According to numbers released Wednesday, President Donald Trump's tax cuts may not have had the effect he promised.
Business investment for the third quarter dropped 3%, after falling 1% in the previous quarter. Those drops mark a contrast to a jump of 4.4% in the first quarter, and 4.8% in 2018.
The decline comes amid economic uncertainty, spurred in part by President Donald Trump's trade war with China. It casts uncertainty on Trump's contention that the $1.5 trillion tax bill he signed in Dec. 2017 would be a boon for business investment, hiring and wage growth.
"Corporations are literally going wild," he said at the time.
There are other indicators uncertainty may be creeping into the board room. Global dealmaking, often a sign of CEO confidence, fell in the third-quarter of the year, with total deal value dropping 21.2% to $622 billion from $790 billion, according to Mergermarket. In the U.S, the value of deals dropped 32%, from 263 billion from $387 billion.
To be sure, it remains possible both trends reverse themselves. Uncertainty regarding trade may be diminishing, with the Office of the U.S. Trade Representative saying last week that China and the U.S. are close to finalizing a phase one deal.
And other data released on Wednesday was more optimistic. Companies hired 25,000 more employees in October than expected by economists polled by Dow Jones. Growth of the U.S. gross domestic product also topped expectations of economists polled by Dow Jones, despite the drop in business investment.
Still, as the 2020 election heats up, the numbers give Trump's opponents material to lambast his policies. An economic policy advisor for Sen. Elizabeth Warren tweeted on Wednesday, "To really boost business investment and the economy, put money in people's pockets to spend. That's what the @ewarren economic agenda is all about."
Warren's wide-ranging economic agenda rests in part on the premise that too much U.S. wealth is isolated among select companies and wealthy individuals. Her plans include an "ultra-millionaire" tax, which calls for a 2% tax on every dollar a household has above $50 million and 3% tax on households with above $1 billion. She wants to tax companies 7% for every dollar they make above $100 million.
Her agenda, though, appears to rattle CEOs in a different way. Wall Street's stock analysts have identified shares of companies in healthcare, financials, and energy as vulnerable in the event of her election. Many of them, including United Health and Apollo Global have already dipped on apparent concern over her proposed policies.
Correction: An earlier version misstated the decline in business investment in the second quarter. It was 1%.