Why Business Leaders Can’t Wait for the Election To Be Over

Tuesday’s general election has been top-of-mind for American consumers and businesses lately, and corporate America will be happy for it to be over.

The word “election” has been mentioned during nearly two-fifths of S&P 500 earnings calls so far this quarter, according to a recent analysis of transcripts by FactSet Research. Executives are even talking about the election more than they did in 2020. 

One of the most common statements executives have made about the election this quarter is that the uncertainty surrounding it has delayed some business. Companies across all sorts of sectors have said some of their customers, both commercial and consumer, are waiting until after the election results are known to commit to some big projects.

Executives Note Distraction, Delays in Spending

Executives at home improvement and agricultural products retailer Tractor Supply Co. (TSCO) said, “spending leading up to the federal election will be dampened both just with distraction as well as a little bit of just wait-and-see mode.” Technology manufacturer Jabil (JBL) echoed Tractor Supply’s “wait-and-see” comments, noting clients in the electric vehicle (EV) and renewable energy industries were being particularly cautious. 

IT products and services provider CDW Corp. (CDW), which has a unit dedicated solely to serving clients in government and education, said uncertainty about the election had “dampened not only government spending, but also other public sector end markets, as well as spend from commercial customers.” 

Homebuilders have also felt the pinch, with election uncertainty clouding the outlook for interest rates. Executives at Pultegroup (PHM) said the “nonstop barrage” of news leading up to the election had created “a lot of uncertainty” that, along with expectations for lower interest rates next year, was keeping homebuyers on the sidelines.

Banks have noticed a reluctance on the part of clients to pull the trigger on financing for big investments as well. “Despite recent interest rate cuts and the possibility of more, customers are hesitant to make capital expenditures until the resolution of the election,” said executives at Regions Financial (RF). Fifth Third Bancorp (FITB) leaders said election unknowns were compelling businesses to pay down debt instead of investing in growth. 

Optimism About the Post-Election Period

Several companies expressed optimism that business will pick up once the election is over. Homebuilder D.R. Horton’s (DHI) chief operating officer, Michael J. Murray, said: “I think everybody would be happy the election is over. I think that will help buyer sentiment and the ability to move forward with their life decision.”

Executives at wholesale food distributor Sysco Corp. (SYY) said they were “cautiously optimistic” that Americans would dine out more after the election. Executives at waste collection company Republic Services (RSG) noted there is always “a little bit of paralysis” with an election, but that stalled “jobs are starting to move here in the fourth quarter.”

Trade and tariffs have been the most-discussed policy issues so far this earnings season, according to FactSet’s analysis. Seven companies, ranging from shoemaker Deckers Outdoors (DECK) to steel producer Nucor (NUE), have commented on the possibility of higher tariffs and assured investors they are preparing for various outcomes. 

Despite referring often to the 2024 election, few companies have mentioned either of the candidates by name—just three S&P 500 company executives have mentioned “Harris” on their call, while six have mentioned “Trump,” according to the FactSet research.