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1Q2021 Preliminary Headline Productivity Improves
A simple summary of the headlines for this release is that labor costs growth declined on a quarter-over-quarter basis whilst productivity improved.
Analyst Opinion of Productivity and Costs
The overall view this quarter is that nonfarm productivity is up 4.1 % from the same quarter one year ago while unit costs are up 1.6 %.
Please note my productivity analysis at the end of this post which is at odds with the headline view. Doing a productivity analysis during a major recession or recovery period is a waste of time as productivity is obscured by government interventions.
The market was expecting from Econoday:
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