US manufacturing sector labour productivity increased 1.9 per cent in the second quarter (Q2) of 2026, as output rose 4.6 per cent and hours worked increased 2.6 per cent, preliminary data from the US Bureau of Labor Statistics (BLS) showed.
US manufacturing labour productivity increased 1.9 per cent in Q2 2026, as output rose 4.6 per cent and hours worked increased 2.6 per cent, according to BLS data.
Durable manufacturing productivity gained 2.7 per cent, while nondurable manufacturing rose 2 per cent.
Manufacturing unit labour costs were unchanged quarter on quarter but increased 3.5 per cent YoY.
In the broader nonfarm business sector, labour productivity increased 1.4 per cent in Q2, with output up 1.7 per cent and hours worked up 0.3 per cent. From the same quarter a year earlier, nonfarm business sector labour productivity increased 2.2 per cent.
Unit labour costs in the nonfarm business sector increased 1.3 per cent in Q2, reflecting a 2.7 per cent rise in hourly compensation and a 1.4 per cent gain in productivity. Over the last four quarters, nonfarm business unit labour costs increased 1.4 per cent, BLS said in a press release.
Real hourly compensation, which accounts for consumer prices, decreased 3.1 per cent in Q2 and fell 0.1 per cent over the last four quarters.
Within manufacturing, durable manufacturing productivity increased 2.7 per cent in Q2, as output grew 7.3 per cent and hours worked rose 4.5 per cent. Nondurable manufacturing productivity increased 2.0 per cent, with output up 1.5 per cent and hours worked down 0.5 per cent.
Total manufacturing productivity increased 0.9 per cent from the same quarter a year earlier. Durable goods manufacturing productivity rose 2.2 per cent over the last four quarters, while productivity in nondurable goods industries declined 0.3 per cent.
Unit labour costs in total manufacturing were unchanged in Q2, as a 1.9 per cent increase in hourly compensation was offset by a 1.9 per cent increase in productivity. Manufacturing unit labour costs increased 3.5 per cent from the same quarter a year earlier.
Manufacturing sector labour productivity has grown at an annualised rate of 0.5 per cent during the current business cycle, from Q4 2019 through Q2 2026. This was above the 0.1 per cent rate recorded in the previous business cycle but below the long-term rate of 2.1 per cent since Q1 1987.
Meanwhile, nonfarm business labour productivity has grown at an annualised rate of 2.1 per cent during the current business cycle, matching its long-term rate since Q1 1947.
Fibre2Fashion News Desk
