Daily News: October 15, 2013

Corporate Profit Growth Slows Amid Shutdown Risks

Bloomberg reported that prospects for a recovery in U.S. corporate profits this year are dimming after third-quarter earnings growth slowed and the federal government’s shutdown hindered trade and threatened to crimp consumer spending.

Bloomberg said earnings rose an estimated 1.4% for S&P’s 500 Index companies last quarter, trailing gains of 3.8% in the previous three months and an average 10% over 15 years. According to data compiled by Bloomberg, analysts have reduced the quarterly estimate by 75% since June.

Bloomberg noted the two-week-old shutdown and impasse over increasing the U.S. Treasury’s borrowing limit add to the risk of derailing an economic recovery whose bright spots include revivals in housing and for Detroit’s automakers.

To read the Bloomberg article click here.