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Economy in Brief
U.S. Trade Deficit Widens to $68.2 Billion in January
The U.S. trade deficit in goods and services widened to $68.2 billion in January...
U.S. Factory Orders & Shipments Rise Again in January
Manufacturing activity is strengthening. Factory orders rose 2.6% (2.8% y/y) in January...
U.S. Initial Unemployment Insurance Claims Rise Just 9,000
Initial claims for unemployment insurance rose modestly by 9,000 to 745,000 in the week ended February 27...
U.S. Productivity's Decline Lessened in Q4'20; Reverses Q3 Increase
Revisions to nonfarm business sector productivity indicated a 4.2% decline during Q4'20...
EMU Unemployment Rate Steadies in January
The overall EMU unemployment rate was steady in January, off peak, but still elevated...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller March 3, 2005
Non-farm labor productivity growth for 4Q04 was revised upward to 2.1%, reflecting an upward revision to output growth. Nevertheless, productivity growth for the full year of 4.0% was the lowest since 2001. The late year slowdown reduced 4Q/4Q growth to 2.8%. Consensus expectations had been for a revision to 1.4% growth for 4Q. Figures were revised back to 2000.
Output growth was revised up as expected to 3.7% (4.4% y/y) from 2.8% and reflected an accounting for higher exports to Canada. Growth in hours worked was revised down to 1.6% from 1.9%.
The upward revision to productivity lowered the estimate of unit labor cost growth to 1.3% from 2.3%. Annual growth of 0.4% followed two years of decline. Compensation growth was revised up to 3.4% (4.2% y/y) from 3.1%.
Productivity in the manufacturing sector was revised slightly higher to 5.8% (5.2% y/y) from 5.6%. Unit labor cost growth in the factory sector held at 0.4% (-0.5% y/y) but compensation growth was revised up.
International Risk-Sharing and the Transmission of Productivity Shocks from the Board of Governors of the Federal Reserve System is available here.
Non-farm Business Sector (SAAR) | 4Q '04 (Revised) | 4Q '04 (Prelim.) | 3Q '04 | Y/Y | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|---|
Output per Hour | 2.1% | 0.8% | 1.3% | 2.8% | 4.0% | 4.4% | 4.3% |
Compensation | 3.4% | 3.1% | 5.4% | 4.2% | 4.4% | 4.0% | 3.2% |
Unit Labor Costs | 1.3% | 2.3% | 4.0% | 1.4% | 0.4% | -0.4% | -1.1% |