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U.S. 4th-Quarter Productivity Revised Up to 0.9%

MarketWatch (03/07/12)

U.S. productivity was a bit higher in the fourth quarter of 2011 than originally stated, but the cost of producing goods and services climbed due to a significant rise in hourly wages, according to revised data from the U.S. Department of Labor. DOL reported that productivity rose 0.9% in the final three months of 2011, up from an earlier prediction of 0.7%. Meanwhile, hours worked rose 2.7%, a bit less than the initial 2.9% prediction. However, inflation-adjusted hourly wages rose 2.8%, sharply higher compared with the initial estimate of 1.9%. As a result, unit-labor costs also rose 2.8% instead of 1.2% as previously estimated.