US: Nonfarm productivity beats expectations in Q3 - Natixis
Thomas Julien, Research Analyst at Natixis, notes that the US nonfarm productivity rose faster than expected in Q3, gaining 3.1% QoQ ar after 3 quarters in negative territory.
Key Quotes
“The rise was driven by the acceleration of growth (+3.4% for nonfarm output) and the slowdown in hours worked (+0.3%). Therefore, even though compensation per hour continued to increase at a solid pace (3.4%), unit labor costs decelerated during the quarter (at 0.3% QoQ ar). Real compensation per hour rose by a strong 1.7% QoQ ar.
In short, the rebound in productivity is encouraging even though on a yearly basis the trend remains depressed. In the near term, we are looking at a gradual strengthening of US productivity. All in all, such numbers are consistent with corporate profits moving slightly up in Q3.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
