US Non Farm Productivity

The 2nd quarter productivity showed a gain of 2.2% versus 2.5% expectation

The Unit Labor costs were wwell contained at 1.3% for the quarter. 

Although lower, the US does benefit from its ability to increase productivity.  The workers also do not have any wage advantage.  This is in contrast to the Eurozone where unionized workers are demanding and getting wage concessions. This is a problem in the area and should ultimately hurt the economy more.

US Non Farm Productivity rose by 2.2% as companies cut payrolls to decrease costs.  The number of hours worked were also slashed.  Hours worked dropped 1.8%, the most since the 1st quarter of 2003.  Adjusted for inflation, hourly pay decreased by 0.7% in the year.  This is the weakest in 13 years.  Wage inflation is in control given the weakness in the economy.  With inflation going up however, the effects on spending should also slow down the road.