–Hours +1.3%, Output +4.2%; Suggests Good Corp Profit Margins
By Joseph Plocek
WASHINGTON (MNI) – U.S. Q3 nonfarm productivity revisions were
favorable and about as expected, reflecting a better GDP gain amid slow
growth in hours.
Q3 nonfarm productivity now stands at +2.9% (+1.9% originally) and
Unit Labor Costs -1.9% (-0.1% originally). The upward growth revisions
and cuts in personal income in the GDP revision completely explain the
changes.
There is now a 4.2% gain in Q3 output and a slower 1.3% advance in
hours worked. Productivity is output per hour.
Productivity stands at +1.7% over the year, slightly below its
60-year average, and ULC is a negligible +0.1% over the year.
These suggest corporate profit margins should remain positive. The
data also help explain a somewhat cautious consumer: the 60-year average
advance is +2.9% for ULC.
Manufacturing productivity was a weak spot in the report — it fell
0.7% on declining output. Manufacturing ULC was +3.2% even as output
fell.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
