Corporate profits hit record rate
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.
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