Worker Productivity down for 3rd Consecutive quarter.

Productivity and Costs (2ndQ2016)

– Nonfarm productivity quarter/quarter seasonally adjusted, annualized -0.5%. Previous was -0.6%
– Unit labor costs – quarter/quarter seasonally adjusted +2.0%. Previous was -0.2% – revised from +4.5%

Productivity is GDP/hours worked.  Worker Productivity has dropped for 3 consecutive quarters. I do not believe that this means that workers are becoming slackers. I believe that there are two reasons why Productivity has been low. First, we are not making the capital investments associated with manufacturing. Second, we are losing workers with high GDP/hour such as oil field workers and gaining workers with low GDP/hour.

 

Wholesale Trade (June 2016)

Inventories month/month +0.3%. Previous was +0.0%.

This is a GDP component.

 
Redbook Chain Store Sales (week ended 8/6/2016)

– Store Sales year/year +0.5%. Previous was +0.3%.

 
NFIB Small Business Optimism Index (July 2016)

– level 94.6. Previous was 94.5