"The outlook for the U.S. manufacturing sector is still bright, in part because rising oil prices will lead to more U.S. production."
The Q4 decline follows a 2.7% gain in Q3 but economists believe higher capital spending could lift productivity this year.
Despite the revision, productivity in the first quarter still showed the worst performance since the second quarter of last year.
Output rose at a 3.1% annual rate in the third quarter, ending three straight quarters of decline, but the overall trend remains weak.
A slight rise in output and a fall in hours worked lead to productivity gains in the third quarter.
