Productivity and Costs
Definition
Productivity measures the growth of labor efficiency in producing the economy's goods and services. Unit labor costs reflect the labor costs of producing each unit of output. Both are followed as indicators of future inflationary trends.
Nonfarm productivity Consensus 0.5 %
Unit labor costs Consensus 2.7 %
Consensus Notes
Economists are predicting that nonfarm productivity inched up at a 0.5 percent rate in the second quarter. This is based on the modest growth in GDP coupled with slight gains in employment during the period. Nonfarm productivity surged in the first quarter. (Forecast range: -0.4 to 2.0 percent) At the same time, unit labor costs are expected to rise at a 2.7 percent rate after declining in each of the two previous quarters. (Forecast range: -1.5 to 3.8 percent) These forecasts should be taken with a grain of salt since historical figures will be revised for the past three years just like GDP. Also, downward GDP and employment revisions could mean downward revisions to productivity growth for the past few years.
Definition
Productivity measures the growth of labor efficiency in producing the economy's goods and services. Unit labor costs reflect the labor costs of producing each unit of output. Both are followed as indicators of future inflationary trends.
Nonfarm productivity Consensus 0.5 %
Unit labor costs Consensus 2.7 %
Consensus Notes
Economists are predicting that nonfarm productivity inched up at a 0.5 percent rate in the second quarter. This is based on the modest growth in GDP coupled with slight gains in employment during the period. Nonfarm productivity surged in the first quarter. (Forecast range: -0.4 to 2.0 percent) At the same time, unit labor costs are expected to rise at a 2.7 percent rate after declining in each of the two previous quarters. (Forecast range: -1.5 to 3.8 percent) These forecasts should be taken with a grain of salt since historical figures will be revised for the past three years just like GDP. Also, downward GDP and employment revisions could mean downward revisions to productivity growth for the past few years.
