A fund manager says cost-cutting will again dominate the upcoming earnings results season, while revenue growth remains sluggish.
In the US, quarterly corporate earnings results have been relatively robust, although analysts worry signs of slowing economic activity may choke off company profit growth into next year.
New Zealand's earnings season is about to get underway, and investors will find out how firms' coped in the June financial year, and how the modest recovery is unfolding for them.
The head of equities at AMP Capital Investors, Guy Elliffe says firms continue to report patchy demand.
He expects gains in revenue to be modest, but earnings growth will be stronger due to costs being cut.
Mr Elliffe expect the strongest growth in areas such as utilities, while retail will remain more volatile.