Productivity beats expectations in 3rdQ

WASHINGTON, Nov. 5 (UPI) -- The U.S. Labor Department said non-farm productivity shot up in the third quarter faster than it has in six years, growing 9.5 percent on an annual basis.

In the second quarter, productivity rose 6.4 percent, which was at the time the biggest increase since the third quarter of 2003, when it rose 9.7 percent.

The consensus forecast for the third quarter was a 6.3 percent rise. The report put the figure 3.2 percentage points higher than that.

Meanwhile, output increased 4 percent, while work hours fell 5 percent. Unit labor costs, the price of labor per units produced, dropped 5.2 percent.

It was the third consecutive month in which labor costs dropped. Non-labor costs, however, rose 10 percent following an 8.5 percent increase in the second quarter.