The U.S. Labor Department today reported that second-quarter nonfarm business productivity rose at a 2.6% annualized rate in revised data. It was previously estimated at 1.8%.

Last quarter’s productivity gain was above Wall Street expectations of a 2.4% increase.

Unit labor costs — a gauge of inflationary pressures — rose 1.4% last quarter, down from a previous estimate of 2.1% and slightly below expectations.

Separately, the Labor Department also said jobless claims slid 19,000 to 318,000 on a seasonally adjusted basis in the week ended Sept. 1. Wall Street forecasts had called for only a 4,000 decline last week.

Meanwhile, U.S. retailers are seeing generally strong back-to-school results, led by Wal-Mart, whose August sales smashed expectations.

The giant retailer posted a 3.1% increase in U.S. same-store sales, excluding fuel sales, much stronger than the 1% to 2% growth projected last month.

Target, which forecasted gains of 4% to 6%, reported a 6.1% increase. The firm repeated the same outlook for September.

J. Crew reported below-forecast profit and sales in the most recent quarter. Limited Brands posted 1% growth in same-store sales for August, and J.C. Penney announced a 4% same-store sales decline.

Overseas, both the Bank of England and the European Central Bank left their key policy rates on hold today, as expected amid persistent market turmoil.

The ECB also injected another US$57.7 billion into the banking system, and the Reserve Bank of Australia said it will significantly widen the range of securities it accepts under repurchase agreements.

But the People’s Bank of China took the opposite tack, ordering banks to set aside further reserves to slow its rapidly growing economy.