UBS Investor Watch Pulse 1Q18

Optimism soars after tax reform

Business owners look to infrastructure for next leg of growth

Confidence dramatically higher

Economic outlook Market outlook Business outlook Administration

is positive is higher is stronger87% approval rating is up

87%
83% 81%
77%
70%
65% 62%
50%

Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1
2017 2018 2017 2018 2017 2018 2017 2018

Consensus for investing in infrastructure Private sector engagement is key

84% 89%
“The government “It will improve the
should spend more economy.” 4 out of 5 support private sector involvement
on infrastructure.”

65 %
65 % Top 3 ways to fund infrastructure

“It will improve my

business.”
“I am willing to pay more.”
(e.g., gas tax, tolls)
1 Public-private
partnerships 2 Private
investment
vehicles
3 Enhanced
incentives for
charitable giving

Top investment priorities

72%Bridges 72%Highways 71%Water Systems 70% Schools 64%Utilities

% extremely/very important more >
Momentum for infrastructure is strong

Business owners plan to act in 2018

36% vs. 14% 44% vs. 17%

plan to plan to plan to plan to

hire more reduce workforce invest more invest less

Tax bill driving optimism

79 %
are satisfied with
new tax bill
72 %
believe tax bill will
boost the economy

Fewer regulations also well-received

72 %
approve of steps taken so far 68 %
say their company is
already benefitting

About the survey: UBS Wealth Management Americas has been tracking business owner sentiment quarterly since Q4 2016. For the most recent report,
we surveyed 312 business owners from January 8 - January 15, 2018. On average, these businesses have an annual revenue of $3.5 million.

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Managemis a subsidiary of UBS AG. Member FINRA/SIPC. Date of first use: 1/30/2019 180125-4012