Non-farm productivity shows big increase
The U.S. Labor Department reported Thursday that non-farm productivity increased at a 2.6 percent annual rate in the second quarter of 2007.
It was significantly higher than the 0.7 percent increase recorded in the first quarter of 2007 and was seen as good news for stocks, inflation and interest rates.
Since the second quarter of 2006, productivity advanced 0.9 percent and this is less than in recent years. However, the second quarter of 2006 was an unusually weak quarter for productivity and provides a poor benchmark. Year over year results will be stronger for the third quarter of 2007.
Hourly compensation increased 4.1 percent in first quarter and unit labor costs, which factors in higher wages and higher productivity, rose 1.4 percent.
Labor costs pose no threat to accelerate inflation and these likely reflect the tighter labor market of 2006, before the subprime crisis began to bite, the report said.
Prospects for inflation remained mostly determined by foreign oil prices, inflation in China, which supplies a significant share of U.S. consumer goods, and the value of the dollar against the euro and other non-Asia currencies. // Copyright 2007 by United Press International
- Moldova will carry out all-republican agricultural census in March - April 2011
- General agricultural census to take place between march 15 and April 15, 2011
- Russia wants fewer Moldovan agricultural goods exporters
- Marian Lupu consider Russian ban on agriculture imports from Moldova as non-political
- After wines Russia restricts Moldovan vegetable and fruit imports
- Agriculture ministry disproves food security threat in Moldova.
- Moldovan minister denies suspension of wine export consultations with Russia
- Moldova's agriculture to benefit from 110M euros of foreign assistance
- Agribusiness: Moldova-Romania joint ventures to be created near the border
- Moldova: Foreign investors will be able to buy agricultural land
- Asia, US helps Mercedes Benz sales hit record high in 2006
- Cricova: The Largest Underground Wine Cellar in the World
- What does Remortgage mean?
- Dutch bear profit rises 26 percent
- Foreign direct investment in India doubles during 2006
- Greece: Socialist government's budget deficit of 12.5% caused debt crisis
- Toyota in talks to build new China plant
- Walt Disney profit up 39 percent
- DaimlerChrysler is not planning to manufacture trucks in India