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Posted by: Michael Mandel on February 06
This morning’s release from the BLS says that nonfarm productivity grew at a 1.8% rate in fourth quarter. Quite bluntly, I’m suspicious of the number. Neither companies or consumers are behaving as if productivity is rising.
If there’s one thing that we learned from the 1990s, it’s that productivity stats are subject to big revisions. You can’t even be sure the sign is right.
I’m also sure that we’re not accounting for imports correctly (as per my offshoring cover from last year).
More to come a bit later.
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.