Tags: buffett | berkshire | economy | weakness

Berkshire's Slice of Economy Points to Pockets of Weakness

Berkshire's Slice of Economy Points to Pockets of Weakness
(Dollar Photo Club)

Saturday, 03 August 2019 10:55 AM EDT

Warren Buffett’s conglomerate touches so many parts of U.S. business with its scores of companies that it’s sometimes used as a measure of the economy.

Berkshire Hathaway Inc.’s latest results show some evidence of the American consumer pulling back.

Soft consumer demand hit units from Berkshire’s group of home furnishing businesses to its BNSF Railway Co., according to a regulatory filing Saturday. The company’s revenue from consumer products -- which includes makers of jewelry, underwear and motor homes -- dropped 8.6% in the quarter. Battery company Duracell saw customers delay orders until the third quarter.

As the U.S. expansion becomes the longest on record, economists are looking to consumers to keep it going amid trade tensions and cooling manufacturing growth. Buffett, 88, has spent over five decades pushing Berkshire into an array of industries -- he listed 75 operating companies in his annual report and some of those contain dozens of smaller businesses. His consumer products companies employ 55,000 people with thousands more in service businesses such as Dairy Queen and a real-estate agency.

Berkshire Hathaway Automotive, which has over 80 auto dealerships, reported lower sales of new cars, while sales of pre-owned vehicles climbed.

Not all of Berkshire’s businesses reflected a weakened consumer. See’s Candies reported revenue gains in the first half, according to Saturday’s filing. And the highest-end consumers are still spending: private-plane rental company NetJets saw a jump in leases and flight hours.

© Copyright 2024 Bloomberg News. All rights reserved.


Economy
Warren Buffett’s conglomerate touches so many parts of U.S. business with its scores of companies that it’s sometimes used as a measure of the economy.
buffett, berkshire, economy, weakness
236
2019-55-03
Saturday, 03 August 2019 10:55 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved