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5 Nov 2015
US: Weak productivity growth to limit potential GDP growth – Wells Fargo
FXStreet (Córdoba) - Sam Bullard and Sara House, economists at Wells Fargo explain that despite the rise that occurred during the third quarter, productivity growth remains depressed.
Key Quotes:
“Reflecting the largest slump in hours worked in six years, nonfarm productivity increased at a better-than expected 1.6 percent annualized pace in Q3. Despite the increase, a lackluster year-over-year trend remains.”
“Despite relatively solid gains over the past two quarters, productivity growth is only up 0.4 percent over the past year. “
“As long as productivity growth remains weak, the potential rate of U.S. GDP growth will likely be lower than we are accustomed to, thereby extending the sluggish pace of this economic expansion.”
Key Quotes:
“Reflecting the largest slump in hours worked in six years, nonfarm productivity increased at a better-than expected 1.6 percent annualized pace in Q3. Despite the increase, a lackluster year-over-year trend remains.”
“Despite relatively solid gains over the past two quarters, productivity growth is only up 0.4 percent over the past year. “
“As long as productivity growth remains weak, the potential rate of U.S. GDP growth will likely be lower than we are accustomed to, thereby extending the sluggish pace of this economic expansion.”