News Summary: Spring productivity revised higher
PRODUCTIVITY HIGHER: U.S. productivity, the amount of output per hour of work, rose at an annual rate of 2.2 percent in the April-June quarter, higher than the 1.5 percent first estimated, but still below the gains seen right after the recession.
LABOR COSTS: Unit labor costs rose at an annual rate 1.5 percent in the second quarter, slightly lower than previously estimated, indicating that wage pressures remain well contained.
OUTLOOK: Economists look for productivity growth to remain modest in coming months. They believe companies have reached the limit on the amount of work they can squeeze out of their workforces and will have to hire.