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.
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