Global| Jun 04 2008U.S. Productivity Growth Revised Up; Unit Labor Costs Rose Moderately
by:Tom Moeller
|in:Economy in Brief
Summary
Labor productivity in the nonfarm business sector rose a revised 2.6% last quarter, as expected. That increase was stronger than the 2.2% growth estimated last month and was up from 1.8% growth during 4Q07. The upward revision was due [...]
Labor productivity in the nonfarm business sector rose a revised 2.6% last quarter, as expected. That increase was stronger than the 2.2% growth estimated last month and was up from 1.8% growth during 4Q07.
The upward revision was due to an upward revision to output growth to a still low 0.7% from 0.4%. That was accompanied by an unrevised 1.8% decline in total hours worked.
Growth in compensation per hour rose was revised up to 4.9% from 4.4%. The increase, nevertheless, lowered the year-to-year rise to 4.0%, down from 5.8% as of 3Q '07.
Unit labor cost growth was left unrevised at 2.2% after a revised 4.7% surge during 4Q '07. Year-to- year, the growth in costs fell to a modest 0.7%, the slowest rate of growth since a slight decline early in 2004.
In the nonfinancial corporate sector, productivity rose a firm 4.6% (3.0% y/y). That annual increase was the quickest since the end of 2004 while quarterly strength reflected a 3.2% rise in output but a 1.4% decline in hours worked.
Compensation in the corporate sector again was firm and increased 5.9%, a rise which left unit labor costs to increase 1.2% (1.1% y/y).
In the factory sector, productivity rose a somewhat lessened 3.6% (4.0% y/y). Unit labor cost growth was revised up to 4.2% on a quarterly basis but earlier quarterly declines reduced the year-to-year change to -0.2%.
Productivity, Energy Prices, and the Great
Moderation: a New Link is from the Federal Reserve Bank of
Atlanta and it can be found here
.
| Nonfarm Business Sector (SAAR, %) | Q1 '08 (Revised) | Q1 '08 | Q4 '07 | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|---|
| Output per Hour | 2.6 | 2.2 | 1.8 | 3.3 | 1.8 | 1.0 | 1.9 |
| Compensation per Hour | 4.9 | 4.4 | 6.6 | 4.0 | 5.1 | 3.9 | 4.0 |
| Unit Labor Costs | 2.2 | 2.2 | 4.7 | 0.7 | 3.2 | 2.9 | 2.0 |
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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