All of these factors are putting downward
pressure on corporate profits.
My worry as an investor: With February's unemployment rate at 4.9 %, companies may need to raise wages to attract workers, which would put
pressure on corporate profits.
As shown below, we've observed downward
pressure on corporate profits in recent quarters as a result.
That puts
pressure on corporate profit margins and theoretically should lead to higher inflation.
Not exact matches
That, in turn, should help alleviate the
pressure on the manufacturing sector, as well as
corporate profits.
As investors
pressure corporate heads to focus
on repaying debt, and
profit expectations roll over further, it's almost inevitable that we'll see hiring slow significantly.
Pricing
pressures also affected
profits: several senior
corporate partners or firm managers noted increased competition for underwriting work, resulting in lower fees last year; and push back
on rates continued to be a concern in many practice areas, especially litigation.