FX.co ★ U.S. Nonfarm Productivity Growth Cools Sharply to 1.8% in Q4 2025

U.S. nonfarm productivity growth decelerated markedly in the fourth quarter of 2025, with the indicator easing to 1.8% quarter-over-quarter, down from a robust 4.9% in the previous three-month period. The latest figures, updated on 24 March 2026, indicate a substantial loss of momentum in efficiency gains across the nonfarm business sector.

The comparison is made on a quarter-over-quarter basis: the current 1.8% reading reflects the change in productivity in the fourth quarter of 2025 relative to the third quarter, while the prior 4.9% figure captured the improvement in the third quarter compared with the second quarter. The sharp slowdown suggests that the strong productivity surge seen earlier in 2025 did not carry through to year-end, potentially tempering some of the optimism around sustained efficiency-driven growth in the U.S. economy.