Economics
Barclays: Profit Margins Could Be Pointing Towards a Recession
Will the recent fall in margins be the exception to the rule?
Shares of Johnson & Johnson could be worth another look.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
What are corporate profit margins telling us? Nothing good, according to Barclays analysts.
The team, led by Jonathan Glionna, points out that profit margins in S&P 500 companies have declined by 60 basis points over the past 12 months. That's something which doesn't usually happen unless the economy is heading into a recession.