FYI: The BEA released its second of three estimates for Q2 2016 GDP today. The release came in at +1.1% QoQ SAAR versus +1.22% SAAR in the first reading; that downward revision was bang-on economists’ estimates. The second release gave us an update on corporate profits. After tax, without adjustments to take into account changes in the value of inventories and the consumption of fixed capital, corporate profits bounced from 8.48% of GDP to 8.82%. Over the last two quarters, the measure is up 1.01%, the biggest jump since the 1.03% leap in the two quarters ending Q1 2012. That suggests that the “profits recession” is winding down on an economy-wide basis. However, the lower profit margins sequentially for the broader, most economically relevant definition of profits indicates that it’s not all good news for the corporate sector.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/q2-gdp-revised-down-slightly-on-2nd-estimate/
