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Nonfarm productivity growth in the United States slowed markedly in the first quarter of 2026, with the indicator easing to 0.3% quarter‑over‑quarter, down from 1.8% in the previous reading. The data, updated on 4 June 2026, signal a loss of momentum in efficiency gains across the U.S. nonfarm business sector.
Both the current and previous productivity readings refer to the first quarter of 2026, but they describe different comparisons: the latest “actual” figure of 0.3% reflects the change from the current quarter to the immediately preceding one, while the prior 1.8% reading captured the change from that earlier quarter to its own predecessor. This step down suggests that, while productivity was growing more robustly in the earlier comparison period, its pace has moderated noticeably in the most recent quarter‑over‑quarter assessment.
The sharp deceleration in productivity growth may draw attention from investors and policymakers who see productivity as a key driver of long‑term economic expansion and corporate profitability. A slower rate of improvement could weigh on expectations for future output growth and may influence how markets interpret the underlying strength and efficiency of the U.S. economy heading further into 2026.
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