Friday, August 08, 2014 8:51:26 AM
Productivity and Costs
Released On 8/8/2014 8:30:00 AM For Q2:14
Prior Prior Revised Consensus Consensus Range Actual
Nonfarm productivity - Q/Q change - SAAR -3.2 % -4.5 % 1.4 % -5.0 % to 3.5 % 2.5 %
Unit labor costs - Q/Q change - SAAR 5.7 % 11.8 % 1.6 % 0.3 % to 7.5 % 0.6 %
Highlights
As second quarter GDP, productivity in the same period rebounded from the first quarter deep freeze. Second quarter GDP growth posted at an annualized 2.5 percent, following a revised 4.5 percent drop in the first quarter. The latest number topped analysts' expectations for a 1.4 percent rise. Today's report includes annual revisions.
Unit labor costs edged up 0.6 percent after surging 11.8 percent annualized in the first quarter. The consensus called for a 1.6 percent increase.
Looking at components, output jumped 5.2 percent in the nonfarm business sector, following a 2.4 percent decline in the first quarter. Hours worked increased at a 2.7 percent pace after 2.1 percent the prior quarter. But compensation growth slowed to 3.1 percent in the second quarter after jumping an annualized 6.8 percent in the prior quarter.
Year-on-year, productivity was up 1.2 percent in the second quarter, up from 0.7 percent in the first quarter. Year-ago unit labor costs were up 1.9 percent, compared to up 2.6 percent in the first quarter.
Overall, the productivity numbers are consistent with a return to more normal growth and businesses are back to seeing moderate labor costs.
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
Released On 8/8/2014 8:30:00 AM For Q2:14
Prior Prior Revised Consensus Consensus Range Actual
Nonfarm productivity - Q/Q change - SAAR -3.2 % -4.5 % 1.4 % -5.0 % to 3.5 % 2.5 %
Unit labor costs - Q/Q change - SAAR 5.7 % 11.8 % 1.6 % 0.3 % to 7.5 % 0.6 %
Highlights
As second quarter GDP, productivity in the same period rebounded from the first quarter deep freeze. Second quarter GDP growth posted at an annualized 2.5 percent, following a revised 4.5 percent drop in the first quarter. The latest number topped analysts' expectations for a 1.4 percent rise. Today's report includes annual revisions.
Unit labor costs edged up 0.6 percent after surging 11.8 percent annualized in the first quarter. The consensus called for a 1.6 percent increase.
Looking at components, output jumped 5.2 percent in the nonfarm business sector, following a 2.4 percent decline in the first quarter. Hours worked increased at a 2.7 percent pace after 2.1 percent the prior quarter. But compensation growth slowed to 3.1 percent in the second quarter after jumping an annualized 6.8 percent in the prior quarter.
Year-on-year, productivity was up 1.2 percent in the second quarter, up from 0.7 percent in the first quarter. Year-ago unit labor costs were up 1.9 percent, compared to up 2.6 percent in the first quarter.
Overall, the productivity numbers are consistent with a return to more normal growth and businesses are back to seeing moderate labor costs.
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
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