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Posted at 3:05 PM ET, 11/23/2010

Corporate profits hit record rate

By Jia Lynn Yang

U.S. companies hauled in profits at a record annual rate of $1.66 trillion dollars in the third quarter, according to a report by the Department of Commerce Tuesday containing a number of economic indicators.

Corporate America is making a strong comeback this year. The rate of growth is set to be one-third faster than the last two years, which hovered around $1.2 trillion.

Firms, however, are still hesitant to pick up hiring at quite the same pace. Faced with consumer demand that's still slack, companies have been more inclined to hold cash on their balance sheets. The unemployment rate was at 9.6 percent in October.

Adjusted for inflation, however, this quarter's annual rate does not set a record, which is still held by the third quarter of 2006.

The Commerce Department also reported that the real gross domestic product grew at an annual rate of 2.5 percent in the third quarter. This is compared to 1.7 percent in the second quarter of 2010 and 3.7 percent in the first quarter of the year.

By Jia Lynn Yang  | November 23, 2010; 3:05 PM ET
Categories:  Corporations  
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Next: Economic agenda: Wednesday, Nov. 24, 2010

Comments

Makes me all warm and fuzzy to go to work tomorrow. Sick, just sick that I am busting my a$$ more for less pay/benefits (5% pay cut, lost 2% 401k match, higher insurance premiums) while the corporation I work for reaps the benefits. They have demanded more and more while cutting other positions who were our support staff. Then they actually wonder at our employee meetings why moral is so low!

Posted by: Fed_Up_With_The_BULL | November 23, 2010 6:50 PM | Report abuse

Wow a Socialist president sure is good for business. We better keep electing them.

Posted by: Anonymous | November 23, 2010 8:23 PM | Report abuse

Dear Fed Up With The Bull,

That didn't happen when we all had unions.


Posted by: Anonymous | November 23, 2010 8:24 PM | Report abuse

I don't know about most Americans, but I love the taste of this yellow stuff trickling down from the corporations. The system works! Reagan smash! LESS GOVERNMENT! CHEETOS!

Posted by: Anonymous | November 23, 2010 9:17 PM | Report abuse

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