US nonfarm business labor productivity grew 1.8% in Q4 2025, down from the preliminary estimate of 2.8% and sharply lower than the 5.2% surge in Q3. Output rose just 1.5% (revised from 2.6%), while hours worked dipped 0.2% after a slight increase in the prior quarter. In the manufacturing sector, productivity fell 2.5%, with output dropping 2.8% and hours worked declining 0.3%. Durable goods manufacturing saw a 3.3% productivity decline due to lower output and increased hours, while nondurable manufacturing productivity slipped 1.2% as both output and hours decreased. Annually, nonfarm productivity grew 2.5% in Q4, but full-year 2025 growth slowed to 2.1%, down from 3.0% in 2024, signaling a notable deceleration in efficiency gains.