Hot inflation slows 3Q earnings growth forecasts

By DAMIAN J. TROISE
AP Business Writer

Wall Street expects the latest round of quarterly profits to show burn marks from the hottest inflation in four decades, and the damage could linger into 2023. Analysts have been trimming their forecasts for companies as inflation drives up costs and saps consumer spending on everything from food to clothing. Companies within the broad S&P 500 index are expected to notch earnings growth of roughly 2.6%, down from June projections of 9.5% growth. If it holds, that would be the S&P’s slowest growth since the third quarter of 2020, according to an analysis from FactSet.