Slowing economy presenting more challenges: NABE

foxbusiness.com:

Former Kansas City Federal Reserve Bank president and CEO Thomas Hoenig joins 'Maria Bartiromo's Wall Street' to discuss the Federal Reserve's next move.

The nation's leading economists stopped short of forecasting a full-blown recession, but they do see headwinds for the U.S. economy. 

«The October 2023 Business Conditions Survey results suggest a more challenging business environment as the economy slows,» said National Association of Business Economists (NABE) president Ellen Zentner, chief U.S. economist, Morgan Stanley. «Sales are seen as growing but at a slower pace, and profit margins are reported to be declining» according to the survey released Monday. 

«The October 2023 Business Conditions Survey results suggest a more challenging business environment as the economy slows. Sales are seen as growing, but at a slower pace, and profit margins are reported to be declining.»

More participants in the survey, which reflects third-quarter and near-term views, report falling sales, while fewer report rising sales over the past three months vs. the July survey. Slowing sales, combined with declining profit margins, can be a headwind for companies with the group's NRI index for profit margins falling to the second-lowest reading since the pandemic. 

WORST OF BIDENOMICS AHEAD: OPINION

For example, Tesla, in its latest quarterly results, reported similarly. EDBITA margins fell to 16.1% vs. 23.2% during the same period a year ago, surprising Wall Street. 

«In a nutshell, we would characterize last night's conference call as a „mini disaster“ as the Street wanted to get their arms around the falling margins and constant price cuts seen globally, but instead we heard from a much more cautious Musk, which focused on higher