In the fourth quarter U.S. productivity increased 3.0% (ahead of consensus 2.5%), as output increased 3.5% and hours worked increased 0.5%. This followed an upwardly revised 1.4% increase (from 0.8%) in the third quarter. Productivity increasing is one way to lower inflation and a way to increase profitability, and lower unit labor costs. Unit labor costs rose 1.1% (lower than the consensus 1.5%) following a downwardly revised 2.0% (from 2.4%) in the third quarter. The Fed is keeping a sharp eye on … Continue reading “Improved American Productivity Helped Tame Unit Labor Costs”