Productivity in U.S. Climbs 2.9%, Fastest Pace in Three Years

Bloomberg.com — Productivity gains in the U.S. accelerated by more than expected to the fastest pace since 2015 while labor costs fell, amid an economic-growth pickup supported by tax cuts and federal spending, a Labor Department report showed Wednesday.

HIGHLIGHTS OF PRODUCTIVITY (SECOND QUARTER)

• Measure of nonfarm business employee output per hour increased at 2.9% annualized rate (est. 2.4%) after 0.3% pace in previous three months; fastest since 1Q 2015
• Unit labor costs fell at 0.9% rate (est. unchanged) following 3.4% rise; biggest drop since 2014
• Productivity increased 1.3% y/y; unit labor costs rose 1.9% y/y