The Best Investment Writing Ricardo Marto – What’s Driving the Surge in U.S. Corporate Profits? (Federal Reserve Bank of St. Louis)
Aug 5, 2025
Ricardo Marto, a Research Economist at the Federal Reserve Bank of St. Louis, explores the intriguing surge in U.S. corporate profits post-COVID-19. He analyzes how different industries have fared and their significant contributions to overall national income. The discussion highlights the shifts in corporate profit trends before and after the pandemic and delves into how employee compensation has evolved in relation to these profits. Tune in for insights that tie macroeconomic trends to the everyday financial landscape!
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Corporate Profits Surge Post-Pandemic
- U.S. corporate profits surged to $4 trillion by end of 2024, doubling since 2010.
- Profits rose from 13.9% to 16.2% of national income post-pandemic.
Key Industries Driving Profit Growth
- Retail, wholesale trade, construction, manufacturing, and healthcare drove 73% of post-pandemic profit gains.
- These sectors notably increased profitability as a share of national income.
Digital Shift Boosts Firm Profits
- The COVID-19 pandemic sped up the digital economy transition, boosting productivity in retail and wholesale trade.
- Firms produced more with fewer resources, raising profits.