Productivity was revised to a 1.8% gain in Q4 from the 3.2% jump originally reported.
Given that the Q4 GDP revision was down 0.8 point, lowering output, this change was not unexpected. Output in the productivity tables was lowered 1.5 points for Q4.
Unit labor costs now are down 0.1% in the quarter, not as favorable as the 1.6% drop originally reported, and suggesting corporate profit margins were not as juicy. Less output came out of nearly the same hours (hours were up 1.6% during the quarter, a mere 0.1 point downward revision).
For full year 2013, productivity is now up 0.5%, a tie with 2011 for the recent low but otherwise at its worst since 1993. Over the year Q4 productivity is up 1.3%.
The latest productivity data incorporate annual benchmark revisions to the employment data. Manufacturing remains a bright spot, with productivity up 1.3% in Q4 as durables productivity jumped 3.0%.
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