US Corporate Profits, Gross Domestic Income Fell at End of 2022

  • Profits slid 2% in the fourth quarter, the most in two years
  • GDI dropped 1.1% in contrast to a 2.6% increase in GDP

  

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US corporate profits declined in the fourth quarter and a key gauge of economic activity stumbled as companies battled rising costs and softer demand against a backdrop of higher borrowing costs.

Adjusted pretax corporate profits fell 2% in the final three months of 2022, the most in two years, according to Commerce Department figures published Thursday. Profits retreated at both domestic non-financial and financial corporations. From a year earlier, profits were up 2.6%.