3Q Productivity Up 6.3%

Washington, DC, December 5, 2007--Productivity in the third quarter rose at an annual rate of 6.3%, the most since 2003 and up from a 2.2% pace in the second quarter, according to a Labor Department report. Labor expenses dropped at a 2% pace, also the most since 2003.

Economists forecast productivity would accelerate to a 5.9% pace. Unit labor costs were expected to drop at a 1.2% rate.

Compensation for each hour worked increased at an annual rate of 4.2% in the third quarter, compared with a 1% rate in the prior three months.

Productivity at non-financial corporations climbed at a 4.2% rate in the third quarter, compared with 2.1% the previous three months.

Among manufacturers, productivity increased at a 5% pace in the last quarter, compared with a gain of 2.4%.