A recession can be a self-fulfilling prophecy. If everyone talks about it as if it’s already here, that changes people’s behavior, and they become more cautious. It’s worth pointing out that we are not in a recession right now, according to 1st quarter GDP numbers. Also, this morning brings a report of rising productivity and lowering wage costs. This reduces inflationary pressure and indicates greater-than-expect growth.
According to a recent AP article:
Worker productivity rose by a better-than-expected amount in the first three months of the year while labor cost pressures eased.
The Labor Department reported Wednesday that productivity, the amount of output per hour of work, increased at an annual rate of 2.2 percent in the first quarter. That was slightly higher than the 1.5 percent increase that had been expected.
In a sign that inflation could be easing, labor cost pressures slowed a bit. Unit labor costs rose at an annual rate of 2.2 percent, down from a 2.8 percent rise in the final three months of last year.
Read the full story here.
