The recent gains in American productivity, if sustained, are a potential game changer for the economy, writes OMA Connections Partner RSM. The firm notes that the 3.2 % increase in productivity during Q4 2023 (2.7% on a year-over-year basis) has “most likely been a catalyst for both robust economic growth and disinflation.” But U.S. manufacturing continues to face long-term productivity challenges. This graph shows the manufacturing sector’s labor productivity (output per hour) has declined or been stagnant for the last dozen years. 2/7/2024