Source: The Canadian Press

The labour productivity of Canadian businesses fell 0.8% in the second quarter after gains in the previous two semesters.

Statistics Canada reports the productivity decline reflected a slowdown in business output combined with a rise in hours worked.

The pace of growth in the real gross domestic product of businesses slowed in the second quarter, rising 0.5% compared with 1.7 the previous quarter.

The agency says second-quarter output was moderated primarily by a decline in services industries.

The output in goods-producing industries (up 1.9%) continued to increase in the second quarter, but at a slower pace.

StatsCan says the labour market remained dynamic as employment and hours worked in Canadian businesses both rose 1.3% — the highest quarterly rate of growth in hours worked since the fourth quarter of 2003.

The largest contributor to the overall decline in business productivity was services-producing businesses, whose productivity fell 1% after five straight positive quarters.

The downturn was widespread, with retail trade registering the largest decrease, at 2.3%.

In the United States, the productivity of American businesses declined 0.5% in the second quarter, their first decline since the fourth quarter of 2008.