The Downtrend of Value-Added Productivity

Hidetaka Kawakita 

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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.

Hidetaka Kawakita

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