Friday, July 26, 2019 12:30 a.m. CDT
By Patturaja Murugaboopathy and Gaurav Dogra
(Reuters) – Asian firms have cut back capital spending this year, and that means a recovery in regional earnings, jobs and overall demand could take a while.
A Reuters analysis of 6,500 major Asian companies, with comparable financial data available, showed their cumulative capital expenditures in January-March fell 1% to $198.7 billion – the first annual decline for a quarter in two years.
Tensions from the U.S.-China trade war, the risk of disrupted supply chains and waning demand have weighed on business confidence and spending this year.
The decline in capital expenditure (capex) suggests that the weak global growth momentum could persist until there’s a meaningful recovery in confidence.
The analysis showed