U.S. productivity fell 0.5% in the first quarter, but none of the decline occurred in manufacturing, the Labor Department said Thursday. Economists surveyed by MarketWatch expected productivity to fall by 1.0%. The amount of goods and services produced, known as real output, grew at an annual rate of 2.7%. Hours worked rose 3.2%. Hourly compensation, adjusted for inflation fell 0.9%. Unit-labor costs climbed 2.0%. Productivity jumped 5.9% in the manufacturing sector, however. In the fourth quarter, meanwhile, productivity was revised up to a 1.2% increase from a prior reading of 0.9%.

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