Business briefs

WASHINGTON - Worker productivity dropped this spring for the first time in more than a year, a sign that companies may need to step up hiring if they hope to grow.

Productivity declined at an annual rate of 0.9 percent in the April-to-June quarter after posting large gains throughout 2009, the Labor Department said Tuesday. Unit labor costs edged up 0.2 percent in the second quarter, the first increase since the spring of 2009.

Output of U.S. workers is the key ingredient to boosting living standards. It allows companies to pay workers more because of the increased production without being forced to raise the cost of their goods, which sparks inflation.

FDIC takes look at removing credit ratings at banks

WASHINGTON - Federal regulators have taken a first step toward eliminating the use of credit ratings in rules for banks, under a mandate of the new financial overhaul law.

The head of the Federal Deposit Insurance Corp. said Tuesday that it won't be easy to come up with a replacement.

The FDIC board voted to take public comment for 60 days on alternatives to relying on credit rating agencies to assess the risk of investments.

Netflix pays $1B for rights to stream Paramount flicks

LOS ANGELES - Netflix Inc. will pay nearly $1 billion during the next five years for the online streaming rights to movies from Paramount, Lionsgate and MGM, in a deal announced Tuesday.

China's import growth weakens; exports gain

BEIJING - China's exports grew strongly in July but import growth fell as its rapid economic expansion cooled, possibly hurting global demand.

Exports rose 38.1 percent over a year ago to $145.5 billion while imports gained 22.7 percent to $116.8 billion, China reported Tuesday. Export growth eased from June's 43.9 percent rate while import growth tumbled from June's 34.1 percent expansion.

Weakness in China's demand for imports could dent its ability to help to drive a global recovery amid Europe's debt crisis and slack sales elsewhere.

The Associated Press