US Q2 productivity data

  • Prior was 0.0% (revised to +0.1%)
  • Unit labor costs 0.6% vs +1.1% expected
  • Prior unit labor costs +2.2% (revised to +5.4%)

That's a big revision in unit labor costs. That big upward revision was in large part because of higher hourly compensation in Q1, which is something the Fed will be pleased to see and it's dollar bullish at the margin.

The productivity numbers are soft, but I'm not at all convinced that productivity is being measured correctly.

Compensation:

  • Q1 wages +2.3% annualized
  • Q2 wages +1.9% annualized
  • Hours worked Q1 +1.6% annualized
  • Hourse worked Q2 +2.5% annualized (fasted in a year)