Close | X
Monday, January 21, 2019 5:48:33 AM EST

Productivity-Prel Updated 06-Dec-18 10:05AM ET

Nonfarm business sector labor productivity for the third quarter was revised to 2.3% ( consensus 2.2%) from 2.2%.

Unit labor cost growth was revised to 0.9% ( consensus 1.2%) from 1.2%.

The increase in productivity was driven by output increasing 4.1% and hours worked increasing 1.8%.

From the third quarter of 2017 to the third quarter of 2018, productivity increased 1.3%.

The increase in third quarter unit labor costs flowed from a 3.1% increase in hourly compensation and the 2.3% increase in productivity.

Unit labor costs were up 0.9% over the last four quarters.

The key takeaway from the report is that it points to fairly subdued labor costs in the third quarter, which could contribute to a willingness on the part of the Federal Reserve to be more gradual on its rate-hike path.
Nonfarm Business Sector
Productivity Q/Q2.3%3.0%0.3%-0.3%2.3%
Unit Labor Costs Q/Q0.9%-2.8%3.4%2.3%2.8%
Productivity Y/Y1.3%1.3%1.0%1.0%1.4%
Unit Labor Costs Y/Y0.9%1.4%2.0%2.2%2.5%