Worker Productivity Tapering

After a surge at the beginning of the economic recovery, productivity growth has cooled. For the nonfarm business (NFB) sector, BofAML notes that productivity has slowed from a peak of 5.8% year-over-year in 4Q 2009 to just 0.9 in 1Q of this year. This week we will see Q2 data – expected to show a further slowing to just 0.6%. Moreover, what we show below is that, outside of the tech boom in the late 1990s, productivity tends to slow as business expansions mature. Our current ‘expansion’ is now thoroughly mature



Source: BofAML


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