Productivity Is Still Declining: 2nd Quarter Revised Down to 0.6 Percent; Third Consecutive Quarterly Decline
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:
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.
UPDATE: As seen at Zero Hedge, this is the first instance of three consecutive quarters of productivity decline since 1993.