Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

Ultimately, the long term health and sustainability of any economic expansion hinges on productivity growth

Harry Colvin

Longview Economics

Ultimately, the long term health and sustainability of any economic expansion hinges on productivity growth. Indeed, productivity growth is true wealth creation, it underpins long term growth in corporate profits and sits squarely at the heart of the longevity of the economic cycle. In the UK, productivity is unchanged since the GFC, having collapsed during the crisis. If it doesn't accelerate soon, the economy is likely to lose momentum as rising wage inflation squeezes corporate margins. While the outlook for productivity is therefore critical, it's also a source of much debate and contention in markets. In particular, the question is whether or not the corporate sector is able/willing to re-leverage and invest in future productive capacity. If it is- then the downtrend in capital intensity and productivity should reverse. If not- the UK risks a re-run of the late-1970s (i.e. a time of de-leveraging, weak investment spending and poor productivity).


Harry Colvin specialises in global asset allocation, macro themes, and commodities. He has built and developed Longview's commodity research process, timing models, trade recommendations and research products.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.