Corporate earnings momentum should turn "strongly positive" by Q2 2002. (Economy).(forecasts by Merrill Lynch)(Brief Article)

Purchasing, March, 2002

Corporate earnings momentum should turn "strongly positive" by Q2 2002, according to the latest forecast from Merrill Lynch. But, on the whole, ML says companies will fail to make up the earnings losses booked in 2001. By sector, ML is counting on the biggest earnings turnarounds coming in the technology and telecom sectors.

Industrials and healthcare are also expected to turn in double-digit earnings growth in 2002. It should be noted, however, that ML's underlying economic growth assumption for 2002 is at the high end of the forecast spectrum.