1Q Productivity Up 2.8%; Labor Costs Down 1.3%

U.S. nonfarm productivity increased 2.8% in the first quarter, revised lower from the 3.6% gain reported in the preliminary ­estimate released in May, as output declined and hours worked increased from their initial estimates, the Labor Department reported today.

Unit labor costs fell 1.3% for the quarter, a smaller decline than the 1.6% drop reported in the preliminary estimate.

Economists expected productivity to be revised to a 3.4% gain and for unit labor costs to be revised to a 1.4% drop.

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