And, as I noted, increased caution has probably pushed many companies to find ways to get more productivity from their workers. But these efficiency gains were likely facilitated by the capital investments of recent years. Adjusting to new technologies takes time, and it is plausible that such an adjustment process has continued to boost productivity this year.
It is also possible that the economy could cool more than expected if housing markets weaken quite substantially, consumption is cut back significantly, and as a consequence businesses pare capital spending plans.