News Summary: Productivity grew 1.9 pct. in Q3

News Summary: US productivity grew at 1.9 percent rate in third quarter, labor costs dropped

Associated Press

PRODUCTIVITY GROWS: U.S. worker productivity grew at a modest annual rate of 1.9 percent in the July-September quarter, matching the pace of the previous quarter.

LABOR COSTS FALL: Labor costs fell 0.1 percent in the third quarter. The decline suggests wages are barely growing but are not a threat to inflation.

OUTLOOK: Productivity is the amount of output per hour of work. Weaker productivity can be a hopeful sign for job creation. It often means companies can't squeeze much more output from their staffs and must hire to meet demand.

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