October 22, 2019 / 4:29 PM / 2 months ago

Europe Inc's recession expected to deepen as third-quarter earnings outlook deteriorates: Refinitiv

LONDON (Reuters) - Europe’s corporate recession is expected to accelerate, according to the latest forecasts, as companies struggle with uncertainties from Brexit, the protracted U.S.-China trade spat and Germany’s manufacturing recession.

Companies listed on the STOXX 600 regional index are now expected to report a drop of as much as 5.3% in third-quarter earnings, worse than the 3.7% fall expected a week ago, according to I/B/E/S data from Refinitiv.

That compares with growth of 14.4% in the year-earlier quarter and would be the worst EPS in at least three years.

Companies in the region have been in an earnings recession since the second quarter when earnings dropped 2.1%, their second straight quarterly fall.

Consensus for revenue improved slightly with forecasts for 0.1% growth, compared with a 5.9% rise a year ago and 3.3% growth in Q2.

Reporting by Joice Alves, editing by Karin Strohecker

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