According to a Department of Labor report released today productivity grew slower than expected last quarter. With a 1.8% growth it is a 1.4% decrease from the first quarter rate of 3.2%. Why does this matter? Because ..
productivity gains effect how companies absorb rising costs like energy, and slowing productivity may mean these could take a bigger bite out of corporate profits. Alternatively, if firms succeed in passing on higher costs to customers, it could have implications for inflation that the U.S. central bank will monitor. US Productivity Growth Down - Reuters
Couple that with soaring energy costs and then watch your wallet. See the bills just flying out?
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