Epoch Times:
Labor productivity in the nonfarm sector rose by 2.3 percent in the second quarter of 2019 from the same quarter a year ago, based on datareleased by the Bureau of Labor Statistics on Aug. 15. That represents a slowdown from the blockbuster 3.5 percent increase in the first quarter, but was still the third best quarter in four years.
The growth easily beat expectations of economists polled by Reuters, who had forecast a second-quarter productivity increase of 1.5 percent.
On the downside, productivity in the manufacturing sector declined by 1.6 percent due to cuts in output that outpaced cuts in labor hours. Manufacturing has been hit by the United States’ trade dispute with China, in which both countries imposed tariffs on each other, inhibiting trade.
Productivity growth is a crucial measure since it signalizes whether investments in technology and skills are paying off. That’s the case at least when the economy is sound and unemployment is low. In an economic downturn, productivity shoots up as companies slim down and fire less-productive workers. more here
That is yuge.
Companies have been investing a lot into capital expenditures, a combination of inexpensive loans and a tight labor market. In other words business in USA is booming.
So what’s up with every other country? What could the difference be? Hmmm…
Trim more government fat and we’ll do even better.
Yes, scale back the federal government to absolute essentials, pay off our debt. If we don’t we’re going to be faced with reality in 5-6 years and it’s going to be brutal.