US Companies Warn of Slowing Economy, Article Review Example

The article main purpose is to deliver a message of warning concerning the slow pace in the U.S. economy. The authors of the article are Theo Francis & Kate Linebaugh which was published in the wall street journal, on 25^th October 2015. The authors also claim that they can be reached on [email protected] Theo Francis while Kate Linebaugh may be contacted through [email protected].

The goals of the authors are to illustrate the setbacks that have been experienced by most of the companies as a result of the slow economic growth in the united States. The authors also aim at indicating further damages associated with less production and laying off of the employees.

In an attempt to achieve the goal of the article, the authors illustrate the economic situation in the United States using several companies and how they have been affected by the trend in economic growth. For example, according to the authors, the big companies in America are anticipated to encounter a significant decrease in their revenue as well as profits for the first quarter of their operations since the time of the recession. This has forced some of the firms to pull back on their spending. The slow pace in the economy is also anticipated to be felt by the manufacturers, railroads as well as energy producers with most businesses claiming that they already encounter protracted drug in their production, employment as well as sales that is projected to extend to the coming year. Majority of the business have already encountered a downturn that is attributed to the slow growth in the economy.

The authors claim that, this situation is only comparable to a recession. Most industries and construction supplies have been forced to reduce their rate of spending by a factor of about 10 percent while others have been pressed to the level of 25 percent reduction in spending. Caterpillar is one of the companies that have been forced to reduce their forecasts for their profits which were attributed to the weak demand that is associated with their heavy equipment. On the other hand, 3M Company that deals in kitchen sponges and adhesives for ue in automobiles had taken the option of firing 1, 500 of their employees which translate to 1.7 percent layoffs due to sagging in sales in their products.

The situation also affects other areas such the aerospace as well as technology. It has become prudent to buffet the industrial firms from multifaceted fronts. The energy prices have been slumped thus gutting the demand as well as the supply of the drilling machines.

The authors have definitely achieved their goals of sending a warning message on the state of the economy through the use of illustrations and an indication of the implication of the situation on economic expansion that is also slowing down in China with the mot renounced emerging markets including Brazil that have been resourceful to the companies in the United States for their sales growth. The authors have also indicated the effects of the strength of the dollar in eroding the oversea profits. It is clearly evident that the authors have been articulate in demonstrating the situation and therefore the article is good. It gives a timely warning for the companies to take appropriate measures that can cushion them against the effects of the economic situation.

Works cited

Theo Francis & Kate Linebaugh. U.S. Companies Warn of Slowing Economy. Wall Street Journal, Oct. 25, 2015. >> http://www.wsj.com/articles/u-s-companies-warn-of-slowing-economy-1445818298<<.