WASHINGTON — The latest U.S. productivity data show the effects of the higher real gross domestic product estimate but still suggest subdued overall gains and modest wage pressures.
Second quarter nonfarm productivity was revised to a 3.3% increase, now giving its best showing since Q4:13. It stood at a 1.3% rise in the prior estimate.
Unit labor costs now stand at a 1.4% decline, as opposed to a slight 0.5% gain in the prior estimate.
These were about as expected given the 1.4-point upward revision in real GDP reported last week. That is, more production was spread over slightly fewer hours worked. The 3.3% rise in Q2 labor productivity result reverses the declines posted in the prior two quarters.
The data now show output at a 4.7% rise and hours up 1.4%, with compensation 1.8% higher for Q2.
But over-the-year paces are perhaps more telling and accurate as indications of trend. They put productivity at a slow 0.7% gain and ULC at a modest 1.7% rise. These results are in line with other data suggesting labor costs remain subdued.
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