USA: Labor Costs Rise Less Than Initially Thought.

Unit labor costs in the US nonfarm business sector rose by 1.8% in Q1 2026, slowing from a downwardly revised 2.1% increase in Q4 2025 and falling short of the preliminary estimate of 2.3%. The deceleration reflected a 2.1% rise in hourly compensation, down from 3.7% in the previous quarter, while productivity grew by just 0.3%, compared to a 1.6% increase in Q4. In the manufacturing sector, unit labor costs increased by 2.2%, driven by a 5.5% surge in hourly compensation and a 3.2% rise in productivity. On an annual basis, labor costs edged up by 0.5%.