U.S. worries over declines in sales of products
Corporate America worries over decline in sales
Wed Oct 17, 2012 10:40PM GMT
A slowing world economy took a toll on sales of products ranging from soft drinks to corporate jets in the third quarter, leading top U.S. companies, including PepsiCo Inc, IBM and Textron Inc, to miss Wall Street’s sales targets.
Those misses sparked concerns among investors that corporate America’s year-long streak of profit growth could be nearing an end as CEOs run out of costs to cut and customers are increasingly wary about spending.
A major worry is the risk of the year-end fiscal cliff – $600 billion of spending cuts and higher taxes that could take effect at the end of the year if lawmakers in Washington fail to agree on a plan to shrink the federal deficit. infowars.com
FACTS & FIGURES
In August, the federal budget deficit increased by $191bn, bringing the annual deficit over the $1tn mark for the fourth straight year. The Guardian
The U.S. trade deficit widened in August as slower global growth reduced demand for American exports. Bloomberg
Producer prices rose 1.1% in September after an increase of 1.7% in August, the Labor Department said. The increase was more than forecasted. Market Watch
Professional forecasters expect economic output to grow just 1.9% during the last part of 2012, rising steadily to 3% in the fourth quarter of 2013, according to the survey by the association for professional economists. That is a slight downgrade from the pace of growth expected in the group’s May 2012 survey, when economists forecast 3.1% growth by the end of next year. Market Watch
The economy is on a downward trajectory. The three months ending June is the second consecutive quarter of significant deceleration in economic activity. Real GDP growth peaked at a 4.1% annual rate in the fourth quarter of last year, but then fell to only 2% in the first quarter before slowing even more in the June quarter. Forbes