US productivity growth continues to be sluggish

In the second estimate of Q4 2015 data the US nonfarm business output per hour was revised to -2/2% q/q saar. This report mainly shows revisions to nonfarm business output that were covered in the recent second estimate of Q4 GDP.

The real output growth for the sector in the report was revised to 1%, an increase from the initial estimate of 0.1%. This, alongside with almost unrevised employee hours of 3.2%, as compared with initial estimate of 3.3%, drove the upward revision to output per hour.

Despite the upward revisions, the four-quarter change in nonfarm business output per hour continues to be weak at 0.5%, consistent with the five-year average. Meanwhile, real compensation growth was revised down to 0.9% q/q saar, as compared with the initial estimate of 1.1%, whereas compensation per hour was revised down to 1.1% from the initial estimate of 1.3%.

Unit labor costs were also revised downward to 3.3% from 4.5%. Overall, the US productivity growth continues to be sluggish in aftermath of the recession.