unit labor costs
- Prelim was +1.9%
- Prior was +2.4%
- Productivity +2.2% vs +2.2% expected
- Prior was +2.1%
US productivity has been impressive and could have implications for monetary policy but it's not a short-term market mover. The drop in unit labor costs is disinflationary. The market is pricing in an 85% chance of a Fed cut next week but tomorrow's CPI reading could be pivotal.