Global| Dec 06 2017U.S. Productivity Growth Accelerates; Unit Labor Costs Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Output per hour in the nonfarm business sector grew at an unrevised 3.0% annual rate (1.5% y/y) in the third quarter following a 1.5% Q2 gain. It was the quickest productivity increase in three years. A 3.3% rise had been expected in [...]
Output per hour in the nonfarm business sector grew at an unrevised 3.0% annual rate (1.5% y/y) in the third quarter following a 1.5% Q2 gain. It was the quickest productivity increase in three years. A 3.3% rise had been expected in the Action Economics Forecast Survey. Output rose 4.1% (3.0% y/y) while hours-worked gained 1.1% (1.5% y/y).
Unit labor costs declined 0.2%, revised from +0.5%, following a 1.2% fall. A 0.2% rise had been expected. Compensation costs increased 2.7% last quarter (0.8% y/y), revised from 3.5%, after a 0.3% gain.
In the manufacturing sector, productivity declined 4.4% (+0.3% y/y) last quarter, revised from -5.0%, following a 3.6% Q2 rise. Output fell 1.1% (+1.5% y/y) while hours-worked lengthened 3.5% (1.2% y/y).
Unit labor costs in the factory sector strengthened 4.8% during Q3 (0.3% y/y) following a 1.2% decline. Compensation per hour grew 0.2% (0.6% y/y) following a 2.3% rise.
The productivity & cost figures are available in Haver's USECON database. The expectations figures are from the Action Economics Forecast Survey and are found in the AS1REPNA database.
| Productivity & Costs (SAAR, %) | Q3'17 | Q2'17 | Q3'17 Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| Nonfarm Business Sector | ||||||
| Output per Hour (Productivity) | 3.0 | 1.5 | 1.5 | -0.1 | 1.3 | 1.0 |
| Compensation per Hour | 2.7 | 0.3 | 0.8 | 1.0 | 3.1 | 2.9 |
| Unit Labor Costs | -0.2 | -1.2 | -0.7 | 1.1 | 1.8 | 1.9 |
| Manufacturing Sector | ||||||
| Output per Hour (Productivity) | -4.4 | 3.6 | 0.3 | 0.2 | -0.6 | 0.1 |
| Compensation per Hour | 0.2 | 2.3 | 0.6 | 0.7 | 2.5 | 2.8 |
| Unit Labor Costs | 4.8 | -1.2 | 0.3 | 0.6 | 3.1 | 2.7 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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