The Downtrend of Value-Added Productivity

2008年07月23日

(Hidetaka Kawakita)

Corporate earnings peaked out around last summer. If the turnaround was largely due to the subprime loan crisis, the situation would not warrant much alarm. In fact, however, a larger problem exists in that value-added productivity is trending downward. The earnings recovery and expansion since 2002, which relied heavily on labor cost containment, is no longer sustainable. Looking ahead, a breakthrough is needed for stock prices to rise further.

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