But in other sectors, companies have remained profitable, and in the aggregate, the underlying picture of corporate profits and capital spending is not so bleak as the experiences of some industries might suggest. Indeed, as measured in the national income and product accounts, economic profits in the third quarter were well above year-earlier levels.
And real investment in equipment and software, while not rising at the torrid pace of 2000, appears to have bottomed out and may be increasing. Moreover, the longer-term prospects for economic growth in the United States continue to look favorable.