The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020.
Jeenah Moon/Reuters
US corporate profits surged to a record $495.3 billion, or at a 27.1% annualized rate, in the third quarter as consumer demand bounced back and firms reopened,
Commerce Department data published Wednesday showed.
The climb comes after 12% and 10.3% declines in the first and second quarters, respectively.
The sharp rebound in earnings joins an overall murky picture of the nation's economic recovery. While some areas including housing and consumer spending have bounced back well, labor market data including weekly jobless claims
show lasting damage.
Soaring COVID-19 case counts across the country pose a growing risk to near-term growth, and major banks have already
revised their GDP forecasts lower accordingly.
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US corporate earnings climbed at the fastest pace on record in the third quarter as economic reopening and rebounding demand lifted spending.Profits jumped $495.3 billion, or at a 27.1% annualized rate, over the three-month period, according to
Commerce Department data published Wednesday. Domestic profits of financial corporations leaped $24.5 billion.The profit increase comes after 12% and 10.3% declines in the first and second quarters, respectively. The first-quarter decline was the largest seen since the financial crisis.The Commerce Department's report details the initial bounce-back in economic activity as virus cases waned through the summer and businesses enjoyed a rebound in consumer demand. Gross domestic product grew at an unchanged 33.1% annualized rate through the period, a record increase that retraces much of the second quarter's plunge.
