Fewer companies in the S&P 500 index cited “inflation” in their recent earnings calls, though mentions remain relatively high, according to FactSet’s senior earnings analyst John Butters.
He said in a note Friday that 325 S&P 500 companies have cited “inflation” during their earnings calls for the fourth quarter, the lowest number since the third quarter of 2021. That’s a 20% decline from the third quarter of 2022, representing the largest quarter-over-quarter percentage drop since the first three months of 2020, when inflation mentions plunged 58%, according to the note.
Plus, “there are still about 30 S&P 500 companies that have not reported actual earnings for the fourth quarter,” he said. “So while the final number will likely finish higher than 325, it will fall short of the 404 from the previous quarter.” Core PCE data, which excludes food and energy prices, jumped 0.6% last month for a year-over-year rate of 4.7%, the Bureau of Economic Analysis said Friday.