Labour productivity increased by 1.0% Q/Q, the highest rate since Q2/20 (COVID-related).

Improvements were broad-based, with growth in 12 of the 16 main sectors - primarily driven by mining, oil & gas, wholesale trade and manufacturing, which more than offset softness in retail trade and utilities.

Solid productivity held wage inflation pressure to 0.6% despite hourly compensation rising 1.6%.

Combined with output unit values growing by 3.2%, this resulted in labour’s share of business output compressing by 2.5% and driving an expansion in corporate margins.

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