U.S. productivity dips 0.1% in fourth quarter, ends 2017 on sour note

• February 1, 2018
• realestatelife
• Announcements, Business & Markets, Real Estate, Real Estate Finance, Your Real Estate Life

The productivity of American firms and workers fell at a 0.1% annual pace in the fourth quarter. Economists polled forecast a 0.2% gain.

Output — goods and services produced — rose 3.2% in the fourth quarter. Yet hours worked grew slightly faster at 3.3%. The difference between the two led to the small decline in productivity.

Hourly compensation for workers rose 1.8%, but after adjusting for inflation, compensation actually fell 1.8%.

Unit-labor costs, or how much it costs to make each product, rose 2%.