A release of economic data detailing how much output each unit of labor is producing in the economy as a whole. The productivity report is released at 8:30 am EST around the 7th of the second month of each quarter, and the data reflects the activity during the previous quarter. Many economists believe that productivity growth allows the economy to grow at unusually high rates without causing inflation. If productivity is growing, they believe, employment costs can increase without leading to increased inflation.

Copyright©2009 by InvestorWords.com. ALL RIGHTS RESERVED.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com