Yesterday, the U.S. Department of Labour delivered positive news that productivity in Q02 2009 was at its highest level since 2003, as companies cut back on payroll expenses through job layoffs. The non-farming productivity rate of 6.4% was a far cry from the revised 0.3% increase in the first three months of the year, and also exceeded analysts expectations by 1.1%.
Economists anticipate that the improvement in productivity (which measures the hourly output per worker), is likely to help keep inflation low, and give policymakers more time to remove stimulus injections.
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