EBIZ - Resurging Corporate Profits Show Inflationary Pressures Are Reheating After Lull: Corporate Profits By Major Industry

2024-03-29 04:58:00 ET

Summary

• Corporate pre-tax profits in all non-financial domestic industries combined jumped by 5.6% in Q4 from Q3.
• The BEA’s measure of corporate profits tracks profits from current production by all businesses that have to file corporate tax returns, including LLCs and S corporations, plus some organizations that do not file corporate tax returns.
• The spike in profitability in inflationary times is a sign that companies hiked prices much faster than their costs – including labor costs – went up.

Banks are having profit problems.

Corporate pre-tax profits in all non-financial domestic industries combined - this excludes our suffering banks and other financial companies - jumped by 5.6% in Q4 from Q3, and by 10.7% year-over-year to a record seasonally adjusted annual rate of $2.69 trillion, according to data by the Bureau of Economic Analysis today....

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