Monitor US Prelim Nonfarm Productivity q/q to gauge labor cost impacts on inflation and consumer prices.
There is a direct relationship between productivity and inflation related to labor; a decrease in worker productivity corresponds to an increase in wages. When businesses incur higher labor costs, these are typically transferred to consumers. Although the data is quarterly, it is presented in an annualized format (quarterly change multiplied by four). Due to the dual revision process, the historical data may seem disconnected. Two versions of this report are released a month apart: the Preliminary and the Revised, with the Preliminary version being the initial release and usually having the most significant impact.
What it Measures
Annualized changes in labor productivity for the production of goods and services, excluding the agricultural sector.
Usual Effect
When the 'Actual' figure is lower than the 'Forecast,' it is considered positive for the currency.
Source & Frequency
Bureau of Labor Statistics (latest release) - https://www.bls.gov/ • Published quarterly, approximately 35 days following the end of the quarter.
How Data is Derived
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Also Known As
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Acronym
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