U.S. Productivity Growth Accelerates to Fastest Pace in a Year

U.S. labor productivity rose at the fastest pace in a year in the third quarter.

Productivity in the nonfarm business sector increased at a 3.6 percent annual rate from July through September, the Labor Department said Thursday, beating economists’ forecast of 2.8 percent. The government revised second-quarter growth up to 2.1 percent from 1.4 percent.

Business output rose at a 3.7 percent annual rate in the third quarter, while hours worked increased just 0.1 percent. The rise in output drove the productivity gain as the broader economy expanded at a 3.4 percent pace, supported by strong business investment and consumer spending.

The report adds to signs of a sustained productivity boom. Growth in output per hour has accelerated for three straight quarters, rising from a 1.2 percent annual rate in the final quarter of 2025 to 1.4 percent in the first quarter of this year, 2.1 percent in the second and 3.6 percent in the third.

Revisions released Thursday showed that the boom was stronger than previously estimated. Productivity grew 3.2 percent in 2024, up from an earlier estimate of 3.0 percent. Growth in 2025 was revised to 2.3 percent from 2.1 percent.

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Original source: https://www.breitbart.com/economy/