pre-election jitters also are turning households more cautious, with consumer confidence as measured by the University of Michigan at its lowest level since September.

“The level of anxiety is rising,” said Nariman Behravesh, chief economist for consultants IHS Inc. “It’s become a small negative for the economy.”



Business executives are putting off some spending and investment decisions because it’s unclear what policies a new president will pursue and what impact those plans will have on corporate bottom lines.

The uncertainty is heightened because Republican Party front-runner Donald Trump supports such radical steps as slapping big tariffs on Chinese imports, while Democrat Hillary Clinton is backing away from some of the pro-business policies she advocated in the past, Behravesh said.

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http://www.bloomberg.com/politics/articles/2016-04-26/u-s-presidential-campaign-rancor-begins-to-infect-the-economy