The numbers: U.S. productiveness rose at a 3% annual clip within the fourth quarter, the federal government stated Thursday. That’s the quickest tempo for the yr.
Economists surveyed by the Wall Street Journal had projected a 2.5% improve.
In all of 2022, U.S. productiveness declined at a 1.3% charge. That’s the bottom annual charge since 1974. Some economists level to the post-pandemic return of staff in sectors like leisure and hospitality and well being care.
Key particulars: Output within the fourth quarter rose 2.3%. Hours labored rose 0.5%. Outside of the pandemic, that’s the lowest degree of hours labored for the reason that fourth quarter of 2019.
Unit-labor prices, a key measure of wages, rose 1.1% within the fourth quarter. That’s down from a 2% charge within the third quarter. Economists has anticipated a 1.5% achieve.
For all of 2022, unit labor prices rose 5.7%. That’s the quickest tempo since 1982.
Real hourly compensation rose 1% within the fourth quarter after a 2.2% drop within the prior quarter. For the yr, actual compensation is down 3.4%.
Productivity within the manufacturing sector fell at a 1.5% charge within the fourth quarter and was down 0.9% for the yr.
Big image: If the fourth quarter tendencies proceed, productiveness might be returning to a rising development. But that may be a massive if.
It stays an open query how the development of working from residence impacts productiveness.
Unit labor prices displays larger wages. Economists stated the achieve was not according to the Fed’s 2% goal.
Market response: Stocks
DJIA,
SPX,
have been set to open combined on Thursday following Fed Chairman Jerome Powell’s news convention. The yield on the 10-year Treasury observe
TMUBMUSD10Y,
slipped to three.37%.
Source web site: www.marketwatch.com
