STOCKHOLM (Reuters) -Shares in Electrolux tracked their worst day since 2011 after Europe's biggest home appliances maker swung to a loss in the second quarter as cash-strapped shoppers opted for cheaper products and demand from residential property builders slowed. The Swedish group said organic sales fell 8% as sales volumes shrank significantly due to continued weak demand. "The weak market demand environment, with lower consumer purchasing power resulting in more consumers shifting to lower price points, continued also in the second quarter," CEO Jonas Samuelson said in a statement.
ABB warned on Thursday of slowing Chinese demand, Taiwanese chipmaker TSMC forecast a drop in 2023 sales and Electrolux cautioned shoppers are seeking cheaper appliances, deepening worries about global corporate and economic health. The news cast a pall over stocks as second-quarter earnings season ramps up. The comments will unsettle investors, who had hoped that Beijing's decision to abandon strict and prolonged COVID curbs at the end of last year would revive the world's second-biggest economy.
With temperatures rising throughout the United States, the demand for cooling will rise as well. Climate Central predicts household cooling demand will rise 71% by the year 2050. Yahoo Finance's Jared Blikre breaks down how this will impact the air conditioning market.