Thursday, June 4, 2015

Plunge In Corporate Profits .......ANOTHER PESKY FACT!

Plunge In Corporate Profits 

Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) decreased $125.5 billion in the first quarter, compared with a decrease of $30.4 billion in the fourth.

Profits of domestic financial corporations decreased $2.6 billion in the first quarter, compared with a decrease of $12.5 billion in the fourth. Profits of domestic nonfinancial corporations decreased $100.4 billion, in contrast to an increase of $18.1 billion. The rest-of-the-world component of profits decreased $22.4 billion, compared with a decrease of $36.1 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 first quarter, receipts decreased $28.9 billion, and payments decreased $6.5 billion

Or visually, here was the third largest corporate profit crash since the financial crisis:



Welcome to the recession, which will soon be seasonally adjusted into another flourishing, if only stiatistically, "recovery."

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