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.