US unit labor costs quarter and quarter
  • Preliminary -0.8% reported on November 2.
  • Prior quarter +3.2%
  • Q3 unit labor costs -1.2% vs -0.9% estimate
  • Q3 productivity +5.2% versus 4.9% expected. Preliminary 4.7%
  • Q2 productivity was at 3.6%

With productivity increasing and unit labor costs moving lower that is disinflationary and a Goldilocks scenario. There is nothing better for profits than labor costs moving lower while productivity increases. Unit labor costs lead wages by about two months.