BusinessCorporate FinanceCredit crunch, weaker dollar take toll on US economy

Credit crunch, weaker dollar take toll on US economy

Ernst & Young expects correction in the debt markets in Q4 as the credit crunch and weakening US dollar continue to drag on profits

Newly released research by
Ernst
& Young
, shows that in the September quarter, 11 US companies cited the
weakening dollar in their profit warnings. For many exporters and companies with
significant US operations, the weak dollar will continue to drag on profits as
2007 draws to a close.

The report shows profit warnings from UK-listed companies in the third
quarter (Q3) remained stable at 86, compared with 88 in Q2 and 85 in Q3 2006.

Andrew Wollaston, Ernst & Young corporate restructuring partner, said he
had been expecting a correction in the debt markets for some time.

‘In our view, the “credit crunch” will begin to impact UK consumer confidence
and therefore consumer demand in the current quarter,’ he said. ‘Looking
forward, UK plc needs to factor this into forecasts to avoid a rise in profit
warnings in Q4 this year.’

Related Articles

Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

10m Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

11m Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

11m Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

11m Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

11m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer