U.S. nonfarm productivity grew a bit faster than initially thought in the third quarter, while sharp downward revisions to compensation pointed to muted wage inflation that should give the Federal Reserve room to keep interest rates low for a while.
The Labor Department said on Wednesday productivity expanded at a 2.3 percent annual rate instead of the previously reported 2.0 percent pace.
Economists polled by Reuters had expected productivity, which measures hourly output per worker, would be raised to a 2.4 percent rate to reflect upward revisions to third-quarter gross domestic product.
The government last week raised third-quarter GDP growth to a 3.9 percent pace from a 3.5 percent rate.
The trend in productivity, however, remains relatively weak, despite the upward revision. Productivity rose 1.0 percent compared to the third quarter of 2013.