Reply To: Traders Market Weekly: Disconnect of World at War and Stock Market Euphoria


Q4 nonfarm business sector labor productivity increased 3.2% (consensus 2.1%) following a downwardly revised 4.9% (from 5.2%) in the third quarter. Unit labor costs rose just 0.5% ( consensus 1.9%) following an upwardly revised 1.1% decline (from -1.2%) in the third quarter.

The key takeaway from the report is the tame increase in unit labor costs. That is being seen by the market as another inflation-friendly signal for the Fed to take into account as it considers when it might cut rates.