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Eye on corp margins as advanced economies' rules push firms to hike wages

Slack in job markets, low inflation, tech disruption kept wage growth, corporate profits subdued

Reuters  |  London 

Robust corporate profit margins, one of the underpinnings of the rally in developed market stocks over the past decade, could be put to the test in coming quarters as tighter labour markets push companies to hike wages at last more to stay competitive. Slack in job markets, stubbornly low inflation and the disruptive effect of technology across industries from retailing to financial services along with off-shoring of manufacturing to low-cost locations have kept wage growth subdued and profit margins high across markets in the United States (US), Western Europe and the advanced ...

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First Published: Thu, July 13 2017. 23:47 IST