US non-farm productivity rises 1.9 pct in 3rd qtr

WASHINGTON, Nov 4 (BestGrowthStock) – U.S. non-farm productivity
rose faster than expected in the third quarter and unit labor
costs dropped, according to a government report on Thursday
that still pointed to a sluggish recovery.

Productivity increased at an annual rate of 1.9 percent
after shrinking at a 1.8 percent pace in the second quarter,
the Labor Department said.

Analysts surveyed by Reuters had forecast productivity, a
measure of hourly output per worker that is taken as an
indicator of the economy’s vitality or lack of it, rising at a
1.0 percent rate in the third quarter.

Unit labor costs, a gauge of potential inflation pressures
closely watched by the Federal Reserve, fell at a 0.1 percent
rate after rising a revised 1.3 percent in the second quarter.
Economists had expected unit labor costs to rise at a 0.7
percent
rate in the third quarter.

The Fed announced on Wednesday it would inject an
additional $600 billion into the economy through government
bond purchases by the middle of next year to push interest
rates further down and stimulate the sickly economy.

The economy’s recovery from the longest and deepest
downturn since the 1930s has suffered a setback, leaving
unemployment uncomfortably high. The economy grew at a sluggish
2.0 percent annual pace in the third quarter, a touch faster
than the 1.7 percent rate in the second quarter, but way below
potential.

Total non-farm output grew at a 3.0 percent rate in the
July-September period, the Labor Department said, accelerating
from a 1.6 percent rate in the second quarter. Hours worked
increased at a slower 1.1 percent rate after a 3.5 percent pace
in the second quarter.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

US non-farm productivity rises 1.9 pct in 3rd qtr