US Corporate Profit Margins Increase Again In The 3Q

US corporate profit margins are at their second highest level ever at 10.14%. The highest level was reached in the 4Q11 when profit margins spiked to 10.27%. 4-year annualized growth of profits have slowed from 19.4% to 10.1% in just three quarters. Profit margins at such extreme levels indicate that 4-year annualized profit growth may turn negative in the next 6-8 quarters. Finally, nonfinancial corporate profit margins reached an all-time high in the third quarter.