Some Monkey Business....Is 20% the magic number?
Company after company is reporting sales drops around 20% or more.
Office Depot Inc. evenue fell 22 percent to $2.82 billion from $3.61 billion last year.
The company is closing about 9 percent of its North American stores and cutting 2,200 jobs.
In some cases much more than 20%.
U.S. Steel Q2 net sales $2.13B vs $6.74B
Paccar Q2 revenue $1.85 bln vs $4.11 bln
If practically every company is reporting such massive revenue declines, and GDP contraction at only 7% and unemployment at only 9.5%, one would think we are not even close to the bottom yet.
Again, how can Economists forecast improvement when business after business, and those businesses that service business, are reporting such massive contraction in revenues?
Does anyone think there is some monkey business going on?
Textron said revenue fell 29% to $2.61 billion, due in part to a sharp decline in sales of Cessna business jets and industrial products.
Interpublic Group net off 71%, revenue down 20%
Rockwell Automation revenue slumped to $1 billion, down 31% from $1.48 billion.
And some people say the recession is over??? Are they bananas?