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US Worker Productivity Surges

The average U.S. worker produced significantly more between April and June of this year, as companies slashed costs and cut the number of employees.

Tuesday's Labor Department report says productivity grew at a 6.4 percent annual rate during the second quarter, as managers squeezed more work out of their remaining employees.

The data also show labor costs dropping during the period.

Rising productivity and falling labor costs reduce the threat of inflation and are one reason analysts say top officials of the U.S. central bank are likely to keep interest rates at their current very low rates.

The Federal Reserve officials are meeting Tuesday and Wednesday to evaluate the economic situation. These experts are scheduled to publish their closely-watched economic assessment Wednesday afternoon, Washington time.

Later this week government experts will publish key economic data, including information on inflation, consumer sentiment, and retail sales.

Some information for this report was provided by AFP, AP and Reuters.