Manufacturing economy
US manufacturing productivity rose 2.4% in Q2 2026 as output jumped 5.4%
2.4%. That's how fast US manufacturing labor productivity grew in the second quarter of 2026, at an annual rate, according to the Bureau of Labor Statistics' revised estimate, up from a first reading of 1.9%.
Output did the work. Manufacturing output grew 5.4%, the largest increase since the second quarter of 2021, while hours worked rose 2.9%. Durable goods led, with productivity up 3.6%.
Unit labor costs fell 0.3%, the first decline since the second quarter of 2021. The longer view is still slow: productivity has grown at just 0.5% a year since late 2019.
Data covers US manufacturing sector labor productivity, output, hours and unit labor costs in the second quarter of 2026 (BLS Productivity and Costs, revised, released September 3, 2026). Published 2026-10-16. Last reviewed 2026-10-16. Last updated 2026-10-16. Edited by Mike Ramsey / Reliable Media.
The figures and where they come from
Each figure is rated for how safely you can cite it today. Ratings judge current usability, not whether a number was ever correct.
| Figure | What it is | Source | Citation Confidence | Notes |
|---|---|---|---|---|
| +2.4% (annual rate) | Manufacturing labor productivity, Q2 2026 | [A] | High | Change from the previous quarter, expressed at an annual rate. |
| Annualized | How the quarterly rates are expressed | [A] | High | From the heading of the BLS's summary table. |
| +5.4% | Manufacturing output, Q2 2026 | [A] | High | Largest since Q2 2021, when output grew 6.7%. |
| From 1.9% to 2.4% | Revision from the first estimate | [A] | High | Driven by upward revisions to output and hours. |
| +3.6% | Durable manufacturing productivity, Q2 2026 | [A] | High | Output rose 8.9% and hours 5.1%. |
| +2.1% | Nondurable manufacturing productivity, Q2 2026 | [A] | High | Output rose 1.4% while hours fell 0.6%. |
| +1.1% | Productivity vs. Q2 2025 | [A] | High | A year-over-year change, not annualized. |
| -0.3% | Manufacturing unit labor costs, Q2 2026 | [A] | High | Hourly compensation rose 2.1%, less than productivity. |
| First decline since Q2 2021 | Unit labor costs, in context | [A] | High | Up 3.4% from a year earlier even so. |
| 0.5% a year | Productivity growth, Q4 2019 to Q2 2026 | [A] | High | The BLS's current-cycle measure, from the fourth quarter of 2019. |
Why the numbers disagree
Three rates describe one quarter. The 2.4% is the change from Q1 at an annual rate; the 1.1% compares Q2 2026 with Q2 2025; and the 0.5% is the average since late 2019. Each is correct for its own window.
The number moved. The BLS first put Q2 manufacturing productivity at 1.9% and revised it to 2.4% on September 3, so older articles may quote the lower figure.
A strong quarter doesn't overturn a weak trend. Productivity growth of 0.5% a year since the fourth quarter of 2019 is the BLS's own longer measure, and one quarter's 2.4% sits on top of it.
How to cite these figures
Cite it as BLS Productivity and Costs (revised), Q2 2026: manufacturing labor productivity +2.4% at an annual rate.
Say which comparison you mean each time: quarter-on-quarter annualized, year-over-year, or the current-cycle average.
If you tie the gain to automation, present it as your argument. The release attributes it to output growing faster than hours, not to any technology.
Where people go wrong
Quoting 2.4% as year-over-year growth. Year over year, productivity rose 1.1%.
Citing the preliminary 1.9%. The revised figure is 2.4%.
Reading the 0.3% fall in unit labor costs as lower pay. Hourly compensation rose 2.1%.
How we checked
All figures come from the BLS's revised Productivity and Costs release for the second quarter of 2026, published September 3, 2026. We cite the archived copy.
The BLS notes that its manufacturing output series uses different concepts and sources from its business and nonfarm business output measures, so we don't compare manufacturing figures directly with those.
Full source list
Primary sources, with live links. Every figure above traces to one of these.
- [A]U.S. Bureau of Labor StatisticsSeptember 3, 2026
BLS, "Productivity and Costs, Second Quarter 2026, Revised" (news release)
https://www.bls.gov/news.release/archives/prod2_09032026.htm
Common questions
- How much did US manufacturing productivity grow in Q2 2026?
- 2.4% at an annual rate, according to the BLS's revised estimate published September 3, 2026, up from a preliminary 1.9%.
- Why did manufacturing productivity rise in Q2 2026?
- Output grew 5.4%, the largest increase since the second quarter of 2021, faster than hours worked, which rose 2.9%.
- Did manufacturing labor costs fall?
- Unit labor costs fell 0.3% in Q2 2026, the first decline since the second quarter of 2021, though they were still 3.4% higher than a year earlier.
- Is manufacturing productivity growing quickly over the long term?
- No. The BLS puts manufacturing productivity growth at an annualized 0.5% since the fourth quarter of 2019.
More data, traced to source
- US manufacturing productivity rose in only 39 of 80 industries in 2025
BLS industry data show labor productivity rose in 39 of 80 four-digit US manufacturing industries in 2025 and fell in 14 of 20 broader groups. Unit labor costs rose in all 20 groups, by 4.5% on average.
- Do robots boost productivity? US manufacturing productivity says not lately
Robots are sold on productivity. US manufacturing labor productivity growth went from 3.4% a year to negative over the era automation accelerated. The measured record does not show the promised surge.
- US factory output rose 0.3% in September 2026; utilization hit 75.9%
The Federal Reserve's G.17 release shows industrial production up 0.7% in September 2026 and manufacturing output up 0.3%. Semiconductor output drove a 3.8% annualized third-quarter gain in durables, and factory capacity utilization rose to 75.9%.
- Robots multiplied. US factory output barely moved. What the numbers show
The world's operating robot fleet passed 4.6 million while US industrial production sits barely above its baseline and runs below capacity. Automation is not tracking output the way people assume.