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Economy in Brief
French Retail Sales Rebound In June But Do Not Convince
French retail sales rebounded in June after falling for two consecutive months...
U.S. CPI Increase Moderates; Core Price Gain Steadies
Inflationary pressures moderated last month...
U.S. Government Budget Deficit Widens This Year
The U.S. Treasury Department reported that during the first nine months of fiscal year 2018, the federal government budget deficit totaled $607.1 billion...
U.S. Initial Unemployment Insurance Claims Fall
Initial claims for unemployment insurance dropped to 214,000 during the week ended July 7...
EMU IP Makes Strong May Gain
EMU industrial output expands in all sectors in May...
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% |
