Global| Mar 07 2018U.S. Productivity Steadies; Unit Labor Costs Rise
by:Tom Moeller
|in:Economy in Brief
Summary
Output per hour in the nonfarm business sector remained stable (revised from -0.1%) during Q4'17 following a 2.6% Q3 rise. A 0.1% slip had been expected in the Action Economics Forecast Survey. Output rose at a 3.2% rate (3.2% y/y) [...]
Output per hour in the nonfarm business sector remained stable (revised from -0.1%) during Q4'17 following a 2.6% Q3 rise. A 0.1% slip had been expected in the Action Economics Forecast Survey. Output rose at a 3.2% rate (3.2% y/y) after a 4.0% increase during Q3, while hours-worked strengthened 3.3%% (2.1% y/y). During all of 2017, productivity increased 1.2%, up from the 0.7% average during the last five years. Data were revised back to 2013 with the latest release.
Unit labor costs increased at a 2.5% rate (1.7% y/y), revised from 2.0%, after a 1.0% gain. A 2.1% rise had been expected. Compensation costs increased 2.4% (2.9% y/y), revised from 1.8%, following a 3.6% gain.
In the manufacturing sector, productivity surged at an unrevised 6.0% annual rate last quarter following a 4.7% decline. Output surged 6.6% (1.6% y/y) while hours-worked improved 0.5% (1.0% y/y).
Unit labor costs in the factory sector declined at a 3.3% rate (+1.3% y/y), revised from -3.7%, following a 5.8% increase. Compensation per hour grew 2.5% (2.4% y/y) following a 0.7% 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, %) | Q4'17 | Q3'17 | Q2'17 | Q4'17 Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Nonfarm Business Sector | |||||||
| Output per Hour (Productivity) | 0.0 | 2.6 | 1.7 | 1.1 | 1.2 | 0.0 | 1.2 |
| Compensation per Hour | 2.4 | 3.6 | 0.5 | 2.9 | 1.6 | 1.1 | 3.1 |
| Unit Labor Costs | 2.5 | 1.0 | -1.2 | 1.7 | 0.4 | 1.1 | 1.8 |
| Manufacturing Sector | |||||||
| Output per Hour (Productivity) | 6.0 | -4.7 | 3.6 | 1.1 | 0.6 | 0.4 | 0.3 |
| Compensation per Hour | 2.5 | 0.7 | 2.3 | 2.4 | 1.6 | 0.7 | 2.5 |
| Unit Labor Costs | -3.3 | 5.8 | -1.2 | 1.3 | 1.0 | 0.3 | 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.
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