US Productivity Grew 2.3% in Q-2, Healthy Pace

US Productivity Grew 2.3% in Q-2, Healthy Pace

US productivity increased at a healthy pace in Q-2, a trend that could lead to higher wages if it continues.

The Labor Department said Thursday that productivity — or output per hour worked rose 2.3% in the April-June Quarter, down from 3.5% in Q-1 of the year. The Q-1 gainer was the best in 4 years.

Greater productivity is a Key ingredient in raising living standards. It enables companies to lift worker pay without raising prices on costumers.

The recovery, now in its 11th year, has been for 8 yrs held back by historically weak productivity growth. It has grown at roughly 65% of its historical average since the recession began.

Yet productivity has picked up in recent Quarters and expanded 1.8% in the past year. That’s below the 2.1% long-term annual average, but better than the 1.3% average increase since the great recession began in 2007.

Labor costs also rose at a healthy pace too, which could push up inflation in the coming months. Labor costs grew 2.4%, following a large 5.5% increase in Q-1 that was revised higher.

Last month the Commerce Department revised its figures on GDP the broadest measure of the economy’s growth, and found that incomes rose strongly in Q-1.

Making and Keeping America Great!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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