Profit Margins
The Graph of the Week shows the Profits Net Rising Index from the July 2007 NABE Industry Survey. From the survey:
The NRI for profit margins improved for the 16th consecutive quarter, extending the upswing that began four years ago. Almost a third of the respondents (31%) indicated that their profits were rising. Almost half (49.5%) indicated that profits were unchanged and only one-fifth indicated that profits were falling. The net result is a NRI of 11, which is weak when compared to the recent history of the index but is still double the average of the past 15 years. Growth in profit margins was strongest in the TUIC sector. In contrast, in the goods-producing sector, firms with decreasing profit margins outnumbered those with rising margins (NRI of -18).
NABE members can read the full report online. A summary is available for the public.