May 3, 2018 / 12:58 PM / 20 days ago

U.S. productivity rises slightly in first-quarter; wage growth accelerates

WASHINGTON (Reuters) - U.S. worker productivity increased modestly in the first quarter, and a jump in compensation supported views that inflation pressures were building up.

FILE PHOTO: Model S side panels await installation at Tesla's factory in Fremont, California, June 22, 2012. REUTERS/Noah Berger/File Photo

The Labor Department said on Thursday nonfarm productivity, which measures hourly output per worker, rose at a 0.7 percent annualized rate in the January-March quarter.

Fourth-quarter productivity was revised to show it increasing at a pace 0.3 percent instead of being unchanged as previously reported. Compared to the first quarter of 2017, productivity increased at a rate of 1.3 percent.

Economists polled by Reuters had forecast productivity rising at a 0.9 percent pace in the first quarter. Hourly compensation accelerated at a 3.4 percent rate in the January-March quarter after rising at 2.4 percent pace in the fourth quarter. It increased at a 2.5 percent rate compared to the first quarter of 2017.

Unit labor costs, the price of labor per single unit of output, rose at a 2.7 percent pace in the first three months of the year after rising at a rate of 2.1 percent in the fourth quarter. Compared to the first quarter of 2017, unit labor costs rose at a 1.1 percent rate.

Reporting By Lucia Mutikani; Editing by Andrea Ricci

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