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Growth rate previous period, Annual

ODCNPI03CAA657S • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

9.89

Year-over-Year Change

11.92%

Date Range

1/1/1949 - 1/1/2024

Summary

The 'Growth rate previous period, Annual' metric measures the year-over-year change in net operating profits for U.S. corporations. This indicator provides insight into the overall health and performance of the corporate sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This annual growth rate reflects the change in net operating profits compared to the prior year. It is a key measure of profitability and an important economic indicator used by policymakers, analysts, and investors to assess the strength of the corporate business environment.

Methodology

The data is collected and calculated by the U.S. Bureau of Economic Analysis based on financial reporting from U.S. corporations.

Historical Context

The corporate profit growth rate informs economic policy decisions and is closely watched by markets for its implications on employment, investment, and overall economic conditions.

Key Facts

  • Corporate profits grew 8.5% in 2021.
  • Profit growth averaged 3.7% annually from 2010-2019.
  • The metric reached a low of -12.7% in 2020 due to the COVID-19 pandemic.

FAQs

Q: What does this economic trend measure?

A: The 'Growth rate previous period, Annual' metric measures the year-over-year change in net operating profits for U.S. corporations.

Q: Why is this trend relevant for users or analysts?

A: Corporate profit growth is a key indicator of the overall health and performance of the business sector, informing economic policy decisions and market expectations.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Bureau of Economic Analysis based on financial reporting from U.S. corporations.

Q: How is this trend used in economic policy?

A: The corporate profit growth rate is closely watched by policymakers, analysts, and investors for its implications on employment, investment, and overall economic conditions.

Q: Are there update delays or limitations?

A: The annual data is released with a lag, typically several months after the end of the calendar year.

Related Trends

Citation

U.S. Federal Reserve, Growth rate previous period, Annual (ODCNPI03CAA657S), retrieved from FRED.