Profit gains earned through job cuts and factory closing in the absence of a global economic recovery are starting to reach their limit.
Third-quarter profits and sales for SPX probably fell in unison for the first time in three years. While most companies plan to limit spending, lower expenses aren’t leading to the same kinds of increases they reported earlier this year. The U.S. economic slowdown, coupled with a worsening environment abroad, is leading more companies to consider further job and spending cuts.
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