EmailNonfarm business productivity in the second quarter was revised down from -0.3% to -0.7%. The Briefing.com consensus expected productivity to be revised to -0.5%.
That is the largest drop in productivity since Q4 2008 when productivity fell 3.4%.
The decline in productivity came from a negative revision in output growth. New data showed output increased only 1.3% in the second quarter, not the 1.8% previously reported. The number of hours worked was unrevised and increased 2.0% in the second quarter.
Unit labor costs was revised up from 2.2% to 3.3%. The consensus expected unit labor costs to be revised to 2.4%.
The increase in costs was due to a combination of increased hourly compensation -- up 2.7% from 1.9% -- and the previously mentioned drop in output.
