US Productivity Rebounds in Q3

U.S. worker productivity rebounded sharply in the third quarter as initially estimated, marking its quickest pace of growth in two years, but the trend remained weak.

The Labor Department said on Tuesday that nonfarm productivity, which measures hourly output per worker, rose at an unrevised 3.1 percent annual rate.

The increase ended three straight quarters of decline. Productivity fell at a 0.2 percent rate in the second quarter and was unchanged compared to the third quarter of 2015.

Economists had expected that productivity would revised up to a 3.3 percent rate in the third quarter. That expectation was based on data last week showing gross domestic product increased faster than previously reported in the third quarter.

The government revised GDP data to show the economy growing at a 3.2 percent pace in the third quarter instead of the 2.9 percent rate it had previously reported.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza