Labor cost up, Productivity down

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R u wondering why all of a sudden US stock futures are down. Here are the latest economic numbers: 

  1. Productivity of the U.S. non-farm business sector rose at a 1.8% annual rate in the second quarter, vs economists’ expectation 2.1%.
  2. Unit labor costs – a key inflationary signal – rose at an annual rate of 2.1% in the second quarter vs. economists’ expectation of 1.6% gain. Real hourly compensation fell 2.0%

Productivity lower, cost higher? What does all this mean? I’ll encourage to read economic indicators. My take, forget the rate cut for a while.

Profitable trading, OP






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