U.S. Economy: Productivity Rises, Labor Costs Drop

Employers in the U.S. squeezed more productivity from workers in the third quarter, leading to an unexpected drop in costs that signals inflation will remain low.

Employee output per hour rose at a 1.9 percent annual rate, more than forecast, after falling 1.8 percent in the previous three months, Labor Department figures showed today in Washington. Worker costs fell for the fifth time in the past seven quarters.