Productivity Surge

Via
NY Times

Productivity Rose at a Pace That Exceeded Expectations

By REUTERS

United States productivity grew at a slightly faster-than-expected rate in the first quarter, which may calm some of the Federal Reserve’s worries over elevated inflation, the government reported Wednesday.

Productivity grew at a 2.6 percent annual rate during the first quarter on stronger output than was initially gauged.

The Labor Department said in a statement that first-quarter output was revised higher to show a 0.7 percent gain at an annual rate, from the 0.4 percent previously reported. Worker hours shrank 1.8 percent as businesses cut back on labor inputs to shield profits amid a cooling United States economy. It was the third straight quarterly decline in hours.

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