U.S. nonfarm productivity increased at a much faster clip than previously thought in the second quarter as businesses squeezed more output from employees, while wage inflation was muted.
Productivity increased at a 2.2 percent annual rate rather than 1.6 percent, the Labor Department said on Wednesday. Productivity, which measures hourly output per worker, fell at a 0.5 percent rate in the first three months of 2012.
Economists had expected second-quarter productivity would be raised to a 1.8 percent rate. The revision reflects an upward adjustment to the country's second-quarter economic growth estimate to a 1.7 percent pace from 1.5 percent.
U.S. financial markets were little moved by the data, with traders keeping an eye on global developments.
Businesses emerged from the 2007-09 recession lean and are showing little urgency to ramp up hiring, relying on their existing workforces to meet production and keeping wage growth under control.
Unit labor costs rose at a 1.5 percent rate in the second quarter rather than 1.7 percent, the report showed. Unit labor costs accelerated at a 6.4 percent rate in the first quarter.
Sluggish wage growth, combined with lackluster domestic demand, point to tame inflation pressures and keep the door open to further monetary easing by the Federal Reserve to stimulate the economy.
Read more: http://www.reuters.com/article/2012/09/05/us-nonfarm-productivity-idUSBRE8840P520120905
No comments:
Post a Comment