Business productivity fell 0.3% (SAAR) in the second quarter according to the Bureau of Labor Statistics’ report released this morning. This fall of 0.3% compares to a downwardly adjusted fall of 0.6% (from a rise of 1.8%) in the first quarter. This represents two quarters of falling productivity. Over the year nonfarm business productivity has increased by 0.8%.
The report indicated that hours increased more than output. Unit labor costs rose 2.2% SAAR and compensation per hour rose at 1.9% SAAR.
Read the report.