Productivity Growth Strong But Costs Rise (inflation jumps 1st Qtr)

[papau]

http://www.reuters.com/newsArticle.jhtml;jsessionid=VI2S4CMHVRVAGCRBAE0CFFA?type=businessNews&storyID=5334311

Productivity Growth Strong But Costs Rise
Thu Jun 3, 2004 08:33 AM ET


WASHINGTON (Reuters) - U.S. businesses increased their productivity at faster pace than first thought in the first quarter, the government said on Thursday, but labor costs were also revised upward -- both for the start of this year and the end of last.

Nonfarm business productivity increased at a revised 3.8 percent annual rate in the first quarter, the Labor Department said, a bit faster than the 3.5 percent gain initially reported and just above the 3.7 percent increase expected on Wall Street.

While ratcheted upward, the gain in productivity was not enough to offset a revised 4.6 percent gain in hourly compensation costs that led to an upward revision in unit labor costs.

Unit labor costs -- a key gauge of wage pressure that measures the cost of labor per unit of production -- rose at a revised 0.8 percent rate in the first quarter, compared to an initially reported 0.5 percent advance. Financial markets had expected a slight downward revision in unit labor costs. <snip>

http://abcnews.go.com/sections/business/US/consumer_confidence_poll_040602.html

Gas Prices Weighing Down Confidence
Ratings for the Buying Climate Drop to a 14-Month Low

Analysis By David Morris

N E W Y O R K, June 2 — Positive views of the buying climate dipped to a 14-month low this week in the face of rising gasoline prices, following an unusually steep drop in overall consumer confidence last week.<snip>

[papau]

1. I like the revision upward of last year so as to make this year smaller!

No need to panic the FED with a really big inflation number!

[junker]

2. Productivity measurements are scam. The FED is actually measuring

one of the many forms of fiat-flow through the system. Their 'productivity' measurements are directly controlled by how fast, and where they direct the M3 funds supply.

So the productivity miracle means that all you DUer's currently at work, are NOT wasting your time here, but are rather doing 99 other things so well with the marvelous extra productivity arising from computers that one person now does all the work of 9 other people.....so you can put part of your time to pursuing DU from work....not that DU is a problem....no more so than any other net stuff...


yes, I used my productivity increase to write this while I was sleeping.

[papau]

3. If I understand the math, after the "productivity M3" & GDP is calculated

the temp jobs estimate program then uses them to project the number of temp jobs that are hidden from view but MUST BE OUT THERE based on productivity and GDP.

They At least give us a consistent set of lies!

:-)

[PROGRESSIVE1]

4. Does that mean that most jobs that are coming back are temp jobs then?

[jonnyo]

5. They pretend to pay us and we pretend to work

Could be the so-called conservatives have finally fully achieved the Stalinistic economy that they've always dreamed about and the rest of America is slowly figuring it out.

[papau]

6. The Feb and March Job increases were well over 50% "temp" guesses

So jobs "coming back" is in question to start with!

But what is not in question is the unit labor cost increase - last year is revised up, and first qtr is 0.8% - twice what was estimated.