Manufacturing labor productivity rose 5.5% at the annual rate in Q2, coming back strongly after three straight months of decline, according to the U.S. Bureau of Labor Statistics.
The data: Sector output increased 4.3%, building on the 3.9% gain in Q1. The number of hours worked declined 1.1%, but hourly compensation increased 4.9%. In durable goods: Labor productivity for durable goods increased 6.1% in Q2, and output rose 6.0%. The number of hours worked declined 0.1%, but hourly compensation rose 5.3%. Meanwhile, unit labor costs decreased 0.7%.
In nondurable goods: Labor productivity for nondurable goods increased 5.4%, and output increased 2.6%.
- The number of hours worked dipped 2.6%, and hourly compensation increased 4.0%.
- Unit labor costs decreased 1.3%.
What it means: This quarter’s data reflect “resilient growth in demand for goods despite ongoing challenges with supply chain, workforce, inflationary and geopolitical issues,” said NAM Chief Economist Chad Moutray.