Nonfarm productivity, which measures hourly output per worker, increased at a 2.5% annualized rate last quarter, the Labor Department’s Bureau of Labor Statistics said on Thursday.
That was an upward revision from the 2.3% pace estimated last month. The upward revision was in line with economists’ expectations. Productivity increased at a 0.4% rate in the first quarter. It advanced at an unrevised 2.7% pace from a year ago.
Unit labor costs – the price of labor per single unit of output – rose at a 0.4% rate in the April-June quarter. That was revised down from the previously reported 0.9% pace.
Labor costs increased at a 3.8% the January-March quarter and at a 0.3 % rate from a year ago.
The Federal Reserve is expected to start cutting interest rates this month against the backdrop of cooling inflation and labor market conditions. Compensation rose at a 3.0% rate last quarter, revised down from the previously estimated 3.3% pace. It advanced at a 3.1% rate from a year ago.
