The third quarter productivity number was revised yesterday. Productivity is important as that goes directly to our standard of living. The more productive people are, generally, the lower cost of products and services. The number is shrinking down .2%, and little better than the first reading when it was down .3%.
What we want is growth in the 2 to 3% range. That is not an impossible number to reach as we have done that for much of the last 30 years.
Generally it requires more companies to invest in themselves; faster computers, more efficient systems and modern factories. These make people more productive. We will need to get that edge back if we hope to stay up with China.