Adverse Uncertainty, Limited Relief: U.S. Industrial Output under Economic Policy Uncertainty

Using monthly U.S. data from 1985 through 2025, this paper shows that increases in economic policy uncertainty are followed by broad industrial weakness concentrated in business equipment, while measured uncertainty declines do not generate equal-and-opposite rebounds.

May 2026 · Nicholas R. Pusateri (coauthored with Lucjan T. Orlowski) · Working paper
Paper