MNI ANALYSIS:US 3Q Productivity +3.0%, Unit Labor Costs -0.2%>

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - Third quarter nonfarm productivity was unrevised 

at 3.0% and below the 3.3% gain expected, while unit labor costs were 

revised sharply to a 0.2% decline, well below the 0.5% rise previously 

reported and below the 0.2% rise expected, data released by the Bureau 

of Labor Statistics Wednesday showed. 

     In addition, second quarter unit labor cost growth was revised 

sharply lower to a 1.2% rate of decline from the 0.3% gain previously 

reported. Productivity was unrevised at a 1.5% rate of growth in the 

second quarter. 

     Third quarter output growth was revised up to a 4.1% pace from the 

3.8% preliminary estimate, while hours worked growth was revised up to a 

1.1% pace from the 0.8% rate in the preliminary estimate. 

     Compensation growth was revised down to a 2.7% growth pace from a 

3.5% rise, while real compensation was revised down to a 0.7% rate of 

growth. 

     The year/year pace of productivity growth was unrevised at 1.5% 

from the preliminary estimate. 

     Unit labor costs are down 0.7% from where they were a year ago, a 

downward revision from the flat year/year estimate in the preliminary 

report due to the downward revisions in the second and third quarter. 

Unit labor costs were down 0.6% year/year in the second quarter, so 

there was a deceleration in the most recent quarter. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$]