Keeping you up to date on the latest data releases.
- Productivity and Costs
Nonfarm business sector productivity was revised down from an annualized pace of 3.6 percent to 2.8 percent in the first quarter, as output was revised down and hours worked were adjusted upward. Still, the year-over-year growth rate in productivity is 6.1 percent, its highest growth rate since 2002:Q1 and only its second occurrence above 6.0 percent since the early 1960?s. Real output was nudged down from 4.4 percent to 4.0 percent in the first quarter, following a 7.0 percent gain in the fourth quarter of last year. Hours worked were revised up from a 0.8 percent increase to 1.1 percent in the first quarter, but are still down 3.0 percent over the past year. Nominal compensation was adjusted down from 1.9 percent to 1.5 percent in the first quarter and was virtually flat after adjusting for price effects. Unit labor costs still fell 1.3 percent during the quarter, compared to a 1.6 percent decline according to the advance estimate. Still, unit labor costs are down a substantial 4.2 percent on a year-over-year basis.