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Politics : Formerly About Advanced Micro Devices

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From: Road Walker8/11/2009 8:43:25 AM
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Productivity rises more than expected in 2Q
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer
5 mins ago

WASHINGTON – Productivity surged in the spring by the largest amount in almost six years while labor costs plunged at the fastest pace in nine years.

The Labor Department says productivity, the amount of output per hour of work, rose at an annual rate of 6.4 percent in the April-June quarter, while unit labor costs dropped 5.8 percent. Both results were greater than economists expected.

The aggressive cost-cutting helps explain how many companies exceeded earnings expectations last quarter amid a severe recession and falling sales.
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