Productivity and Labor Cost

Productivity was good, not great. (if analysts did not revise their guidance higher it would of looked better) The Labor Cost growth may play more of a roll with the Fed though, increasing lower than expected.

Productivity, the key ingredient to rising living standards, edged up at an 0.2 percent annual rate in the July-September quarter. That was better than the zero change that was first reported, but it was below analysts’ expectation for a slightly stronger 0.5 percent increase… The costs of wages and benefits per unit of output increased at an annual rate of 2.3 percent in the summer, a much slower advance than the 3.8 percent rate of increase first reported a month ago.”

Overall it was good. I do not think it merits a major move in the market, if anything it should maintain our current path upward, but i’ll see if that thinking holds up in about 45 minutes :) .

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