Research >> Economics
1Q2016 Productivity Growth Decreased 0.6%
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Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the first quarter of 2016, the U.S. Bureau of Labor Statistics reported today, as output increased 0.9 percent and hours worked increased 1.5 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2015 to the first quarter of 2016, productivity increased 0.7 percent.
Unit labor costs in the nonfarm business sector increased 4.5 percent in the first quarter of 2016, reflecting a 3.9-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit labor costs increased 3.0 percent over the last four quarters.
Manufacturing sector labor productivity increased 1.3 percent in the first quarter of 2016, as output increased 0.6 percent and hours worked decreased 0.7 percent. Productivity decreased 0.6 percent in the durable goods manufacturing sector and increased 4.2 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 1.3 percent, as output increased 0.6 percent and hours declined 0.7 percent. Unit labor costs in manufacturing increased 1.1 percent in the first quarter of 2016 and rose 3.6 percent from the same quarter a year ago. Hourly compensation increased 2.5 percent in the first quarter of 2016, and 5.0 percent since the same quarter a year ago--the largest four-quarter gain since a 5.8-percent increase from the first quarter of 2004 to the first quarter of 2005.
Preliminary first quarter 2016 measures were announced today for the nonfinancial corporate sector. Productivity increased 2.5 percent in the first quarter of 2016 and increased 0.8 percent over the last four quarters. Unit profits of nonfinancial corporations grew at a 13.4 percent annual rate in the first quarter of 2016, but fell 8.0 percent over the last four quarters.
In the first quarter of 2016, nonfarm business productivity fell 0.6 percent, a smaller decline than the preliminary estimate, due to a 0.5-percentage point upward revision to output. Unit labor costs were revised up as a 0.9-percentage point upward revision to hourly compensation was partially offset by the 0.4-percentage point upward revision to productivity. In the manufacturing sector, productivity increased 1.3 percent in the first quarter of 2016--less than the preliminary estimate--reflecting an upward revision to hours worked and a slight downward revision to output. Unit labor costs increased 1.1 percent rather than declining 1.2 percent, due primarily to a 1.9-percentage point upward revision to hourly compensation.
Posted: June 7, 2016 Tuesday 08:30 AM