U.S. companies are expecting declines in profits and revenues for the first time since the recession began, the Wall Street Journal reported.
Industrial firms are experiencing economic hardship, citing a slowdown in production as well as in sales and employment.
"The industrial environment’s in a recession," said the chief financial officer of Fastenal Co. "I don’t care what anybody says." One-fifth of his top 100 customers have cut their spending in his company by more than 25 percent.
Companies including Twitter and Walmart are cutting costs by announcing job layoffs, which could lead to an uptick in the unemployment rate.
"Wal-Mart recently warned its sales this year are likely to be flat, down from projection of as much as 2% growth, and cut its earnings forecast for next year as it raises wages," explains the article.
"Profit and revenue are falling in tandem for the first time in six years, with a third of S&P 500 companies reporting so far," states WSJ. "Sales are on pace to fall 4% - the third straight quarterly decline. The last time sales and profits fell in the same quarter was in the third period of 2009."