In recent weeks, companies from meat producer Tyson Foods Inc. to fashion retailer Abercrombie & Fitch Co. have warned that their margins are coming under pressure, or are set to do so.
“We still expect the tide is turning on profits,” economists Jay Bryson and Shannon Seery at Wells Fargo & Co. wrote in a note after today’s data was published. “Persistent price pressure amid our expectations for a more pronounced pullback in demand in the second half of the year will dent businesses’ ability to continue to pass costs on.”
--With assistance from Matthew Boesler.
This article was provided by Bloomberg News.