Leading Indicator of Coming Recession…?

Those of us that believe that entrepreneurial initiatives and rising private investment are the principal drivers of economic growth (with savings as the fuel) are disheartened by recent news from the Wall Street Journal.

“Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.”

This may have grave consequences since Austrian business cycle theory (ABCT) predicts that investment spending tends to slow down before declining prior to the economy moving into a recession.

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