(26-08-2025, 06:06 PM)revealer Wrote: The 50 companies u ran through might hv good report but the enterprise total profit has been falling since 2022.
![[Image: IMG-7832.jpg]](https://i.ibb.co/C3pzX3km/IMG-7832.jpg)
According to Google AI: What a Negative PPI Minus CPI Means
Squeezed Profit Margins:
A negative difference implies that the cost for producers to make goods (PPI) is decreasing at a faster rate than the prices consumers are paying for those same goods (CPI).
Favorable for Consumers, Challenging for Businesses: Consumers benefit from falling or slower-growing prices, but businesses face a period of declining profitability.
Economic Implications
Unfavorable Economic Conditions: The trend of PPI falling faster than CPI is often seen as a sign of economic headwinds and potential difficulty for businesses.
Reduced Corporate Profitability:
When businesses cannot raise prices to offset higher input costs (or if input costs are decreasing while consumer demand is weak), their profit margins are reduced.
Impact on Investment: Lower profitability can lead to reduced corporate investment, which may, in turn, negatively affect payroll numbers.
In Summary
A negative PPI minus CPI suggests a challenging environment for industrial enterprises, with weaker corporate profitability and potential signs of a weakening economic outlook.