It can explain why we are in a midst of an investment boom, why the profit share of income has been rising, why inflation is so well contained, and why stock prices have soared. The only problem is the data. It is true that productivity has increased more rapidly recently.
This is not clear-cut evidence of a shift in the productivity trend, however, because productivity normally accelerates when output growth rises, as it has over the last year. There is, however, some support for the view that we are experiencing a speed-up in the trend rate of productivity growth.