Question

The Bureau of Economic Analysis provides profit data for various industries in the United States. Go to www.bea.gov Click on Corporate Profits Click on National Income and Product Accounts Tables Choose a table from a list of Selected NIPA Tables Scroll down and find the Table 6.16D (pg 134 in PDF) on Corporate Profits by Industry”

In your initial response to the topic you have to answer all questions:

1. Based on the most-recent figures, which of the following categories of industry classifications has the greatest profits: •Financial or nonfinancial •Manufacturing , transportation and warehousing, wholesale trade, or retail trade •Durable goods or nondurable goods

2.During the past years, which sectors had the largest and smallest percentage increase in profit?

3. Which sectors, if any, experienced losses?

4. What are the implications of the profit changes for expansion or contraction of the particular industries?

Answer 1

1. The most recent figure is of Q1 2018. Based on it the greatest profits are for the following industries.

Non-financial (1159.8)

Manufacturing (321.5)

Durable goods (180.9)

2. When compared with 2016, the sectors having the

Largest increase is - Utilities (15.54%)

Smallest increase is - Wholesale trade (-45.61%)

3. No sector experienced losses however over the year 2016, in 2018 the profits decreased for Manufacturing, Wholesale trade, Retails trade, Transportation and warehousing and Information sectors.

4. Increasing profits for the corporates in the industries show an expansionary phase signifying good investments by the companies, good cost management, better credit terms with suppliers and customers. It also reflects increasing demand for the goods and services of the respective industries. With rising profits the industries can be expected to re-invest the profits in expansion of production, make investment into new projects, provide better wages and etc. which all lead to greater gdp for the economy.

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