MW: U.S. productivity rebounds modestly in second quarter
By Greg Robb
WASHINGTON (MarketWatch) - U.S. productivity rebounded modestly in the second quarter after it fell sharply in the prior three months, the Labor Department said Friday. Productivity in the April-June quarter increased 2.5%, compared with a revised 4.5% drop in the prior quarter, according to a preliminary reading by the Labor Department. The first quarter reading was the lowest since the fourth quarter of 1981. Economists polled by MarketWatch had expected a 1.7% gain in productivity in the second quarter. Output of goods and services increased 5.2% during the April-June period after a 2.4% drop in the prior three months. Hours worked rose 2.7% after a 2.1% rise in the prior three months. Unit-labor costs increased 0.6% after an 11.8% jump in the first quarter. Hourly wages of American workers rose 3.1% but only a slim 0.1% adjusted for inflation. On a year-over-year basis, business productivity increased 1.2%, up from a 0.7% gain in the first quarter.
