Saturday, April 2, 2016

Soaring Productivity Is Missing From the Numbers - Bloomberg View

Soaring Productivity Is Missing From the Numbers - Bloomberg View



...However, based on nothing more than my own personal experience, and nearly everyone else I have asked about this, something quite different is happening -- productivity is soaring. Yet, there's nothing to be found in the official numbers. To paraphrase Solow, productivity gains are everywhere except in the productivity statistics...



...Rick Rieder, chief investment officer of global fixed income at BlackRock, calls today's slow productivity growth “a statistical mirage.” He further observes that “traditional economic metrics simply haven’t kept pace with fast-changing technologies geared toward greater efficiency at lower cost.”



Others at BlackRock have looked at the productivity slowdown, exploring cyclical and structural reasons for the “missing” gains.Measurement error continues to be the leading culprit.

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