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Second Quarter Productivity Rises at Slower Pace Than Estimated
U.S. workers’ productivity rose in the second quarter at a slower rate than previously estimated, the Labor Department reported.
Productivity increased at a 2.3% annual rate from April to June, down from a previously estimated 2.5%, according to the Labor Department.
The increase in productivity reflects gains of 5% in output and 2.6% in hours worked.
Productivity rose 1.1% year over year in the second quarter, higher than preliminary estimates of a 1.2% increase.
When worker efficiency improves at a slower pace and labor becomes more expensive, companies may raise prices in order to guard their profits, contributing to more rapid inflation.