Productivity boom: this time it's structural

The latest surge in productivity suggests the AI boom is providing lasting benefits to the US economy that go well beyond just the value of investment in data centres. Non-farm business productivity increased at a 4.9% annualised pace in the third quarter. Despite fears that the government shutdown would hit the economy in the fourth quarter, our latest estimate suggests GDP growth was as strong as 4.0% annualised. With private payroll employment largely stagnant, that implies productivity continued to surge over the final few months of last year.