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US nonfarm productivity decreases in Q1

Nonfarm productivity in the US decreased in Q1. This situation approved weak growth of the US economy at the beginning of this year, which points on long downside trend of labour productivity.


According to the report released on Wednesday, seasonally adjusted nonfarm productivity decreased in Q1 by 1.0%.  However, productivity grew by 0.6% versus previous year.


Experts forecasted more significant reduction by 1.4%.


Level of production rose in Q1 by 0.4%, while working time rose by 1.5%.


Volume of expenses for nonfarm work rose in Q1 by 4.1%, exceeding forecast at 3.3%. Net expenses rose by 2.3% versus 2015.


Growth of wages rose put a positive sign. Hourly earnings rose by 3.0%. Hourly earnings for the last quarter were revised up to 0.9%.


Monthly reports about labour productivity used to be revised as given indices are quite volatile. For example, productivity fell in Q4 2015 by 1.7%, while preliminary assessment had shown more significant fall by 2.2%.