American workers got more done with less effort last quarter, and the numbers weren’t even close to what economists predicted.
Nonfarm business sector productivity rose 1.4% on an annualized basis in the second quarter of 2026, according to Bureau of Labor Statistics data published on August 6. Wall Street had penciled in a 0.6% gain.
The numbers tell a clear story
Output climbed 1.7% while hours worked inched up just 0.3%. Manufacturing productivity was even stronger, gaining 1.9% in the quarter.
Year-over-year, productivity advanced 2.2%. The Q2 number marks a sharp acceleration from the prior quarter’s revised gain of just 0.3%.
