Earnings expectations for European companies for the third quarter have fallen slightly as the ongoing trade war takes a toll on corporate profits, according to data released late on Tuesday.

Another drop in profits would mark the third straight quarter of deterioration confirming a corporate recession.

Companies listed on the pan-European STOXX 600 index are expected to report a 1.9% decline in earnings for the July-September quarter, compared with a 1.8% drop expected a week ago, according to the latest data from I/B/E/S Refinitiv.

Second-quarter earnings are seen declining 2.4% compared with a 2.6% drop last week, while revenues are seen rising 3.2%, unchanged from last week.