FX.co ★ Strong dollar – falling incomes of American companies?

According to the data for the fourth quarter of 2015, the companies' profitability from the United States of America has reached the lowest level for the last 6 years.

In the crisis 2009 year many companies were tight, but later the situation stabilized and the corporate earnings began to rise. In 2015, when the dollar strengthened its positions, many companies reported drops in profit. For example, last year for the first time in the last 35 years the biggest retailer in the world WalMart noted the reduction of earnings by 1.5%, the net profit – by 8%.

Last year for the first time the technological corporation Apple recorded drop in sales of the most popular product – iPhone. Experts note that such situation in the US market is attributable to the strong dollar and the instability of the global economy. But it is worth noting that Apple's finance is doing well – following the results of the first quarter of 2016, the company's profit has doubled by 1.7% compared with the rate of the last three months.

The analysts of Bank of America declare that in 2015 the corporate reporting showed the weakest performers for the period from 2009 to the present day. It is also worth noting that the number of companies, the financial results of which exceeded the analysts' forecasts, turned out to be the lowest for the last several years.

During the whole last year, markets and the world public were in for growing of the key interest rate by the US Fed. The rate was finally increased, however, it happened only in December 2015. According to analysts, that is the reason why the dollar has so strong position at the moment.

Experts consider that next year macroeconomic indicators will not show the highest rates. For examples, the Moody`s rating agency downgraded the forecasts of the G20 countries' for 2016 by 0.2% – from 2.8% to 2.6%.