US Productivity Growth Slowed Dramatically In Q4

Following Q3's 3.3% surge in US worker productivity - the best in 2 years - Q4 was a disappointment as growth slowed to just 1.3% (below the 1.5% expectation).

Productvity growth slowed to just 1.3% in Q4 - the exact average growth rate of President Obama's 8 year reign.


Unit labor costs rose very slightly more than expected but remain subdued at just 1.7% QoQ (notably non-financial corporations saw notable drops in unit labor costs) and Real Compensation fell 0.4% QoQ in Q4 and Manufacturing employee hours dropped the most since 2015.