US: Jobless claims and Q2 productivity in focus – Nomura

In view of analysts at Nomura, the release of initial jobless claims and Q2 productivity are going to be the key economic releases for today’s US session.

Key Quotes

“Initial jobless claims remain subdued as firms continue to hold on to workers in a tight labor market. However, upcoming claims releases will likely show a transitory increase reflecting the widespread economic damage from Hurricane Harvey in the Gulf Coast region, similar to previous hurricanes in the area.”

“Productivity Q2, final: The preliminary Q2 estimate from the BLS showed a 0.9% q-o-q saar increase in nonfarm productivity. An upward revision to Q2 GDP from the BEA on 30 August yields some potential for an upward revision to Q2 productivity. Consensus expects a slight upward revision to a 1.0% increase for the final Q2 estimate. However, over the medium term, the structural decline in the underlying dynamism of the economy (e.g., the rate of new business formation, churn within existing firms, and workers changing jobs) will likely continue to weigh on productivity growth.”