{"id":139446,"date":"2025-09-03T09:01:00","date_gmt":"2025-09-03T13:01:00","guid":{"rendered":"http:\/\/kendallharmon.net\/?p=139446"},"modified":"2025-09-03T18:15:11","modified_gmt":"2025-09-03T22:15:11","slug":"wsj-in-the-us-economy-consumer-spending-isnt-driving-company-profits-as-much-as-reducing-expenses-and-improving-efficiency-that-could-be-a-problem","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=139446","title":{"rendered":"(WSJ) In the US Economy, Consumer spending isn\u2019t driving company profits as much as reducing expenses and improving efficiency. That could be a problem."},"content":{"rendered":"\n

American companies are once again beating profit expectations, but this time around they aren\u2019t banking on blockbuster consumer spending<\/a> to make it happen.<\/p>\n\n\n\n

Instead, the latest batch of quarterly earnings is getting a lift from managers who are squeezing out costs, boosting productivity and turning to new technologies. Companies from\u00a0Monster Beverage<\/a>\u00a0to\u00a0Est\u00e9e Lauder<\/a>\u00a0said they are holding down hiring, often while finding new ways to get employees to work more efficiently. And they are raising prices when they can.<\/p>\n\n\n\n

\u201cThe processes are human-light now,\u201d\u00a0Damon Lee, chief financial officer of\u00a0C.H. Robinson Worldwide<\/a>\u00a0, said last month as he told investors about an initiative that includes automation upgrades. The global logistics company reported higher profit margins in the second quarter despite a nearly 8% drop in revenue, which it attributed to a prolonged freight recession. It said it had increased productivity 35% since 2022.<\/p>\n\n\n\n

\u201cThe outcome of those transformations means less head count, more productivity,\u201d he said.<\/p>\n\n\n\n

More broadly, the gains enjoyed by companies and their investors aren\u2019t softening the unease consumers and employees feel\u2014and might be obscuring signals that ordinary Americans are putting their anxiety into action.<\/p>\n\n\n\n

Read it all<\/a>.<\/p>

For retailers, price increases have generated most of the growth in sales since 2021, with volumes largely flat. Meanwhile, companies are cutting staff on the margins and relying on new technologies to fill gaps. \u201cThe processes are human-light now." https:\/\/t.co\/61FEHkzBCa<\/a> pic.twitter.com\/nprY1Qo2Mg<\/a><\/p>— Lisa Abramowicz (@lisaabramowicz1) September 3, 2025<\/a><\/blockquote>