Output per hour in the nonfarm business sector remained stable (revised from -0.1%) during Q4'17 following a 2.6% Q3 rise. A 0.1% slip had been expected in the Action Economics Forecast Survey. Output rose at a 3.2% rate (3.2% y/y) after a 4.0% increase during Q3, while hours-worked strengthened 3.3%% (2.1% y/y). During all of 2017, productivity increased 1.2%, up from the 0.7% average during the last five years. Data were revised back to 2013 with the latest release.

Unit labor costs increased at a 2.5% rate (1.7% y/y), revised from 2.0%, after a 1.0% gain. A 2.1% rise had been expected. Compensation costs increased 2.4% (2.9% y/y), revised from 1.8%, following a 3.6% gain.

In the manufacturing sector, productivity surged at an unrevised 6.0% annual rate last quarter following a 4.7% decline. Output surged 6.6% (1.6% y/y) while hours-worked improved 0.5% (1.0% y/y).

Unit labor costs in the factory sector declined at a 3.3% rate (+1.3% y/y), revised from -3.7%, following a 5.8% increase. Compensation per hour grew 2.5% (2.4% y/y) following a 0.7% rise.

The productivity & cost figures are available in Haver's USECON database. The expectations figures are from the Action Economics Forecast Survey and are found in the AS1REPNA database.