Q1 Productivity Revised Up Since Labor Costs Were Revised Down
Productivity didn't increase in the first quarter, but it was good news that it no longer registers as falling, after the latest government revision released Monday morning. It was originally reported to be falling at a 0.6% annual rate.
The change is that labor costs didn't rise as quickly as originally calculated, growing at a 2.2% rate rather than 3%.
Interest rates were little changed following the release. The yield on the benchmark 10-year note was 2.18% at 8:45 a.m. ET. That's two basis points higher than Friday.
Interest rates fell to the lowest point of the year Friday after a disappointing May jobs report was released.