US labour productivity and unit labour costs improve less than expected in Q2

According to the Department of Labor, productivity fell at a quarter-on-quarter annualised rate of 4.6% over the three months to June (consensus: -4.5%).

That was the result of a 2.1% decline in output, even as the number of hours worked increased by 2.6%.

Hourly compensation meanwhile was ahead by 5.7%, such that unit labour cost growth slowed from 12.6% to 10.8%, falling shy of the slowdown to 9.9% anticipated by economists.

In comparison to the year earlier quarter, productivity was off by 2.5% and hourly compensation up by 6.7%, such that unit labour costs were 9.5% higher.