Average productivity for 2006 rose by 2.1%,down slightly from a 2.3% increase in 2005, and labor costs rose by 1.7%.
According to Bloomberg, that U.S. worker productivity grew at the fastest rate in almost a year in in the fourth quarter and labor costs rose at a slower pace, suggests wages may pose less of an inflation threat.
Output grew 4.2%, up from 1.9% in the third quarter and hours rose 1.2%, a slip from the 2% rise in the previous quarter.
Hourly compensation climbed 4.8% in the fourth quarter, following a 3.1% increase in the third quarter. When the 2.2% decrease in consumer prices was taken into account, real hourly compensation grew 7.1% during the fourth quarter of 2006.
For a full report of the Department of Labor productivity data go here .
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