2014 Economic Calendar
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Productivity and Costs
Released On 3/6/2014 8:30:00 AM For Q4r:13
PriorPrior RevisedConsensusConsensus RangeActual
Nonfarm productivity - Q/Q change - SAAR3.2 %3.5 %2.4 %1.7 % to 2.9 %1.8 %
Unit labor costs - Q/Q change - SAAR-1.6 %-2.1 %-0.5 %-1.3 % to 0.0 %-0.1 %

Highlights
Productivity in the fourth quarter rose a revised1.8 percent after a 3.5 percent boost the prior quarter. Expectations were for 2.4 percent increase. Unit labor costs declined an annualized 0.1 percent, following a decrease of 2.1 percent in the third quarter. The market forecast was for a 0.5 percent decline.

The rise in productivity reflected a 3.4 percent jump in non-farm output, following a boost of 5.4 percent in the third quarter. Hours worked increased 1.6 percent in the fourth after rising an annualized 1.9 in the third quarter. Compensation firmed to a 1.7 percent rate after rising 1.3 percent in the third quarter.

Year-on-year, productivity was up 1.3 percent in the fourth quarter versus up 0.5 percent in the third quarter. Year-ago unit labor costs were down 0.9 percent, compared to up 1.9 percent in the third quarter.

Market Consensus before announcement
Nonfarm business productivity in the fourth quarter remained healthy, posting at an annualized gain of 3.2 percent after a 3.6 percent boost the prior quarter. Unit labor costs declined an annualized 1.6 percent, following a decrease of 2.0 percent in the third quarter. The rise in productivity reflected a 4.9 percent jump in non-farm output, following a jump of 5.4 percent in the third quarter. Hours worked grew 1.7 percent in both the fourth and third quarters. Compensation eased to a 1.5 percent pace after rising 1.6 percent in the third quarter.

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.  Why Investors Care
 
[Chart]
Nonfarm productivity growth has remained healthy during this expansion, but it has prevented employment from growing very fast and this hurt income growth to some extent. Unit labor costs tend to fall when productivity growth accelerates and then rises as productivity growth abates.
Data Source: Haver Analytics
 

 

2014 Release Schedule
Released On: 2/63/65/76/48/89/411/612/3
Release For: Q4:13Q4r:13Q1:14Q1r:14Q2:14Q2r:14Q3:14Q3r:14
 


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