ZURICH (Reuters) – Adecco Group reported a 1 percent decline in revenues during the first three months of the year, the temporary staffing company said on Tuesday, as the European economy limped into the second quarter and the U.S.-China trade war looked set to escalate.

Revenues fell to 5.65 billion euros ($6.34 billion) in the first quarter, down from 5.69 billion euros a year earlier, while net profit rose 2 percent to 133 million euros as the Swiss company increased its profit margin.

“While revenues declined by 2 percent trading days adjusted, year-on-year, the trend in our European markets stabilised during the quarter,” Chief Executive Alain Dehaze said. “We also delivered accelerating growth in the Japan and Rest of World region, which helped offset the slowdown in North America.”