May 29, 2025
Corporate profits from current production (corporate profits before tax with inventory valuation and capital consumption adjustments) declined $118 billion which works out to a decline of 2.9% after having risen 5.4% in the fourth quarter. During the last year profits on this basis have risen 5.5%. 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 continuing growth in profits.
Stephen Slifer
NumberNomics
Charleston, SC
Follow Me