Thursday, May 7, 2009

Productivity Rises Again

The BLS reported this morning that labor productivity rose again 2008 Q4 - 2009 Q1. As a result, productivity has risen in four out of five quarters in this recession.

This productivity report is hard to reconcile with the BEA's report two weeks ago that real GDP fell 1.6 percent. This is another reason why I think BEA will revise Q1 real GDP upward from its advance estimate.

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