Free-Money Party for Corporate Profits Turns Into Hangover Amid Rising Costs and Pressured Revenues

by Wolf Richter
Wolf Street

“We are entering an EBITDA recession”: S&P Global Ratings.

Inflation was supposed to be good for corporate profits, according to Wall Street lore, and it was until it wasn’t – until the rising costs and falling revenues caught up with them.

Corporate profits before taxes in Q1 fell for the third quarter in a row, this time by 1.3% from Q4, after having dropped by 4.8% in Q4, and by 4.9% in Q3, according to today’s release by the Bureau of Economic Analysis.

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