–Output Growth Slower Than Previous Quarter, +3.1% Vs +4.4%
–Compensation Accelerated To 2.6% In 1Q, Real Compensation Down 2.5%.
By Kevin Kastner and Ian McKendry
WASHINGTON (MNI) – U.S. nonfarm productivity rose 1.6% in the first
quarter, slightly above expectations for a 1.5% gain, but down from the
2.9% rate of growth in the fourth quarter, the Bureau of Labor
Statistics reported Thursday.
Output rose 3.1% in the first quarter, a slowdown from the 4.4%
rise in the previous quarter, while hours worked growth slowed modestly
to a 1.4% rate following the 1.5% fourth quarter rise.
Unit labor costs rose 1.0% in the first quarter, a rebound from the
1.0% drop in the previous quarter due to the slowdown in productivity
growth and a larger rise in compensation growth than in the previous
quarter.
In the first quarter, compensation per hour rose 2.6%, compared
with the 1.9% rise in the previous quarter. However, real compensation
growth fell 2.5% in the first quarter after the 0.8% decline in the
previous quarter, as prices rebounded. The implicit price deflator rose
1.1% in the first quarter after falling 0.9% in the previous quarter.
Year-over-year growth in productivity now stands at a 1.3% rate for
the first quarter, down from the 2.0% rate of growth in the fourth
quarter.
First quarter unit labor costs were up 1.2% from year ago, a the
first year/year increase since the fourth quarter of 2008, when it was
up 2.7%.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
