Bad News and Good News on Productivity

Michael Mandel

The bad news, of course, is the large downward revisions in the productivity growth for 2003, 2004, and 2005. Nonfarm productivity was revised down by about what I said yesterday. Manufacturing productivity was slaughtered in 2004, going from 5.5% to 1.9%. And nonfinancial corporate productivity growth was pushed down about 0.7 percentage points for 2003-2005.

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