WASHINGTON - U.S. productivity increased at a 2.3% annual rate in the third quarter, revised higher as output and hours worked increased, the Labor Department reported Wednesday.
The productivity gain was revised higher from the initially reported 1.9% third quarter increase. Productivity fell 1.8% in the second quarter and increased 3.9% in the first quarter of this year.
Productivity is measured as output per hour. Both output and hours worked were revised higher from the initial estimates. Output increased 3.7%, up from a 3.0% rise initially reported, and hours increased 1.4%, up from a 1.1% increase.
Unit labor costs, a ratio of hourly compensation to productivity, was unrevised from initial estimates at a 0.1% dip. In the second quarter, unit labor costs were up 4.9%.
Economists expected productivity would increase 2.3% and unit labor costs would drop 0.4%, according to the median estimate from Thomson Reuters.
Hourly compensation increased 2.2% for the quarter, revised higher from a 1.8% increase previously reported.
For the year ending in September, productivity increased 2.5% and unit labor costs fell 1.1%.
