Economy: Productivity and Labor Costs Report for Q3 2018 (Revised)

Thursday, December 06, 2018

Productivity and Labor Costs Report for Q3 2018 (Revised)

The Labor Department's Bureau of Labor Statistics (BLS) this morning released its quarterly report on Productivity and Unit Labor Costs for the third quarter of 2018 (revised):

Nonfarm Productivity
Predicted: +2.3%
Actual: +2.3%

Change from A Year Ago: +1.3%

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Unit Labor Costs
Predicted: +1.1%
Actual: +0.9%

Change from A Year Ago: +0.9%

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The yellow-highlighted percentages represent the quarter-to-quarter change in non-farm productivity and unit labor costs for the United States.

For non-farm productivity, a positive number represents an improvement in the efficiency of producing domestic goods and services in the U.S., and therefore can signify a favorable inflationary outlook, and vice versa.

The Unit Labor Costs report measures the costs related to producing each unit of output. A positive number can be a harbinger of rising inflation, and vice versa.

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

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