Keeping you up to date on the latest data releases.
Based on the revised estimate, nonfarm business sector productivity—real output per hour of all persons—increased at an annualized rate of 1.8 percent in the fourth quarter of 2013, which was revised down from a previous estimate of 3.2 percent. This follows increases of 1.8 percent and 3.5 percent in the second and third quarters, respectively. On a year-over-year basis, productivity has increased 1.3 percent.
Both hours and output increased in the fourth quarter. Hours increased 1.6 percent and are up 1.7 percent over the past four quarters, while real output increased 3.4 percent and is up 2.9 percent since the fourth quarter of 2012. Real hourly compensation, which is measured as compensation per hour after controlling for price changes, was revised up from a 0.6 percent increase to a 0.8 percent increase for the quarter, but over the past year, hourly compensation is down 0.9 percent. Unit labor costs, which are the ratio of hourly compensation to hourly output, declined just 0.1 percent in the fourth (compared with a previously estimated decline of 1.6 percent), and are down 0.9 percent since the end of 2012.