High economic uncertainty coupled with declining volumes means that the outlook for the global consumer products industry is 'stable', despite projected profit growth, a new report from Moody's Investors Service has stated.
Average profit growth in the consumer products sector is likely to come in at around 4% to 7% over the next 12 to 18 months, Moody's said, driven mostly by price increases.
It added that it would normally change the outlook to 'positive' if profit growth was over 4%, however the high degree of uncertainty continues to weigh on economic forecasts, 'which increases risk to our profit expectations and our general industry outlook', Moody's said.
