U.S. preliminary Q2 productivity grew at a 0.9% pace, better than forecast, versus a revised 0.1% clip in Q1 (was unchanged) and 1.3% in Q4 (revised from 1.8%). Unit labor costs rose at a 0.6% clip last quarter from 5.4% in Q1 (revised from 2.2%) and -6.3% in Q4 (revised from -4.6%). Q2 output came in at 3.4% versus Q1’s 1.8% (revised from 1.7%).
Compensation per hour grew at a 1.6% from 5.5% previously (revised from 2.2%), with real compensation growth at 1.9% from 2.3% (revised from -0.9%). The prices deflator was 0.6% from 0.9% in Q1 (revised from 1.4%). On an annual basis, productivity growth was steady at 1.2% y/y, the same as in Q1, and up from 0.8% y/y from Q4 (revised from 1.1% y/y).
The H1 chart now has 1.2700 as a key pivot today with the Oil inventories to come and heightened uncertainty swirling around following the ratcheting up of rhetoric between Washington and Pyongyang.