Posted by: Michael Mandel on August 07
Tomorrow’s numbers from the BLS are likely to show a sharp downward revision in productivity growth for 2004 and 2005. Instead of an average productivity gain of 3.0% for those two years, the new pace is likely to be closer to 2.5% or 2.6% (this is based on looking at the revisions in the latest GDP release).
This raises the worrisome possibility that the productivity boom may not have been as strong as we thought.
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.