GilmerFreePress.net

Productivity and Costs

The Free Press WV

Nonfarm business sector labor productivity increased 2.9 percent during the second quarter of 2018, the U.S. Bureau of Labor Statistics reported today, as output increased 4.8 percent and hours worked increased 1.9 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the second quarter of 2017 to the second quarter of 2018, productivity increased 1.3 percent, reflecting a 3.5-percent increase in output and a 2.2-percent increase in hours worked.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers.

Unit labor costs in the nonfarm business sector decreased 0.9 percent in the second quarter of 2018, reflecting a 2.0-percent increase in hourly compensation and a 2.9-percent increase in productivity. Unit labor costs increased 1.9 percent over the last four quarters.

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs, and increases in output per hour tend to reduce them.

Manufacturing sector labor productivity increased 0.9 percent in the second quarter of 2018, as output increased 1.9 percent and hours worked increased 1.0 percent. Productivity increased 0.9 percent in the durable manufacturing sector, as output rose 2.4 percent and hours worked increased 1.4 percent. In the non-durable goods manufacturing sector, a 1.1-percent increase in productivity reflected a 1.5-percent increase in output and a 0.4-percent increase in hours worked. Over the last four quarters, total manufacturing sector productivity decreased 0.2 percent, as output increased 1.8 percent and hours worked increased 2.1 percent. Unit labor costs in manufacturing rose 0.6 percent in the second quarter of 2018 and increased 2.7 percent from the same quarter a year ago.

The concepts, sources, and methods used for the manufacturing output series differ from those used in the business and nonfarm business output series; these output measures are not directly comparable.

Revised first-quarter 2018 measures were announced today for the nonfinancial corporate sector. Productivity increased 3.0 percent in the first quarter of 2018 and increased 2.5 percent over the last four quarters. Unit profits of nonfinancial corporations increased at a 5.5-percent annual rate in the first quarter of 2018 and increased 0.3 percent over the last four quarters.


Revised measures

Measures of output for the business, nonfarm business, and nonfinancial corporate sectors, and measures of compensation for all sectors incorporate revised National Income and Product Accounts (NIPA) data for first-quarter 1947 through first-quarter 2018 released on July 27 by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. As a result, all measures incorporating output and compensation were revised, including labor productivity and unit labor costs. The revisions affected both annual and quarterly data, with the revisions to quarterly data being more substantial, due to the incorporation of improved historical seasonal adjustment methodology by BEA. Measures of output for the manufacturing sectors incorporate regular updates of source data for the first quarter of 2018 and the fourth quarter of 2017. Hours and related measures were revised back to 2000 for the business and nonfarm business sectors due to revised NIPA data on government enterprises employment and on the proportion of sector compensation paid to employees of nonprofit institutions. Hours and related measures were revised back to 2000 for the nonfinancial corporate sector due to the incorporation of revised NIPA data on the proportion of sector compensation paid to employees of corporations. Indexes of all measures show historical revisions because the base year was changed from 2009 to 2012; resulting revisions to percent changes are small.

Nonfarm business sector productivity increased 0.3 percent in the first quarter of 2018—similar to the previously reported estimate (0.4 percent)—reflecting a 0.1-percentage point downward revision to output. (See table B1.) An upward revision to first-quarter unit labor costs—from an increase of 2.9 percent to an increase of 3.4 percent—reflected a 0.4-percentage point upward revision to hourly compensation and a 0.1-pecentage point downward revision to productivity. Real hourly compensation increased 0.2 percent after revision, rather than decreasing 0.2 percent as previously published.

Historical revisions to labor productivity in the nonfarm business sector affected the full historical period since 1947, with notable periods of upward revision in the latter 1990s and latter 2000s. The average annual rate of productivity growth from 2007 to 2017—representing the current business cycle—was revised up 0.1 percentage point, to a rate of 1.3 percent. The productivity growth rate over the last business cycle, from 2001 to 2007, was also revised up 0.1 percentage point, to a rate of 2.7 percent. Earlier business cycle trends also remained largely unchanged. Unit labor costs revisions were also for the full historical period since 1947, reflecting both revisions to labor productivity and hourly compensation, and show notable downward revisions in the latter 2000s. There was also a large upward revision in 2017, due to a large upward revision to hourly compensation in that year. 

Annual average productivity growth in the nonfarm business sector in 2017 was revised down 0.2 percentage point to an increase of 1.1 percent. Unit labor costs increased 2.2 percent in the nonfarm business sector in 2017, rather than increasing 0.4 percent, reflecting both a 1.7-percentage point upward revision to hourly compensation and a 0.2-percentage point downward revision to productivity. Real hourly compensation increased 1.2 percent in 2017, rather than decreasing 0.5 percent as previously reported.

Manufacturing sector productivity decreased 1.0 percent in the first quarter of 2018—a smaller decline than previously reported. Productivity was revised up 0.9 percentage point, to an increase of 0.1 percent in the durable goods sector, and was revised down 0.5 percentage point, to a decrease of 1.4 percent in the nondurable goods sector. Unit labor costs increased 5.5 percent in the manufacturing sector rather than increasing 5.2 percent as reported June 6. Unit labor costs were revised down 1.2 percentage points, to an increase of 5.5 percent in the durable goods sector, and were revised up 2.5 percentage points, to an increase of 3.4 percent in the nondurable goods sector. Total manufacturing real hourly compensation increased 0.9 percent, as revised.
     
Annual average manufacturing productivity grew 0.7 percent in 2017, unrevised from the previously reported estimate. Productivity was also unrevised in the manufacturing sector in 2016 and 2015. Unit labor costs were revised up to an increase of 2.6 percent in 2017, reflecting a 1.6-percentage point upward revision to hourly compensation. After revision, manufacturing real hourly compensation increased 1.1 percent in 2017 rather than decreasing 0.4 percent.

