Productivity And The Growth Question

2025-05-10 02:10:00 ET

Summary

• We sometimes refer to productivity as “the most important macroeconomic data point that nobody pays attention to”.
• In the long run, our economic prosperity depends on growth, and in our demographically challenged times, the only path to sustainable growth runs through productivity.
• It wasn’t great to see productivity decline in the first quarter by a greater than expected minus 0.8 percent (annualized) from last year’s fourth quarter, marking the first quarter of negative growth since 2022.

We sometimes refer to productivity as “the most important macroeconomic data point that nobody pays attention to.” That’s in contrast to the holy trinity of jobs, inflation and GDP growth, the three reports that generate the most chatter among financial media types....

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