Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Worker productivity unexpectedly took a steep dive. As a result, production costs soared.
The BLS report on Productivity and Costs shows nonfarm business sector labor productivity decreased 0.3 percent in the third quarter of 2019.
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers.
The BLS says output increased 2.1% and hours worked increased 2.4% in the third quarter.
Given the GM strike and huge problems at Boeing, I struggle to see output and hours worked are both up, but that is what the reports says.
Missing the Boat
Economists were well off the mark.
- Economists in the Econoday poll expected a 1% rise in productivity in a range of +0.1% to +1.9% vs. the delivered -0.3%
- Economists expected labor costs to rise 2.2% in a range of 1.3% to 2.9% vs the delivered 3.6%.
Both results were outside the consensus range.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
Latest Forex Analysis
Editors’ Picks
EUR/USD accelerates decline and nears 1.1200
The US Nonfarm Payroll report’s effects are long gone. The greenback gets attention as stocks eased sharply from intraday highs, still holding in the green, yet undermined by record coronavirus cases in the US.
AUD/USD hovering around 0.6920 after a dull day
AUD/USD pair seesawed between gains and losses, settling for a second consecutive day at around 0.6920. Australian PMIs and Chinese services output coming up next.
Gold: Bears seeking justice below key support
XAU/USD has been a mixed bag this week and for the start of the month, trapping bears ina recent stop hunt from the $1,757.66 level where it met a high of $1,779.69 on the last session before the US long weekend.
Crypto collapse with Bitcoin falling below $9,000 and Ethereum getting close to $220
Most cryptocurrencies are experiencing a significant sell-off after Bitcoin fell below $9,000. BNB/USD has suffered the most with a 4% drop towards $15 and needs to hold $14.8 support.
Oil: $40 per barrel has been broken again but there is a lack of conviction at these current levels
WTI has continued to move higher on Thursday but the price action seems pretty lacklustre despite volatility elsewhere. There have been some decent news stories in the past few sessions as it was confirmed OPEC output reached a two-decade low after over compliance from Saudi Arabia.