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Another Recession Indicator Refuses to See a Recession: Corporate Profits Without Federal Reserve Banks Hit Record

September 28, 2023

by Wolf Richter Wolf Street

Massively inflated during the pandemic, corporate profits are still not normalizing, and bode well for future investments and economic growth.

So I’ll just start with this, and then I’ll follow with the essential nitty-gritty:

“Corporate profits” (all businesses that file corporate tax returns, including LLCs and S corporations, see nitty-gritty #2 below) before taxes (nitty-gritty #3) and excluding the Federal Reserve (nitty-gritty #1) but with “CCAdj” (nitty-gritty #6) and with “IVA” (nitty-gritty #7)…

…rose 1.3% from the prior quarter and 6.2% year-over-year, to a seasonally adjusted annual rate of $3.33 trillion in Q2, the highest ever, driven by record profits in nonfinancial industries. according to the Bureau of Economic Analysis today.