Global corporate profits to fall 8% in Q3 after record Q2

BENGALURU: Global corporate profits in the third quarter are likely to fall for the first time in 18 months after record earnings in April-June, Reuters calculations showed, as the spreading COVID-19 Delta variant squeezes supply chains and raises labour costs.

Massive fiscal stimulus to support economic recovery and loosened pandemic curbs generated high consumer demand in the second quarter, and companies contending with disrupted supplies and falling inventories raised prices to offset James Solloway, chief market strategist at SEI, said a further fall in interest rates could squeeze U.S. banks' profitability rising input costs.