To: Bonefish who wrote (1176139 ) 11/7/2019 7:44:20 AM From: sylvester80 Respond to of 1576329 OOPS! US productivity unexpectedly falls by most since 2015 while company labor costs skyrocket up 3.6%; Labour department reports 0.3 per cent decline in third quarter; economists expected a 0.9 per cent increaseft.com American workers’ productivity unexpectedly fell by the most in nearly four years in the penultimate quarter of 2019, data on Wednesday showed. US nonfarm business sector productivity dropped at a 0.3 per cent annualised rate in the third quarter — its biggest decline since the fourth quarter of 2015, the labour department said. That was down from a 2.5 per cent increase in the second quarter of 2019 and missed economists’ expectations for a 0.9 per cent increase, according to a Reuters survey of Wall Street economists. The decline in productivity came as the number of hours worked increased 2.4 per cent, while output grew 2.1 per cent. The recent decline in business investment amid the ongoing US-China trade war could have weighed on productivity. Andrew Hunter, economist at Capital Economics, noted that it could also reflect “the fact that weaker demand is contributing to the re-emergence of spare capacity, reducing the need for firms to invest”. Federal Reserve chair Jay Powell has noted that current data may understate productivity growth “by missing a significant part of the growing value we derive from fast internet connections and smartphones”. “The good news is that productivity was depressed by an erratic surge in self-employment, which boosted the hours worked number,” said Ian Sheperdson, economist at Pantheon Macroeconomics. Wednesday’s report also showed labour costs jumped 3.6 per cent in the third quarter, outpacing expectations.