August 14, 2020

Non-farm productivity surged by 7.3% in the second quarter after declining 0.3% in the first quarter.  But the Q2 result was significantly impacted by the recession.  In the second quarter  output fell by 38.9% while hours worked declined even more sharply by 43.0%.  These two components are almost certainly going to decline in the third quarter as the economy begins to recover with the end result that productivity growth in the third quarter will probably decline sharply.

Stephen Slifer

NumberNomics

Charleston, SC