The preliminary data from the U.S. Labour Department showed on Thursday that nonfarm business sector labor productivity in the United States increased 1.4 percent q-o-q in the fourth quarter of 2019, as output advanced 2.5 percent q-o-q and hours worked climbed 1.1 percent q-o-q (seasonally adjusted).

That was below economists' forecast for a 1.6 percent q-o-q gain after an unrevised 0.2 percent q-o-q drop in the third quarter.

In y-o-y terms, the labor productivity rose 1.8 percent in the fourth quarter, reflecting a 2.7-percent jump in output and a 0.9-percent advance in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the fourth quarter rose 1.4 percent q-o-q compared to an unrevised 2.5 percent q-o-q surge in the prior quarter.

Economists had forecast a 1.4 percent gain in fourth-quarter unit labor costs.

Unit labor costs quarterly increase reflected a 2.8-percent surge in hourly compensation and a 1.4-percent advance in labor productivity.

Compared to the corresponding period of 2018, unit labor costs rose 2.4 percent.