The Preliminary release of the United States Non Farm Productivity and Unit Labor costs for the 2^nd quarter will be released at 8:30 AM EDT.  Last quarte, Productivity increased quarter on quarter by 2.6%.  This represented the 6^th consecutive quarter of increases.  Given the higher cost of raw materials, Manufacturers have been forced to increase their productivity or have profit margins erode. 

Also released with the Productivity report will be the Preliminary change in Unit Labor costs. Last quarter costs increased by 2.2%.  This was down from 4.7% the previous quarter.  Labor inflation is often the cause of secondary inflation increases.   Although up for the last 2 quarters, the previous two showed declines.

This quarter the expectation is for another increase in productivity by 2.6%.  Meanwhile Unit Labor Costs are expected to decline to a modest +1.4% as workers lose leverage on salary increases given the slack economy