U.S. productivity rises in fourth quarter
The numbers: The productivity of American workers increased in 2019 at the fastest annual pace in nine years — but slower U.S. economic growth and weak business investment suggest the gains might not last.
Productivity measures the number of goods or services that workers supply each hour. When workers are more productive, they are likely to earn more money. Higher productivity also boosts profits and helps to keep inflation from getting out of hand. Big picture: The U.S. economy has suffered from slower gains in productivity since 2007, and even though it’s picked up in recent years, it’s still on the weak side.
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