U.S. Manufacturing Already Has Record Profits and Is Doing Quite Well Without Any Government Help
In December, I posted about the financial results for the U.S. manufacturing sector through Q3 of 2011, with the following highlights:
1. After-tax profits for U.S. manufacturing corporations were just short of $150 billion during the July-September period in 2011. Profits for Q3 fell by 4.5% from Q2, but were 20.4% ahead of the same quarter in the previous year, and were the second-highest quarterly profit total for U.S. manufacturers in history. Compared to the $118.6 billion in profits for Q4 2007 when the recession started, manufacturing profits are now 26% above that pre-recession level. The chart above show annual manufacturing profits back to 1999, with 2011 profits estimated at $600 billion based on results through the first three quarters.
2. The 20.4% increase in manufacturing profits over the last four quarters through Q3 was more than four times greater than the 6.5% increase in profits after-tax for all U.S. corporations during that time period.
3. While real GDP has increased by only 1.5% during the most recent four quarter period from 2010 Q3 to 2011 Q3, the manufacturing component of U.S. industrial production grew at almost three times that rate (4.22%) from September 2010 to September 2011.
Bottom Line: American manufacturing is doing quite well and experiencing record profits, without any special