Productivity down with Weak GDP.

MBA Mortgage Applications (week ended 5/1/2015)

– Purchase Index Week/Week +1.0%. Previous weeks were  +0.0%, +5.0%, -3.0%, +7.0%, +6.0%, +5.0%, -2.0%, +2.0%, -0.2%, +5.0%, -7.0%, -7.0%, and -2.0%.

– Refinance Index Week/Week -8.0%. Previous weeks were -4.0%, +1.0%, -2.0%, -3.0%, +4.0%., +12.0%, -5.0%, -3.0%, -0.2%, +1.0%, -16.0%, and -10.0%.

– Composite Index Week/Week -4.6%. Previous weeks were -2.3%, +2.3%, -2.3%., +0.4%, +4.6%, +9.5%, -3.9%, -1.3%, -1.3%, +0.1%, -8.0%. -13.2%, and -9.0%.

 

ADP Employment Report (March 2015)

– Private Jobs  +169,000. Previous revised down to +175,000.

This is weak and indicative of slow economic growth.

 

Productivity and Costs (1stQ2015)

– Nonfarm productivity quarter/quarter seasonally adjusted, annualized  -1.9%. Previous was -2.1%
– Unit labor costs quarter/quarter seasonally adjusted, annualized   +5.0%. Previous was +4.1%

This is a somewhat distressing report.  Productivity is GDP/hours worked and with 1stQ2015 GDP dismal a low number was expected. Unit labor costs in the nonfarm business sector increased

5.0% reflecting a 3.1% increase in hourly compensation and a 1.9% decline in productivity.