U.S corporate profits plunged a record $120.1 billion in the fourth quarter as the economy shrank at its fastest pace since 1982, depressed by a slump in consumer spending and exports, Reuters cited government data as showing today. In another snapshot of the distressed economy, the number of workers collecting state jobless benefits rose to a record 5.56 million earlier this month, while new claims climbed to 652,000 last week, a separate government report showed. "It is indicative of the sharp decline in overall economic activity experienced in the fourth quarter," said Joseph Brusuelas, an economist at Moody's Economy.com in West Chester, Pennsylvania, speaking of the drop in corporate profits. The Commerce Department said after-tax corporate profits dropped 10.7 percent in the fourth quarter, the largest decline since the first quarter of 1994. Profits fell $5.2 billion in the third quarter.
