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US productivity revised downwards
US productivity revised downwards
US workers were not as productive as first estimated
The productivity of US workers in the first three months of 2007 rose by less than first estimated, revised figures from the Labor Department have shown.
Average output per employee grew just 1% on an annual basis in the period, down from the initial 1.7% finding.
Official data has already shown that US economic growth from January to March was the weakest in four years.
Labour costs also rose more than expected, increasing expectations US interest rates will remain on hold.
Revised figures showed that unit labour costs rose by 1.8% in the first quarter, up from the initial estimate of 0.6%.
However, this was still well below the 8.9% surge reported in the last three months of 2006.
The US Federal Reserve next meets to consider interest rates on 27-28 June, and most analysts expect rates to remain at 5.25%, where they have been for the past year.
Fed chairman Ben Bernanke did nothing to change this opinion when he said earlier this week that while the US would continue to enjoy moderate economic growth this year, inflation remained "somewhat elevated".
US productivity rose by 2.1% in the last quarter of 2006.
Just typical of the U.S. right now.
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