The preliminary data from the U.S. Labour Department showed on Thursday that nonfarm business sector labor productivity in the United States increased 2.3 percent q-o-q in the second quarter of 2019, as output advanced 1.9 percent q-o-q and hours worked fell 0.4 percent q-o-q (seasonally adjusted).

That was above economists’ forecast for a 1.5 percent q-o-q gain after a revised 3.5 percent q-o-q increase in the first quarter (originally a 3.4 percent q-o-q surge).

In y-o-y terms, the labor productivity rose 1.8 percent in the second quarter, reflecting a 2.6-percent jump in output and a 0.8-percent advance in hours worked.

Meanwhile, unit labor costs in the nonfarm business sector in the second quarter rose 2.4 percent q-o-q compared to a revised 5.5 percent q-o-q surge in the prior quarter (originally a 1.6 percent q-o-q drop).

Economists had forecast a 1.7 percent gain in second-quarter unit labor costs.

Unit labor costs quarterly increase reflected primarily a 4.8-percent climb in hourly compensation and a 2.3-percent advance in labor productivity.

Compared to the corresponding period of 2018, unit labor costs rose 2.5 percent.