Rising costs and their impact on corporate profitability are weighing on investors’ minds as earnings season begins, according to new research from Corbin Perception Group (CPG).
In a study of North American investors, 82 per cent of respondents say cost pressures are a leading concern and could contribute to a slowdown in US economic growth.
‘I am concerned about how companies are managing these costs and whether they are able to push across price increases,’ one value investor reports in the survey.
‘When I talk about cost pressures, I am referring to all facets, including product and labour costs.’
Following cost pressures, other leading concerns for investors include global government debt levels (cited by 32 per cent of respondents), slowing growth (32 per cent) and weak consumer demand (27 per cent).
CPG conducted interviews with 28 financial professionals, whose institutions collectively manage $795 bn, for its latest quarterly survey of buy-side sentiment.