US: Productivity declines 0.6% in 1st quarter 2017 (annual rate); unit labor costs rise 3.0%

Key quotes from the official report of the U.S. Bureau of Labor Statistics:

• Nonfarm business sector labor productivity decreased at a 0.6-percent annual rate during the first quarter of 2017 as output increased 1.0 percent and hours worked increased 1.6 percent. (All quarterly percent changes in this release are seasonally adjusted annual rates.)
• From the first quarter of 2016 to the first quarter of 2017, productivity increased 1.1 percent, reflecting increases in output and hours worked of 2.4 percent and 1.3 percent, respectively.
• Unit labor costs in the nonfarm business sector increased 3.0 percent in the first quarter of 2017, reflecting a 2.4-percent increase in hourly compensation and a 0.6-percent decline in productivity. Unit labor costs increased 2.8 percent over the last four quarters.