Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  Productivity revised higher to a 1.8% annual rate in Q1
Posted Under: Data Watch • Productivity

 
Implications:  Productivity beat consensus expectations, rising at a 1.8% annual rate in the first quarter.  This was revised higher from last month's estimate as output was revised slightly higher but hours remained unchanged.  Productivity has increased in nine of the last ten quarters and we believe that trend will continue. What's impressive about the first quarter is that gains in productivity came at the same time that the number of hours worked still increased at a healthy 1.4% annual rate.  Companies today are able to find ways to be more efficient while still demanding more hours.  Despite rampant pessimism about the outlook of the economy, these gains in productivity are robust enough to both generate pay increases and make it necessary for companies to hire more workers going forward.  We expect private sector hiring to remain strong in 2011.  In other news this morning, new claims for unemployment insurance fell 6,000 last week to 422,000.  Continuing claims for regular state benefits declined 1,000 to 3.71 million.  In other recent news, cars and light trucks were sold at an 11.8 million annual rate in May, down 10.5% from April but still up 1.3% versus a year ago.  The disaster in Japan has hurt the auto sector the most.  Inventories have plummeted and manufacturers and dealers have responded by drastically reducing incentives.  This will reverse over the next few months as auto production rebounds.

Click here to view the entire report.
Posted on Thursday, June 2, 2011 @ 1:55 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.