By Javi West Larrañaga and Marleen Kaesebier

Oct 21 (Reuters) - The outlook for European corporate

health has slightly worsened, the latest earnings forecasts

showed on Tuesday.

European companies are expected to report an increase of

0.2% in third-quarter earnings, on average, according to LSEG

I/B/E/S data, below the 0.5% growth analysts were expecting a

week ago.

That would be the worst quarterly performance since the

first quarter of 2024.

Market forecasts for third-quarter earnings have steadily

deteriorated from the 12.5% growth expected in February, before

U.S. President Donald Trump and his administration touted plans

for a wide array of tariffs on imported goods.

REAL ESTATE TO LEAD GAINS

On the other hand, revenues for Europe-wide STOXX 600

companies are now expected to edge 0.4% higher compared

to the same period last year, the data showed.

A year ago, the companies listed in the index delivered on

average a 7.8% increase in third-quarter earnings and a 1.1%

drop in revenues.

Out of those companies, more than 70 are set to report their

results this week. Results from banks Barclays ( BCS ) and

Lloyds and Germany's software giant SAP could

set the mood for investors.

Earnings growth forecasts are the highest for the real

estate sector at 4.9%, while utilities are at the bottom with a

forecasted decrease of 6.1% in the quarter, according to the

data.