United States Nonfarm Productivity q/q

Nonfarm Productivity q/q reflects the ratio between the real labor efficiency and the working time spent. The indicator is calculated as a change in the volume of goods or services produced per working hour in the given quarter compared to the previous one. Farm industry is not included in the calculation due to its seasonally volatile contribution to GDP.

Calculation is based on data from economic censuses and surveys conducted by statistical agencies.

Data is used in economic analysis, forecasting and price analysis, in preparing of private company policies and government programs, as well as in the evaluation of technological innovations, which can be introduced in production.

However, the labor productivity should not be interpreted as a pure representation of labor contribution to production. It also reflects a plethora of other factors, such as a change in labor characteristics, in managing technologies, in the organization of production, allocation of resources and, of course, the level of technology.

Growth of nonfarm productivity in an indication of a higher efficiency of use of production capacities. Given that labor costs make up an important part of businesses expenses, high productivity allows fulfilling consumer demand with less labor costs. This may lead to near-term production growth. Therefore, index growth may have a positive effect on the US dollar.