The non-farm productivity in the United States increased at an annual rate of 4.1 percent in the third quarter, the best showing in more than a year, the Labor Department reported on Thursday.

The report showed that the 4.1 percent growth rate followed a 2.1 percent rise in the second quarter and was the best showing since a 4.5 percent rate of increase in the second quarter of last year. It was far above the 2.6 percent increase that analysts had expected.

The strong growth in productivity helped to hold down unit labor costs, which fell at an annual rate of 0.5 percent in the July-September quarter after a gain of 1.8 percent in the second quarter. It was also the best showing since unit labor costs declined 0.8 percent in the second quarter of 2004.

The drop in labor costs per unit of output should be viewed as good news by the US Federal Reserve, where officials have expressed concerns that a slowdown in productivity could result in rising wage pressures.

Productivity is an essential factor in long-term economic health and higher productivity can allow companies to reap higher profits while giving workers higher pay without raising prices.

Source: Xinhua