WASHINGTON — Nonfarm productivity rebounded in the second quarter, rising 0.9% after a downwardly revised 1.7% drop in the first quarter, as output outpaced hours worked, preliminary data released by the Bureau of Labor Statistics Friday showed.
Output jumped 2.6% with a 1.7% rise in hours worked, at a seasonally adjusted annual rate, the report showed. There were some sharp revisions in the first quarter due to annual GDP revisions, which showed a 0.3% decline in the output (initially 2.1% increase), and a 1.5% increase in hours (previous 1.6%).
Unit labor costs rose 1.4% after a revised 4.2% drop in the first quarter (previously down 4.3%), as hourly compensation and real compensation each rose 2.3% from the prior quarter, both the best since Q4 2012.
Productivity was about as expected in the quarter, as the MNI survey showed a 1.0% median gain expected, while unit labor costs were higher than the 1.0% expected increase.
On a year-over-year basis, productivity is less encouraging, showing no change in the first two quarters of the year, after the first quarter initially showed a 0.9% increase. Unit labor costs increased 1.6%, and a revised 1.4% in the first three months.
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