U.S. Corporate Profits Rise Modest 3.9%

U.S. corporations reported a moderate 3.9% increase in after-tax profits in the July-September quarter, down from a robust 8.9% increase in the second quarter, the government said today.

The Commerce Department said third-quarter profits rose $6.4 billion to a seasonally adjusted annual level of $169.1 billion.

The 3.9% increase is a substantial upward revision from a preliminary estimate last month, which showed profits for the quarter advancing only 0.2%.

Corporate cash flows, a measure intended to show the funds corporations have available for investment, rose 0.8% in the third quarter, following a 1.4% rise in the April-June period.

Corporate profits before taxes rose 2.6% in the third quarter to $313.9 billion, after a 6.9% increase in the previous three-month period.