Nonfarm Productivity QoQ

US nonfarm business sector labor productivity rose by 0.3% in Q1 2026, less than 0.8% in the preliminary estimate and compared to a 1.6% increase in the previous quarter. It is the smallest productivity gain in a year as output increased 1% and hours worked rose 0.7%, compared to 1.5% and 0.7% respectively in the first estimate. In the manufacturing sector, productivity surged by 3.2%, less than 3.6% in the previous release as output increased 3.3% and hours worked saw no growth. Durable manufacturing saw a 5.5% rise in productivity, in line with the preliminary estimate, reflecting a 5.8% increase in output and a 0.3% rise in hours worked. Nondurable manufacturing productivity increased by 0.9%, less than 2% initially expected, as output went up 0.5% and hours worked decreased 0.4%. Annually, US productivity rose by 2.8%, also below 2.9% in the first release, but the biggest annual gain since Q3 2024, reflecting an increase in output of 3.2% and a 0.4% rise in hours worked.