Corporate profitability hits 18-month high

 
City A.M. Reporter
Corporate profitability rose to an 18-month high in the third quarter of 2010, helped by manufacturers and oil producers, official data showed.

The Office for National Statistics (ONS) said the net rate of return by private non-financial corporations rose to 11.9 between July and September from 11.6 per cent between April and June. It was the best reading since the first quarter of 2009.

For manufacturers, the net rate of return rose to 8.7 per cent from 7.5 per cent while for service companies it fell to 13.9 per cent from 14.7 per cent.

Companies based on the Continental Shelf where Britain's offshore oil and gas industry is located saw profitability rise to 44.8 per cent – the highest rate since the last quarter of 2008 – from 39 per cent.