Spike In U.S. Labor Productivity Upwardly Revised To 10.1% In Q2
Revised data released by the Labor Department on Thursday showed U.S. labor productivity soared by even more than initially estimated in the second quarter.
The report said labor productivity skyrocketed by 10.1 percent in the second quarter compared to the previously reported 7.3 percent spike. Economists had expected the jump in labor productivity to be upwardly revised to 7.5 percent.
The revised surge in productivity reflects the largest quarterly increase since the first quarter of 1971, when productivity jumped by 12.3 percent.
The upward revision to second quarter productivity, a measure of output per hour, came as output plunged by less than initially estimated.
Output plummeted by 37.1 percent compared to the previously reported 38.9 percent collapse. The nosedive in hours worked was nearly unchanged at 42.9 percent.
The revised spike in productivity in the second quarter came following the 0.3 percent dip in productivity seen in the first quarter.
Meanwhile, the Labor Department said the surge in unit labor costs in the second quarter was downwardly revised to 9.0 percent from the previously reported 12.2 percent. The spike in labor costs was expected to be downwardly revised to 12.1 percent.
The bigger than expected downward revision to unit labor costs primarily reflected the upward revision to labor productivity, as the spike in hourly compensation was little changed at 20.0 percent.
As a result of the downward revision, the jump in unit labor costs in the second quarter was smaller than the 9.6 percent spike in the first quarter.
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