Unit labor costs in the US declined 0.7% for the third quarter, contrasting with analyst projections of a 0.4% increase. During the same period, preliminary nonfarm productivity rose 3.6%, exceeding the 2.7% growth expected by economists.
The third quarter productivity gain followed a 2.1% increase in the second quarter. Unit labor costs for the previous period were revised upward to 1.9% from an earlier estimate of 1.2%, while the current 0.7% drop marks a reversal from those previous gains.
