U.S. Productivity Gains Exceed Forecasts Even as Output Cools

Productivity gains in the U.S. last quarterexceeded forecasts though were little changed from the priorreading as output and hours worked both cooled, with efficiencyimprovements surpassing the recent average for a third period.

Nonfarm business employee output per hour increased at a 1.9percent annualized rate, according to Labor Department figuresThursday that were delayed a month by the government shutdown.That compared with the 1.5 percent median estimate inBloomberg's survey of economists and followed a downwardlyrevised 1.8 percent in the third quarter. Unit labor costs roseat a 2 percent rate following 1.6 percent.