Second-Quarter Non-Farm Productivity Holds Steady

Revisions are minor in the second estimate of second-quarter nonfarm productivity, holding at a 2.9 percent quarterly rise with unit labor costs revised 1 tenth lower to minus 1.0 percent.

Output jumped sharply in the quarter, up 5.0 percent vs 2.6 percent in the first quarter, at the same time that hours worked actually slowed, up 2.0 percent vs the first quarter's 2.3 percent. Compensation also slowed, up 1.9 percent vs 3.9 percent in the prior quarter. And when adjusted for inflation, real compensation managed only a 0.2 percent quarterly rise for a year-on-year rate of only 0.5 percent.

Flat wages aside, rising strength in output together with slowing in hours worked underscore the benefits of rising business investment in new equipment and are strong positives for the economy.