The data of the US Department of Commerce, issued yesterday, Thursday, showed that the measure of gross profit margins for non-financial companies, in the second quarter of this year, rose to 15.5 percent – the largest percentage since 1950 – from 14 percent in the first three months of the year.
According to the Commerce Department, adjusted corporate earnings before tax rose 6.1 percent in the second quarter, the fastest pace in a year.
These numbers indicate that companies are increasingly passing on higher costs to consumers.
The large increase in corporate profits during the period of the Corona outbreak, sparked a widespread debate in America, about the extent to which it bears part of the responsibility regarding the rise in the level of inflation to its highest levels in more than 40 years, an issue raised by the administration of President Joe Biden.
The inflation rate in the United States fell to 8.5 percent in July on an annual basis, more than expected, but it is still at its highest levels in 4 decades.
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