May 28, 2026
Corporate profits from current production (corporate profits before tax with inventory valuation and capital consumption adjustments) rose $40 billion in the first quarter which works out to a 0.9% annual rate after rising at a 6.0% pace in the fourth quarter. During the last year profits on this basis have risen 12.0%. 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
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