In the fourth quarter U.S. productivity increased 3.0% (ahead of consensus 2.5%), as output increased 3.5% and hours worked increased 0.5%. This followed an upwardly revised 1.4% increase (from 0.8%) in the third quarter. Productivity increasing is one way to lower inflation and a way to increase profitability, and lower unit labor costs. Unit labor costs rose 1.1% (lower than the consensus 1.5%) following a downwardly revised 2.0% (from 2.4%) in the third quarter. The Fed is keeping a sharp eye on … Continue reading “Improved American Productivity Helped Tame Unit Labor Costs”
Largest Fall in US Nonfarm Productivity Since 1948 as Unit Labor Costs Rose 10.2%
The US economy continues to break records for all the wrong reasons. Non-farm labor productivity decreased 4.1% (consensus -4.6%) with the revised report in the second quarter of 2022 largest decline in a series that began in the first quarter of 1948. Unit labor costs increased 10.2% (consensus 10.7%) versus a 10.8% increase seen in the advance report. Unit labor costs saw the largest four-quarter increase (9.3%) since the first quarter of 1982 and following a 12.7 percent surge in … Continue reading “Largest Fall in US Nonfarm Productivity Since 1948 as Unit Labor Costs Rose 10.2%”