«Business spending is expected to rise faster in 2013 because of
record high corporate profits.
Not exact matches
Corporate revenue and
profits are growing too, and the stock market has hit
record highs.
In Japan, Mordy notes, «improving
corporate profits recently hit a
record high relative to [gross domestic product].»
Aggregate
corporate profitability remains at a
high level, though the growth of
profits as
recorded in the national accounts has eased during the past year.
The stock market is close to
record highs thanks in large part to
corporate profits, which are on their way up — finally.
Last week I shared with you the Commerce Departments» news that fourth - quarter
corporate profits, while still at
record highs, sank at their fastest pace since the same period in 2008.
With
corporate taxes being cut to 21 % from 35 %,
corporate profit margins before the tax relief already near
record highs, and the window open to tax - efficiently repatriate foreign earnings, one would logically conclude that corporations should be in robust financial health.
The economy expanded, there was
record low unemployment, strong wage gains and
high corporate profits.
This detail adds some insight, but regardless of the interpretation one puts on the data, it remains true that
corporate profits are at a
record high relative to GDP because household saving is depressed and government deficits are extreme.
For example,
corporate leverage is approaching
record highs, just as
corporate profit margins are beginning to stall.