Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  Nonfarm productivity (output per hour) declined at a 0.9% annual rate in the first quarter
Posted Under: Data Watch • Productivity
Supporting Image for Blog Post

 
Implications: Productivity was revised down slightly for the first quarter, consistent with last week's slight downward revision for real GDP growth. Output was revised down while the number of hours worked were revised up, which means less output per hour. Productivity is up only 0.4% in the past year, versus an average annual growth rate of about 2% over the past couple of decades. However, we do not think this means the productivity revolution has come to an end. It is not unusual for productivity to surge at the very beginning of a recovery (productivity grew 6.1% in the year ending in Q1 2010) and then temporarily slow down as hours worked increase more sharply. Including both the surge early in the recovery and the tepid growth in productivity since then, it is still up at a 2.5% annual rate in the past three years. Manufacturing continues to be the bright spot of the economy and today's report shows why. Output in the manufacturing sector grew at a 10% annual rate in Q1. Even with hours rising at a 4.6% rate, manufacturing productivity boomed growing at a 5.2% annual rate. We believe the long-term trend in productivity growth will remain strong, due to a technological revolution centered in computer and communications advances.

Click here for a PDF version.
Posted on Wednesday, June 6, 2012 @ 10:47 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.