US Worker Productivity Rose Less Than Expected in Q1
The US worker productivity, which measures hourly output per worker, increased less than awaited in Q1, while growth in unit labor costs exceeded the forecasts. The US Labor Department reported, that nonfarm productivity grew by 0.4% yoy in Q1, below the last month’s indicator of 0.7% growth. Fourth-quarter productivity rose at an unrevised 0.3%. Economists had expected a 0.6 % growth rate. Compared to the first quarter of 2017, productivity increased at an unrevised rate of 1.3%.
Also, from the report, hourly compensation accelerated at a 3.3% rate in Q1. Unit labor costs, the price of labor per single unit of output, increased by 2.9% in the first three months of the year, rather than the 2.7% rate reported in May.