Update: Q3 Productivity Soars 3.0% as Unit Labor Costs Drop
The revised numbers are in for Q3 labor productivity and costs, and productivity is looking good. According to a new revised report (link opens in PDF) released today by the Labor Department, Americans pushed Q3 nonfarm productivity up at an annualized rate of 3%.
This latest report includes more source data and, like the revised Q3 GDP estimate, is an improvement over initial numbers. The drive behind the quarter's improvement comes from both a 4.7% increase in output, as well as a 1.7% uptick in hours worked.
Analysts had expected an improvement, and their 2.9% growth estimate was almost exactly on the money.
Even as hourly compensation increased 1.6%, productivity improvements outweighed cost increases, allowing unit labor costs to drop off 1.4%, matching analyst expectations.
Comparing Q3 2013 to Q3 2012, productivity has increased 0.3%, while unit labor costs are up 2.1%.
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