Has The Music Stopped For The US Economy?

MKM Partners’ chief economist & market strategist Michael Darda is warning that the music has stopped for the American Economy.

The Economy is A Mosaic and S&P 500 Intrinsic Value Update

In a research note sent out to clients on Wednesday, Darda highlighted the problem of productivity in the US economy and how slowing productivity growth, coupled with weak topline growth and rising labour costs is a toxic combination for the US business environment.

American Economy – Productivity slowing 

Non-farm output per hour (productivity) fell 0.6% at an annual rate in Q1 after a 1.7% fall in Q4. Year-on-year, non-farm productivity is up just 0.7%, which is about the average since 2010. And with output weakening relative to hours worked, unit labour...