US productivity up 2.3% in third quarter

Friday, November 30, 2018, Vol. 42, No. 48

WASHINGTON (AP) — U.S. productivity grew at an annual rate of 2.3% in the July-September quarter, slower than the previous quarter but still an improvement over the weak annual gains of the past decade. Labor costs rose at a modest pace in the third quarter.

The Commerce Department says that the third quarter gain in productivity was revised up slightly from an initial estimate a month ago of a 2.2% gain. It marks a more modest advance than the second quarter's 3% annual rate of increase. Labor costs were up at a 0.9% annual rate in the third quarter following a decline at a 2.8% rate in the second quarter.

Productivity, the amount of output per hour of work, has been weak throughout the current expansion.