Q2 Productivity Growth Revised Down first appeared on Floating Path.

U.S. labor productivity increased at an annual rate of 2.3% during the second quarter, a downward revision from the previous estimate of a 2.5% increase, but still a sharp shift up from the revised 4.5% rate of decrease in the first quarter. Labor productivity is up 1.1% from the same period last year.

Productivity Growth

Output increased at an annual rate of 5.0% during Q2, a revision down from the prior estimate of 5.2% growth, but well above the 2.4% rate of decrease in Q1. Output is up 3.2% from the same period last year.

output

Labor hours increased at an annual rate of 2.6% during Q2, a revision down from the prior estimate of 2.7% growth, but higher than the 2.1% rate of increase in Q1. Labor hours are up 2.0% from the same period last year.

 labor hours

Hourly compensation increased at an annual rate of 2.3% during Q2, a revision down from the prior estimate of a 3.1% increase, and lower than the 6.6% rate of increase in Q1. Hourly compensation is up 2.1% from the same period last year.

compensation

Real (inflation-adjusted) hourly compensation decreased at an annual rate of 0.7% during Q2, a revision down from the prior estimate of a 0.1% increase, and down from the 4.6% rate of increase in Q1. Real hourly compensation is up 0.8% from the same period last year.

 compensation 2

Unit labor costs decreased at an annual rate of 0.1% during Q2, a revision down from the prior estimate of a 0.6% rate of increase, and well below the 11.6% rate of increase in Q1. Unit labor costs are up 1.7% from the same period last year.

labor cost

The table below shows the breakdown across sectors.

breakdown