MW: Productivity revised up to 2.2% in second quarter
By Greg Robb
WASHINGTON (MarketWatch) - The productivity of U.S. nonfarm was revised higher in the second quarter, the Labor Department reported Wednesday. Productivity - defined as output per hour worked - rose at a 2.2% annual rate in the quarter, revised from 1.6% in the earlier estimate a month ago. This pushed productivity growth in the past four quarters up to 1.2%, compared with the earlier estimate of a 1.1% gain. Unit labor costs rose 1.5%, revised down from a 1.7% increase. The annual rate of growth of unit labor costs was 0.9%, a sign of low inflation. Wall Street economists expected productivity to be revised up to 1.9% in the second quarter. The forecast was based on the upward revision to second quarter gross domestic product, which rose 1.7% compared with the initial estimate of a 1.5% gain. Unit labor costs were expected to be revised down to a 1.4% gain.
