March 27, 2025
Corporate profits from current production (corporate profits before tax with inventory valuation and capital consumption adjustments) rose by $204.7 billion in the fourth quarter which works out to an an increase of 5.4% after after having fallen 0.4% in the third quarter. During the last year profits on this basis have risen 6.9%. The IVA and CC adjustment deals with the difference in depreciation allowances used for accounting and income tax purposes.
Corporate profits have held up remarkably well as firms have begun to invest in technology to boost productivity which seems to be paying off in the form of higher profits.
Stephen Slifer
NumberNomics
Charleston, SC
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