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Finance Dictionary and Glossary of Investment Terms
A release of economic data detailing how much output each unit of labor is producing in the economy as a whole. The productivity report is released at 8:30 am EST around the 7th of the second month of each quarter, and the data reflects the activity during the previous quarter. Many economists believe that productivity growth allows the economy to grow at unusually high rates without causing inflation. If productivity is growing, they believe, employment costs can increase without leading to increased inflation.
A government report that measures the productivity of non-farm workers and the costs associated with producing a unit of output. During times of inflationary concern, the unit labor cost index in this report can move the market. If productivity is falling, unit labor costs may be rising faster than hourly earnings and other labor cost measures. Because productivity can be quite volatile from one quarter to the next and because the previously released GDP report will give a good indication of productivity growth, this report seldom has a significant impact on the market.In addition to the preliminary report, a revision to the productivity data is released in the third month of each quarter. As with the preliminary report, the GDP data released prior to the productivity data provide a clear indication of the direction of the productivity revision. Importance (A-F): This release merits a D+. Source: The Bureau of Labor Statistics of the Department of Labor. Release Time: 8:30 ET around the 7th of the second month of the quarter (data for quarter prior). Raw Data Available At: http://stats.bls.gov/news.release/prod2.toc.htm.