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Not much. Pantheon with the note.
Industrial profits declined—but at a slower rate, in single-month terms—in September. This shows the impact of economic reopening and policy support. In single-month terms, industrial profits fell 2.7% y/y in September, moderating from -7.2% in August and the low of -11.7% y/y in August.
The fall in profits contrasts with rising corporate income. Industrial profits decreased 2.3% year to date in September, compared with 8.2% growth in operating income. This implies a severe margin squeeze, which is concentrated in the commodity and energy-processing sectors that face high input costs.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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