Economic Roundup, Throwing Out The Old Measuring Sticks

The positive economic news continued. Last week, corporate profits were reduced by only $45 billion by uninsured losses and insurance payments from the hurricanes. They still came in at a very strong annualized $1.032 trillion, which was less than the second quarter but higher than the first quarter.

Interestingly, internal funds available to corporations for investment increased $34.3 billion in the third quarter, and were down $7 billion for the year. Proprietors’ income, a measure of the small business economy, was just a hair more than the second quarter at an annualized $938 billion, its highest current dollar level ever. GDP for the third quarter, as reported last week, was revised up from +3.8% to +4.3%.

The positive economic news continues. An average of more than 73,000 net new businesses (births less deaths) is now being created every month. We’ve been at the rate of more than 800,000 net new businesses per year since March 2005.

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About Dr. Joe Webb

Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.

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