Keeping you up to date on the latest data releases.
- Productivity and Costs
Nonfarm business sector productivity—real output per hour of all persons—remained at a 2.6 percent increase after fourth quarter revisions, outpacing the 2.3 percent rise in the third quarter. Although the revision kept productivity constant, output was revised down from 4.5 percent to 4.0 percent, and hours were revised lower by 0.4 percentage point to 1.4 percent. Hourly compensation for the third and fourth quarter were both upwardly revised, bumping the gain to 2.5 percent in the third quarter and 2.0 percent in the fourth quarter. Real hourly compensation, after adjusting for price changes, fell 0.6 percent, but was revised up to 0.6 percent on a year-over-year basis following large upward revisions in the second and third quarter. As a result of the stronger compensation numbers, unit labor costs, while still relatively weak, were revised up on a year-over-year basis—from −0.2 percent to −0.1 percent.