US non-farm productivity fell more than expected in the first quarter

Nonfarm labor productivity in the US decreased 2.7 percent in the first quarter of 2023 compared to the previous quarter, more than expected.

The US Department of Labor announced key data on nonfarm labor productivity and unit labor cost for the January-March period.

Consequently, non-agricultural labor productivity in the country decreased by 2.7 percent in the first quarter of this year compared to the previous quarter. The market expectation for such data was a decrease of 1.8 percent.

Nonfarm labor productivity rose 1.6 percent in the last quarter of last year.

Production increased 0.2 percent and working hours 3 percent in the first quarter of this year compared to the previous quarter.

Non-farm labor productivity decreased by 0.9 percent annually in the January-March period.

The unit labor cost, one of the inflation indicators followed by the US Federal Reserve (Fed), increased 6.3 percent in the January-March period compared to the previous quarter. Unit labor cost was expected to rise 5.5 percent during this period.

Unit labor cost had also risen 3.3 percent in the last quarter of last year. (AA)