US Productivity Revised Lower

U.S. employees and businesses weren’t as productive in first quarter as originally estimated and worker pay saw the biggest drop since at least 1947, according to newly revised figures.

Separately, ADP reported that the U.S. created 135,000 private-sector jobs in May, below Wall Street expectations.

In recent action, stocks turned lower after the ADP and productivity reports.

In the first quarter, growth in productivity was taken down two pegs to 0.5% from a first read of 0.7%, the Labor Department said Wednesday. That matched the forecast of economists polled by MarketWatch.

The sharpest revisions revolved around labor costs, though. Hourly compensation sank 3.8% in the first quarter instead of rising 1.2% as initially reported. That’s the biggest drop since the Labor Department began keeping track in 1947, with the largest decline occurring in the manufacturing sector.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza