REUTERS – U.S. nonfarm productivity unexpectedly rose in the third quarter as a decline in self-employed workers contributed to overall hours worked falling for the first time in six years, restraining labor-related production costs.
The Labor Department said on Thursday that productivity, which measures hourly output per worker, increased at a 1.6 percent annual rate after increasing at an upwardly revised 3.5 percent rate in the second quarter.
Manufacturing productivity increased at its fastest pace in four years, led by the durable goods sector.
Economists polled by Reuters had forecast productivity falling at a 0.2 percent rate last quarter after expanding at a previously reported 3.3 percent pace in the second quarter.
Despite the surprise rise in the third quarter, the trend in productivity remained weak. Productivity increased only 0.4 percent compared to the third quarter of 2014.