The US labor productivity index grew faster than market expectations in the fourth quarter of last year. Productivity continued to improve throughout 2023, contributing to boosting economic growth as inflation slowed.
Key Point
- The non-agricultural sector labor productivity index (preliminary figures) increased by 3.2% annually compared to the previous quarter.
- The median economist forecast is for a rise of 2.5%.
- July-September (3rd quarter): 4.9% increase (previously announced value was 5.2% increase)
- Unit labor cost increases by 0.5%
- Market forecast: 1.2% increase
- 1.1% decrease in July-September period (previously announced value was 1.2% decrease)
Labor productivity increased by 2.7% compared to the same period last year, faster than the average rate of increase over the past 25 years. It’s a welcome sign for the U.S. Federal Reserve, which aims to further slow inflation.
Sustained increases in productivity will allow companies to raise wages without increasing prices or sacrificing profits. If improvements continue in 2024, the foundation could be set for further growth in real incomes.
Labor productivity fell to a record low in 2022, but last year showed even more improvement.
“Improving productivity is a bright spot for inflation and the overall economic outlook,” EY chief economist Gregory Daco said in a note. “Strong productivity growth will allow companies to control costs and secure profit margins without impacting talent, even as wages remain high and pricing power declines,” he said. It can be done,” he wrote.
Unit labor costs increased by 2.3% compared to the same period last year.
In the October-December period, production also rose at an annual rate of 3.7% compared to the previous quarter, and labor input increased by 0.4%. As a result, hourly compensation rose 3.7%, maintaining the same growth rate as the July-September period.
See table for detailed statistics.
Original title:US Productivity Increases at Rapid Pace, Cementing 2023 Rebound、US 4th-Quarter Productivity Rose 3.2%, Above All Estimates（抜粋）
(Updates with statistical details and economist’s perspective in the last 4 paragraphs)
2024-02-01 13:39:37
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