Tuesday, March 06, 2007

Forex News: 06.03.2007 U.S. productivity rose 1.6% in the fourth quarter

U.S. productivity decelerated in the fourth quarter while labor costs rose, the Labor Department said.

Productivity of the U.S. nonfarm business sector rose at a 1.6% annual rate in the fourth quarter, revised down from the 3.0% pace estimated a month ago.

Unit labor costs rose at a 6.6% annual pace in the quarter, revised higher from a 1.7% increase. This is the largest quarterly gain since the first three months of 2006.

Economists expected productivity to be revised to a 1.4% annual pace, based on revisions to output and hours worked already reported in the gross domestic product data. Productivity fell at a 0.6% annual pace in the third quarter.

Productivity has increased 1.6% in the past year. Productivity has slowed every year since peaking at a 4.1% annual rate in 2002.


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