LONDON (Reuters) - Europe's corporate recession is expected to deepen, according to the latest forecasts, as companies struggle with uncertainties from Brexit and the protracted U.S.-China trade spat and Germany's manufacturing recession.
Companies listed on the STOXX 600 (STOXX) regional index are now expected to report a drop of as much as 3.7% in third-quarter earnings, worse than the 3% fall expected a week ago, according to I/B/E/S data from Refinitiv.
That compares with growth of 14.4% in the year-earlier quarter and would be the worst EPS since Q3 2016 when earnings fell 5%.
Companies in the region have been in an earnings recession since the second quarter when earnings dropped 2.1%, their second straight quarterly fall.
Consensus for revenue improved slightly with forecasts for flat growth, compared with a 5.9% rise a year ago and 3.3% growth in Q2.
Q4 forecasts were reined in slightly - EPS is now expected to grow 9.1%, down from 9.6% last week and forecasts are for a 3.2% rise in revenue, down from 3.4% last week.