–Unit Labor Costs Now Up 0.7% Vs Previously Reported 1.0% Rise
–Output Growth Revised Up, Hours Worked Unrevised
–4Q Labor Costs Revised Lower To -2.8% Vs Previously Reported -1.0%

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – U.S. nonfarm productivity was revised up to a
1.8% rate of growth for the first quarter from the 1.6% rise previously
reported, as output growth was revised up slightly and hours worked
growth was unrevised, the Bureau of Labor Statistics reported Thursday.

As a result of the upward revision to productivity and a downward
revision to compensation growth, unit labor costs were revised lower to
a 0.7% rate of growth from the previously reported 1.0% growth pace.

In addition, unit labor costs were revised sharply lower in the
fourth quarter to a 2.8% decline from the previously reported 1.0%
decline. A downward adjustment to compensation that quarter was the
reason, as productivity growth was unrevised at a 2.9% rise in the
fourth quarter.

Output is now reported up 3.2% for the first quarter, an upward
revision from the 3.1% pace previously reported. Hours worked growth was
unrevised from the preliminary estimate of a 1.4% rise.

Compensation per hour was revised down to a 2.5% rise in the first
quarter from the preliminary estimate of 2.6%. Compensation is now
reported to have risen only 0.1% in the fourth quarter, compared with
the 1.9% previous estimate.

Real hourly compensation is now reported down 2.6% for the first
quarter, a slight downward adjustment from the 2.5% drop in the
preliminary estimate. The implicit price deflator is now reported up
1.4% for the quarter, an upward adjustment from the 1.1% preliminary
estimate.

Year-over-year growth in productivity now stands at a 1.3% rate for
the first quarter, the same as the preliminary estimate and down from
the 2.0% fourth quarter pace.

First quarter unit labor costs were up 0.7% from year ago, a
downward revision from the 1.2% in the preliminary estimate.

** Market News International Washington Bureau: 202-371-2121 **

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