Labor Productivity and Costs
Nonfarm business sector labor productivity saw a modest increase of 0.3% in Q1 2024, with a notable year-over-year gain of 2.9%. This was accompanied by a significant 4.7% rise in unit labor costs during the same quarter, driven by a 5.0% increase in hourly compensation. These trends indicate both growing efficiency and rising labor costs, which could influence inflationary pressures and monetary policy decisions.
International Trade
The U.S. trade deficit slightly improved in March 2024, narrowing to $69.4 billion from $69.5 billion in February. The minor decrease was attributed to a reduction in imports, which outpaced the drop in exports. This month’s figures saw the goods deficit expanding slightly, while the services surplus improved, reflecting ongoing adjustments in trade dynamics.
Outlook
Considering these economic indicators, the…
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