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Adecco Group said its revenues continued to fall at the start of its second quarter, the temporary staffing company said on Tuesday, as the European economy limped into the second quarter and the U.S.-China trade war looked set to escalate.
Adecco said its sales when adjusted for currencies, acquisitions and working days fell by 2% in the first quarter, and continued at the same rate in April.
"Growth in Japan and the rest of the world is good with 6%, which is offsetting a weaker North America in the quarter by 3%," Adecco CEO Alain Dehaze told CNBC's "Squawk Box Europe " Tuesday.
On a reported level, Adecco said its first-quarter revenue fell 1% to 5.65 billion euros ($6.34 billion) as Germany, and professional staffing in North America and Britain struggled. Net profit rose 2% to 133 million euros as the Swiss company increased its profit margin.
"Germany is indeed suffering, not only for us," Dehaze said, citing weak macroeconomic indicators, a slowing automotive sector and German regulation on temporary staffing.
Growth prospects for the eurozone economy have weakened, with the latest PMI figures showing lacklustre growth as weakness in the manufacturing sector is also hitting the services industry.
Prospects for a deal to end a trade war between China and the United States are also uncertain after U.S. President Donald Trump's latest threat to increase tariffs on Chinese goods.