Only 47% of firms surveyed by the National Association for Business Economics reported rising sales in the last quarter of the year, down from 61% the previous quarter, while the number of businesses reporting falling sales nearly tripled, from 6% to 17%.
The holiday season didn’t seem to bring any relief. 20% of businesses said they saw profits fall over the survey period, up from 8% in October. Most businesses aren’t optimistic about a turnaround early this year, either, with just 14% expecting bigger earnings during the first quarter.
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“Most respondents do not expect a recession within the next 12 months, but fewer respondents than previously expect robust economic growth in the year ahead,” said NABE Business Conditions Survey chair Sam Kyei, the chief economist at SAK Economics.
Signs of a global slowdown, escalating trade tensions, and stock market volatility have created an uncertain economic climate for businesses and investors. A recent survey of consumer sentiment hit its lowest level since President Donald Trump took office.
Source: Rising number of US businesses report sales and profit slowdown at the end of 2018
