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Productivity beats estimates
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November 13, 1997: 10:49 a.m. ET
Revised third-quarter figures show non-farm increase of 4.5 percent
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NEW YORK (CNNfn) - American workers once again made stronger-than-expected productivity gains in the third quarter, the Labor Department reported Thursday.
Revised third-quarter figures show non-farm productivity grew at a seasonally-adjusted annual rate of 4.5 percent. The Labor Department had originally expected a gain of 3 percent.
Productivity measures the efficiency of business output per worker hour. As productivity increases, the economy can grow without triggering inflation.
Unit labor costs, which play a significant role in price increases, increased at an annual rate of 0.2 percent compared to a revised increase of 0.9 percent last quarter. Unit labor costs reflect both changes in hourly compensation and productivity and are considered an inflation benchmark.
Non-farm hourly compensation increased an adjusted 4.2 percent in the third quarter.
Manufacturing productivity increased 2.8 percent, up from 2.4 percent posted in the previous quarter. Durable goods productivity rose 13.3 percent, up substantially from the 4.8 percent gain last quarter.
Nondurable productivity rose 5.7 percent in the second quarter.
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