The fourth quarter 2017 productivity report

  • Prior was +3.0% (revised to +2.7%)
  • Unit labor costs +2.0% vs +0.9% expected
  • Prior unit labor costs -0.2% (revised to -0.1%)

That's a big bounceback in unit labor costs after the fall in Q3. With the drop in productivity, that's not the greatest sign for the economy, but it is a sign of wage inflation -- at least until we're all replaced by robots.

Here's a look at unit labor costs with the four-quarter moving average.