Productivity

The productivity and associated cost measures describe the relationship between real output and the labor and capital inputs involved in production. Productivity measures the growth of labor efficiency in producing the economy's goods and services and is defined as the ratio of output to input. Unit labor costs reflect labor costs of producing each unit of output and provide information on emerging wage pressures. Both are followed as indicators of future inflationary trends. Output is represented by the Gross Product of business sectors, and input is represented by the corresponding labor hours. This report provides the best overall picture of the economy's efficiency. But, because components of the index are published in other releases, the information is frequently anticipated and thus does not influence the markets to a great extent. Also, because the data is released quarterly, it is not as timely as other monthly indicators. The productivity report is scheduled for release at 7:30 (CST) one month after each quarter by the Bureau of Labor Statistics.

POTENTIAL IMPACT ON INTEREST RATES: MODERATE