Productivity Growth Down in Second Quarter

Washington, DC, Aug. 8, 2008–The Labor Department reported Friday that productivity grew at an annual rate of 2.2 percent during the second quarter, down from a 2.6 percent growth rate in the first quarter.

Economists were forecasting productivity to pick up slightly to a 2.7 percent pace.

Paycheck growth also slowed as companies were less generous amid troubles in the economy and uncertainty about their own prospects.

Labor costs slipped to a 1.3 percent pace in the second quarter, from a 2.5 percent growth rate in the first quarter.