U.S. productivity stays solid as hours worked fall (What Recession?)

wall street journal ^ | 8/8/2008 | Rex Nutting,

[tobyhill]

Inflationary pressures were subdued, the data showed, with real hourly compensation falling -- a hopeful sign for the fight against inflation, but troubling for economic growth. Productivity in the nonfarm business sector rose a 2.2% annualized rate in the second quarter, a bit slower than the 2.7% rate that economists surveyed by MarketWatch had been looking for. See Economic Calendar. Unit labor costs -- a key gauge of inflationary pressures from labor markets -- rose 1.3% compared with the 1.6% rate expected by economists. Output rose an annualized 1.7% in the quarter, while hours worked dipped 0.5% and real hourly compensation fell by 1.4%. Read the full report. With real (inflation-adjusted) compensation up 0.1% in the past year, it's clear that "employee compensation costs aren't driving the surge in U.S. inflation," said Steven Wieting, an economist for Citigroup Global Markets. "The recent productivity gains should help the economy avoid a deep recession by helping firms minimize the need for massive layoffs," wrote Sam Bullard, an economist for Wachovia. "So far we have yet to see outsized declines in nonfarm employment that is typical of an economy in recession."

[kcm.org]

The TV wisdom now is now the dollar is not "falling," but "rising," that is inflationary.

America just can't win on TV it appears. Until Osama becomes lord and master...

[tobyhill]

The MSM thinks they are spiffy with their distorted analysis on the economy, energy, the wars, etc, but most American people are smart enough to know they only do that to try and help Obama win an election regardless of the consequences.

[Moonman62]

"The recent productivity gains should help the economy avoid a deep recession by helping firms minimize the need for massive layoffs," wrote Sam Bullard, an economist for Wachovia. "So far we have yet to see outsized declines in nonfarm employment that is typical of an economy in recession."

Maybe that's because of all the illegals who have gone home. Those who opposed W's and McCain's amnesty should get credit for that.

[kcm.org]

Right! AMEN! Sheeple. bonafide sheeple, aren’t buying into the Osama smoke’n’mirrors. And THAT worries me LOL! When have they been right?

[tobyhill]

That's the phrase that got my blood boiling. To say that it avoided a “deep recession” is like claiming that we are in a recession. These Democrat supporting economist have just changed the whole definition of what recession is just because they refuse to give President Bush any credit for anything.