Economics
U.S. Productivity Increases by the Most in More Than a Year
- Gain of 6.6% in fourth quarter follows slump in prior period
- Unit labor costs growth pulls back after third-quarter surge
A worker carries a line of mugs to be polished before being fired in a kiln at a factory in East Liverpool, Ohio.
Photographer: Meg Roussos/Bloomberg
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U.S. productivity surged last quarter by the most in more than a year, reflecting a sharp acceleration in economic output, while labor costs growth cooled.
Fourth-quarter nonfarm business employee output per hour increased at a 6.6% annual rate from the previous three months, the largest advance since the second quarter of 2020, according to Labor Department figures Thursday. In the third quarter, productivity slumped 5%, the sharpest drop since 1981.