–2Q Productivity Revised Up To -0.1% From Prev -0.7%
–2Q Unit Labor Costs Revised Down To +2.8% From Prev +3.3%
By Kevin Kastner and Ian McKendry
WASHINGTON (MNI) – U.S. nonfarm productivity rose 3.1% at an annual
rate in the third quarter, following the upwardly revised 0.1% decline
in the previous quarter, as output growth accelerated and hours worked
growth slowed, data released by the Bureau of Labor Statistics Thursday
showed.
As a result of the stronger productivity growth and a slowdown in
compensation growth, unit labor costs fell 2.4% at an annual rate in the
quarter from the revised 2.8% rise in previous quarter.
Analysts in a Market News International survey had expected
productivity to rise 3.5% in the third quarter and unit labor costs to
fall 1.5%
Output rose 3.8% in the third quarter, up from the 1.8% rise in the
previous quarter, while hours worked rose only 0.6% in the third
quarter, as slowdown from the 2.0% increase in the previous quarter.
Compensation rose 0.6% at an annual rate in the third quarter after
rising 2.7% in the previous quarter. Real compensation, however, fell
2.4% following a 1.3% decline in the second quarter. The implicit price
deflator was up 2.2% in the third quarter and up 2.7% in the second
quarter.
Year-over-year growth in productivity now stands at a 1.1% rate for
the third quarter, up slightly from the 0.9% estimate in the second
quarter.
Unit labor costs rose 1.2% year/year in the third quarter, down
from the 1.8% year/year rate in the second quarter.
Within the manufacturing sector, productivity rose 5.4% in the
third quarter, a sharp improvement from the 2.3% decline in the second
quarter. As a result of the productivity jump and a slowdown in
compensation growth, manufacturing unit labor costs fell 4.6% in the
third quarter after a 5.5% rise in the second quarter.
** Market News International Washington Bureau: 202-371-2121 **
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