Recent analysis from Bank of America showed the average revenue per worker for companies in the S&P 500 hit an all-time high in February"If productivity goes higher, then are able to cut costs, improve margins, things like that," Bank of America US and Canada equity strategist Ohsung Kwon told Yahoo Finance. "That's why companies are so focused on improving productivity. There's a lot of macro headwinds happening.
Detrick's colleague Sonu Varghese explained that persistent wage growth can usually cause an inflation problem if consumers have more money to spend on goods. Demand for goods would rise as workers make more money, therefore pushing prices higher. This paradigm shifts, though, if productivity picks up. In that instance, the economy could sustain higher wages because companies would also be producing more goods. If both the demand and supply of goods pick up, then prices can remain stable.
Denver Broncos mascot Thunder, ridden by Ann Judge, crosses the field with the American flag after a touchdown in the first quarter against the Cleveland Browns at Empower Field at Mile High. The economy was just hit with a one-two punch of bad data