Econoday was expecting readings of +1.3% for Productivity and +0.9% for Labor Costs.
Prior quarter figures were revised:
Productivity from -0.9% to -0.5%
Labor Costs from +1.3% to +5.6%
BLS Release:
http://bls.gov/news.release/prod2.nr0.ht....
PRODUCTIVITY AND COSTS
Second Quarter 2012, Preliminary
Nonfarm business sector labor productivity increased at a 1.6 percent
annual rate during the second quarter of 2012, the U.S. Bureau of Labor
Statistics reported today. The increase in productivity reflects
increases of 2.0 percent in output and 0.4 percent in hours worked.
(All quarterly percent changes in this release are seasonally adjusted
annual rates.) From the second quarter of 2011 to the second quarter of
2012, productivity increased 1.1 percent as output and hours worked
rose 2.9 percent and 1.8 percent, respectively. (See table A.)
Labor productivity, or output per hour, is calculated by dividing an
index of real output by an index of hours worked of all persons,
including employees, proprietors, and unpaid family workers.
Unit labor costs in nonfarm businesses increased 1.7 percent in the
second quarter of 2012, while hourly compensation increased 3.3
percent. Unit labor costs rose 0.8 percent over the last four quarters.
(See table A.)
----------------------------------------------------------------------
Data in this release reflect the regular multi-year revision to the
National Income and Product Accounts (NIPA) released by the Bureau of
Economic Analysis of the U.S. Department of Commerce on July 27, 2012.
See Revised measures.
----------------------------------------------------------------------
BLS defines unit labor costs as the ratio of hourly compensation to
labor productivity; increases in hourly compensation tend to increase
unit labor costs and increases in output per hour tend to reduce them.
Manufacturing sector productivity rose 0.2 percent in the second
quarter of 2012, as output grew 1.7 percent and hours worked increased
1.4 percent. Over the last four quarters, manufacturing productivity
increased 2.9 percent, as output increased 5.6 percent and hours rose
2.6 percent. Unit labor costs in manufacturing rose 0.3 percent in the
second quarter of 2012 and decreased 2.9 percent from the same quarter
a year ago. (See tables A and 3.)
Revised first-quarter 2012 measures of productivity and costs were
announced for the nonfinancial corporate sector. Productivity
increased 1.2 percent in the first quarter of 2012, as output and
hours rose 4.7 percent and 3.4 percent, respectively. (See tables D
and 6.)
The concepts, sources, and methods used for the manufacturing and
nonfinancial corporate output series differ from those used in the
business and nonfarm business output series; these output measures are
not directly comparable. See Technical Notes for a more detailed
explanation.
Revised measures
Measures of output for the business, nonfarm business, and nonfinancial
corporate (NFC) sectors, and compensation for all sectors incorporate
the revised National Income and Product Accounts (NIPA) data released
on July 27 by the Bureau of Economic Analysis, U.S. Department of
Commerce. As a result, output was revised back to the first quarter of
2009 for the business, nonfarm business, and NFC sectors. Compensation
was subject to revisions back to the first quarter of 2008 for the
business and nonfarm business sectors, and back to the first quarter of
2009 for the manufacturing and NFC sectors. Furthermore, hours were
subject to revisions back to the first quarter of 2008 for the
business, nonfarm business, and NFC sectors, due to revised NIPA data
on compensation of all employees and employment in government
enterprises. Measures of manufacturing output were revised back to 1987
to reflect revised output indexes constructed by BLS using data from
the U.S. Department of Commerce; manufacturing hours were revised back
to the first quarter of 2012.
As a result of the revisions, productivity and related measures were
revised in the business, nonfarm business, and NFC sectors back to the
first quarter of 2008. In the manufacturing sector, productivity and
related measures were subject to revisions back to 1987.
Table B presents previous and revised productivity and related measures
for the nonfarm business, business, and manufacturing sectors for the
first quarter of 2012 and table C presents annual data for nonfarm
business and total manufacturing from 2009 to 2011. Table D presents
revised and previous measures for nonfinancial corporations for the
first quarter of 2012, in addition to annual data from 2009 to 2011.
Revised quarterly and annual series for recent years appear in tables
1-6 and in appendix tables 1-6. Full historical annual and quarterly
measures can be found on the productivity and costs home page
http://www.bls.gov/lpc/#data.
In the first quarter of 2012, nonfarm business productivity declined
0.5 percent, a smaller decline than reported in the preliminary
estimate. The revised figure reflects an upward revision to output and
a slight downward revision to hours. Unit labor costs grew 5.6 percent
in the first quarter, due primarily to a large upward revision to
hourly compensation. In the manufacturing sector, productivity growth
in the first quarter was 5.5 percent, as output growth was revised up
and hours were revised down. Unit labor costs declined 0.4 percent,
rather than decreasing 4.9 percent as previously reported.
For the year 2011, nonfarm business productivity growth was 0.7
percent, an upward revision from the previous estimate of 0.4 percent.
(See table C.) Unit labor costs increased 2.0 percent, a larger
increase than reported June 6. Manufacturing productivity increased at
the same 2.5 percent rate that was reported previously. The 0.1 percent
increase in unit labor costs was more than the 1.0 percent decline
published June 6, due to an upward revision to hourly compensation.
For the year 2010, nonfarm business productivity growth was revised
down to 3.1 percent from the previous estimate of 4.0 percent due to a
downward revision in output. (See table C.) Unit labor costs declined
1.0 percent, a smaller decline than reported June 6. Manufacturing
productivity increased 6.4 percent, slightly less than reported
previously. The 5.0 percent decline in unit labor costs was more than
the 4.7 percent decline published June 6.
