2017 Economic Calendar
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Productivity and Costs  
Released On 11/2/2017 8:30:00 AM For Q3(p):2017
PriorConsensusConsensus RangeActual
Nonfarm productivity - Q/Q change - SAAR1.5 %2.5 %1.5 % to 3.5 %3.0 %
Unit labor costs - Q/Q change - SAAR0.2 %0.6 %0.1 % to 2.0 %0.5 %

Output rose at a very solid 3.8 percent annualized rate in the third quarter and it only took a 0.8 percent increase in hours worked, a favorable combination that boosted nonfarm productivity to a higher-than-expected 3.0 percent rate in the third quarter. The gain in productivity helped hold down unit labor costs to a slightly lower-than-expected 0.5 percent annualized rate. Rising growth together with the rise underway in equipment investment is the necessary combination to improve productivity and keep down costs.

Consensus Outlook
Third-quarter GDP of 3.0 percent points to strength for third-quarter productivity. Forecasters see nonfarm productivity rising 2.5 percent vs the second-quarter gain of 1.5 percent with unit labor costs at plus 0.6 percent vs the prior quarter's 0.2 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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