Tuesday, 02 January 2024 12:17 GMT

US productivity drops in Q1 on cold weather


(MENAFN) US nonfarm productivity has sharply dropped at its fastest pace in the first quarter of the current year on bad winter weather, causing higher labor-related production costs, according to Oman Observer. The drop in productivity is temporary and Federal Reserve officials are expected to shrug off the spike in labor costs. Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina, said: "Weather impacts are temporary, and as such, we should see productivity growth rebound substantially in the second quarter as economic growth strengthens." The Labor Department reported that productivity dropped at a 1.7 percent annual rate, the biggest drop since the first quarter of 2013.


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