US business activity stalling, consumers' inflation expectations surge [View all]

Source: Reuters

U.S. business activity nearly stalled in February amid mounting fears over tariffs on imports and deep cuts in federal government spending, erasing all the gains notched in the aftermath of President Donald Trump's election victory.

The tumble in activity to a 17-month low reported by S&P Global on Friday was the latest in a string of surveys to suggest that businesses and consumers were becoming increasingly rattled by the Trump administration's policies.

Business and consumer sentiment soared following the Republican's November 5 victory on hopes for a less-stringent regulatory environment, tax cuts and low inflation.

"The Trump business honeymoon is over, it seems," said Kyle Chapman, FX markets analyst at Ballinger Group.

Read more: https://www.reuters.com/markets/us/tariffs-federal-government-spending-cuts-restrain-us-business-activity-2025-02-21/