About that surge in U.S. productivity …
(Lightly microblogging this week from the Great White North)
A bit of analysis (from IHS Global) on the 6.4 percent jump in second-quarter business productivity from the world’s most competitive economy:
The combined efforts of workers and business to grind out solid productivity gains through the recession is unequivocally good news – an underlying reality of solid fundamentals that has been overlooked by the economic doomsayers and naysayers for many months.
Solid productivity growth provides the basis for a recovery in corporate profits and investment in the second half of 2009, and keeps the lid on prices and inflation. It gives the Fed more room to keep rates lower for longer in order to move the economy as quickly as possible through the recovery phase to an expansion mode.
The fact that American workers are capable of generating these amazing productivity gains ultimately is good news for employment – as the economy moves from recovery in the second half of 2009 and the first half of 2010, to potential expansion in the second half of 2010 and beyond, there is no doubt that businesses will have a strong desire to add more of these high quality workers into their teams.
Me: An alternative to a consumer-led boom? How about one led by business? If the US were to get one, the beginnings would look a lot like this?