Keeping you up to date on the latest data releases.
- Productivity and Costs
Nonfarm business sector productivity—real output per hour of all persons—rose at an annualized rate of 2.6 percent in the fourth quarter, and is up 1.7 percent over the past four quarters. The productivity gain in the fourth quarter came as output rose 4.5 percent, faster than the 1.8 percent increase in hours. Hourly compensation increased 1.9 percent in the fourth quarter, compared to an upwardly revised 2.3 percent gain in the third quarter. However, after adjusting for prices changes, “real” compensation fell 0.6 percent and is up just 0.3 percent on a year-over-year basis. Unit labor costs—compensation per hour divided by output per hour—slipped down 0.6 percent in the fourth quarter and is down 0.2 percent on a year-over-year basis, implying a dearth of wage pressure on pricing decisions.