June 5, 2012 / 9:27 PM / 6 years ago

IFR-Preview-US Q1 productivity seen revised down

WHAT: Labor Department Productivity and Costs, Q1 final	
WHEN: Wednesday 0830 EDT (1230 GMT)	
 FORECASTS (pct)     Reuters     IFR     Previous 
 Productivity        -0.7        -0.9    -0.5
 Labor Costs         +2.2        +2.4    +2.0
IFR COMMENTARY: "With the downward revision to nonfarm business
output seen in the first Q1 GDP revision, we look for Q1
productivity to be revised down from an annualized rate of -0.5%
to about -0.9%, with unit labor costs in turn revised up from
2.0% to 2.4%. While flattening out of productivity gains and
unit labor cost declines was always likely as employers pull
more marginal workers back into the workforce, having that occur
together with declining profits means hiring is likely to face
constraint unless demand rises significantly. Unfortunately,
with labor market slack keeping wage growth low and hiring
appearing to slow, demand is unlikely to see any sudden spikes."	
   -- by Theodore Littleton of IFR Markets, a unit of Thomson
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