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August 07, 2006Downward productivity revision coming
Michael Mandel
Tomorrow's numbers from the BLS are likely to show a sharp downward revision in productivity growth for 2004 and 2005. Instead of an average productivity gain of 3.0% for those two years, the new pace is likely to be closer to 2.5% or 2.6% (this is based on looking at the revisions in the latest GDP release).
This raises the worrisome possibility that the productivity boom may not have been as strong as we thought.
10:19 AM
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» Will Productivity Be Revised Downward? from Economist's View
If this is true, its bad news for supply side advocates: Downward productivity revision coming, by Michael Mandel, Economics Unbound: Tomorrow's numbers from the BLS are likely to show a sharp downward revision in productivity growth for 2004 and 2005. [Read More]
Tracked on August 7, 2006 07:01 PM
Comments
Noooooooooooooooooo!
The single most valuable long-term statistic is going to be revised downward. This also means that a recession in 2007 is more probable than before..
Posted by: Kartik at August 7, 2006 01:27 PM
I don't like it any more than you do.
Posted by: Mike Mandel at August 7, 2006 03:13 PM
Any word on what is causing the revision? What got missed?
Posted by: crack at August 8, 2006 09:19 AM
Michael,
What are your thoughts on this morning's productivity numbers?
Posted by: Jim Haggerty at August 8, 2006 10:04 AM
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