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News > Economy
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Productivity cools in 2Q
Measure of worker output per hour revised upward, but still slower than red-hot first-quarter rate.
September 6, 2002: 1:24 PM EDT

NEW YORK (CNN/Money) - The pace of U.S. productivity growth in the second quarter was a little faster than initially thought, the government said Friday, though still much lower than the first quarter's red-hot pace.

The Labor Department said it revised its reading of U.S. productivity -- a key measure of worker output per hour -- in the second quarter to a 1.5 percent annual growth rate, compared with an initial estimate of 1.1-percent growth.

Economists, on average, expected the Labor Department to keep its reading unchanged at 1.1 percent, following the first quarter's 8.6 percent rate, according to Briefing.com.

It was the worst quarter for productivity since a 0.1 percent drop in the second quarter of 2001, but productivity was still 4.8 percent higher than it was a year ago.

Total output dropped to 0.5 percent growth from 6.2 percent growth in the quarter. The number of hours worked fell 0.7 percent after falling 2.2 percent in the first quarter.

Unit labor costs, a measure of wage inflation, rose 2.4 percent after falling 4.6 percent in the first quarter.

The data had little impact on U.S. stock market futures, which traded lower, pointing to a negative opening on Wall Street, following a separate Labor Department report showing weekly jobless claims stayed above a benchmark level for the second straight week. Treasury bond prices were mostly higher.

The jobless claims report helped point out the downside of productivity growth -- it's come at the expense of the labor market, as companies have learned to get more production out of fewer workers.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.