Workplace Productivity Revised Upward, Labor Costs Revised Down

Nonfarm productivity growth for the third quarter was revised up to an annualized 2.3 percent from the first estimate of 2.0 percent and following a 2.9 percent boost in the second quarter. Unit labor costs were revised down notably to minus 1.0 percent from a first estimate of up 0.3 percent after falling an annualized 3.7 percent in the second quarter.

Output growth slowed to 4.9 percent in the third quarter, following a 5.5 percent jump the prior quarter. Compensation growth in the third quarter was up 1.3 percent annualized after a dip of 0.9 percent the previous period.

Year-on-year, productivity was up 1.0 percent in the third quarter, down from 1.3 percent in the second quarter. Year-ago unit labor costs were up 1.2 percent, compared to up 0.7 percent in the second quarter.

The latest productivity report points to positive company profits and mild gains in consumer income.

Recent History Of This Indicator:
Nonfarm business productivity for the third quarter advanced an annualized 2.0 percent, following a 2.9 percent boost in the second quarter. Unit labor costs nudged up 0.3 percent after falling an annualized 0.5 percent in the second quarter. Output growth slowed to 4.4 percent in the second quarter, following a 5.5 percent jump the prior quarter. Compensation growth held steady at a pace of 2.3 percent.