Updated: 06-Dec-18 10:05 ET
| Q3 Productivity-Prel |
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| Updated: 06-Dec-18 10:05 ET |
Highlights
- Nonfarm business sector labor productivity for the third quarter was revised to 2.3% (Briefing.com consensus 2.2%) from 2.2%.
- Unit labor cost growth was revised to 0.9% (Briefing.com consensus 1.2%) from 1.2%.
Key Factors
- The increase in productivity was driven by output increasing 4.1% and hours worked increasing 1.8%.
- From the third quarter of 2017 to the third quarter of 2018, productivity increased 1.3%.
- The increase in third quarter unit labor costs flowed from a 3.1% increase in hourly compensation and the 2.3% increase in productivity.
- Unit labor costs were up 0.9% over the last four quarters.
Big Picture
- The key takeaway from the report is that it points to fairly subdued labor costs in the third quarter, which could contribute to a willingness on the part of the Federal Reserve to be more gradual on its rate-hike path.
| Category | Q3 | Q2 | Q1 | Q4 | Q3 |
| Nonfarm Business Sector | |||||
| Productivity Q/Q | 2.3% | 3.0% | 0.3% | -0.3% | 2.3% |
| Unit Labor Costs Q/Q | 0.9% | -2.8% | 3.4% | 2.3% | 2.8% |
| Productivity Y/Y | 1.3% | 1.3% | 1.0% | 1.0% | 1.4% |
| Unit Labor Costs Y/Y | 0.9% | 1.4% | 2.0% | 2.2% | 2.5% |