Nonfarm productivity growth during Q2'15 was revised higher to 3.3% from 1.3% reported initially (SAAR). Revision to 2.3% growth was expected in the Action Economics Forecast Survey. Last quarter's gain followed two of quarters of decline, which were little-revised. Strengthened productivity growth prompted a 1.4% decline (+1.7% y/y) in unit labor costs, initially reported as a 0.5% rise. A 0.4% decline had been expected. Growth in compensation per hour was unchanged at 1.8% (2.5% y/y) after a 1.5% Q1 rise.

Revisions to the factory sector figures were small. Manufacturing sector worker productivity increased at a 2.3% rate (1.0% y/y), revised from 2.5%. The gain also followed two quarters of modest decline. Unit labor costs fell 2.2% (+1.0% y/y), the fourth decline in the last five quarters. Compensation edged 0.1% higher after a 2.1% decline in Q1.

The productivity & cost figures are available in Haver's USECON database. The expectations figures are from the Action Economics Forecast Survey and are found in the AS1REPNA database.