Wednesday, September 07, 2005

Slow Productivty Growth

A recent CNN article has stted that the United States Productivity Growth has been shrinking. The percentage growth for the second quarter was 1.8 percent which was lower than expected. With the first quarter growth of 3.2 percent this was a high drop between two quarters. This drop was also unexpected since the amount of hours worked grew by 2.2 percent. There is also a significant amount of decrease from last year's growth rate at 4.5 percent. I feel this could have an impact on our economy because a slower growth rate could in turn cause inflation. My question is what do you think caused this decrease in the productivity growth and what kind of impact will it have on our economy?

http://money.cnn.com/2005/09/07/news/economy/productivity.reut/index.htm

No comments: