US productivity grew at 3.2 per cent rate in fourth quarter as labour costs kept falling

WASHINGTON – U.S. productivity slowed in the fourth quarter while labour costs kept falling. For the year, productivity turned in another weak gain.

The Labor Department says productivity grew at an annual rate of 3.2 per cent in the October-December period, down slightly from a 3.6 per cent growth rate in the third quarter. Labor costs fell at a 1.6 per cent rate in the fourth quarter after an even bigger 2 per cent rate of decline in the third quarter.

For the year, productivity rose a slight 0.6 per cent, down from a 1.5 per cent increase in 2012, and the weakest performance since an 0.5 per cent rise in 2011. Labor costs edged up a slight 1 per cent in 2013, continuing a trend of modest gains in labour costs.