Productivity And Costs


DEFINITION of 'Productivity And Costs '

An economic data set that measures future inflationary trends with two indicators. Productivity is the indicator that measures labor efficiency in producing goods and services in the U.S. economy. Costs is the indicator that measures the unit labor costs of producing each unit of output in the U.S. economy. Together, productivity and costs monitors inflationary trends in wages, which usually affect trends of inflation in other areas.

BREAKING DOWN 'Productivity And Costs '

Both the bond and equity markets seem to be affected in the same direction by productivity data. Because a more efficient workforce can lead to higher corporate profits, equity markets enjoy seeing good productivity growth. The bond markets, which enjoy a low inflationary situation, also prefer to see high productivity due to its role in keeping inflationary pressures low. As productivity growth occurs, inflation is stemmed, because the economy can sustain higher growth than could be possible with inefficiencies in the labor markets.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  3. Index

    A statistical measure of change in an economy or a securities ...
  4. Unit Cost

    The cost incurred by a company to produce, store and sell one ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include ...
  6. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
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