13:30 Dados States
Enviado: 6/6/2007 12:278:30 AM ET, Jun 06, 2007 - 1 minute ago
U.S. 1Q manufacturing productivity up 2.4%
U.S. 1Q nonfinancial productivity up 0.6%
U.S. unit labor costs up 2.2% year-over-year
U.S. productivity up 1% year-over-year
U.S. productivity revision close to expectations
U.S. 1Q unit labor costs revised higher to 1.8% vs. 0.6%
U.S. 1Q productivity revised lower to 1% vs. 1.7%
ECONOMIC REPORT: Productivity revised lower to 1% gain; Productivity in nonfinancial companies rises just 0.6%
By Rex Nutting, MarketWatch Last Update: 8:30 AM ET Jun 6, 2007
WASHINGTON (MarketWatch) - The productivity of the U.S. workplace slowed sharply in the first quarter as output throttled back, the Labor Department reported Wednesday.
Productivity in the nonfarm business sector increased at an annual rate of 1% in the quarter, revised down from 1.7% reported a month ago. Productivity is up just 1% in the past four quarters.
Meanwhile, unit labor costs - a key gauge of inflationary pressures from labor markets - was revised higher to 1.8% annualized from 0.6% earlier.
The revisions were close to expectations for a 1.1% gain in productivity and a 1.7% gain for unit labor costs.
Output rose 0.6% annualized in the first quarter, hours worked fell 0.4% and real hourly compensation fell by 1%. It was the slowest increase in output in four years.
Productivity in the nonfinancial sector slowed even more, growing just 0.6% in the first quarter and 0.3% over the past four quarters, a troubling development.
Nonfinancial productivity is considered by policymakers to be the cleanest read on productivity, because productivity in financial services appears impossible to measure.
In the nonfinancial sector, unit labor costs rose 4.1% in the first quarter and 3% over the past four quarters. Real hourly compensation is up 0.9% in the past year, while unit profits are down 1.9%.
Productivity, a concept that's simple in theory but elusive in practice, is output divided by hours worked. Productivity gains are the key to higher living standards, higher wages, increased profits and low inflation.
High productivity growth means the economy can grow rapidly without inflation, raising living standards and theoretically allowing workers to get big raises without hurting the boss's profits.
But a low rate of productivity growth can mean a sluggish economy and increased inflationary pressures.
Unfortunately for those who want easy answers, in practice productivity is extremely difficult to measure, particularly in the services.
Most economists focus on the longer trend, rather than on the volatile quarterly numbers.
The past
Productivity averaged about 2.7% annually from 1948 to 1970, then slowed to 1.6% from 1971 to 1995. Since then, productivity has grown about 2.5% annually. In 2006, productivity increased 1.6%.
Productivity has slowed in the past few years. One of the big debates in the economy is whether that slowing is structural or related to the business cycle. If it's structural, Americans will have to get used to slower growth. If it's cyclical, then the long-term speed limit of the economy will stay near 3%.
In the manufacturing sector, productivity increased 2.4% in the first quarter. Unit labor costs jumped 4.5%.
Productivity increased 2.1%, unrevised, in the fourth quarter, while unit labor costs were revised up to 8.9%, reflecting the payment of large bonuses in the last quarter of the year. The government has changed the timing of the accounting for such payments in its data, making year-over-year comparisons useless.
U.S. 1Q manufacturing productivity up 2.4%
U.S. 1Q nonfinancial productivity up 0.6%
U.S. unit labor costs up 2.2% year-over-year
U.S. productivity up 1% year-over-year
U.S. productivity revision close to expectations
U.S. 1Q unit labor costs revised higher to 1.8% vs. 0.6%
U.S. 1Q productivity revised lower to 1% vs. 1.7%
ECONOMIC REPORT: Productivity revised lower to 1% gain; Productivity in nonfinancial companies rises just 0.6%
By Rex Nutting, MarketWatch Last Update: 8:30 AM ET Jun 6, 2007
WASHINGTON (MarketWatch) - The productivity of the U.S. workplace slowed sharply in the first quarter as output throttled back, the Labor Department reported Wednesday.
Productivity in the nonfarm business sector increased at an annual rate of 1% in the quarter, revised down from 1.7% reported a month ago. Productivity is up just 1% in the past four quarters.
Meanwhile, unit labor costs - a key gauge of inflationary pressures from labor markets - was revised higher to 1.8% annualized from 0.6% earlier.
The revisions were close to expectations for a 1.1% gain in productivity and a 1.7% gain for unit labor costs.
Output rose 0.6% annualized in the first quarter, hours worked fell 0.4% and real hourly compensation fell by 1%. It was the slowest increase in output in four years.
Productivity in the nonfinancial sector slowed even more, growing just 0.6% in the first quarter and 0.3% over the past four quarters, a troubling development.
Nonfinancial productivity is considered by policymakers to be the cleanest read on productivity, because productivity in financial services appears impossible to measure.
In the nonfinancial sector, unit labor costs rose 4.1% in the first quarter and 3% over the past four quarters. Real hourly compensation is up 0.9% in the past year, while unit profits are down 1.9%.
Productivity, a concept that's simple in theory but elusive in practice, is output divided by hours worked. Productivity gains are the key to higher living standards, higher wages, increased profits and low inflation.
High productivity growth means the economy can grow rapidly without inflation, raising living standards and theoretically allowing workers to get big raises without hurting the boss's profits.
But a low rate of productivity growth can mean a sluggish economy and increased inflationary pressures.
Unfortunately for those who want easy answers, in practice productivity is extremely difficult to measure, particularly in the services.
Most economists focus on the longer trend, rather than on the volatile quarterly numbers.
The past
Productivity averaged about 2.7% annually from 1948 to 1970, then slowed to 1.6% from 1971 to 1995. Since then, productivity has grown about 2.5% annually. In 2006, productivity increased 1.6%.
Productivity has slowed in the past few years. One of the big debates in the economy is whether that slowing is structural or related to the business cycle. If it's structural, Americans will have to get used to slower growth. If it's cyclical, then the long-term speed limit of the economy will stay near 3%.
In the manufacturing sector, productivity increased 2.4% in the first quarter. Unit labor costs jumped 4.5%.
Productivity increased 2.1%, unrevised, in the fourth quarter, while unit labor costs were revised up to 8.9%, reflecting the payment of large bonuses in the last quarter of the year. The government has changed the timing of the accounting for such payments in its data, making year-over-year comparisons useless.