Business Services Q3 Earnings On Oct 22: IPG, TRU, HCSG
Zacks Investment Research | Oct 20, 2019 10:40PM ET
The picture so far this earnings season has been encouraging for key players in the Business Services space like Omnicom Group Inc. (NYSE:OMC) and IHS Markit Ltd. (NYSE:INFO) . Each of these companies delivered an earnings beat.
The business services was on a strong footing driven by economic strength and stability that kept service activities in good shape in the third quarter. The sector was buoyed by a strong labor market, low unemployment and inflation.
Notably, U.S. GDP grew at an annualized rate of 2% in second-quarter 2019 per the “second” as well as the "third" estimate released by the Bureau of Economic Analysis. The Fed expects GDP growth of 2.2% in the third quarter and 2.1% in 2019. September was the 116th month of consecutive growth in non-manufacturing activities with ISM-measured Non-Manufacturing Index touching 52.6%.
Since business services firms have lower foreign exposure compared with goods companies and incur lower foreign input costs, the industry was less affected by trade war in the third quarter.
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