First-quarter productivity revised to 0.9% decline (by Jeffry Bartash)

WASHINGTON (MarketWatch) - The productivity of U.S. workers and businesses fell more sharply in the first quarter than originally estimated, as output was revised lower and hours worked rose slightly faster, the Labor Department said Wednesday. Productivity dropped 0.9% in the first three months of the year, compared to an initial estimate of a 0.5% decline. Economists surveyed by MarketWatch projected a revised 0.8% decrease. Output - the amount of goods and services produced - was revised down to a 2.4% increase from 2.7%. The increase in hours worked was revised up to 3.3% from 3.2%. As a result, unit-labor costs climbed 1.3% in the first quarter instead of 0.9% as originally reported. Adjusted for inflation, hourly wages fell 2.0% in the first quarter, more than double the initial estimate of a 0.9% decline.