Productivity and costs

Productivity and costs,

Definition of Productivity and costs:

  1. 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 benefit from a low inflationary situation, also prefer to see high productivity due to its role in keeping inflationary pressures down. As productivity growth occurs, inflation is stemmed because the economy can sustain higher growth than could be possible with inefficiencies in the labor markets.

  2. An economic measurement used to predict future patterns of inflation in the United States economy. The productivity measurement tracks the efficiency of goods and services production, and the cost measurement indicates the labor cost attached to each output unit in the economy.

  3. Productivity and costs refer to 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.

Meaning of Productivity and costs & Productivity and costs Definition