Second-Quarter Productivity Jumps 6.6%

U.S. workers’ productivity rose in the second at an annual rate of 6.4%, higher than previously reported, the Labor Department said Wednesday.

The rate was the largest in almost six years and followed a 0.3% rate in the first quarter.

Productivity is a measure of how much an employee produces for every hour of work.

The level topped economists’ forecasts of a 6.4% annual rate, which Labor had originally released last month, Bloomberg reported.

Labor costs fell by the most in nine years, down 1.2% year over year.

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.