Thursday, March 26, 2009

New BEA Data on Corporate Profits

New data out shows the historic collapse of the financial sector during this recession. Domestic financial profits declined 75 % through Quarter 4 of 2008, since the cyclical peak in U.S. corporate profits through Quarter 3 of 2006.

Domestic financial profits are at Real levels not seen since the late 1980's.

Meanwhile, Rest of the World profits continue to steam ahead, though they tend to crest later than other sectors, in most recessions.




























































Date2001, Q.32006, Q.32008, Q.4
Total U.S. Corporate Profits865.31816.61277.6
Domestic Financial Profits274.7484123.7
Domestic Nonfinancial Profits413.11056.5753.9
Rest of the World Profits177.5276.1400.0
(All in 2008 Dollars)
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CPI177.7203.4213.1
CPI/2008 Mean (Multiply with Nominal Value)1.211.061.01


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Annual Change in U.S. Corporate Profits Since 1950


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This chart illustrates the financial sector collapse.


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Numbers are in Billions
Source BLS, BEA 6.16 A-D