Productivity in U.S. Probably Decreased, Labor Costs Climbed
By Shobhana Chandra - Aug 9, 2011
The productivity of U.S. workers probably fell in the second quarter for the first time in a year, pushing up labor costs, economists said before a report today.
Comment: With demand expanding, it is mainly by higher productivity that price inflation is being kept in check. If productivity continues to decline and when later-on demand will pick up, price inflation will be the consequence.