EmailNonfarm business productivity in the first quarter was revised down from -0.5% in the advance release to -0.9%. The Briefing.com consensus expected nonfarm productivity to be revised down to -0.8%. The decrease in productivity was mainly driven by a downward revision to output (from 2.7% to 2.4%) that was foreshadowed by the negative revision to first quarter GDP. Hours worked was revised up from 3.2% to 3.3%.
Unit labor costs were revised down from 2.0% to 1.3%. The consensus expected unit labor costs to be revised up to 2.3%. The drop in unit labor costs was the result of a substantial downward revision in hourly compensation. Compensation increased only 0.4% instead of the originally reported 1.5%. In real terms, hourly compensation dropped 2.0% from fourth quarter levels.
