GDP up but job creation missing

caroline baum

Profits and GDP are rising in the US and productivity is improving but real job creation remains illusive

Companies have been nipping and tucking their way to profits without strong revenue growth - and it is paying off. US corporate profits from current production rose 10.8% (not annualised) in the second quarter to an all-time high of $904.8bn, the Commerce Department reported last month. This measure of economic profits makes an adjustment for the value of inventories and for depreciation, consistent with tax-accounting practices. Economists consider it the best measure of profits, while investors could not care less. £The economy has not even recovered in terms of full e...