US worker productivity increased at stronger 2.3 percent rate in spring with labor costs flat

WASHINGTON – U.S. workers were more productive from April through June than previously estimated while labor costs were unchanged.

The Labor Department says productivity grew at an annual rate of 2.3 percent in the April-June quarter, up from an initial estimate of 0.9 percent growth. Unit labor costs were flat in the second quarter, less than the 1.4 percent rise the government had initially estimated.

The combination of stronger productivity and less of an increase in wages should provide assurances to the Federal Reserve that inflation is not a threat.

The revised productivity number reflected the fact that economic output had been revised higher for the second quarter to a growth rate of 2.5 percent. Productivity is the amount of output per hour work.