Did U.S. Manufacturers Make Any Money Last Year?

According to the most recent Commerce Department report, seasonally adjusted after-tax profits of manufacturers were $45.3 billion in the third quarter 2002, up $3.6 (+/-1.4) billion from the $41.7 billion recorded the prior quarter. Year over year profits were up $33.5 (+/-1.7) billion from the $11.9 billion reported in the third quarter 2001. This is the third consecutive quarterly increase in profits after dropping to the $7.7 billion level in the fourth quarter 2001.

How did nondurable goods manufacturers fare? Seasonally adjusted after-tax profits recorded by nondurable goods manufacturers at $30.6 billion in the third quarter 2002 were about the same as the prior quarter, but up $3.8 (+/-0.6) billion from the $26.8 billion recorded in the third quarter 2001.

And what about durable goods manufacturers? Seasonally adjusted after-tax profits recorded by durable goods manufacturers were $14.8 billion in third quarter 2002, up $29.7 (+/-0.2) billion from a loss of $14.9 billion in third quarter 2001. Second quarter 2002 after-tax profits were $11.3 billion.

These figures suggest some improvement, but a far cry from celebration time. The investment outlook for U.S. manufacturers is expected to be weak until greater confidence can be created around world affairs.