📊 U.S. Manufacturing Quarterly Profits Report: Third Quarter 2025

The Manufacturing Quarterly Profits report provides a detailed look at the financial health of U.S. manufacturing corporations for the third quarter of 2025. This report, released by the U.S. Census Bureau, covers after-tax profits, sales, and key trends across both durable and nondurable goods manufacturers, as well as related sectors like mining and wholesale trade. Understanding these figures is essential for assessing the broader economic climate and the manufacturing sector’s contribution to U.S. economic growth.

Key Highlights from the Report

Overall Manufacturing Profits and Sales
- 📈 After-tax profits for U.S. manufacturing corporations reached $249.2 billion (seasonally adjusted) in Q3 2025.
- 📈 This is a significant increase of $28.0 billion from Q2 2025 ($221.2 billion) and up $73.1 billion from Q3 2024 ($176.1 billion).
- 📈 Seasonally adjusted sales totaled $2,027.5 billion, up $43.1 billion from Q2 2025 and $125.3 billion from Q3 2024.
Nondurable Goods Manufacturers
- 🏭 After-tax profits were $91.4 billion in Q3 2025, up $10.4 billion from Q2 2025 and $13.2 billion from Q3 2024.
- 🏭 Sales for nondurable goods were $938.5 billion, a modest increase from both the previous quarter and the same quarter last year.
Durable Goods Manufacturers
- 🛠️ After-tax profits surged to $157.9 billion in Q3 2025, up $17.7 billion from Q2 2025 and a striking $59.9 billion higher than Q3 2024.
- 🛠️ Sales for durable goods reached $1,089.0 billion, up $32.4 billion from Q2 2025 and $113.3 billion from Q3 2024.
Other Sectors
- ⛏️ Mining corporations saw a decline in after-tax profits to $14.6 billion, down from both Q2 2025 and Q3 2024.
- 🏪 Wholesale trade corporations had stable after-tax profits at $19.6 billion, with sales up compared to the previous year.
- 💻 Information services and professional/technical services showed mixed results, with information sector sales slightly down from Q2 but up year-over-year, and professional/technical services experiencing small after-tax losses.
Productivity and Labor Costs
- ⚙️ Manufacturing sector productivity increased 1.6% year-over-year, the largest four-quarter gain since 2021.
- ⚙️ Unit labor costs rose 2.0% in Q2 2025, with higher increases in nondurable goods (3.1%) than durable goods (0.9%).
- ⚙️ Productivity growth in the current business cycle is above the previous cycle but below the long-term average.

Economic Implications and Trends

📌 Strong profit growth in manufacturing, especially in durable goods, signals robust demand and improved operational efficiency.
📌 Rising sales and profits suggest the sector is contributing positively to overall U.S. economic growth.
📌 Higher productivity and moderate increases in labor costs indicate manufacturers are managing wage pressures while boosting output.
📌 The decline in mining profits and flat wholesale trade profits highlight sector-specific challenges, possibly due to commodity price fluctuations or inventory adjustments.
📌 The data is seasonally adjusted but not inflation-adjusted, so real profit growth may be slightly lower when accounting for price changes.

Summary

In summary, the third quarter of 2025 was a strong period for U.S. manufacturing, with after-tax profits and sales both showing substantial year-over-year and quarter-over-quarter gains. Durable goods manufacturers led the way, reflecting strong consumer and business investment in long-lasting products. Productivity gains and manageable labor cost increases further support the sector’s positive outlook. However, some sectors like mining faced headwinds, and wholesale trade profits remained flat, suggesting uneven performance across the broader industrial landscape. These trends are important for understanding the manufacturing sector’s role in the U.S. economy and for anticipating future economic developments.

References:

Manufacturing Quarterly Profits, U.S. Census Bureau

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