US Productivity Revised Upwards in Q3

U.S. nonfarm productivity grew a bit faster than initially thought in the third quarter, while sharp downward revisions to compensation pointed to muted wage inflation that should give the Federal Reserve room to keep interest rates low for a while.
The Labor Department said on Wednesday productivity expanded at a 2.3 percent annual rate instead of the previously reported 2.0 percent pace.

Economists polled by Reuters had expected productivity, which measures hourly output per worker, would be raised to a 2.4 percent rate to reflect upward revisions to third-quarter gross domestic product.

The government last week raised third-quarter GDP growth to a 3.9 percent pace from a 3.5 percent rate.

The trend in productivity, however, remains relatively weak, despite the upward revision. Productivity rose 1.0 percent compared to the third quarter of 2013.

via CNBC

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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