–Retransmitting Story Published 08:30 ET; Correcting Lede Paragraph
–Output Growth Revised Up,Hours Worked Both Rise Vs Q1, Real Comp Falls
–Q1 Productivity Revised To -0.6% Vs +1.8% Prev,ULC +4.8% From +0.7%
By Brai Odion-Esene and Ian McKendry
WASHINGTON (MNI) – U.S. nonfarm productivity declined at a rate of
0.3% for the second quarter from the revised 0.6% drop reported in the
first quarter, although output and hours worked both increased, the
Bureau of Labor Statistics reported Tuesday.
Based on the decline in productivity, but an increase in hourly
compensation by 1.9%, unit labor costs rose by 2.2% according to the BLS
preliminary estimate.
In addition, unit labor costs were revised sharply higher in the
first quarter to a 4.8% decline from the previously reported +0.7%. A
similarly sharp upward adjustment to compensation (+4.2% from +2.5%
previous) that quarter was the reason, as productivity growth was
revised down to a 0.6% decline from the +1.8% increase initially
reported.
Output was reported up 1.8% in the second quarter, an improvement
on the 0.9% reported for the previous quarter. The preliminary estimate
for Hours worked in Q2 was +2.0%, vs. a 1.5% rise in Q1.
Real hourly compensation was reported down 2.1% for the second
quarter, a faster rate of decline compared to the 1.0% drop in the first
quarter. The implicit price deflator was up 2.2% for the quarter, the
same growth rate reported in Q1.
Year-over-year growth in productivity now stands at a 0.8% rate for
the second quarter, down from the 1.2% first quarter pace.
Second quarter unit labor costs were up 1.3% from year ago, higher
than the 1.1% increase reported in the first quarter.
** Market News International Washington Bureau: 202-371-2121 **
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