Prudential Securities Quarterly Survey
EDITORIALS
[Conducted in late August and early September 1998]
Prudential Securities anallysts surveyed 742 companies in 49 industries found the
following economic danger signs:
Demand is slowing. Almost two-thirds of the industries reported rising demand
for their goods and services, well below the peak reading of 83% recorded in late 1997.
Nearly half the industries experienced price declines,the weakest results since
the survey was launched in 1996.
The pace of capital spending appears to be slackening. Only 26.5% of the
industries are expected to have rising out-lays, the lowest number in the study's history.
Exports are deteriorating. Nearly half the industries are expected to show
declines.
The export slump reflects the deepening Asian economic crisis, which is expected to have
a negative impact on 55.1% of the industries.
The Prudential survey mirrors other new economic warning signals:
According to First Call, operating earnings for S&P 500 firms will be down an average
of 2.6% in the third quarter - the first time they have dipped since the third quarter of 1991.
by Bill Meyers
USA TODAY
