Global| Sep 02 2015U.S. Productivity is Revised Higher Following Two Quarters of Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Nonfarm productivity growth during Q2'15 was revised higher to 3.3% from 1.3% reported initially (SAAR). Revision to 2.3% growth was expected in the Action Economics Forecast Survey. Last quarter's gain followed two of quarters of [...]
Nonfarm productivity growth during Q2'15 was revised higher to 3.3% from 1.3% reported initially (SAAR). Revision to 2.3% growth was expected in the Action Economics Forecast Survey. Last quarter's gain followed two of quarters of decline, which were little-revised. Strengthened productivity growth prompted a 1.4% decline (+1.7% y/y) in unit labor costs, initially reported as a 0.5% rise. A 0.4% decline had been expected. Growth in compensation per hour was unchanged at 1.8% (2.5% y/y) after a 1.5% Q1 rise.
Revisions to the factory sector figures were small. Manufacturing sector worker productivity increased at a 2.3% rate (1.0% y/y), revised from 2.5%. The gain also followed two quarters of modest decline. Unit labor costs fell 2.2% (+1.0% y/y), the fourth decline in the last five quarters. Compensation edged 0.1% higher after a 2.1% decline in Q1.
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,%) | Q2'15 | Q1'15 | Q4'14 | Q2 Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Nonfarm Business Sector | |||||||
| Output per Hour (Productivity) | 3.3 | -1.1 | -2.2 | 0.7 | 0.7 | 0.0 | 0.9 |
| Compensation per Hour | 1.8 | 1.5 | 3.4 | 2.5 | 2.7 | 1.1 | 2.7 |
| Unit Labor Costs | -1.4 | 2.6 | 5.7 | 1.7 | 2.0 | 1.1 | 1.7 |
| Manufacturing Sector | |||||||
| Output per Hour (Productivity) | 2.3 | -0.6 | -0.4 | 1.0 | 1.3 | 0.7 | 0.7 |
| Compensation per Hour | 0.1 | -2.2 | 4.3 | 1.2 | 2.7 | 0.2 | 1.8 |
| Unit Labor Costs | -2.2 | -1.6 | 4.7 | 0.2 | 1.4 | -0.5 | 1.0 |
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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