2Q Productivity Revised Up to 2.3%

U.S. workers’ productivity rose at a 2.3% annual rate in the second quarter, higher than initially reported, the Labor Department reported.

The measure of employee output per hour, which had initially been reported as a 0.9% gain, followed a 1.7% decline in the first quarter.

The level was higher than economists’ median estimate, Bloomberg News reported.

Labor costs were unchanged, compared with a previously reported 1.4% gain, Labor said.

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.