US productivity down

Productivity in U.S. Probably Decreased, Labor Costs Climbed

By Shobhana Chandra - Aug 9, 2011

Productivity in U.S. Probably Decreased, Labor Costs Climbed

Jeff Kowalsky/Bloomberg

Joe Emery installs the main wiring harness on a Ford Motor Co. Transit Connect Electric van at the AM General LLC factory in Livonia, Michigan, U.S.

Joe Emery installs the main wiring harness on a Ford Motor Co. Transit Connect Electric van at the AM General LLC factory in Livonia, Michigan, U.S. Photographer: Jeff Kowalsky/Bloomberg

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.
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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.