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U.S. productivity slows in Q4 as unit labor costs rise

Fourth-quarter productivity decelerated while unit labor costs accelerated, a mix that can keep inflation pressures in focus for rate expectations.

Reported · Written up by our desk · Inflation

MarketWatch Pulse reports that U.S. productivity slowed in the fourth quarter, while unit labor costs accelerated.

The report indicates the divergence between output efficiency and labor cost per unit rose, affecting how economists may read underlying inflation momentum.

With unit labor costs moving higher, the measure adds to scrutiny of inflation pressures that can influence monetary policy expectations.

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