The ONS has released updated profitability data for the UK up to the second quarter. Although the figures are quarterly, they are published only once a year, so this release allows us to track developments since the previous update a year ago.
The annual net rate of return for private non-financial corporations (PNFCs) held steady at 10.3% in 2024, unchanged from 2023. In Quarter 2 (April to June) 2025, the rate remained in line with the Quarter 1 (January to March) estimate, at 10.0%.
Profitability in the manufacturing sector continued to improve. The annual net rate of return rose to 11.7% in 2024, up from 11.3% in 2023. In Quarter 2 2025 it increased further to 11.8%, compared with 11.4% in Quarter 1.
PNFCs include UK continental shelf (UKCS) companies – primarily offshore energy producers – and other UK-based non-financial (non-UKCS) companies. Non-UKCS companies are further grouped into manufacturing, non-financial services, and other industries such as construction, electricity and gas supply, agriculture, and mining and quarrying.
The net rate of return measures company profitability, calculated as economic gain (profit) expressed as a percentage of the capital used in production. “Net” indicates that the measure accounts for the current value of capital consumed and capital stocks. “Capital consumed” refers to the decline in the current value of fixed assets, for example through depreciation. You can download the ONS Statistical Bulletin and datasets on profitability from their website at https://www.ons.gov.uk/releasecalendar (28 November) or request if from MTA