Full text of U.S. Financial Data : November 8, 2001

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November 8, 2001

USFinancialData
THE WEEK’S HIGHLIGHTS:
s The FOMC voted to cut its federal funds target rate 50 basis points
to 2 percent at its Nov. 6 meeting. The FOMC’s target rate has been
reduced a total of 450 basis points over ten separate occasions
this year.
s A 1 percent annual rate of decline in nonfarm business sector output,
combined with a 3.6 percent rate of decline in hours, resulted in a
2.7 percent annual rate of increase in labor productivity (output per
hour) during the third quarter. This increase followed gains of 0.1
percent in the first quarter and 2.2 percent in the second quarter.
Growth of nominal compensation slowed to a 4.5 percent rate during
the third quarter, after advancing at a 4.9 percent rate during the
first half of 2001. Accordingly, growth of nonfarm unit labor costs
slowed to a 1.8 percent rate during the third quarter, less than
half of the 3.7 percent growth seen during the first half of the year.
The implicit price deflator for nonfarm business output rose at a
1.5 percent rate in the third quarter, unchanged from the previous
quarter.
s The Bureau of Labor Statistics reported that the import price index
fell 2.4 percent in October, the largest decline since December 1986.
Prices of imported petroleum products plunged 15.7 percent in
October, while prices of nonpetroleum goods fell 0.4 percent. After
increasing 3.3 percent in 2000 (Dec. to Dec.), import prices have
declined 6.8 percent thus far in 2001.
s Nonfarm payroll employment fell 415,000 in October, while the
unemployment rate rose to 5.4 percent.
All data are seasonally adjusted unless otherwise indicated.
U.S. Financial Data is published weekly by the Research Division of the Federal Reserve Bank of
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Information in this publication is also included in the Federal Reserve Economic Data (FRED) data base
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