Labor productivity in the US non-farm business sector fell by an annualized 0.2 percent during the third quarter of 2019, slightly less than a preliminary estimate of a 0.3 percent decline and following an unrevised 2.5 percent growth in the previous three-month. It was the first decline in productivity since the fourth quarter of 2015, as output went up by 2.3 percent (vs 1.9 percent in Q2) and hours worked advanced at a faster 2.5 percent (vs -0.5 percent in Q2). Manufacturing sector labor productivity rose 0.1 percent, driven by a 0.7 percent gain in durable manufacturing productivity. Year-on-year, non-farm business productivity went up 1.5 percent. Productivity in the United States averaged 60.96 Index Points from 1950 until 2019, reaching an all time high of 107.59 Index Points in the second quarter of 2019 and a record low of 25.99 Index Points in the first quarter of 1950.
Productivity in the United States is expected to be 108.82 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Productivity in the United States to stand at 110.20 in 12 months time. In the long-term, the United States Nonfarm Labour Productivity is projected to trend around 112.00 Index Points in 2020, according to our econometric models.