Productivity growth sucked in Q1. It was up 0.3% from the previous quarter, an annualized rate of only 1.2%
5 thoughts on “Raw data: Productivity growth slowed in Q1”
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Cats, charts, and politics
Cats, charts, and politics
Productivity growth sucked in Q1. It was up 0.3% from the previous quarter, an annualized rate of only 1.2%
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I blame the productivity drop on all the resources being spent on AI.
These really are pretty bouncy numbers anyway. Maybe a single quarter is meaningless.
...an annualized rate of only 1.2%
Just a nit to pick: Shouldn't the annualized rate be calculated as:
Quarterly productivity growth rate = 0.3%
Annualized Rate = (1 + 0.003)^4 - 1 = 1.2124 or 1.21% (not 1.2%) ?
Kevin's not the only one who just multiples by four to derive the annualized figure (the media all do it this way), so, not singling him out. But I'm wondering if A) no one bothers taking compounding into effect because the difference is so small, or B) my reasoning/math is wrong...
I'm perfectly prepared to be told it's "B" (I'm not very strong at math!). But this has been something that's been nagging at me forever...
A
+1
You can't take a 2 figure number and turn it into a 3 figure number. So 1.2 is as close as you can reasonably get, thus, multiplying by 4 is good enough.