5 September 2012, 18:02  U.S. labor productivity rises

Labor productivity in the U.S. increased by much more than previously estimated in the second quarter, according to a report released by the Labor Department on Wednesday, with the report also showing a smaller than previously estimated increase in labor costs. The Labor Department said productivity increased by an upwardly revised 2.2 percent in the second quarter compared to the preliminary estimate for 1.6 percent growth. Economists had expected the rate of productivity growth to be revised to 1.9 percent. With the upward revision, the productivity growth in the second quarter reflects an even more substantial turnaround from the 0.5 percent drop seen in the first quarter. The report also showed that unit labor costs rose by a revised 1.5 percent in the second quarter compared to the 1.7 percent growth previously reported. The increase in labor costs had been expected to be revised down to 1.4 percent.

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