The Dow Jones Industrial Average keeps on rising and is now hovering around 22,000.
But not every indicator is rising. Corporate profit per unit of real gross value added (after tax with IVA and CCAdj) has been declining YoY for 7 of the last 8 quarters.
Corporate profit per unit follow a similar pattern following a recesssion. They rise rapidly, then begin slowing until the point at which they are consistently declining on a YoY basis.
The following chart shows the current slowdown in corprate profit per unit of real gross value added, similar to the slowdown following Q3 2006 and Q3 1997 before recessions.
Is Winter coming?