Economists warn AI investment boom masks broader manufacturing slowdown risks
1 Nov 2 · 11d ago · 2 articles · 1 post · 3 sources · development 1 of 1
Economists cautioned that current manufacturing strength is concentrated in AI-related spending, while non-AI sectors face headwinds from rising interest rates, declining inflation-adjusted household incomes, and elevated input costs. Citigroup economist Veronica Clark highlighted risks if AI sentiment shifts or if financial conditions tighten further.
“While AI-related investment is expected to remain strong, further shifts in AI sentiment, which has worsened in recent weeks, could weigh on investment plans.”
Veronica Clark, Citigroup economistInstitute for Supply Management Survey providerSusan Spence ISM Manufacturing Business Survey Committee chairVeronica Clark Citigroup economist
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first by Investing.com News, 11d ago · also Reuters
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