United States USD

United States Unit Labour Costs QoQ Prel

Impact:
Medium

Latest Release:

Date:
Big Surprise:
-1.5%
| USD
Actual:
-0.8%
Forecast: 0.7%
Previous/Revision:
3.2%
Period: Q3
What Does It Measure?
The United States Unit Labour Costs QoQ Preliminary measures the cost of labor per unit of output in the economy, providing insights into labor efficiency and wage trends. It specifically assesses changes in labor costs relative to productivity, making it a crucial indicator of inflationary pressures and overall economic health.
Frequency
This report is released quarterly, with preliminary figures available about 30 days after the end of each quarter, giving an initial snapshot of labor cost trends before final data is published.
Why Do Traders Care?
Traders closely monitor Unit Labour Costs as it can influence wage growth expectations and inflation, directly impacting monetary policy decisions by the Federal Reserve. Higher-than-expected costs may lead to inflation concerns, strengthening the USD and causing equities to react negatively, while lower costs may signal economic weakness and have the opposite effect.
What Is It Derived From?
Unit Labour Costs are derived from data collected through surveys of businesses, encompassing total labor costs divided by real GDP. The calculation considers various industries and incorporates wage rates as well as productivity measures to reflect broader economic trends.
Description
The preliminary report provides initial estimates based on early data and is subject to revisions, while final reports are released later and offer a more accurate reflection of the labor cost dynamics. The report typically measures changes in labor costs compared to the previous quarter (QoQ), allowing for an assessment of recent trends in labor cost efficiency.
Additional Notes
Unit Labour Costs serve as a coincident indicator of economic performance, reflecting both labor market conditions and production efficiency. The indicator also plays a pivotal role in understanding inflationary trends, alongside other reports such as the Consumer Price Index or the Employment Cost Index, which can provide comprehensive insights into wage inflation.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for USD, Bearish for Stocks. Lower than expected: Bearish for USD, Bullish for Stocks. Hawkish tone: Signaling higher interest rates or inflation concerns, is usually good for the USD but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
-0.8%
0.7%
3.2%
-1.5%
1.6%
2.6%
3.3%
-1%
6.3%
5.5%
3.3%
0.8%
1.1%
1.5%
2%
-0.4%
3.5%
4.1%
8.9%
-0.6%
10.8%
9.5%
12.7%
1.3%
11.6%
9.9%
1%
1.7%
0.3%
1.5%
9.3%
-1.2%
8.3%
7%
1.1%
1.3%
1%
1.1%
-2.8%
-0.1%
-0.3%
-0.8%
5.6%
0.5%
6.8%
4%
-7%
2.8%
-8.9%
-11.5%
8.5%
2.6%
12.2%
6.2%
9.8%
6%
4.8%
4%
0.9%
0.8%
1.4%
1.4%
2.5%
3.6%
2.2%
2.4%
1.4%
2.4%
1.7%
5.5%
0.7%
-0.9%
1.5%
2.5%
-2.4%
1.2%
1%
-1%
0.2%
-0.9%
0.3%
3.4%
-1.2%
2.7%
2.9%
2.1%
-0.2%
2%
2.1%
-0.1%
-0.1%
0.5%
0.2%
0.3%
0.3%
0.6%
1.2%
5.4%
-0.6%
3%
2.5%
1.3%
0.5%
1.7%
1.9%
0.2%
-0.2%
0.3%
1.3%
3.9%
-1%
2%
1.8%
-0.2%
0.2%
4.1%
3.3%
2.7%
0.8%
4.5%
3.9%
1.9%
0.6%
1.4%
2.3%
-1.8%
-0.9%
0.5%
0.1%
2.3%
0.4%
5%
4.3%
4.2%
0.7%
Broker Rebates