NEW YORK — Corporate profits continued their yearlong slide during the third quarter and analysts expect another decline this quarter before the numbers start improving.
Companies have been hindered by slower global economic growth, worsened by the U.S.-China trade war, in their efforts to increase profits from a year ago. Many with international supply chains have faced higher costs, and several sectors have seen declining global revenue.
U.S. companies are also having a tougher year by comparison to 2018, when sharply lower corporate tax rates helped goose profits.
Analysts expect profits to resume growing in the new year, starting slowly in the first quarter and accelerating after that. Much of the optimism centers around hopes for a resolution to the trade war and companies getting a clearer picture of where the global economy is headed.