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Productivity rebounded in the second quarter.

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The Labor Department said second-quarter business productivity rose at an annual rate of 0.5%, a turnaround from a decline of 3.1% in the first three months of the year. Meanwhile, unit labor costs, which reflect changes in productivity and hourly compensation, moderated in the second quarter. A big boost in unit labor costs in the first three months of 1985 had stirred concern among some economists over renewed inflation. 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%.

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