Productivity Up 2.6% in 2Q

Washington, DC, September 6, 2007--Productivity in the second quarter expanded at an annual rate of 2.6%, from the previous estimate of 1.8% as labor costs cooled, according to a Labor Department report.

The expansion was than more than had been forecast by analysts, who were looking for growth of a 2.4% in the quarter.

Unit labor costs were revised lower to a 1.4% annualized gain from 2.1% reported earlier.

On a year-over-year basis, productivity was revised up to 0.9%, from the earlier estimated 0.6%.

Real hourly compensation fell 1.8% in the second quarter. Real hourly compensation is up 3% in the past year.

Productivity in the nonfinancial corporate sector increased at a 3.5% annual pace in the second quarter, while unit labor costs increased 1.1% annualized. Real hourly compensation in the nonfinancial corporate sector fell 1.2%.

In manufacturing, productivity was revised up to 1.8% in the quarter from an earlier estimated increase of 1.6% earlier. Unit labor costs were revised to a 1.6% increase from a 1.2% gain.