US economy sees profit surge
Posted by Stephen Cline on March 28th, 2010The US economy has seen a profit surge, the likes of which have not been seen in recent times. This is because the pace of growth that has been witnessed recently has been the fastest in the last six years. Corporate profitability has gone up considerably and this may cause a surge in jobs too, as a lag effect. On an average, corporate profits grew by as much as 8% in the last quarter of 2009, which is quite an encouraging figure, given the fact that the US economy has been trying hard to struggle and recover somewhat. The gain has been the largest year on year gain in the last 25 years, which should bring a smile to some worried faces.
The unemployment situation still remains grim. Even Ben Bernanke has said that almost 40% of those without a job have been in the situation for a very long time. Almost 8.4 million folks have lost jobs since the recession began and there is no sign that payrolls would increase in the near future. Thousands of jobs are still getting slashed on a monthly basis, which is a worrying trend. It is no wonder that consumer spending is not picking up as people are running scared.
Tags: profit surge, US economy