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To: Mike M2 who wrote (16431)	3/7/2002 9:18:08 AM
From: Steve Lee	Read Replies (1) \| Respond to of 74559

Thanks, very interesting. Do the govt actually admit to using this method? Is it possible to find out what factor they multiply by? Sorry for the questions and I will look into it myself. It's just that I never heard of this inflator before. I think I made a reasonable mistake to assume the figures for GDP were real rather than imaginary <g>.

To: Mike M2 who wrote (16431)	3/7/2002 9:46:33 AM
From: AC Flyer	Read Replies (1) \| Respond to of 74559

Productivity Stronger Than Expected Updated 9:14 AM ET March 7, 2002 WASHINGTON (Reuters) - The productivity of U.S. workers rocketed past expectations in the final three months of last year to post the biggest increase since the second quarter of 2000, the government said on Thursday. The Labor Department, said productivity, or worker output of goods and services per hour outside the farm sector, rose at a 5.2 percent annual rate in the fourth quarter, revised upward from an initial estimate of 3.5 percent. The increase surpassed analysts' expectations for a 4.5 percent rise. ``It was expected but stunning,'' said Jim Glassman, senior economist at JP Morgan. ``I think it's a reminder that underlying productivity gains have accelerated.'' The Federal Reserve, led by Alan Greenspan, watches productivity closely since it is credited with allowing the U.S. economy to log swift growth in the late 1990s without fanning excessive price pressures. With the economy in recession since last March, businesses continued to cut back on the numbers of hours worked. The number of hours spent on the job fell 3.8 percent, the largest decline since the first quarter of 1991 when the economy was last in recession and when hours worked fell 4.8 percent. Unit labor costs, a closely watched gauge of wage pressures, fell 2.7 percent during the fourth quarter, the steepest decline since a drop of 2.9 percent in the final quarter of 1999 and more than the 2.1 percent fall analysts were expecting. For the full year, nonfarm productivity advanced just 1.9 percent, the weakest annual performance since a 0.9 percent rise in 1995. Unit labor costs for the year rose 3.8 percent, the biggest annual rise since a 4.3 percent gain in 1990. Usually, productivity declines during an economic downturn as output usually falls faster than hours worked. But it has held up remarkably well during the latest recession. ``It's a reminder that the growth potential for the United States is much higher than it used to be,'' said Glassman. ``It's the reason why the Fed is so relaxed.'' The Fed is next due to meet to discuss interest rates on March 19. A poll by Reuters at the end of last month showed Wall Street is expecting rates to be left unchanged.

To: Mike M2 who wrote (16431)	3/7/2002 9:47:22 AM
From: AC Flyer	Respond to of 74559

Jobless Claims Drop in Latest Week Updated 9:23 AM ET March 7, 2002 WASHINGTON (Reuters) - The number of American workers lining up for state unemployment benefits fell last week, the government said on Thursday in a report providing yet more evidence the U.S. economy is on a firmer footing. In addition, the four-week moving average, seen as a more reliable labor market gauge because it smoothes out weekly fluctuations, dropped to pre-Sept. 11 levels. ``Layoffs are heading back down ... which makes sense as the economy is turning,'' said Jim Glassman, senior economist at JP Morgan. ``The airline industry and hotel industries are getting back on their feet.'' The number of workers filing initial jobless claims fell by 5,000 to a seasonally adjusted 376,000 for the week ended March 2 from the previous week's revised 381,000. Analysts surveyed in a Reuters poll were expecting a drop to 372,000. The four-week average fell by 1,250 to 372,750, the lowest level since the week ended Aug. 11, when it was 372,000. So-called continuing claims -- claims by unemployed workers who had already sought at least a week of benefits -- dropped 61,000 to 3.41 million in the week ended Feb. 23.