Stronger productivity trend becoming more evident

Wells Fargo Research Team Wells Fargo

Summary

As presaged by the better-than-expected GDP report, nonfarm labor productivity expanded at a robust 4.9% annualized pace in the third quarter as output growth far exceeded the rise in hours worked. The solid outturn reinforces that the underlying trend in productivity remains stronger than the prior cycle (2.0% since the end of 2019 versus 1.5% from 2007-2019) and should help to allay concerns over the current state of inflation.

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Wells Fargo Research Team

Wells Fargo

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