Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
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.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.