US Worker Productivity Disappoints, Unit Labor Costs Revised Lower

While both US Productivity and Unit Labor Costs picked up from Q4's data, both key economic data points disappointed expectations with productivity up 0.7% (+0.9% exp) and labor costs up 2.7% (+3.0% exp).

Notably the +2.5% Q4 unit labor cost rise was revised notably lower to +2.1% QoQ.

Non-Durable Manufacturing Worker Productivity declined YoY for the 3rd quarter in a row...

Headline real compensation dropped 0.1% QoQ - the second QoQ decline in a row.

Under the hood we note that real compensation for the manufacturing sector dropped 0.1% YoY and real compensation for non-durables dropped 1.5% YoY.