Summing up the results of the fourth quarter and year of 2014 in general, US corporations logged a drop in profits. It is the first decline in corporate profits since the beginning of 2008 financial crisis.
Profits before paying taxes decreased 1.4% on a yearly basis, the report from the Bureau of Economic Analysis at the US Department of Commerce reads. The adjusted reading fell 0.8% to $2.09 trillion for the year.
It became the first decrease in profits for the US companies since 2008. Back then, the US economy experienced recession, and financial crisis developed into the global one later.
Lower demand from the Asian and European countries amid slow development of the global economy is one of the reasons for a drop in profits. Besides, the strong greenback undermined competitiveness of the US products on the global market.
