September 4, 2014 10:05 AM, EDT
Second Quarter Productivity Rises at Slower Pace Than Estimated
Meg Roussos/Bloomberg News

U.S. workers’ productivity rose in the second quarter at a slower rate than previously estimated, the Labor Department reported.

Productivity increased at a 2.3% annual rate from April to June, down from a previously estimated 2.5%, according to the Labor Department.

The increase in productivity reflects gains of 5% in output and 2.6% in hours worked.

Productivity rose 1.1% year over year in the second quarter, higher than preliminary estimates of a 1.2% increase.

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.