Driven by strong growth in manufacturing sector and better price realization by oil companies, corporate profitability in Q3, 2010 rose to an 18 month high, according to the latest data released by agencies on Wednesday.
Third quarter Net Rate of Return (NRR) for privately held non-financial corporations were recorded at 11.9 percent by the Office for National Statistics. NRR for the second quarter, between April and June was recorded at 11.6 percent. This is the best number reported since January 2009.
NRR for services industry actually declined to 13.9 percent from 14.7 percent, a quarter earlier while manufacturing grew to 8.7 percent from 7.5 percent during the same period.
British oil and gas industry, which operates its offshore rigs on the continental shelf, saw their Net Rate of Return jump to 44.8 percent from 39 percent, recorded in the last quarter. This is the highest NRR recorded in the last 24 months – since Q4 of 2008.