US productivity up 1.4% in Q2 2026
American data reveals that labor productivity in the non-farm sector during the second quarter of 2026 increased by 1.4% on a quarterly basis. This growth was supported by a 1.7% rise in output and a 0.3% increase in hours worked. Nevertheless, the workers' share of the economic output declined to its lowest level in nearly eight decades, reaching 52.9%. This reflects ongoing pressures on workers' income despite productivity growth, raising concerns about the weakening purchasing power of the workforce. Additionally, the data shows that labor costs rose modestly by 1.3% this quarter, with an annual increase of 1.4%, while real wages fell in comparison to inflation, indicating persistent economic challenges. In the manufacturing sector, productivity grew by 1.9%, driven by increased output and hours worked, while labor costs remained 3.5% higher year over year. Overall, the data suggests continued improvement in production efficiency within the U.S. economy, despite wage pressures and the declining share of workers' output.
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