- Japan: First Ten Days Trade (Mar), International Trade, Foreign Banks Foreign Banks in Japan (Feb)
- New Zealand: Tourism Expenditure, International Reserves, RBNZ Analytical Accounts/Statistical Balance Sheet, Foreign Currency Assets, Liabilities, and Currency Flows (Feb); Australia: Flow of Funds (Q4), Job Vacancies (Q1)
- Korea: Building Permits (Feb); Philippines: LFS (Q3)
- US: IIP (Q4)
- more updates...
Economy in Brief
U.S. Mortgage Loan Applications Remain Little Changed; Variable Rate Apps Surge
The MBA total Mortgage Market Volume Index slipped 0.8% last week (-12.4% y/y)...
La Dolce Vita? Italian Confidence Bumps Higher
Italian business and consumer confidence moved higher in March...
U.S. Consumer Confidence Improves Significantly
The Conference Board Consumer Confidence Index for March strengthened 8.2% (30.7% y/y) to 125.6...
U.S. Energy Product Prices Remain Under Pressure
Regular gasoline prices held steady at $2.32 per gallon last week (12.1% y/y) for the third straight week...
German Federal Debt Levels Fall
German debt level fell outright in Q4 2016 as the ratio of federal debt-to-GDP also fell...
NABE 2018 Forecast: Modest Improvement in Economic Growth & Higher Inflation
The NABE expects 2.5% real U.S. economic growth in 2018 compared to 2.3% forecast for 2017...
by Tom Moeller June 7, 2016
Nonfarm output per hour during Q1'16 fell 0.6% at an annual rate (+0.7% y/y), revised from -1.0%, following an unrevised 1.7% Q4'15 shortfall. The decline matched expectations in the Action Economics Forecast Survey. The latest decline occurred as output rose 0.9% (2.3% y/y) and hours worked gained 1.5% (1.6% y/y). Compensation per hour increased 3.9% (3.7% y/y), revised from 3.0%. In Q4, compensation also was revised up to 3.6% from 0.9%. The combination of faster compensation growth and declining productivity raised unit labor costs 4.5% (3.0% y/y), revised from 4.1%. Growth during Q4 was revised up to 5.4% from 2.7%. A revised 4.0% increase in unit labor costs during Q1 had been expected.
In the manufacturing sector, cost pressures strengthened to a greater extent. Productivity rebounded 1.3% (1.5% y/y), revised from 1.9%, following a 1.2% decline. Output improved 0.6% both q/q and y/y, while hours worked declined 0.7% q/q and y/y. Compensation growth was strengthened to 2.5% (5.0% y/y) from 0.6%. The larger revision, however, was to Q4 where growth was raised to 7.9% from 2.5%. Revisions caused unit labor costs to increase 1.1% last quarter, rather than decline 1.2%. The increase in Q4 was pushed up to 9.2% from 3.6%.
The productivity & cost figures are available in Haver's USECON database. The expectations figures are from the Action Economics Forecast Survey and are found in the AS1REPNA database.
Housing's Role in the Slow Economic Recovery from the Federal Reserve Bank of Philadelphia is available here.
|Productivity & Costs (SAAR, %)||Q1'16||Q4'15||Q3'15||Q1'16 Y/Y||2015||2014||2013|
|Nonfarm Business Sector|
|Output per Hour (Productivity)||-0.6||-1.7||2.0||0.7||0.7||0.8||0.0|
|Compensation per Hour||3.9||3.6||2.3||3.7||2.8||2.8||1.1|
|Unit Labor Costs||4.5||5.4||0.4||3.0||2.1||2.0||1.1|
|Output per Hour (Productivity)||1.3||-1.2||3.7||1.3||0.2||-0.1||0.7|
|Compensation per Hour||2.5||7.9||4.0||5.0||2.2||2.7||0.2|
|Unit Labor Costs||1.1||9.2||0.3||3.6||1.9||2.8||-0.5|