The Productivity Report

Definition:
The Productivity Report measures the level of 'output' (defined below) for businesses. This report is released quarterly (every three months) by the Bureau of Labor Statistics (BLS). The BLS compares the level of input to the level of output:
Input- consists of the number of work hours and money used in business.
Output- the amount of products produced.


Usage:
The data released in these reports is not new information, since it is a compliation of other indicators. It takes into consideration several things like GDP, the Consumer Price index and employment cost reports. It involves complex equations to determine the finished information. Though the information is not new, it is helpful to have it all collected in one report and in an easier to understand form. Using this report, businesses determine whether or not they can raise wages without passing on the cost to consumers.

Strengths:
Simplifies the information for investors.
Helps monitor inflation.
Helps businesses and investors make important decisions.
Factors government out of the figures, leaving only businesses.
Compares U.S. figures to ther industrialized countries.

Weaknesses:
Takes a long time to make (comes five weeks after the end of a quarter).
Fairly volatile, not so good for short term planning. Better for long term planning.
Isn't in and of itself new information.