US corporate profits fell in the first quarter of 2022 to a two-year high as companies struggled to cope with the global price rally as the wider economy shrank, according to government figures released today.
In particular, US GDP on an adjusted basis for inflation shrank by 1.5% at an annualized rate in January-March, compared to the initial announcement of a 1.4% decline, according to data from the Ministry of Commerce, according to Bloomberg.
The ministry revised its measurement of consumer spending by announcing an increase of 3.1% for the first quarter from 2.7% previously.
Pre-tax corporate profits fell 2.3% from the previous quarter, although they rose 12.5% ​​a year earlier. 2021 was the most profitable year for American companies since 1950, according to Bloomberg. This was the first decline in corporate profits in the last five quarters.
Analysts expect the US economy to recover in the second quarter amid rising consumer spending. The first estimate for the second quarter GDP will be announced on July 28.
Source: Capital
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