US non‑farm productivity up 1.4pc in Q2

(Sharecast News) - US labour productivity picked up in the second quarter, according to preliminary figures from the Bureau of Labor Statistics on Thursday, with non‑farm business sector productivity rising 1.4% on an annualised basis as output increased 1.7%, hours worked edged 0.3% higher and productivity was up 2.2%. Unit labour costs rose 1.3% in the quarter, reflecting a 2.7% increase in hourly compensation and the productivity gain. Over the past four quarters, unit labour costs were up 1.4%. Real hourly compensation fell 3.1%, while the labour share of income dropped to 52.9% - the lowest level since the series began in 1947.

The BLS said productivity has grown at an annualised 2.1% pace over the current business cycle, starting in late 2019 - stronger than the 1.5% rate seen in the previous cycle and in line with the long‑term trend.

Manufacturing productivity increased 1.9% in Q2, driven by a 4.6% rise in output and a 2.6% increase in hours worked. Durable goods productivity rose 2.7%, while non-durable productivity increased 2.0%. Manufacturing unit labour costs were unchanged in the quarter.

The BLS also issued revisions to prior data, with non‑farm productivity for Q1 revised up to 0.8%, while manufacturing productivity for the same period was revised down to 1.9%. Unit labour costs in manufacturing were revised higher to 3.5%.







Reporting by Iain Gilbert at Sharecast.com