US productivity stuck in slow-growth mode

Rising productivity enables businesses to pay employees higher wages without having to boost the cost of the products and services they sell.

[...] weaker economic data and turbulent financial markets are likely to reduce the number of rate hikes this year from what had been an expected four down to perhaps just two.

Some economists believe the recent slowdown in productivity is partly the result of a drop in business investment in new equipment, and they are forecasting an acceleration once business investment picks up.