Keeping you up to date on the latest data releases.
- Productivity and Costs
Nonfarm business sector productivity—real output per hour of all persons—rebounded from a 1.8 percent decline in the second quarter, increasing 1.9 percent in the third quarter. On a year-over-year basis, productivity is up 2.5 percent. The gain in the third quarter came as output rose 3.0 percent, faster than the 1.1 percent increase in hours. Compensation jumped up 1.8 percent in the third quarter after two consecutive quarterly decreases, leaving its four quarter growth rate up just 0.5 percent. After adjusting for price effects, the 4-quarter percent change in compensation is still negative, down 0.8 percent. Unit labor costs, down three of the past four months, were virtually flat in the third quarter and down 1.9 percent on a year-over-year basis, implying a dearth of wage pressure on pricing decisions.