#150. Productivity ReportPosted on
A recent report prepared by First Trust Advisors L.P. showed very optimistic news for the U.S. economy. The 11/7/2007 report stated:
- – Non-farm productivity (output per hour) grew at a 4.9% annual rate in Q3, the fastest quarter since 2003. The consensus forecast was 3.2%. Non-farm productivity is up 2.4% versus a year ago.
- – Real (inflation-adjusted) compensation per hour in the non-farm sector increased at a 2.7% annual rate in Q3 and is up 4.3% versus a year ago. Non-farm unit labor costs declined at a 0.2% rate in Q3 but are up 4.3% versus a year ago.
- – Manufacturing productivity increased at a 4.6% annual rate in Q3 and is up 2.7% versus a year ago.
Productivity growth gradually slowed from late 2003 through early 2007 as a rising share of GDP growth came from hiring more workers and giving them more hours rather than generating more output per hour. Now with labor markets tighter and GDP growth re-accelerating, productivity growth has revived.
For communities with a strong manufacturing base, this is great news for their employers and employees. As most of you know, Industrial Development is the primary business of Boomtown Institute’s parent company, Agracel, Inc. As development in the manufacturing sector increases, we are looking forward to working with those communities and contributing to the positive effects these manufacturing employers have on their economies.