US Q2 final nonfarm productivity +3.3% vs +2.8% expected

The final reading on US second quarter productivity:

• Prior reading was +1.3%
• Unit labor costs -1.4%
• Prior unit labor costs -1.2%

Yesterday, the Fed's Rosengren lamented slow US productivity growth.

There was a decent pickup in US productivity in Q2 but it was up just 0.7% y/y.

What's damaging to the Fed case is that wages are actually contracting. Real compensation fell at a 1.1% annualized pace in the second consecutive quarter of declines.