This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7129205.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Productivity boost for US economy Productivity lift for US economy
(about 2 hours later)
US worker productivity was at its strongest in four years in the three months to October, official data shows.US worker productivity was at its strongest in four years in the three months to October, official data shows.
The US Labor Department said that productivity, or output per hour of work, rose at an annualised pace of 6.3% in the third quarter.The US Labor Department said that productivity, or output per hour of work, rose at an annualised pace of 6.3% in the third quarter.
Unit labour costs, a gauge of wage inflation, fell 2% in the period, the largest decline in four years.Unit labour costs, a gauge of wage inflation, fell 2% in the period, the largest decline in four years.
Productivity growth and less wage pressure should ease Federal Reserve concerns about inflation.Productivity growth and less wage pressure should ease Federal Reserve concerns about inflation.
The jump in productivity was higher than economists were expecting.The jump in productivity was higher than economists were expecting.
There was more upbeat news for the US economy when figures from the Commerce Department showed that new orders at US factories unexpectedly rose by 0.5% in October, helped by more demand for defence and transportation equipment.There was more upbeat news for the US economy when figures from the Commerce Department showed that new orders at US factories unexpectedly rose by 0.5% in October, helped by more demand for defence and transportation equipment.
Encouraging
The encouraging reports on the health of the US economy helped boost US stocks.
"Today the market went up because people think the Fed won't need to ease as much," said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.
But another survey from the Institute of Supply Management showed the US service sector expanded at a slower pace in November than the previous month and below economists' expectations.
The US central bank is expected to cut interest rates by a quarter percentage point next week to 4.25% when Federal Reserve officials hold their last meeting of the year on Tuesday.The US central bank is expected to cut interest rates by a quarter percentage point next week to 4.25% when Federal Reserve officials hold their last meeting of the year on Tuesday.
While the US economy grew by a healthy annualised rate of 4.9% in the third quarter, growth is expected to slow sharply in coming months as a slump in the housing market and financial market turmoil stemming from the credit crunch takes its toll.While the US economy grew by a healthy annualised rate of 4.9% in the third quarter, growth is expected to slow sharply in coming months as a slump in the housing market and financial market turmoil stemming from the credit crunch takes its toll.