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Analysts are expecting the upcoming corporate reporting season to deliver a mixed bag of results, with falling consumer demand and increased costs a drag on earnings.
A report by brokerage firm Forsyth Barr forecasts profit margin declines across a range of sectors.
The construction, freight and retail sectors were expected to be hardest hit, with tourism sector companies offering up some bright sparks, and the agricultural sector potentially producing some upside surprises.
"We expect the market's earnings downgrade cycle, which commenced mid-2022, is more likely to persist than not over the course of the next few weeks," the report said.
Devon Funds head of retail Greg Smith said the outlook was mixed but probably tilted positively in terms of forward-looking statements, with inflation and interest rates steady around current levels.
Smith said weakness in the dairy sector as well as an economic downturn in China would continue to weigh on the economy, but there would be outperformers.
"As always, they'll be pockets of positivity and the travel names should be amongst those," he said, referring to Auckland Airport, Tourism Holdings and Air New Zealand.
Smith said investors would be hoping to see a return of dividends.
A broad range of big companies were expected to report results this week including Contact Energy, PGG Wrightson, Fletcher Building, Skellerup and Spark.