Nonfarm business sector labor productivity for the third quarter was revised to 2.3% (Briefing.com consensus 2.2%) from 2.2%.
Unit labor cost growth was revised to 0.9% (Briefing.com 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|
|Unit Labor Costs Q/Q||0.9%||-2.8%||3.4%||2.3%||2.8%|
|Unit Labor Costs Y/Y||0.9%||1.4%||2.0%||2.2%||2.5%|