Recent Uptick In Unit Labor Costs Unlikely To Sustain

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The latest productivity report had observers buzzing more about unit labor costs than output per hour. In 4Q16, unit labor costs jumped at an annual rate of 1.68 percent, up from 0.18 percent in 3Q16. This comes in the wake … Continued

Stagnant U.S. Productivity And Decelerating Corporate Earnings

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U.S. productivity continues to leave a lot to be desired, and that can have repercussions for corporate earnings. Non-farm output per hour grew a mere 0.26 percent year-over-year in the second quarter, down from 0.63 percent sequentially.  Quarter-over-quarter, it rose … Continued

U.S. Productivity Trends Not Conducive To 2H Earnings Expectations

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For U.S. corporations, there was a trio of bad news in yesterday’s revised productivity numbers for the first quarter, and this potentially has earnings repercussions. U.S. non-farm business output per hour year-over-year was revised lower from growth of 0.6 percent … Continued

Wages dynamics in U.S. economy, and why productivity is crucial

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U.S. wages stuck in mud, more so for supervised employees than for supervisory ECI for private sector has been trending higher since 1Q14; sustainable? Productivity crucial for employers’ ability to absorb wage hikes If there is one consistency in the … Continued

U.S. non-financials’ 2014 capX >internally generated funds. One-off, given energy dynamics?

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Subdued corporate capX now will adversely impact productivity later First time in 6 years, U.S. non-financials corporate capX exceeds internal funds Given new energy dynamics and impact on capX, too early to back-slap and high-five? U.S. corporations have not been … Continued

Amid slowing U.S. productivity, wage hike means margin shrinkage for business

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Recent WMT announcement notwithstanding, wage stagnation has been a trend 4Q14 U.S. non-farm output per hour goes negative – first drop since 3Q11 Businesses can pay productive workforce higher wages and still win Later this morning, we get February’s U.S. … Continued

Persistent lack of wage gains can ultimately have repercussions for economy

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Steep drop in unemployment rate typically would suggest upward wage pressure Shrinkage in labor force takes bargaining power away from employees Corporations taking increasing share of national income vs labor It has been a while National Federation of Independent Business … Continued