Nonfarm productivity is considered the most important and accurate gauge of overall economic and businesses health. It measures the efficiency of labours output per hour worked. The higher productivity lowers the product prices, hence better the economy.
During the first quarter of 2020, nonfarm productivity decreased by 0.9% compared to a 2.5% fall last month. The labour hour worked fell 5.6%, and output slumped 6.5% due to rule of social distancing in coronavirus pandemic. However, labour productivity edges up to 0.3% in the manufacturing sector, the first increase since 2019.
The data of nonfarm productivity is released by the Bureau of Labor Statistics of the US Department of Labor. Labour productivity is measured, excluding the farming industry. It has a significant impact on gross domestic products, higher productivity, better the economy. A higher reading indicates hopefulness, while lower reading indicates distrust.