Manufacturing Sector Productivity
The manufacturing sector also experienced productivity gains in Q2 2024. Labor productivity increased by 1.8%, with output rising 3.4% and hours worked growing by 1.6%. However, unit labor costs in this sector increased by 3.2%, indicating that wage growth outpaced productivity gains. This divergence between the manufacturing and overall nonfarm business sectors highlights the varying economic conditions across different industries.
Revisions and Market Implications
Revisions to previous data add further context to the current economic picture. Nonfarm business productivity for Q1 2024 was revised upward from 0.2% to 0.4%, while manufacturing productivity for the same period was revised down to -1.1% from 0.0%. These revisions, combined with the latest figures, present a mixed economic outlook that could have significant implications for financial…
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