US corporate profits declined by less than 1% last quarter. It was the first decline since Q4 2008. Domestic profits increased by $41.7 billion, while international profits fell by $48 billion. US multinational corporations are dependent upon global economic growth. The downturn in Europe has hurt their profits, but the lack of growth in Europe has also slowed growth in China's export based economy. That has affected economies that depend upon exporting commodities to China. That results in reduced revenues for US corporations in South America and elsewhere.
While slower global economic growth is not good for US multinationals, and it may affect their stock prices, Its hard to determine how this affects most Americans. For most Americans, it only matters if exports from the US decline. Profit declines in the subsidiaries of US corporations that don't export from the US to their international markets have no impact on US employment. The relationship between US corporate profit growth and the US economy is ambiguous. Their economy is not our economy.
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