Moody's is anticipating operating profits of between 1% and 4% over the next 12 to 18 months for the global consumer goods industry, as the 'global economy slows, [and] inflation and supply chain woes continue'.
The ratings agency has changed its outlook for the sector to 'stable' from 'positive', revising down its previous forecast of 4% to 6% growth for the industry.
In its report, Outlook turns stable as economy slows, uncertainty rises, Moody's said that economic growth is likely to suffer as the 'fallout from Russia's invasion of Ukraine builds', while a spike in commodities prices driven by supply shortages 'creating risks of damagingly high input costs and consumer inflation over an extended period'.
