Companies making “real progress” in profit rebuilding

| August 9, 2010 | 0 Comments
Companies making “real progress” in profit rebuilding

According to a study by professional services firm Deloitte, 76% of companies in the UK, US and Europe have exceeded City forecasts when reporting their second quarter profits.

As a result of the findings of the study which looked at 543 firms, Deloitte said companies are making “real progress” but warned that consumer incomes and spending are lagging behind.

The good performance has, in turn, boosted stock markets, recovering from all-time lows experienced during the global recession.

Chief economist Ian Stewart comments: “Our analysis confirms that corporates are making real progress in rebuilding profitability.”

Mr Stewart added: “With cost control to the fore the recovery in profits has not been matched by growth in consumer incomes or spending.

“We are seeing a two tier recovery, with the corporate sector bearing down on costs and growing profits – and with consumer incomes and spending lagging behind.”

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