The Morning Ledger: Finance Chiefs Chip Away at Expenses Despite Sunnier Economic Outlook

Good morning.?Finance chiefs continue to hammer away at their companies’ expense lines despite a much improved economic backdrop and increased confidence that the U.S. economy has sidestepped a recession.

In recent weeks, U.S. companies including The Hershey Company , Mattel, Inc. and 雅诗兰黛有限公司 announced new plans to chisel back costs and improve profit margins, in some cases resorting to layoffs, reports Kristin Broughton . By trimming expenses, some finance chiefs are freeing up cash for growth plans, as they also face growing resistance to the fevered price increases that began with the pandemic, corporate advisers said.

Consumer inflation eased a bit in January, rising 3.1% from a year earlier, versus 3.4% in December, but the decline was less than investors expected, sending stock markets tumbling and clouding the outlook for interest-rate cuts from the Federal Reserve.

Still, the U.S. economy grew 3.1% in 2023, a sharp uptick from the 0.7% pace of the previous year, the Commerce Department said last month. The stock market has chalked up record highs . And many economists now fully expect a soft landing , meaning the economy will avoid a recession as it returns to prepandemic norms.

Yet despite the strong outlook for corporate profits, many companies continue to face a mix of financial pressures . For more details, read on here .

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