Chart 1: Recoveries in corporate profits and business investment will be essential elements of the next U.S. economic expansion.
Chart 1A:
| Year
| Quarter
| Year-over-Year Change in Quarterly Net Income from Continuing Operations for All S&P 500 Firms
|
| 1996 |
4 |
14.04% |
| 1997 |
1 |
15.13% |
| 1997 |
2 |
10.74% |
| 1997 |
3 |
12.89% |
| 1997 |
4 |
7.94% |
| 1998 |
1 |
3.63% |
| 1998 |
2 |
3.49% |
| 1998 |
3 |
-1.78% |
| 1998 |
4 |
4.82% |
| 1999 |
1 |
10.61% |
| 1999 |
2 |
16.18% |
| 1999 |
3 |
21.34% |
| 1999 |
4 |
22.34% |
| 2000 |
1 |
20.39% |
| 2000 |
2 |
19.76% |
| 2000 |
3 |
17.50% |
| 2000 |
4 |
5.22% |
| 2001 |
1 |
-7.37% |
| 2001 |
2 |
-19.18% |
| 2001 |
3 |
-21.56% |
| 2001 |
4 |
-24.24% |
Source: Bloomberg
Chart 1B:
| Year
| Quarter
| Year-over-Year Change in Business Investment in Equipment and Software, in Chained 1996 Dollars
|
| 1996 |
4 |
10.37% |
| 1997 |
1 |
9.46% |
| 1997 |
2 |
8.92% |
| 1997 |
3 |
10.16% |
| 1997 |
4 |
9.69% |
| 1998 |
1 |
12.23% |
| 1998 |
2 |
12.23% |
| 1998 |
3 |
9.49% |
| 1998 |
4 |
11.70% |
| 1999 |
1 |
8.86% |
| 1999 |
2 |
7.57% |
| 1999 |
3 |
8.44% |
| 1999 |
4 |
6.40% |
| 2000 |
1 |
8.03% |
| 2000 |
2 |
8.62% |
| 2000 |
3 |
7.41% |
| 2000 |
4 |
6.28% |
| 2001 |
1 |
3.38% |
| 2001 |
2 |
-1.33% |
| 2001 |
3 |
-3.38% |
| 2001 |
4 |
-6.36% |
Source: Bureau of Economic Analysis