European companies are heading for their worst quarterly earnings in three years as revenue drops for the first time since early 2018, according to the latest Refinitiv data, underscoring concerns about Europe Inc’s deteriorating health.

Companies listed on the STOXX 600 regional index are expected to report a 2.2% drop in third-quarter EPS, worse than the 1.9% drop expected a week ago and the biggest quarterly fall since Q3 2016, according to I/B/E/S Refinitiv.

Consensus now calls for a drop in revenue of 0.3% in the quarter, which would be the first since Q1 2018, but slightly better than the 0.4% fall expected last week.