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Despite improving to a .1% gain on strong residential construction activity in December. Construction spending missed expectations substantially as the year ago change dropped to 8.2% as non-residential spending fell sharply to end the year.

US SP500 2015 Q4 Revenue growth by sector 2.1.16

With 40% of the Standard and Poors 500 index having reported so far the show me the money season isn’t going well. Blended revenues are down 3.5% from a year ago and are on track to fall for a 4th consecutive quarter.  If this trend holds revenues will slip 3.4% for all of 2015 recording the first annual revenue decline since 2009.  Earnings are tracking a 5.8% reduction and the 4th quarter will mark reduced earnings for a 3rd consecutive quarter.  Something that hasn’t happened since the depths of the previous crisis in 2009.  All this despite prodigious share buybacks that in fact speak volumes about the lack of end user, aka consumer demand as corporations pass on expanding capacity, or put another way supply, because there is already too much, buying company shares instead.

US SP500 2015 Q4 Earnings growth by sector 2.1.16

Thanks to FactSet and WolfStreet for the graphics.

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