September 1, 2016

Productivity Is Still Declining: 2nd Quarter Revised Down to 0.6 Percent; Third Consecutive Quarterly Decline

Filed under: Economy,Taxes & Government — Tom @ 8:58 am

But somehow, annualized hourly compensation was revised up from a dismal 1.5 percent to a pretty decent 3.7 percent.

Anyone betting that this 3.7 percent won’t get revised down when the initial third-quarter productivity report is released in early November is probably holding a losing hand, based on what happened to the first quarter in the initial second-quarter release a month ago:

1Q16Productivity2ndQrevisions080916

The first quarter’s negative numbers barely changed today.

The initial third-quarter release is November 3, though. So those downward revisions may wait until early December’s revision to the third quarter. If the revisions are small in November and large in December, it will be evidence that bad news was held until after the November 8 elections.

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UPDATE: As seen at Zero Hedge, this is the first instance of three consecutive quarters of productivity decline since 1993.

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1 Comment

  1. [...] even if it’s strong, the fact remains that the workforce has become less productive over the past three quarters. Comments [moderated] [...]

    Pingback by BizzyBlog — September 1, 2016 @ 10:39 pm

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