Enjoy The Surge In Productivity It May Not Last

Although business productivity surged by 3.2% last year, its strongest showing in two decades, economist Michael Moran of Daiwa Securities America Inc. notes that it's still far too early to conclude that this gain represents a long-term improvement in the economy's performance. "Productivity has a strong cyclical component and typically grows very rapidly in the early stages of an expansion," he says.

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