Page 7 - atoday
P. 7
U.S. NEWS A7
Monday 7 March 2016
US Financial Front:
American productivity stuck in slow-growth mode
MARTIN CRUTSINGER An employee walks past a conveyer belt carrying newly-bottled and packaged cases of Blue decade. But weaker eco-
AP Economics Writer Moon beer, a craft-oriented label produced at the MillerCoors Brewery, in Golden, Colo. Late last nomic data and turbulent
WASHINGTON (AP) — U.S. week the Labor Department issued revised data on productivity in the fourth quarter. financial markets are likely
productivity fell in the final to reduce the number of
three months of 2015 at (AP Photo/Brennan Linsley) rate hikes this year from
the sharpest pace in nearly what had been an expect-
two years, though the de- dards. Rising productivity services they sell. raise interest rates to keep ed four down to perhaps
cline was not as large as enables businesses to pay The Federal Reserve keeps inflation under control. The just two.
first reported. Labor costs employees higher wages watch on both productivity Fed raised a key rate by a Last week, the government
jumped in the fourth quar- without having to boost the and labor costs as it delib- quarter-point in December, reported that total output
ter at the fastest pace in a cost of the products and erates how quickly it should the first increase in nearly a as measured by the gross
year. domestic product expand-
The Labor Department said ed at an annual rate of 1
late last week that produc- percent in the fourth quar-
tivity — the amount of out- ter. That increase in output
put per hour of work — fell was reflected in the smaller
at an annual rate of 2.2 decline in productivity re-
percent in the October- ported Thursday.
December period. Prelimi- Productivity recently has
nary data had reported been growing well below
a 3 percent drop. Labor the 2.1 percent average
costs rose at a rate of 3.3 gains seen over the past 67
percent, revised from an years. It had accelerated
initial 4.5 percent estimate. for a decade starting in
For all of 2015, productivity 1995. Those gains were at-
rose just 0.7 percent, mark- tributed to improvements
ing the fifth straight year of in computer software and
weak gains. It’s a troubling the introduction of tech-
trend given that productiv- nology that helped work-
ity is a key ingredient need- ers do their jobs more effi-
ed for rising living stan- ciently.
