US industrial productiveness labor prices Q3 2019
The Labor Division stated on Wednesday nonfarm productiveness, which measures hourly output per employee, fell at a 0.3% annualized price between July and September, the most important decline in virtually 4 years. The final drop that was sharper was within the fourth quarter of 2015.
The decline may set again the prospects of a pick-up anticipated by some economists within the development development price for productiveness following 2017 tax legislation adjustments partially geared toward fostering funding.
Analysts had anticipated productiveness development of 0.9% throughout the quarter.
A part of the shock owes to a modest upward revision within the Labor Division’s estimate for productiveness development throughout the second quarter, to 2.5% development from a earlier estimate of two.3%.
With the revisions, labor productiveness was 1.4% larger within the third quarter than in the identical interval of 2018. That may be a tenth of some extent larger than the 1.3% common annual development price of 2007-2018, however nicely beneath the two.1% long-run common between 1947 and 2018.
Labor productiveness additionally declined within the manufacturing unit sector for the second straight quarter, falling at a 0.1% annual price within the third quarter.
Unit labor prices, the worth of labor per single unit of output, rose at a 3.6% price within the third quarter.
Hours labored rose at a 2.4% price, whereas output was up 2.1%.