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.
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