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Cold Weather Sinks US Productivity but Trend Steady

U.S. non-farm productivity fell at its fastest pace in a year in the first quarter as harsh winter weather restrained output, leading to a jump in labor-related production costs. The drop in productivity, which mirrored a sharp decline in economic growth, is temporary and Federal Reserve officials are likely to shrug off the spike in labor costs, analysts said. "Weather impacts are temporary, and as such, we should see productivity growth rebound substantially in the second...

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