High levels of uncertainty generated by ongoing trade tensions is a continuing drag on global economic growth. The uncertainty is keeping business confidence suppressed, leading to a reluctance to invest.
This is mostly evident in manufacturing where global manufacturing PMIs are in contraction territory. Uncertainty will remain for a while, and the longer the uncertainty lasts, the deeper the manufacturing recession and the greater the risk the weakness spills over into the broader economy.
Read more on our outlook for the New Zealand and global economies, and across asset classes, in the October 2019 edition of Quarterly Strategic Outlook.
Subscribe to 'Quarterly Strategic Outlook' below to receive my latest articles straight to your inboxBevan Graham, NZ Managing Director & Chief Economist
This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.