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Saturday, September 21, 2019 10:28:29 PM EDT


Productivity-Prel
Briefing.com Updated 05-Sep-19 09:28AM ET
Q2 Productivity was unchanged at 2.3% (Briefing.com consensus 2.2%) with the revised estimate while unit labor costs were revised up to 2.6% (Briefing.com consensus 2.4%) from 2.4%.

From the second quarter of 2018 to the second quarter of 2019, productivity increased 1.8%.

Unit labor costs increased 2.6% over the last four quarters.

Productivity in the second quarter was driven by a 1.9% increase in output and a 0.4% decrease in hours worked. Over the last four quarters, hours worked increased 0.9%, which is the lowest estimate since the second quarter of 2010.

The key takeaway from the report is the uptick in unit labor costs. That has led to some profit margin pressures, as seen in the second quarter earnings reports.
 
Q2Q1Q4Q3Q2
Nonfarm Business Sector
Productivity Q/Q2.3%3.5%0.1%1.2%1.8%
Unit Labor Costs Q/Q2.6%5.7%0.6%1.6%-1.6%
Productivity Y/Y1.8%1.7%1.0%1.2%1.6%
Unit Labor Costs Y/Y2.6%1.6%1.0%1.9%1.8%