Source: The Canadian Press

The labour productivity of Canadian businesses rose 0.7% in the first quarter, after increasing 1.2 in the fourth quarter of 2009.

The pace of growth in the GDP of businesses accelerated to 1.8% from 1.4.

Statistics Canada says the acceleration in business output was largely due to spending on consumer goods and services, spending on shelter, and inventory accumulation.

Hours worked in Canadian businesses rose 1.1%, the highest quarterly growth rate since the second quarter of 2004.

Employment was up 0.7%, its biggest increase since the first quarter of 2008, while hours worked per job increased 0.4%.

StatsCan says most of the rise in business productivity was attributable to goods-producing industries, which posted a 1.5% gain, their second straight quarterly increase.

The largest increases were in manufacturing (up 2.3%) and construction (1.0).

Productivity in services-producing businesses advanced 0.2% in the first quarter, while wholesale trade increased 3.3%.

In the United States, productivity gains in the business sector slowed to 0.6% in the first quarter, slightly lower than Canada’s growth rate.