Non-farm productivity rose 3.2% in the fourth quarter, according to the preliminary data released by the Bureau of Labor Statistics Thursday.
Unit labor costs dropped 1.6% in the quarter.
The third quarter reading was a 3.6% increase in productivity and a 2.0% drop in unit labor costs. In the fourth quarter of 2012, productivity fell 1.7% and labor costs soared 11.8%.
Economists polled by Thomson Reuters expected productivity to rise 2.5% and labor costs to slip 0.5%.
Output was up 4.9% in the quarter, hours worked increased 1.7%, while compensation grew 1.5% and real compensation was up 0.6%. Non-labor costs rose 4.6%











