December 5, 2012 8:45 AM, EST
Productivity Sees Biggest Gain in Two Years

U.S. workers’ third-quarter productivity rose at the fastest pace in two years, the Labor Department said Wednesday.

The 2.9% increase followed a previously reported 1.9% gain, Labor said.

Economists had forecast a 2.8% second-quarter increase, Bloomberg reported.

Productivity is a measure of how much an employee produces for every hour of work.

Expenses per worker fell at a 1.9% rate, more than previously estimated.

When worker efficiency improves at a slower pace and labor becomes more expensive, companies may raise prices in order to guard their profits, contributing to more rapid inflation.