The productivity of US workers rose at its fastest pace in six years in the second quarter as employers cut staff costs, according to the labour department.
Analysts said the higher-than-expected 6.4 per cent increase in productivity was another signal that the US economy might be emerging from recession – one that helped free the Federal Reserve to pursue aggressive monetary policy.
“The worst is over. Firms should now be able to consider keeping their workforce constant,” said Joseph Brusuelas, director of Moody's Economy.com. “Perhaps more importantly, the efficiency gains bode well for a more stable inflation environment, giving extraordinary comfort to the Fed as they consider monetary policy.”
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