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- US labour productivity increases more than expected in the second quarter
US labour productivity increases more than expected in the second quarter
The preliminary data from the U.S. Labour Department showed Wednesday that labour productivity in the United States rose 0.9 percent q-o-q in the second quarter, as output boosted 3.4 percent q-o-q and hours worked increased 2.5 percent q-o-q (seasonally adjusted). That exceeded economists' forecast for a 0.7 percent q-o-q gain after initially reported flat performance in the first quarter. The first quarter reading was revised to +0.1 percent. In y-o-y terms, the labor productivity rose 1.2 percent in the second quarter, reflecting a 2.7-percent surge in output and a 1.5-percent increase in hours worked.
Meanwhile, unit labor costs in the nonfarm business sector in the second quarter rose 0.6 percent compared to a 5.4 percent q-o-q growth in the prior quarter (revised from +2.2 percent). Economists had forecast a 1.2 percent gain in second-quarter unit labor costs. Unit labor costs quarterly growth reflected a 1.6-percent q-o-q increase in hourly compensation and a 0.9-percent q-o-q gain in productivity. Compared to the corresponding period of 2016, unit labor costs fell 0.2 percent.
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