U.S. nonfarm productivity grows 0.8 percent in Q1, Gregory Daco notes

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07.05.2026

U.S. nonfarm productivity grows 0.8 percent in Q1, Gregory Daco notes — U.S. productivity and labor costs up

Gregory Daco, industry influencer, reports that U.S. nonfarm business sector labor productivity increased by 0.8 percent in Q1. Output rose by 1.5 percent, while hours worked gained 0.7 percent. Unit labor costs registered a moderate growth of 2.3 percent, with compensation increasing by 3.1 percent. These figures underscore continued momentum in U.S. business productivity.

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Daco has recently highlighted that moderating labor costs present risks to consumer income, as slower wage growth pressures spending, according to his prior analysis of the labor market. He has also covered the Bank of Canada’s decision to keep its policy rate at 2.25 percent as global conflicts and U.S. trade policy add to inflation uncertainty, detailed in his report on central bank actions. These developments provide additional context to his latest focus on U.S. business productivity trends.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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