Final 4Q nonfarm productivity fell at a 0.4% annual rate in 4Q, revised sharply lower from the preliminary reading of a positive 3.2% rate and the forecast of a 1.0% annual rate. Output was revised sharply lower from the previous report of a 5.5% decline, to a drop of 8.7%. Unit labor costs increased 5.7%, revised solidly higher from the previous report of 1.8% and above the 3.8% estimate.
Factory orders in January fell 1.9%, a smaller decrease than the expected 3.5% drop, while December's decline of 3.9% was revised much lower to a 4.9% drop. Durable goods orders were revised from a drop of 5.2% to a decline of 4.5% as weakness was broad-based. Ex-transportation, factory orders fell 0.9%.
