In Q1 2023, the margin rate of non-financial corporations (NFCs) increased: while the buoyancy of employment in relation to activity helped hold it back, the increase was sustained by the decline in the real cost of labour –since per capita pay was less vigorous than household consumer prices– and by government policy measures, especially the reduction in taxes on production (reduction in the corporate value added contribution) and the payment of aid to energy-intensive companies. However, changes in domestic terms of trade –i.e. the ratio of the price of value added to consumer prices– had virtually no impact on change in the margin rate of NFCs in Q1 2023. Nevertheless, this average finding across all NFCs may mask disparities within the different branches of activity...