Our favoured measure of US Whole Economy profits have begun to
decline yoy for the first time since the last recession. Other key measures
of profits are slowing fast too. In that context the recent weakness in
company investment makes perfect sense. This profits data suggests
further weakness ahead in the stockmarket profits data. The equity market
is relying on M&A and hopes of an H2 economic rebound to maintain its
upward ascent.
Thursday saw the Bureau of Economic Analysis release of Q1 Whole Economy
profits data in the US. This data is useful as it gives us an additional finger on
the pulse for the state of US corporate profits - somewhat after the Q1 reporting
round has been completed.
Our favoured measured of Whole Economy profits is pre-tax domestic
non-financial profits (with adjustments to remove inventory valuation rises and
putting depreciation on an economic rather than tax basis). This measure of
profits has begun to decline (very slightly) yoy - the first decline since Q1 2002
(see chart below).
US profits likely
Started by
Tor
, Jun 01 2007 11:08 AM
1 reply to this topic
#1
Tor
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Posted 01 June 2007 - 11:08 AM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
#2
briarberry
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- Traders-Talk User
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Posted 01 June 2007 - 11:34 AM
Bank Earnings Down 2.5 Percent
By ALAN ZIBEL AP Business Writer
© 2007 The Associated Press
WASHINGTON — Profits at federally insured banks and thrifts dropped by 2.5 percent in the first quarter to $36 billion, dragged down by the sluggish housing market, increased defaults on loans, higher interest rates and weak economic growth, data released Thursday show.
In March, the FDIC and four other federal agencies that regulate banks, thrifts and credit unions proposed mortgage-lending guidelines that call for strict evaluations of a borrower's ability to repay, among other recommendations.
http://www.chron.com...fn/4850867.html
profits have been flat Q over Q for the last couple of Qs (chart below = MEW to Q4 2006)
By ALAN ZIBEL AP Business Writer
© 2007 The Associated Press
WASHINGTON — Profits at federally insured banks and thrifts dropped by 2.5 percent in the first quarter to $36 billion, dragged down by the sluggish housing market, increased defaults on loans, higher interest rates and weak economic growth, data released Thursday show.
In March, the FDIC and four other federal agencies that regulate banks, thrifts and credit unions proposed mortgage-lending guidelines that call for strict evaluations of a borrower's ability to repay, among other recommendations.
http://www.chron.com...fn/4850867.html
profits have been flat Q over Q for the last couple of Qs (chart below = MEW to Q4 2006)
