Amadeusz Juskowiak

Us nonfarm productivity fell 22 pct in qtr

Productivity in the nonfarm business sector fell at a seasonally adjusted revised annual rate of 22 pct in the fourth quarter last year the Labor department said

Previously the department said productivity fell 17 pct in the fourth quarter

The decline followed a 03 pct drop in the third quarter

For all of 1986 productivity increased 07 pct from 1985 reflecting rises of 43 pct in the first quarter and 05 pct in the second quarter

Nonfarm productivity in 1985 increased 05 pct the department said

For the fourth quarter output rose 19 pct while hours of all persons increased 43 pct

Hourly compensation rose 27 pct but effectively was zero when the increase in CPIU is taken into account Unit labor costs rose 51 pct

The implicit price deflator for nonfarm business fell 04 pct following a 36 pct increase in the third quarter

Manufacturng productivity declined 01 pct after a 36 pct increase in the third quarter

Manufacturing output rose 33 pct in the fourth quarter and as hours gained 34 pct and compensation per hour 21 pct the department said

Real compensation per hour in manufacturing fell 06 pct in the fourth quarter when inflation was taken into account

Business productivity including farms fell 28 pct in the fourth quarter after a 04 pct thirdquarter decline but was 07 pct higher overall in 1986 than in 1985

Hourly compensation increased three pct overall in 1986 in the nonfarm business sector the smal0 pcte since 1919

In 1985 hourly compensation rose 40 pct

The implicit price deflator for nonfarm business rose 22 pct in 1986 after a 33 pct rise a year earlier and was the smallest increase since 1965

Unit labor costs were up 23 pct in 1986 after rising 35 pct in 1985

Productivity in manufacturing rose 27 pct last year after a 1985 rise of 44 pct the department said

Reuter