US nonfarm productivity for third-quarter 2019 (preliminary)
- Nonfarm productivity for third-quarter falls -0.3% versus 0.9% estimate. The 2nd quarter was revised higher to 2.5% from 2.3%. The weakest number since December 2015.
- Unit labor costs surged by 3.6% versus 2.3% estimate. The prior month was revised lower to 2.4% from 2.6%.
- The report shows the decline in productivity resulted from a 2.1% increase in output against the -2.4% rise in hours worked
- versus a year ago productivity rose 1.4%. That was down from 1.8% in the 2nd quarter
- unit labor costs year on year were up 3.1% which may be an indication that the tight labor market is filtering through to the worker
Increasing productivity is a way to get a boost to GDP. If workers productivity increases, the economy grows at a faster pace. The opposite is true as well. Business investment is a key component of increased productivity and it has been slowing not rising.
