More Gloomy Economic News – Productivity Weakens


The Obama economy delivers more gloomy news. Productivity in the third quarter of 2011 was weaker than previously reported. What a shock.

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The rebound in U.S. nonfarm productivity growth was not as strong as previously estimated in the third quarter, while wages declined for two straight quarters, supporting the Federal Reserves views of moderate inflation pressures.

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Productivity increased at a 2.3 percent annual rate, the Labor Department said on Wednesday, a downward revision to its previous estimate of 3.1 percent.

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Economists polled by Reuters had forecast productivity, which measures hourly output per worker, being revised down to a 2.6 percent growth rate. The revision reflects a much slower gross domestic product growth pace during the July-September period. (Read More)

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But the pace of the national debt hasn’t slowed down a bit and the president chose to sit out the debt talks.

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