Productivity rebound buoys profits, blunts inflation, validates streamlining

Productivity rebound buoys profits, blunts inflation, validates streamlining

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U.S. labor productivity rebounded last year from a record downturn in 2022, reinforcing profit margins, slowing inflation and validating CFO efforts to boost efficiency.

Nonfarm employee output per hour increased 3.2% on an annualized basis during the fourth quarter after surging 4.9% during Q3, the Bureau of Labor Statistics said Thursday. Still, the economy-wide efficiency gains may not last, Federal Reserve Chair Jerome Powell said Wednesday during a press conference. “My guess is we may shake out and be back where we were” before the pandemic, Powell said, noting that productivity data […]

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