Productivity Revision

Previously the BEA had said that productivity had grown at more than 3%/yr (2008 Q3-Q4). Now its revisions imply that it grew 1.2% per year.

1.2%/yr is a bit less than one would expect based on the decline in labor input. That is, the productivity residual declined a bit (about 0.3 percent). Still, the productivity residual declined a LOT less than it has in previous recessions.