Pre-Tax Corporate Profits Rise 0.2%, After-Tax Corporate Profits Rise 6.7%

Mike Mish Shedlock

The Trump Tax cuts strongly came into play in today's GDP update which includes corporate profits.

The BEA's Second GDP Estimate for the second quarter shows a slight upward revision in GDP from 4.1% to 4.2%, seasonally-adjusted annualized.

In the second estimate, the BEA also releases its first (preliminary) take on corporate profits for the the quarter.

Econoday provides a nice graph.

Details (Table 10)

  • After-tax corporate profits rose a year-on-year 6.7 percent in the second quarter to $1.969 trillion without inventory valuation and capital consumption adjustments.
  • Pretax profits on this basis were $2.206 trillion for only a 0.2 percent yearly gain that, in comparison to the strong gain for after-tax profits, underscores the significant effect of this year's corporate tax cut.
  • When including inventory valuation and capital consumption adjustments, pre-tax corporate profits rose a year-on-year 7.7 percent to $2.250 trillion with after-tax profits at $2.013 trillion for a 16.1 percent gain.
  • Taxes on corporate income, at $237.1 billion and which are calculated on this basis, fell 33.4 percent from the second quarter of 2017.

Wages (Table 8)

Wages and salaries rose 1.1% (not adjusted for inflation), from $8.71 trillion to $8.81 trillion.

Mike "Mish" Shedlock

Comments (3)
No. 1-3
bradw2k
bradw2k

Everything is going up ... including the level of bear capitulation.

LawrenceBird
LawrenceBird

Someone explain how the stock market continues to levitate when at best, profits are only up 6.7% y/y.

Hardwork23
Hardwork23

You will be able to know that we are going to share one of the best portal http://onlinesolitaire.wikidot.com/about which will help you to enjoy free online spider solitaire games and will also help you to remove your all stress.


Global Economics

FEATURED
COMMUNITY