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profit squeeze
noun
- a sharp narrowing of the gap between cost and revenue.
Word History and Origins
Origin of profit squeeze1
Example Sentences
"Production in September was visibly better than in previous months due to improved domestic demand, which squeezed down industrial prices. In October, we saw a wider effort in the industrial sector to cut supply to cope with a profit squeeze."
The Atlanta company is caught in a profit squeeze in the wake of contract talks with its Teamsters-represented workforce.
"The economics of profitability suggest we might see more of a profit squeeze coming up," ECB chief economist Philip Lane told Reuters.
The data added to concerns that Japanese firms are holding off on investments amid a profit squeeze from rising energy and raw materials costs, fuelling worries about the pace of economic growth as the world’s third-largest economy tries to recover to pre-pandemic levels.
Yet the unprecedented price moves show a market bracing for the unthinkable, and investors preparing for consequences ranging from a bank profit squeeze to sub-zero bond yields, money market turmoil and capital outflows.
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