WASHINGTON (MNI) - Nonfarm productivity was revised higher in the second quarter, rising 2.3% in its biggest increase since the third quarter of last year, as output outpaced hours worked, final data released by the Bureau of Labor Statistics Thursday showed.
The jump in output was revised to 3.5% from +2.6% in the preliminary report, while the rise in hours worked was revised to +1.4% from +1.7%, at a seasonally-adjusted annual rate, the report showed.
After initially reported as rising by 1.4% in Q2, unit labor costs were revised to unchanged in the final report - after a revised 3.5% drop in the first quarter (previous -4.2%) - as hourly compensation and real compensation each rose an unrevised 2.3% from the prior quarter. Both are the best since Q4 2012.
Productivity rose by a bit more than expected in the quarter, as the MNI survey showed a 2.0% median gain expected, while unit labor costs missed expectations for a 0.8% increase.
On a year-over-year basis, productivity is less encouraging, although it was revised to a 0.3% increase after no change was reported preliminary report. Unit labor costs increased 1.5%, and a revised 1.6% in the first three months.