Productivity Growth Lowest in the Year; Labor Costs Moderate
The seasonally adjusted annual rates of productivity growth in the third quarter were: 0.4 percent in the business sector and 0.2 percent in the nonfarm business sector. In manufacturing, revised productivity increases in the third quarter were: 6.7 percent in manufacturing, 9.0 percent in durable goods manufacturing, and 3.1 percent in nondurable goods manufacturing.
Hourly compensation in nonfarm business grew 2.6 percent in the third quarter of 2006, following the 1.2 percent decline in the second quarter (as revised). When the rise in consumer prices is taken into account, real hourly compensation declined 0.4 percent in the third quarter of 2006 and fell 5.9 percent one quarter earlier.
The costs of wages and benefits per unit of output increased at a revised annual rate of 2.3% in the 3rd quarter, compared to 3.8% rate of increase first reported a month ago.
Related discussion around the web:
- U.S. Productivity Rises 0.2 Percent; Labor Costs Climb Less Than Forecast - Bloomberg
Growth Slows Sharply
gain in third quarter falls short of forecasts
- US Q3 productivity revised up 0.2 pct vs 0.5 pct expected - Forbes
Report: U.S. unit-labor costs show less inflationary pressure building