US Q1 labour productivity revised sharply higher

Labour productivity in the States fell by less than expected at the start of 2020, revised figures showed.

According to the Department of Labor, non-farm labour productivity in the US shrank at a quarter-on-quarter annualised pace of 0.9% in the first three months of the year.

That was up from a preliminary estimate of -2.5% which economists had expected to be unchanged.

Output meanwhile fell by 6.5%, versus an initial print of -6.2%, while hours worked fell by 5.6% instead of the 3.8% fall initially penciled-in by government statisticians.

Nominal wages also grew more quickly than expected, by 4.2% instead of 2.2%, and by 2.9% in inflation-adjusted terms and not 0.9%.

Unit labour costs also increased by more than initially though, by 5.1% and not 4.8%.