U.S. productivity lower in first quarter

WASHINGTON – U.S. productivity fell in the first quarter while labor costs rose, reflecting the economic slowdown caused at the start of the year by harsh winter weather.

The Labor Department said Wednesday that productivity declined at an annual rate of 1.7 percent in the January-March period, after growing at a 2.3 percent rate in last year’s fourth quarter.

The falling productivity coupled with a slight increase in hourly compensation led to labor costs rising 4.2 percent in the first quarter. Labor costs had fallen in the previous two quarters.