Preliminary Productivity Gain Beats Expectations
Third quarter nonfarm productivity was up 3.0%, ahead of the 2.9% gain expected and the largest increase since the third quarter of 2014.
Unit labor costs were up 0.5%, a smaller gain than the 0.6% rise expected. Revisions to second quarter data were very minor, with productivity still up 1.5% and unit labor costs now up 0.3%, so the report was basically as expected.
Compensation rose 3.5% in the third quarter after an unrevised 1.8% gain in the second quarter, and was up 1.5% after inflation adjustment. Real compensation rose 2.1% in the second quarter.