(1888PressRelease)
October 07, 2007 - Profits for UK non-financial sector companies saw record growth in the second quarter of 2007, new data has revealed.
According to figures from the National Office of Statistics, the net rate of return for firms outside the financial sector hit 15.7 per cent.
This compares with profit growth of 15.1 per cent during the first quarter and an average of 14.6 per cent for 2006.
Significant improvement was also seen in the manufacturing sector where the rate of return increased from 5.6 per cent in the first quarter to 8.4 per cent, despite this area having been hit especially hard by climbing energy and raw material costs.
Howard Archer, the chief UK economist for Global Insight, said: "All sectors saw improved profitability in the second quarter.
"This suggests that extended healthy activity has lifted firms' pricing power and enabled them to boost their margins, even though they have faced high energy and raw material prices."
"Most UK companies are currently in a healthy financial state to withstand the impact of the credit crunch."
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