Posted by: Michael Mandel on August 08
The bad news, of course, is the large downward revisions in the productivity growth for 2003, 2004, and 2005. Nonfarm productivity was revised down by about what I said yesterday. Manufacturing productivity was slaughtered in 2004, going from 5.5% to 1.9%. And nonfinancial corporate productivity growth was pushed down about 0.7 percentage points for 2003-2005.
But here’s the good news. The long-term trends of rising productivity are still in place. Here’s the chart of ten-year productivity growth for the nonfarm business sector.
The ten-year productivity growth rate ending with the second quarter of 2006 is 2.8%, still the highest in more than 30 years.
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