US labor productivity growth slows to 2.3% in Q2

Q1 revised downward to 4.3% from 5.4%

By Ovunc Kutlu

ANKARA (AA) - Nonfarm business sector labor productivity in the US rose at an annual rate of 2.3% in the second quarter, down from the first quarter, the Labor Department said in a statement on Tuesday.

Markets had expected an increase of 3.5%, but the figures showed growth slowing even further from earlier in the year.

Labor productivity in the first quarter was also revised down to 4.3%, from the previous rate of 5.4% announced in June by the Labor Department's Bureau of Labor Statistics.

In a bright spot, while manufacturing sector labor productivity climbed 6.9% in the second quarter, its first quarter decline was revised upwards to minus 1.3%, from minus 1.7%.

Nonfarm productivity measures the annualized change in labor efficiency when producing goods and services, which excludes the farming industry.



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