Political uncertainty is weighing on investor sentiment, according to a special report by Marcus & Millichap. The firm’s Investor Sentiment Index edged slightly lower to 150 from 153 in fourth quarter 2016. The sentiment index has been tapering since peaking at 179 in 2014.

Uncertainty related to the Trump administration, modest tightening in capital markets, property price increases and the mature market cycle are some of the key reasons behind the decline in sentiment.

Overall, nearly half of respondents still have confidence in the economy and a positive lift from the Trump administration policies, but there has been a noticeable pullback in sentiment compared with the fourth quarter survey, which was taken immediately following the presidential election.

“There are a lot more questions today about how the Trump administration is going to fuel growth,” says John Chang, first vice president of research services at Marcus & Millichap.

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