WASHINGTON — Productivity in the U.S. unexpectedly fell in the second quarter after employers expanded the workweek by the most in four years even as the world’s largest economy cooled.
The measure of employee output per hour fell at a 0.9 percent annual rate, the first drop since late 2008, the Labor Department said Tuesday. Hours worked climbed at a 3.6 percent rate, leading to a 2.6 percent increase in the amount of goods and services produced.
A lengthening workweek signals employers have reached efficiency limits after productivity climbed by the most in five decades in the 12 months to March.
Another report showed inventories at wholesalers rose 0.1 percent in June, less than forecast, as companies kept stockpiles in line with slowing demand. Sales at distributors dropped 0.7 percent, the most since March 2009, the Commerce Department said.
The median forecast of 64 economists surveyed called for a 0.1 percent gain in productivity. Estimates ranged from a drop of 1.2 percent to a 1.9 percent rise. The Labor Department revised the first-quarter gain in efficiency to a 3.9 percent pace from 2.8 percent. The data updates went back to 2007, reflecting the annual revisions to gross domestic product.
