Natixis - Actual and foreseeable trends in corporate profit margins

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Natixis

Patrick Artus

Actual and foreseeable trends in corporate profit margins

The trend in corporate profit margins can be measured by the trend in the ratio between the GDP deflator and unit labour costs. We then see that today: In the United States, profit margins are significantly higher than before COVID; In the euro zone, profit margins are slightly lower than before COVID. The outlook for 2023 is a decline in profit margins, due to: The slowdown in growth; Faster wage growth than in 2022.

11/07/2022 1 EN

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Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

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Analysts

Patrick Artus

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Actual and foreseeable trends in corporate profit margins

Regardless of Trump, Europe should not be seduced by China’s charm offensive

Trade ideas Monthly - April/May 2025

BUY EUR/USD 3m call RKO 1.22

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