Re: Q498 GDP Revised to 6.1%!
"Specifically, assuming no change in the Q4 hours worked data, the upward revision to Q4 output should result in an upward revision to Q4 productivity toward +4.6% from the initial (and already strong) estimate of +3.8%. That productivity strength will be well received by the Fed, which is betting that strong productivity growth will offset the potentially inflationary implications of the tight labor market."
Bosco,
I don't know about you, but that was a tough report to read for a non-economist like myself. But I did pick out some good news above. I'm somewhat certain Alan Greenspan made an issue out of the productivity aspect in his Humphrey Hawkins testimony a few days ago. He specifically said that he would not worry about inflation as much, in our heated economy, if productivity would increase. I believe he also may have said productivity can't get much better (maybe he said that last week?). Well, looks like it did. It sure seems like one or more of the Fed governors would make some comments related to this.
There is/are going to be one(maybe two) more Fed revisions to Q498 (not 99 like I referred to in my last post) if I'm not mistaken. But I can't figure out, by reading your article, if there are estimates for it to even exceed 6.1%!? Wouldn't that be amazing.
Thanks,
MikeM(From Florida) |
