Washington, DC, May 5--Productivity in the first quarter grew at a seasonally adjusted annual rate of 2.6%, according to a Labor Department report. The rate of increase was the fastest in the index in nine months.
In the previous quarter productivity had risen at rate of 2.1%. Growth of unit labor costs also accelerated, climbing at a 2.2% rate.
The increase in unit-labor costs, according to the Labor Department, reflected a sharp acceleration in the growth of workers' compensation per hour. Adjusted for inflation, compensation per hour increased 2.4%, up from a 0.2% rate in the fourth quarter.
Output growth slowed to a 3.6% rate from 3.7% in the fourth quarter. Workers' hours rose 1%, down from a 1.6% rate in the fourth quarter.
