US preliminary nonfarm productivity for 4Q 3.0% versus 2.4% estimate

Preliminary US productivity and unit labor costs for 4Q shows:

• Productivity 3.0% % versus 2.4% expected. Prior quarter 0.8%
• Unit labor costs and .1% % vs 1.5% expected. Prior quarter +2.4%. The gain reflected a 4.1% increase in hourly compensation and a 3.0% increase in productivity
• Output increased by 3.5% and hours were decreased by 0.5%
• From a year ago nonfarm business sector labor productivity fell -1.5%

Productivity increasing is one way to lower inflation and a way to increase profitability, and lower unit labor costs

Below is the chart of unit labor costs. The levels are back down toward normal-ish levels after the spike higher in 2022.