Business Productivity Increases

Second-quarter business productivity rose at an annual rate of 0.5%, a turnaround from a decline in the first three months of the year, the Labor Department reported today.

The second-quarter gain in non-farm business productivity stemmed from an increase in output of 1.9%, while hours worked rose just 1.4%. Meanwhile, unit labor costs, which reflect changes in productivity and hourly compensation, moderated in the second quarter, rising 2.9% after soaring at an 8.4% annual rate in the first three months of the year.