Goldman: Weak Demand to Limit European Corporate Profits

A senior European strategist at Goldman Sachs Group Inc. forecasts that first-quarter profit growth for European companies will remain at only a 'few percent,' significantly trailing the double-digit growth seen in the United States. Weak demand conditions stand out as the key factor pressuring profitability for European firms. The strategist notes that the effects of the region's economic slowdown will be reflected in first-quarter results. According to Goldman Sachs' analysis, profit expectations for European equities remain low, while strong growth dynamics persist in the U.S. This could influence investors' regional preferences. This is not investment advice.