PRODUCTIVITY AND COSTS

Indicator Release Date Coverage For Actual S&P Consensus Productivity & Costs (Productivity) 3/3 2010-Q4-revised 2.6% 2.3% Productivity & Costs (Costs) 3/3 2010-Q4-revised -0.6% 0.2%

Release Date 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 Coverage 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Productivity -1.3 1.4 -1.8 0.1 3.8 8.9 6.5 6.7 4.6 -1.7 2.3 2.6 Unit_Labor_Costs 6.2 -1.4 5.0 1.2 -6.8 0.7 -3.4 -4.1 -4.6 4.9 0.1 -0.6 Data display as Q/Q % change at an annualized rate

Definition:	The Productivity and Costs report measures the overall efficiency of the economy. Productivity is defined as the ratio of output to input. Unit labor costs show the cost of labor associated with output. Productivity and costs are revised 30 days after the preliminary estimate, and then revised again in 60 days.
Meaning:	Productivity growth means greater output for the same or less input. Gains in productivity are often created by capital investment for machinery and technology. Unit labor costs are watched for indications of wage pressures that could be inflationary.
Weight:	**
Source:	U.S. Department of Labor: Bureau of Labor Statistics
Availability:	Released one month following the reference quarter
Frequency:	Quarterly
Coverage:	1 Month Lag Factor (Data for 1Q is released in April)
Volatility:	Moderate
Impact on the Markets:
Interest Rates:	Productivity and Costs = Interest Rates Productivity and Costs = Interest Rates
Fixed-income:	Productivity and Costs = Bond Market Productivity and Costs = Bond Market
Equities:	Productivity and Costs = Stock Market Productivity and Costs = Stock Market
Dollar:	Productivity and Costs = Uncertain Productivity and Costs = Uncertain
More Information:	U.S. Department of Labor: Bureau of Labor Statistics