Bunzl the outsourcing and distribution firm has posted slowing first quarter growth, sales grew by 4% in the period which is linked to “mixed macroeconomic and market conditions.”
Their North American business experience slower underlying growth of around 1%, due to a drop in sales of customers in the retail and grocery sectors.
Investors have reacted badly to the news and share have plummeted by almost 10% to 2,310p in early morning trade.
Russ Mould, investment director at AJ Bell said, “Markets have been right to worry about a global economic slowdown if you look at Bunzl’s gloomy update.
“It supplies goods to companies so they can do business, rather than items they sell on to their customers.
“For example, this includes coffee cups for cafes, cleaning products for hospitals and food wrap for supermarkets to protect their goods.
“Therefore, it can be considered an economic bellwether.
“The fact that underlying revenue growth during its first quarter seems to have slowed in all markets is a major alarm bell.
“The big question is whether life is getting to get even tougher in its second quarter.”