Nonfinancial corporate sector productivity growth was revised up in the first quarter of 2018, to an increase of 3.0 percent, rather than the previously published increase of 1.9 percent; this revision was due solely to a 1.1-percentage point upward revision to output; hours were unrevised.

Annual average productivity in the nonfinancial corporate sector increased 1.6 percent in 2017, an upward revision from the preliminary estimate of a 1.0-percent increase. (See tables C1 and 6.) Though the rate over the current business cycle—from 2007 to 2017—increased at the same 1.0-percent rate as was reported June 6, there were notable revisions in some of the years of this period, particularly three consecutive 0.3-percentage point upward revisions, in 2011, 2012, and 2013, followed by a 0.9-percentage point downward revision in 2014.

WV Unemployment rate rises to 5.4 percent in July

The Free Press WV

West Virginia’s seasonally adjusted unemployment rate increased slightly in July to 5.4 percent, with the number of unemployed residents rising by 100 people.

The most significant employment gains were in total nonfarm payroll employment with 900 positions and the service-providing sector with 1,300 positions.

The biggest losses were in the manufacturing (400 jobs) and mining and logging sectors (300 jobs).

According to Workforce West Virginia, total unemployment has increased by 2,500 people over the last year.

The national unemployment rate declined between in July to 3.9 percent.

First Casino Licensed for Sports Betting in West Virginia

The Free Press WV

Hollywood Casino in Charles Town is the first casino licensed to offer sports betting in West Virginia.

The West Virginia Lottery Commission made the announcement Monday.

Commission legal counsel Danielle Boyd said the casino expects to start accepting bets September 01, after installing software and training employees.

Boyd said two other casinos are planning to launch in early- to mid-September, and two more several weeks later.

She said the state should have a regional monopoly on sports betting for now despite a delay in the commission’s target launch of September 01 at all five casinos.

Boyd said she expects sports betting to bring people to West Virginia to place wagers, either at the casinos or other venues.

She says it’ll also prompt people to wine, dine and stay the night.

U.S. Import and Export Price Indexes

The Free Press WV

Prices for U.S. imports recorded no change in July, the U.S. Bureau of Labor Statistics reported today, after edging down 0.1 percent in June. Falling nonfuel prices in July offset higher fuel prices. U.S. export prices decreased 0.5 percent in July following a 0.2-percent increase in June. The July decline was driven by a drop in agricultural export prices.


Imports

All Imports: Import prices recorded no change in July, after falling 0.1 percent in June and rising 0.9 percent in May. U.S. import prices increased 4.8 percent for the year ended in July, the largest 12-month advance since the index rose 5.1 percent in February 2012. Import prices have not fallen on an over-the-year basis since the index fell 0.2 percent in October 2016.

Fuel Imports: Prices for import fuel advanced 1.6 percent in July following a 1.3-percent increase in June and a 6.5-percent rise in May. In July, increasing prices for petroleum and natural gas contributed to the rise in fuel prices. Petroleum prices advanced 0.9 percent in July, after rising 1.4 percent in June and 7.8 percent in May. Prices for natural gas increased 36.7 percent in July, the first monthly advance since January and the largest since the index rose 43.2 percent in November 2006. The price index for fuels increased 40.7 percent between July 2017 and July 2018, the largest over-the-year advance since the index rose 50.9 percent in March 2017. The 12-month rise in import fuel prices was led by a 43.6-percent advance in petroleum prices which more than offset a 0.5-percent decline in natural gas prices.

All Imports Excluding Fuel: Nonfuel import prices fell 0.3 percent for the second consecutive month in July. Lower prices in July for nonfuel industrial supplies and materials; foods, feeds, and beverages; and capital goods led the decline which more than offset rising prices for consumer goods. Automotive vehicles prices recorded no change. Despite the recent declines, nonfuel import prices rose 1.3 percent for the year ended in July. The 12-month advance was largely driven by higher nonfuel industrial supplies and materials prices although prices for consumer goods, capital goods, and automotive vehicles also increased over the past year.


Exports

All Exports: U.S. export prices declined 0.5 percent in July following a 0.2-percent rise in June and a 0.7-percent advance in May. The July drop was the first monthly decrease since June 2017 and the largest since the index fell 0.6 percent in May 2017. Lower prices for agricultural exports drove the decline in July. Overall export prices advanced 4.3 percent between July 2017 and July 2018.

Agricultural Exports: Prices for agricultural exports fell 5.3 percent in July, after decreasing 1.0 percent in June and rising 1.6 percent in May. The fall in July was the largest monthly decline since the index decreased 6.5 percent in October 2011. A 14.1-percent drop in soybean prices was the primary contributor to the decline in agricultural prices; export prices for corn, wheat, fruits, and nuts also decreased in July. Agricultural export prices decreased 2.0 percent over the past year, the first 12-month drop since the index fell 1.8 percent in July 2017. 

All Exports Excluding Agriculture: Nonagricultural export prices recorded no change in July following a 0.4-percent rise in June and a 0.6-percent advance in May. Falling prices for nonagricultural industrial supplies and materials and automotive vehicles were offset by rising prices for nonagricultural foods in July. Export capital goods and consumer goods recorded no change. Overall nonagricultural prices increased 5.0 percent over the past 12 months.

Click Below for More Financial News...

Page 2 of 492 pages  <  1 2 3 4 >  Last »



The Gilmer Free Press

Copyright MMVIII-MMXVIII The Gilmer Free Press. All Rights Reserved