Manufacturing and oil drive profit growth
The Office for National Statistics said the net rate of return
by private non-financial corporations rose to 11.9 per cent
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It was the best reading since the first quarter of 2009.
For manufacturers, the net rate of return rose to 8.7 per cent from 7.5 per cent while for service companies it fell to 13.9 per cent from 14.7 per cent, reflecting the fact that the sector has so far seen less improvement than the manufacturing sector.
Companies based on the continental shelf, where Britain's offshore oil and gas industry is located saw profitability rise to 44.8 per cent, the highest rate since the last quarter of 2008, from 39.0 per cent.
Howard Archer, chief European and UK Economist at IHS Global Insight, said: "The improved profitability performance in the third quarter is welcome news, which is supportive for investment.
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Hide Ad"Nevertheless, profitability is still the long-term average and many companies face challenging conditions ahead.
"Indeed, likely slower growth over the coming months and current sharply rising input prices seem likely to limit profitability. This is likely to keep companies keen to keep their labour costs down, both through limiting wage growth and keeping their workforces as tight as possible."