The slowing economy of the world hit Google and Microsoft

Sales at the tech giants Microsoft and Alphabet have sharply slowed, adding to fears of a downturn in the economy.

Google and YouTube-owning Alphabet said that the company sales of the company rose to $69bn, just 6% in the three months to September, as firms cut their advertising budgets. Outside of the start of the pandemic, it is marked to be the weakest quarterly growth of a US firm in nearly a decade. Meanwhile, Microsoft said that demand for its computers and other technology had weakened. Its sales rose to $50.1bn, i.e., by 11%. But it is said to be its slowest revenue growth in five years.

Businesses and consumers around the world had to cut back as interest rates and prices went up, fuelling the fear of a global recession. American multinationals are also hurt by a strong US dollar, as it makes it more expensive to sell products abroad.

In recent months, Microsoft has cut jobs and Alphabet has slowed hiring. Many other tech companies, including Netflix and Twitter, have decided to lay off staff or slow the pace of recruitment. On Tuesday, in after-hours trading, the shares of both Microsoft and Alphabet fell sharply.