J.P. Morgan
Report published August 26, 2026
US Profit-to-Income Ratio Hits Record 17.9% Amid Firm July Core PCE: J.P. Morgan Report
Source and citation context
- Issuer
- J.P. Morgan
- Report date
- August 26, 2026
- Analysis as of
- Not stated in source
Authors / editors: Abiel Reinhart
Finvaulta summarizes J.P. Morgan's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Daily UpdateMacro Economic Indicators
US core PCE inflation remained firm at 0.25% m/m (3.3% oya) in July, while real consumer spending was flat due to temporary drags. Second-quarter GDP confirmed robust corporate pre-tax profit growth of 9.1% q/q, pushing corporate profits as a share of national income to a record 17.9%.
Key Takeaways
- 1.The July core PCE deflator increased 0.25% m/m (3.3% oya), showing firm underlying inflation despite a milder 0.15% m/m rise in market-based core.
- 2.Pre-tax corporate profits jumped 9.1% q/q (not annualized) and 23% over the year, pushing profits as a share of national income to a new record high of 17.9%.
- 3.Real consumer spending was flat in July due to weak auto sales and shifted timing of Amazon Prime Day, but tracking suggests upside risk to the 3Q spending estimate of 1.75%.
Table of Contents
- PCE
- GDP
- Personal income and consumer spending
Report data
Profits / national income
| Metric | Estimate | Context |
|---|---|---|
| Core PCE Price Index MoM | 0.25% | July core PCE deflator monthly increase |
| Core PCE Price Index YoY | 3.34% | July core PCE deflator year-over-year increase |
| Corporate Pre-tax Profits QoQ | 9.1% | Pre-tax corporate profits quarter-over-quarter change (not annualized) |
| Pre-tax Profits as Share of National Income | 17.9% | Pre-tax corporate profits as a share of national income reached a record high |
| Real GDP Growth QoQ SAAR (Second Release) | 1.5% | Real GDP growth in 2Q26 unchanged between advance and second release |
Document Preview
Access the Full Report
Get unlimited access to institutional research reports. Create an account to get started.
Authors / Editors
Abiel Reinhart
Reported Data Context
- Core PCE Price Index MoM: 0.25 % (2026-07) · Source: BEA
- Core PCE Price Index YoY: 3.34 % (2026-07) · Source: BEA
- Corporate Pre-tax Profits QoQ: 9.1 % (2Q26) · Source: BEA
- Pre-tax Profits as Share of National Income: 17.9 % (2Q26) · Source: BEA
- Real GDP Growth QoQ SAAR (Second Release): 1.5 % (2Q26) · Source: BEA
Themes
Corporate Profit Margins vs. Household IncomeUS Inflation and PCE vs CPI Dynamics
Regions
North AmericaUnited States