The new release of the GDP report from the US Bureau of Economic Analysis includes data for corporate profits. The release shows that profits and dividends are decreasing. Here are some points in comparing the 3rd quarter to the 2nd quarter...
- Profits from current production (corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj)) increased $64.5 billion in the third quarter, compared with an increase of $164.1 billion in the second.
- Profits of domestic financial corporations increased $16.1 billion in the third quarter, compared with an increase of $33.3 billion in the second.
- Profits of domestic nonfinancial corporations increased $32.0 billion, compared with an increase of $134.3 billion.
- The rest-of-the-world component of profits increased $16.5 billion, in contrast to a decrease of $3.6 billion. This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world. In the third quarter, receipts increased $14.4 billion, and payments decreased $2.1 billion.
- Profits after tax with IVA and CCAdj increased $70.1 billion, compared with an increase of $118.4 billion.
- Dividends decreased $3.9 billion in the third quarter, compared with a decrease of $0.5 billion in the second.
- Undistributed profits increased $73.9 billion, compared with an increase of $118.8 billion.
- Net cash flow with IVA -- the internal funds available to corporations for investment -- increased $46.9 billion, compared with an increase of $133.4 billion.
Profits, dividends and funds made available for investment all fell in 3rd quarter. However, gains from overseas' profits gained.
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