Productivity in U.S. Rises More Than Forecast, Curbing Costs

The productivity of U.S. workers rose more than projected in the third quarter, helping to contain labor costs even as employment picks up.

The measure of employee output per hour increased at a 2 percent annualized rate, after a revised 2.9 percent pace in the prior three months that was stronger than previously estimated, a Labor Department report showed today in Washington. The median forecast in a Bloomberg survey of 58 economists called for a 1.5 percent advance. Expenses per worker increased at a 0.3 percent pace, less than projected.