By Rex Nutting
WASHINGTON (MarketWatch) -- U.S. companies increased their output in the third quarter even as they slashed working hours, driving productivity up at a 9.5% annual rate in the quarter, the Labor Department estimated Thursday. Unit labor costs -- a key measure of inflation -- dropped at a 5.2% annual rate in the quarter. The 9.5% increase in productivity in the third quarter was the highest in six years, and was better than the 7.3% expected by economists surveyed by MarketWatch. The decline in unit labor costs was also more than the 4.6% expected. In manufacturing, the gains were more impressive, with productivity surging at a record 13.6% annual rate. Unit labor costs in manufacturing fell 7.1%.
