Bad Weather Sinks U.S. First-quarter Productivity

wochit business
May 07, 2014 AT 6:34 AM
U.S. nonfarm productivity fell at its fastest pace in a year in the first quarter as severe weather took its toll, leading to the largest gain in unit labor costs in more than a year. Productivity declined at a 1.7 percent annual rate after advancing at a 2.3 percent pace in the fourth quarter, the Labor Department said on Wednesday. It was the biggest drop since the first quarter of 2013. First-quarter gross domestic product rose at a 0.1 percent annual rate, the government said in its advance estimate last week, abruptly slowing from the fourth quarter's 2.6 percent rate.