For the year 2009, nonfarm business productivity growth was 2.9
percent, as the decline in output was less than previously reported.
(See table C.) Unit labor costs showed a decline of 1.5 percent, after
revision. In manufacturing, productivity grew 0.1 percent, rather than
0.5 percent. Unit labor costs were not revised, increasing 4.0 percent.
Over the most recent ten-year period (2001-2011) nonfarm business
productivity increased at an average annual rate of 2.2 percent.
Manufacturing productivity grew at an annual average rate of 3.3
percent.
In the nonfinancial corporate sector, first-quarter 2012 productivity
growth was 1.2 percent; the preliminary estimate was 0.3 percent. For
the years 2011 and 2010, productivity growth was greater than
previously reported, due to an upward revision in output. (See tables D
and 6.)
___________
The revised Productivity and Costs press release for second-quarter
2012 is scheduled to be released on Wednesday, September 5, 2012 at
8:30 a.m. (EDT).
======================================================================================================
Table A. Preliminary second-quarter 2012 measures: percent change from previous quarter at annual rate
(Q to Q) and from same quarter a year ago (Y to Y)
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y Q to Q Y to Y
------------------------------------------------------------------------------------------------------
Productivity 1.6 1.1 1.9 1.1 0.2 2.9 4.3 6.2 -4.0 -0.3
Output 2.0 2.9 2.3 3.0 1.7 5.6 6.2 9.7 -3.4 1.1
Hours 0.4 1.8 0.4 1.9 1.4 2.6 1.9 3.3 0.7 1.4
Hourly
compensation 3.3 1.9 3.3 1.8 0.5 -0.1 -0.8 -0.7 2.8 0.9
Real hourly
compensation 2.6 0.0 2.6 -0.1 -0.3 -1.9 -1.5 -2.5 2.1 -1.0
Unit labor
costs 1.7 0.8 1.4 0.6 0.3 -2.9 -4.9 -6.5 7.2 1.2
======================================================================================================
Table B. Revised and previous measures: first quarter 2012
Sector Nonfarm Durable Nondurable
Business Business Manufacturing Manufacturing Manufacturing
Revised Previous Revised Previous Revised Previous Revised Previous Revised Previous
------------------------------------------------------------------------------------------------------
Percent change, annual rate, first quarter 2012
Productivity -0.5 -0.9 -0.6 -1.0 5.5 5.2 10.9 9.9 -0.1 0.1
Output 2.7 2.4 2.7 2.4 10.1 10.0 16.3 15.4 3.5 4.3
Hours 3.2 3.3 3.3 3.4 4.4 4.6 4.8 4.9 3.7 4.1
Hourly
compensation 5.1 0.4 4.9 0.3 5.1 0.0 5.2 -0.6 4.9 1.0
Real hourly
compensation 2.6 -2.0 2.4 -2.1 2.6 -2.4 2.6 -3.0 2.3 -1.4
Unit labor
costs 5.6 1.3 5.6 1.3 -0.4 -4.9 -5.2 -9.6 5.0 0.9
==================================================================================================================
Table C. Revised and previous annual average measures, 2009-2011
Sector Nonfarm Business | Manufacturing
|
2011 2010 2009 | 2011 2010 2009
Revised Previous Revised Previous Revised Previous | Revised Previous Revised Previous Revised Previous
--------------------------------------------------------------|---------------------------------------------------
Percent change | Percent change
Productivity 0.7 0.4 3.1 4.0 2.9 2.3 | 2.5 2.5 6.4 6.6 0.1 0.5
Output 2.6 2.4 3.1 4.0 -4.5 -5.1 | 4.8 4.8 6.4 6.6 -12.9 -12.5
Hours 1.9 1.9 0.0 0.0 -7.2 -7.2 | 2.2 2.2 0.0 0.0 -13.0 -13.0
Hourly |
compensation 2.7 2.2 2.0 1.9 1.4 1.7 | 2.6 1.5 1.1 1.6 4.1 4.6
Real hourly |
compensation -0.5 -0.9 0.4 0.3 1.8 2.1 | -0.5 -1.6 -0.5 -0.1 4.5 5.0
Unit labor |
costs 2.0 1.8 -1.0 -2.0 -1.5 -0.7 | 0.1 -1.0 -5.0 -4.7 4.0 4.0
==================================================================================================================
Table D. Nonfinancial corporations: Revised and previous first-quarter 2012 measures, and revised
annual measures 2009-2011
Real
Hourly hourly Unit Implicit
Produc- compen- compen- labor Unit price
tivity Output Hours sation sation costs profits deflator
------------------------------------------------------------------------------------------------------
Percent change, annual rate, first quarter 2012
Revised 1.2 4.7 3.4 5.4 2.8 4.1 -1.8 1.7
Previous 0.3 3.8 3.5 0.0 -2.4 -0.3 -1.5 -0.3
Percent change, annual average
2011 1.4 4.0 2.6 2.5 -0.6 1.1 5.5 1.8
2010 5.8 6.0 0.2 1.7 0.0 -3.9 31.0 -0.5
2009 0.5 -7.4 -7.8 2.0 2.3 1.5 -5.5 1.8
======================================================================================================
RSS available
You are not signed on; if you are a visitor please register for a free account!
} Where will incomes, wages, and profits/revenues come from to recover the economy after the spiral down? Certainly not the "New Service Economy". W/out massive new debt creation, [unlikely], and useful productivity, the public and business are probably screwed by a