The Department of Commerce reported last week that U.S. gross domestic product grew at a 2.1 percent annual rate during the third quarter, not the 1.5 percent rate previously stated. Apparently, private inventory investment was greater than initially estimated. Nonetheless, GDP is significantly down from the 3.9 percent growth during the second quarter.
The more remarkable data point, however, was reported for corporate profits. In particular, profits from current production decreased $22.7 billion in the third quarter. This followed a $70.4 billion increase in the second quarter.
“Profits”, as reported by Reuters, “were down 8.1 percent from a year ago, the biggest decline since the fourth quarter of 2008.” No doubt, a decline in profits that recalls Great Recession era weakness (Read More....)
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