Q3 Canada labour productivity -0.6% vs -0.1% prior

Third quarter labour productivity data

• Prior was -0.1% (revised to -0.2%)
• Largest drop since Q1 2015
• Unit labor costs +1.2% q/q vs -0.7% in Q2
• Avg hourly compensation +0.6% vs -0.9% in Q2

The drop in productivity is actually a hawkish sign. It means there is inflationary pressure on costs, however it's notoriously difficult to measure so the BOC will likely take this print with a grain of salt.

The BOC statement is due out in 90 minutes.