Wednesday, November 24, 2010

Corporate Profits Were the Highest on Record Last Quarter

U.S. business earned profits at an annual rate of $1.66 trillion in the third quarter. This is the highest in 60 years since the Dept. of Commerce began recording.
Since the low in the fourth quarter in 2008, profits have grown for seven consecutive quarters.
This growth has been attributed to efficient production - making more with less - and profits coming from abroad.
The national output grew at a higher pace than predicted - 2.5 vs. 2.
However, the article does point out that this 2.5% is way too low to regain the ground lost during the recession. IT will not lower the unemployment rate or keep us out of deflation.

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