Corporate profits continue to surge in the U.S. and are now close to 2006 highs, according to Deutsche Bank.
Their survey of Q3 U.S. GDP data shows profits at $1.64 trillion for the quarter. That’s only 20 billion behind the record Q3 2006 number of $1.66 trillion.
The result is a corresponding surge in corporate taxes, and the potential for a rise in hiring.
From Deutsche Bank (emphasis ours):
Nonetheless, the continued strength in corporate tax receipts hints that underlying corporate pricing power is improving—how can companies generate this kind of profit growth on cost cutting alone? Lastly, since profits are a leading economic indicator, their strength speaks to continued capex gains and a faster pace of hiring over the medium term.
Photo: Deutsche Bank
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