The largest American companies clocked their fourth straight quarter of declining profits as weakness in the energy sector and low business investment counteracts US consumer spending.
On top of that, execs say they are worried about an unstable political climate and slowing industrial production, the Wall Street Journal reports. And with just over two-thirds of the S&P 500 companies reporting Q2 earnings, adjusted earnings are projected to fall 2.6% from last year, making it the fourth quarter in a row they’ve slipped.
The only areas expected to achieve growth exceeding 5% are the healthcare, utilities and consumer-discretionary sectors, while energy companies are the hardest hit—their earnings likely to plummet by 87%, according to Thomas Reuters. [WSJ]
US Corporate Earnings Decline In Q2, A Negative Sign For The Health Of The Economy
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Related Topics:
Energy sector
, Low business investment
, Political climate
, S&P 500
, US corporate earnings
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