US Q2 Productivity Growth Above Forecasts

US labor productivity in the nonfarm business sector rose by 2.4% in Q2 2025, following a revised 1.8% drop in the prior period and surpassing expectations of a 2% increase, preliminary estimates showed.

Output increased by 3.7% (vs -0.6% in Q1) and hours worked increased by 1.3% (vs 1.2%).

Manufacturing sector's labor productivity advanced 2.1%, as output rose 2.3% and hours worked increased 0.3%.

From the same quarter a year ago, nonfarm business sector labor productivity went up 1.3% in the second quarter of 2025.