Corporate Profits and the Economy

Since September 2001, the U.S. economy has grown by about 31%, but corporate profits are up by 132%.

Corporate profits now represent over 12.4% of the national economy, which is the highest level in over 50 years. The average is usually around 9.5%.

Think of this as an economy-wide profit margin. Profits typically grow faster than the economy during a recovery, and fall faster than the economy during a recession.

Posted by Eddy Elfenbein on December 26th, 2006 at 9:40 am

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