News

US productivity slowly creeps up

Yet economic gurus aren't jumping for joy, as a slow rebound may mean higher inflation down the road.

August 11, 2015

Non-farm U.S. productivity didn’t meet economic analysts’ predictions for the second quarter, but they weren’t too far off either.

There is a rebound in productivity, it’s just a bit smaller than most financial experts were hoping for, according to a Reutersreport. Productivity enjoyed a 1.3-percent increase between April and June, accoding to U.S. Department of Labor statistics, yet the figure reflects just a 0.3 percent increase when compared to a year ago.

"What it means is that inflation could be more problematic down the road, but we haven't seen it yet. It's something to think about long term," Gennadiy Goldberg, an economist at TD Securities in New York, told Reuters.