Q4 productivity was revised down to 1.7% (consensus 2.5%) from the preliminary estimate of 3.0%. Unit labor costs, meanwhile, were revised up to 3.2% (Briefing.com consensus 1.4%) from 1.1%.
The key takeaway from the report is the elevated unit labor costs, which were up 6.3% from the same quarter a year ago (which is when the Fed first started raising rates). Moreover, unit labor costs in the nonfarm business sector were up 6.5% in 2022, which is the largest annual increase since 1982.
Treasury yields moved noticeably higher following the data releases.
The 2-yr note yield is up four basis points to 4.94% and the 10-yr note yield is up seven basis points to 4.07%.