This same tendency can be seen in longer-horizon measures of inflation compensation derived from a comparison of yields on nominal Treasury securities and those on Treasury inflation-protected securities (TIPS), which are indexed to a measure of price change. Specifically, for the period five to ten years ahead, the TIPS-based measure of inflation compensation has remained well anchored in recent quarters.
If a company expects demand to fall, it will be less inclined to make big investments. Moreover, ageing societies, which exist in many mature economies, not only have to cope with a shrinking labour force, but they also have to save more. This has led to a savings glut and to a shortage of safe assets. So investments are falling and savings are rising.