US consumer confidence tumbled to a nine-year low in October, undermined by the poor jobs outlook, weak stock prices and the threat of war with Iraq.
The fall in the widely-watched Conference Board index, released yesterday, fuelled new doubts about the staying power of the US consumer and bolstered speculation the Federal Reserve would cut interest rates.
The index fell to 79.4 in October from 93.7 in September, its fourth consecutive monthly fall and the biggest one-month drop since the aftermath of the September 11th terrorist attacks. It was also the the second largest decline since September 1990, near the start of the 1990-91 recession.
Most economists expected a reading of 90.
The main stock indices fell by more than 1 per cent in reaction. Futures prices registered sharply stronger odds of a Fed rate cut at next Wednesday's meeting of top policymakers.
Some economists fear the consumer confidence figures will be followed by other bad statistics this week that could undermine the stock market rally.
Government reports on income, factory activity, construction and employment are all due on Friday.
Allied Domecq posts 6% rise in profits
British drinks group Allied Domecq yesterday reported a 6 per cent rise in annual profits thanks to a vigorous marketing drive but admitted that the ready-to-drink market in the United States was proving a hard nut to crack.
Allied Domecq posted profit before tax, exceptionals and goodwill amortisation of £480 million sterling (€761 million) for the 12 months to August, on sales which grew by 16 per cent to £3.33 billion.
Allied Domecq chief executive Mr Philip Bowman said that through an important year the company had maintained its focus on delivering profit growth while building up its brand portfolio and improving volume performance in key markets.
"We expect to continue to grow earnings benefiting from the contribution of our recent acquisitions while continuing to invest strongly in the business as we support new campaigns for our core brands and drive our programme of innovation," he said. (AFP)
Profits rise 33% at Procter & Gamble
Consumer goods giant Procter &Gamble said yesterday that quarterly profit rose by 33 per cent, helped by its strongest quarterly sales growth in seven years on the strength of products like Crest Spinbrush battery-powered toothbrushes and Pantene hair-care products.
Marketing, research and administrative spending rose 8 per cent to $3.13 billion, mostly due to increased spending on marketing.
The company posted net income of $1.46 billion compared with $1.10 billion a year ago.
Excluding restructuring charges, profit was $1.58 billion, in the fiscal first quarter ended September 30th, compared with $1.34 billion, a year ago. - (Reuters)
Weather costs firms 20,000 working days
WET and windy weather conditions across the Sate over the weekend and yesterday cost Irish companies more than 20,000 lost working days, according to the Small Firms Association (SFA).
Mr Pat Delaney, SFA director, said the cost of the bad weather to business is difficult to assess but for every hour lost by the entire workforce in Dublin, businesses in the city lose €14 million in lost productivity alone.
A telephone poll by the SFA yesterday revealed companies in Leinster, Mayo and Galway had been particularly badly hit by the poor weather.
Business excellence group to hold forum
Representatives from the public sector and indigenous Irish companies are being encouraged to take part in the latest forum of the Irish Centre for Business Excellence (ICBE).
The ICBE series of forums brings together senior business executives to share ideas and offer insights to other companies as to how "best practice" can be achieved.
The group's next forum, "Thriving on Uncertainty", will be held in the Dunraven Arms Hotel in Limerick on November 14th. It will be addressed by a number of successful business people, with a special address on "Worldclass Performance" to be given by Ireland's two-time world rowing champion Mr Sam Lynch.
ICBE chief executive Mr Patrick O'Neill said his group wanted to see more representatives from Irish companies and the public sector attending the forums.
