Productivity in the US economy rose more than expected in the summer. Third-quarter production and hours worked rose 0.8 percent year-over-year, according to a second estimate prepared by the Washington Department of Labor. This represents an upward revision to the first survey after an earlier increase of just 0.3 percent was reported.
Economists were surprised by the strength of the upward revision. They had expected an average increase of 0.6 percent. Productivity fell 4.1 percent in the second quarter.
Unit labor costs increased at an annualized rate of 2.4 percent in the third quarter. An increase of 3.1 percent was expected here. In the second quarter, unit labor costs rose sharply by 6.7 percent.
In the United States, unit labor costs are paid for by a shortage of labor, which causes wages and salaries to rise. Weaker momentum in the summer months compared to the spring could mitigate inflation concerns somewhat, because unit labor costs have an impact on overall inflation. In the United States, the inflation rate fell to 7.7 percent in October, after 8.2 percent in the previous month.
“Tv expert. Hardcore creator. Extreme music fan. Lifelong twitter geek. Certified travel enthusiast. Baconaholic. Pop culture nerd. Reader. Freelance student.”