A Chance to Quote Falstaff, from Duncan Coker
Productivity is one area where of the economy that can not be compelled to improve by those royal powers above. Or as Falstaff once said to Prince Harry over a cup of sack:
"What, upon compulsion? 'Zounds, an I were at the strappado, or all the racks in the world, I would not tell you on compulsion. Give you a reason on compulsion! If reasons were as plentiful as blackberries, I would give no man a reason upon compulsion, I."
So Q/Q annualized rate of 8.1% does give me a sense of optimism as that and innovation account for our improved standard of living, wealth and many positive things over the last century.
I looked ahead to SPY performance 1 and 2 quarters later, but the results are not noteworthy in fact there is a negative relationship:
1 month ahead SPY quarter predicted by Prod, correl -.11, slope -.27, intercept .82, rsq .012
2 months ahead SPY quarter predicted by Prod, correl -.04, slope -.12,intercept .41, rsq .002
Serial correl of quarterly Prod -.15, Average annualized rate 2.7%
Serial correl of quarterly SPY .30, Average quarter .3%
Data 1999-2009
Still it is a big headline number, fourth largest over the period, though productivity never gets the same attention that employment will get tomorrow.