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Labor/Macro · Index Gold

Productivity Trend Index

Is nonfarm business productivity outpacing unit labor cost growth — or is the cost squeeze tightening?

Refresh
quarterly
History
10.2 yrs
Plan
Gold
51.2/ 100
Stable

US nonfarm business sector (productivity vs ULC)

2016-04-01 10.2 yrs · 44 pts 2026-06-27

Top drivers

productivity_yoy_pctulc_yoy_pctcomposite_z
⌁ mcp.call("adw-049") vADW-049-live-1.0
Use cases

What it unlocks

For an agent

A corporate-margin forecasting agent reads ADW-049 quarterly; when the productivity_trend_score rises above 55 and the ulc_z sub-component is falling (current score is 51.2, 74th percentile over 43 observations ranging 38.3 to 66.8, with a rising trend), it automatically upgrades the earnings-growth assumption in a sector model by 25 basis points, cites the productivity_yoy_pct and ulc_yoy_pct values from the IOM's top_drivers for analyst review, and requires confidence above 0.8 before triggering the assumption change — methodology_version anchors the 36-quarter trailing window so the signal is comparable across model runs.

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For the business

A sell-side equity strategist uses ADW-049's trend_label and composite_z to distinguish whether S&P 500 margin expansion is productivity-driven (sustainable) or merely cost-cutting-driven (fragile); with the score at a 74th percentile reading and rising, the current IOM signal supports an overweight on cyclicals that benefit from genuine efficiency gains, a call that previously required the strategist to manually reconcile BLS OPHNFB and ULCNFB releases on different publication schedules.

Forward outlook

Prediction

Horizon
Recommended use
Track the productivity-vs-labor-cost balance. High score = efficiency gains outpacing cost growth; favorable for margins. Descriptive, quarterly cadence.
Methodology

How it's built

OPHNFB level z-score minus ULCNFB level z-score; composite vs 36-quarter trailing window → 0-100 (>50=productivity leading)

FRED (OPHNFB, ULCNFB)

Version ADW-049-live-1.0 · validated to beat a naive baseline · benchmark: none