Economics

US Corporate Profits Fall While Consumer Spending Revised Up

  • Pretax profits declined 2.3% in first quarter, GDP data showed
  • Economy shrank at a 1.5% pace, restrained by trade deficit
A worker assembles an instrument panel at a manufacturing facility in Detroit, Michigan.Photographer: Jeff Kowalsky/Bloomberg
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US corporate profits fell in the first quarter by the most in almost two years as inflation promised greater costs for companies while the economy took a step back.

Adjusted pre-tax corporate profits decreased an annualized 2.3% from the prior quarter and were up 12.5% from a year earlier, Commerce Department data showed Thursday. At the same time, one measure of profit margins edged higher.