US Productivity & Inflation


People are working longer hours, are getting paid more, but are producing less


The economy is inefficient


Inflation will rise as companies need to start passing on the costs of labour, and they require the greater revenue to encourage business investment

Yellow line – Core Inflation (3mma YoY %)

Blue line – US Nonfarm Business Sector Output per Hour (YoY %) (Inverted)

Watch US Treasury yields to move higher, and EMFX to sell off