Bank of America Corp.'s commercial customers are alreadyreacting to the “fiscal cliff” that looms over the U.S. budget byputting off purchases, Chief Executive Officer Brian T. Moynihansaid.

Businesses have held back on buying capital goods until theoutcome of negotiations in Washington becomes clear, Moynihan saidtoday at a New York investor conference sponsored by Bank ofAmerica. Tax increases and spending cuts could equal 4 percent ofgross domestic product, he said.

“The impacts of the potential cliff are already being felt,”Moynihan said. In the bank's survey of chief financial officers,“the number one issue they see is the fiscal cliff. They tell usit's affecting their business plan. That uncertainty continues tohold back the recovery. Simply put, our clients tell us they willnot be aggressive in times of uncertainty.”