Nokia and Ericsson shares fall as cost of living crisis hits telecoms sales

Nokia says: ‘The weaker demand outlook in the second half is due to both the macro-economic environment and customers’ inventory digestion.’ Photograph: Dado Ruvić/Reuters

Shares in Nokia and Ericsson fell after the telecommunications equipment suppliers warned that profits and sales were being hit by a slowdown in spending as the cost of living crisis hit consumer spending.

Nokia moved to cut its annual sales forecast and lowered its expectations on profit margin this year citing the knock-on effect of high inflation and rising interest rates on consumer spending.