Productivity Slows At Fastest Pace In A Year As Labor Costs Soar

Non-Farm productivity fell most in a year at 1.7% in Q1 – notably worse than the 1.2% drop that was expected. Output growth slowed dramatically and real compensation also fell.

However, unit labor costs surged 4.2% (its most since Q4 2012) as unit non-labor costs tumbled 2.7% (its worst since Q4 2012).

 

Must be the weather – pay those that made it through the weather more as their productivity plunges… and all will be well in Q2 – the man on the TV said so.

 




via Zero Hedge http://ift.tt/1fU6xaM Tyler Durden

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