U.S. corporate profits, the labour market, and the risk of an economic downturn
​U.S. real GDP came in stronger than expected in the fourth quarter of 2015, at an annualized 1.4 percent estimate against expectations of 1.0 percent.However, the latest release revealed that corporate profits decelerated during the fourth quarter, a fact that has caused some concern. Economy-wide corporate profits (corporate profits, after accounting for inventory adjustments and capital consumption costs) declined 7.8% in Q4 and are down 11.5% from a year ago.
Historically, a significant deceleration in corporate profits has preceded economic recessions, as lower current and projected profits lead to lower employment and investment by corporates. Since the 1950’s economic recessions have come with a sizeable decline in corporate profitability, however, not all profit corrections led to a recession
Iniohos Advisory Services is an independent investment research and consulting house, founded by investment professionals with long and in-depth experience in global financial markets.
Iniohos Advisory Services aims to provide top-end investment solutions to High Net Worth Individuals and institutional investors, ranging from proactive investment research to tailor made financial and risk modelling.
Our research covers the areas of investment and macroeconomic research, investment strategy and asset allocation, financial modelling and risk management.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.