US productivity increased at 4.6% rate in third quarter

US productivity increased at a solid 4.6 per cent pace in the July-September quarter, slightly below the initial estimate, while labor costs fell at a slower pace. The third quarter increase in productivity was below the first estimate a month ago of a 4.9 per cent increase, the Labor Department reported Tuesday.

US productivity increased at a solid 4.6 per cent pace in the July-September quarter, slightly below the initial estimate, while labor costs fell at a slower pace. The third quarter increase in productivity was below the first estimate a month ago of a 4.9 per cent increase, the Labor Department reported Tuesday. Productivity had surged at a 10.6 per cent rate in the second quarter.

Labour costs fell at a 6.6 per cent rate in the third quarter , a smaller drop than the 8.9 per cent decline estimated a month ago. Productivity, the amount of output per hour of work, is the major factor determining living standards. As productivity rises, employers can pay their workers more without having to boost the price of their products.