U.S. Worker Productivity, Labor Costs Come In Ahead of Forecasts

Another sign the risk of inflation is lessening as the U.S. government reported worker productivity accelerated a greater than expected 3% while unit labor costs grew just 1.7%. The 3% gain in productivity just reported follows a 0.1% decline in the previous quarter; both the productivity and labor cost numbers beat expectations. Economists surveyed by MarketWatch were expecting a 2.4% rise in productivity and a 2% gain in unit labor costs. Meanwhile, real hourly compensation increased 7.1% on falling consumer prices (2.2%).

• Sources: Bloomberg, MarketWatch
• Commentary: Fed Minutes: Watching Inflation , Comfortable With Housing, Sunny Economic Skies, But Fed to Remain Hawkish
• Stocks and ETFs to watch: S&P 500 Index - "Spiders" (SPY), iShares S&P 500 Index (IVV)

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Comments

[Bob Misko:]

Once again (still) the American worker and the dynamics of capitalism have bailed out our monetary policy. Americans ARE the best (most productive) workers in the world.
Joseph Schumpeter was right, "capitalism is dynamic". Hats off to the 145 million employed who got up and went to work today! Thanks for bailing us out, again.

2007 Feb 07 03:26 PM