–Year/Year Productivity +3.7%, Unit Labor Costs -2.8%
–1Q Productivity Unrevised At +3.9%, ULC Revised To -4.6% (Prev -3.7%)
By Kevin Kastner
WASHINGTON (MNI) – U.S. nonfarm unit productivity was revised down
to a 1.8% decline at an annual rate in the second quarter, while unit
labor costs were revised up to a 1.1% rise, the Bureau of Labor
Statistics reported Thursday.
The median forecast in a Market News International survey of
analysts had expected a slightly larger downward revision to a 1.9% drop
for productivity, but accurately predicted the revision to unit labor
costs. Productivity was originally reported down 0.9% in the second
quarter, while unit labor costs rose 0.2% in the preliminary estimate.
In the first quarter, productivity rose an unrevised 3.9%, but unit
labor costs were revised down to a 4.6% decline from the previously
reported 3.7% decline for that quarter due to a sharp downward
adjustment to compensation.
The revision to productivity in the second quarter was due to a
sharp downward adjustment to output, offset by a smaller downward
revision to hours worked.
The downward revision to productivity drove much of the upward
adjustment to unit labor costs in the second quarter, as compensation
growth was unrevised, both before and after inflation adjustment. The
implicit price deflator was revised up slightly to a 2.6% gain from the
previously reported 2.4% rise.
Year-over-year growth in productivity now stands at a 3.7% rate,
down from the 6.3% rate of growth in the previous quarter. Unit labor
cost growth improved only slightly to a 2.8% year/year decline from the
2.9% year/year drop in the previous quarter.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]