'Worst quarterly results in years' push UK into earnings recession

Profits fall 4.5% in Q3

The UK has fallen into an earnings recession following “the worst set of quarterly results in years” in Q3, with more than half of companies reporting lower profits for the second consecutive quarter, according to The Share Centre.

The third quarter of 2019 saw profits fall by 4.5% overall, reflecting the first quarterly drop in almost three years. On a 12-month basis, UK profits have totalled £189.7bn, a decline of 1.6% compared to the same figure three months ago, dragging The Share Centre's profit index down to 107.1, compared to 109.0 in August. UK profits have grown only 7% since 2007, far behind revenues. Revenue growth was at 4.6% over the quarter, with two-thirds of this attributed to the weakness of sterling. The Share Centre's UK Profit Watch report shows that the declines were felt across more than...