furniture sales follies ... and a productivity plunge
Also, did you get a load of the productivity and unit labor cost data for Q3? Productivity was unchanged vs. expectations for a 1.1% YOY gain. Unit labor costs rose at a 3.8% pace; they're up 5.3% in the 12 months ended in September. Labor costs haven't risen by a greater amount since 1982.
The bond market is relatively sanguine about the numbers because the key October jobs report is released tomorrow. But here's my one thought: Given how FAST labor inflation, CPI inflation, etc., has been rising -- especially earlier this year -- how the heck did 10-year Treasury yields peak out around 5.25%? The last time key inflation readings were this bad (mid-1990s, early 1980s, depending on the indicator), interest rates were much, much higher. Just something to chew on.