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Productivity Growth Even Stronger Than Thought In Q3

US DATA
  • Nonfarm labor productivity printed an even stronger than first thought 5.2% annualized in Q3 (cons 4.9, initial 4.7) in the finalized Q3 print.
  • It builds from the 3.6% in Q2 and still marks the strongest quarter of productivity growth since 3Q20, leaves the level of productivity back near post-pandemic highs.
  • It’s meant unit labor costs fell -1.2% annualized (cons -0.9, initial -0.8) after increasing a strong 5.0% annualized on average through 1H23.

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