BLS DAILY REPORT, WEDNESDAY, JUNE 9, 1999
__BLS revises its estimates of nonfarm business productivity in the first
quarter from a 4 percent gain to a 3.5 percent seasonally adjusted annual
rate of increase. Manufacturing productivity proved even more robust in the
first quarter than the Department of Labor's original estimates, surging 6.2
percent instead of 5.8 percent. ... (Daily Labor Report, page D-1).
__American workers' productivity increased at an annual rate of 3.5 percent
in the first 3 months of the year, helping to keep wage inflation under
control. Higher productivity means that employers can afford to pay workers
more without raising the price of their products. That keeps inflation
under control. ... (Washington Post, page E1).
__The faster productivity rises, the more employers can afford to raise
wages and benefits without raising prices or squeezing profits. But whether
the recent pickup in productivity is a trend or a blip isn't yet clear. ...
Meanwhile, unit labor costs, the amount of money employers pay in wages and
benefits for each item made, were revised upward to 0.7 percent for the
quarter from 0.3 percent. Some economists said that could signal
inflationary pressures. ... (Wall Street Journal, page A2).
Worker productivity was slightly less vigorous in the first quarter than
previously thought, as pay rates picked up, BLS says. In a separate report,
the Commerce Department said total inventories rose in April, while sales by
wholesalers rose to a record, indicating consumer spending is still strong.
.... The revised productivity estimate was in line with economists'
expectations.... (Reuters in New York Times, page C2).
Home values rose at an annualized rate of 4.3 percent in the first quarter,
as the nation's housing markets showed some slowing but maintained a strong
pace. ... (Wall Street Journal, page A8).
White House officials said President Clinton would most likely nominate
Martin Baily, a partner at McKinsey & Company, to succeed Janet L. Yellen
later this year as head of the Council of Economic Advisers. Administration
officials said they hoped to move swiftly to fill the job, which is
effectively that of the President's chief economist. Ms. Yellen plans to
leave this summer to return to teaching at the University of California at
Berkeley, after having served 2 years in the White House and 3 years before
that as a Federal Reserve governor. ... (New York Times, page C9).
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