American productivity remains strong first quarter, the darkness breathe.

<P> Benefited from the sharp jump in manufacturing productivity, the U.S. non-farm productivity in the first quarter of solid performance accidents, which indicates that the economic situation for the downturn, U.S. companies cut through layoffs and labor time to adjust quickly. .At the same time, labor cost increases over the same period the lowest level in four years, showed no foundation for economic growth, inflationary pressures are still intact. .</ P> <P> (http://finance.) 7, the Labor Department reported first-quarter nonfarm productivity rose 2.2% annual rate. .Dow Jones Newswires survey of Wall Street economists expected a rise of 1.7%. .Labor productivity is the unit of output. .</ P> <P> and measure key indicators of inflationary pressures in the first quarter unit labor costs increased by 2.2%, lower than the 2.8% rise economists expected. .In the first quarter a year earlier, labor costs rose by only 0.2%, the lowest since 2004 earlier. .This suggests that the economic slowdown makes workers demand higher wages more difficult. .</ P> <P> labor costs is the cost of production of the most important one, if productivity can not keep up the speed of rising labor costs, labor costs are higher or in the form of price increases passed on to consumers, or will .leading companies profit margins. .Productivity can offset the cost of materials and energy growth. .</ P> <P> taking into account the extent of the recent economic slowdown, despite the recent productivity growth slightly below the average level in recent years, but still noticeable. .Fourth quarter of 2007 and first quarter of 2008 gross domestic product (GDP) grew at an annual rate of 0.6%. .Early in the economic slowdown, as companies are unwilling to layoffs, productivity growth is usually fall. .</ P> <P> recent months, Fed policy orientation is mainly affected by issues affecting the housing and credit markets, by contrast, productivity has been in a long-term problems such as a secondary position. .However, productivity appears to be the cause Fed officials and consultants last year, the differences between a source; Fed officials, productivity and economic growth potential for long-term trend is more optimistic. .Productivity is a key economic variable growth potential. .</ P> <P> May 2007, according to the Fed meeting showed that many participants said they expected growth of potential output to some extent than the consultant's expectations optimistic. .Productivity, flexibility shown by the recent support of the Fed policy makers are more optimistic expectations. .</ P> <P> Fed last week cut the federal funds rate by 0.25 PCT, to 2 PCT, but hinted in a public notice within a period of time may keep interest rates unchanged. .If productivity continues to rise, Fed officials may not rush to raise interest rates. .</ P> <P> labor than American companies to adjust quickly, the weak dollar prompted more resources to flow to the export sector, may also contribute to labor rates. .Studies have shown that productivity in the export-intensive industries are usually higher than the average level of the overall economy, partially offset by the impact of declining productivity in personal services. .Leisure and health care and other personal services sector was the main source of new jobs. .</ P> <P style=MARGIN: 0px> report released Wednesday, the first quarter, manufacturing productivity increased by 4.1%, higher than the average level of the overall economy by nearly double. .Non-farm output growth in the first quarter, 0.4%; quarter hours by 1.8%, the largest decline in five years; hour pay increase of 4.4%. .Adjusted for inflation, the actual rise of only 0.1%. .</ P> <P style=MARGIN: 0px> </ P> <P style=MARGIN: 0px> addition, Fed report showed that consumer credit in March increased 15.29 to 2558 billion U.S. dollars, far higher than expected .and is the largest increase since last November, in which credit card loans and installment loans increased rapidly, suggesting that consumer credit market crunch may be starting to ease the situation. .</ P>.