U.S. first quarter productivity strongest since 2014; labour costs drop
Higher productivity compensate higher wages, increasing workers skills, company profits, and consumer spending.
“Compared to the first quarter of 2018, productivity increased at a rate of 2.4 percent, the best performance since the third quarter of 2010.”
“The strong pace of productivity suppressed growth in labour costs, a potential boost to corporate profits.”
“Hourly compensation increased at a 2.6 percent rate, slowing from the fourth quarter’s brisk 3.9 percent pace. Hourly compensation increased at a 2.5 percent rate compared to the first quarter of 2018.”
US Productivity Grows at Solid 3.6% Rate in First Quarter
“Productivity, the amount of output per hour of work, is a key factor determining an economy’s growth potential.”
“The economy’s potential to grow is governed by two major factors, growth of the labor force and growth in productivity.”