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

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

Accordingly, 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 the said data was a decrease of 1.8 percent.

Non-agricultural labor productivity increased by 1.6 percent in the last quarter of last year.

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

Non-agricultural labor productivity decreased by 0.9 percent on an annual basis in the January-March period.

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

The unit labor cost had also increased by 3.3 percent in the last quarter of last year.

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