USA: Productivity plummets. The ratio of production and working hours fell in the months of January to March by an annualized 7.3 percent, as the Department of Labor announced on Thursday in Washington after a second estimate. On average, analysts had expected a confirmation of the initial estimate when a decline of 7.5 percent was determined. In the previous quarter, productivity had increased by 6.3 percent.
According to the ministry, production fell by 2.3 percent in the first quarter. However, the hours worked increased by 5.4 percent.
Unit labor costs increased by 12.6 percent on an annualized basis. In the previous quarter they had increased by 3.9 percent. According to experts, the significant increase in unit labor costs is a reflection of the very tight labor market.
The US economy shrank surprisingly in the winter. It was particularly burdened by a significant widening of the trade deficit. Private consumption and investments, on the other hand, developed solidly.
–
