The final reading on US second quarter productivity:
- Prior reading was +1.3%
- Unit labor costs -1.4%
- Prior unit labor costs -1.2%
Yesterday, the Fed's Rosengren lamented slow US productivity growth.
There was a decent pickup in US productivity in Q2 but it was up just 0.7% y/y.
What's damaging to the Fed case is that wages are actually contracting. Real compensation fell at a 1.1% annualized pace in the second consecutive quarter of declines.
