2017 Economic Calendar
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Productivity and Costs  
Released On 8/9/2017 8:30:00 AM For Q2(p):2017
PriorPrior RevisedConsensusConsensus RangeActual
Nonfarm productivity - Q/Q change - SAAR0.0 %0.1 %0.8 %-0.3 % to 2.0 %0.9 %
Unit labor costs - Q/Q change - SAAR2.2 %5.4 %1.3 %0.7 % to 1.9 %0.6 %

Second quarter productivity came in at a soft 0.9 percent annualized rate though unit labor costs, held down by a solid 3.4 percent rise in output, rose only at a 0.6 percent rate. It did take more hours to raise production, at a 2.5 percent rate from 1.6 percent, but the output gain more than outmatched the hour gain.

Though output in the first quarter was revised only slightly to 1.8 percent, unit labor costs were revised sharply higher to 5.4 percent from 2.2 percent reflecting a sharp upward revision in compensation to a 5.5 percent rate. Still, when adjusted for inflation, compensation rose a less sharp 2.3 percent with second-quarter real compensation at 1.9 percent.

The second quarter was a comparatively healthy stretch for the economy and if extended would be a plus for the outlook.

Consensus Outlook
Solid 2.6 percent GDP points to improvement for second-quarter productivity and moderation for labor costs. For the first estimate of the second quarter, forecasters see nonfarm productivity rising 0.8 percent vs no change in the first quarter and unit labor costs at plus 1.3 percent vs the first quarter's 2.2 percent rise.

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
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

2017 Release Schedule
Released On: 2/23/85/46/58/99/711/212/6
Release For: Q4(p):2016Q4(r):2016Q1(p):2017Q1(r):2017Q2(p):2017Q2(r):2017Q3(p):2017Q3(r):2017

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