Global| Sep 04 2008U.S. Productivity Growth Revised Up; Unit Labor Costs Fell
by:Tom Moeller
|in:Economy in Brief
Summary
Labor productivity in the nonfarm business sector rose a revised 4.3% last quarter. The increase was larger than expected growth of 3.4% and it was double the preliminary estimate of a 2.2% increase. The upward revision was due to a [...]
Labor productivity in the nonfarm business sector rose a revised 4.3% last quarter. The increase was larger than expected growth of 3.4% and it was double the preliminary estimate of a 2.2% increase.
The upward revision was due to a near-doubling of output growth to 3.4% and a slightly larger 0.8% decline in hours worked.
Growth in compensation per hour was little-changed at 3.7% and that about equaled the 1Q increase.
Unit labor cost growth was revised to show a slight 0.5% decline rather than the 1.3% increase estimated earlier. Year-to-year that left costs up just 0.6% from one year earlier.
In the factory sector productivity growth was revised down and it showed a 2.2% decline (+2.4% y/y). Productivity rose 3.4% last year. Unit labor cost growth surged a little-revised 6.2% (1.4% y/y) as compensation rose 3.9% (3.8% y/y).
In the nonfinancial corporate sector, productivity surged 5.6% and the y/y gain rose to 2.3% after a 1.9% increase last year.Compensation in the corporate sector rose 3.7% (3.8% y/y), a gain which left unit labor costs to decline 1.8% (+1.5% y/y).
| Nonfarm Business Sector (SAAR, %) | 2Q '08 | 1Q '08 | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Output per Hour | 4.3 | 2.6 | 3.4 | 1.4 | 1.0 | 1.8 |
| Compensation per Hour | 3.7 | 3.8 | 4.0 | 4.1 | 3.8 | 4.0 |
| Unit Labor Costs | -0.5 | 1.2 | 0.6 | 2.7 | 2.8 | 2.2 |
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.
More Economy in Brief
