Productivity Surges

Business productivity surged 4.1% during the third quarter, and productivity growth for the second quarter was revised higher to 2.1%. This was the best number in a long time and well above Wall Street’s forecast.
Productivity is an important number to watch because it tells us worker output per hour. Growing productivity changes the entire economic landscape. It basically means that the economy is making less go further. Growing productivity also holds down inflation and takes pressure off the Federal Reserve.
Today, Alan Greenspan will make his final appearance before Congress as Fed chairman. Tomorrow we’ll get the employment report for October.

Posted by on November 3rd, 2005 at 9:42 am


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