US nonfarm business sector labor productivity increased 1.4% in the second quarter of 2026, matching the preliminary reading and accelerating from a 0.8% gain in the first quarter. Output rose 1.7% and hours worked increased 0.3%, both in line with earlier estimates. Manufacturing labor productivity climbed 2.4%, above the preliminary 1.9% reading, as manufacturing output growth was revised to 5.4% from 4.6% and hours-worked growth to 2.9% from 2.6%. Nonfarm productivity increased 2.2% from a year earlier. Unit labor costs rose at a revised 1.2% annualized rate, below the earlier estimate of 1.3%, while labor costs increased 1.4% from a year earlier. Economists and policymakers expect wider business adoption of artificial intelligence to support productivity growth and ease inflationary pressure by restraining labor costs.