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2026.01.0813:35:54UTC+00US Q3 Productivity Growth Tops Forecasts

In an unexpected surge, labor productivity in the nonfarm business sector in the United States grew by 4.9% during the third quarter of 2025. This increase comes on the heels of an upwardly revised 4.1% gain in the second quarter, far outperforming market expectations of a 3% rise, according to preliminary estimates. This represents the most significant growth since the third quarter of 2023, driven by a 5.4% increase in output and a modest 0.5% rise in hours worked. In the manufacturing sector, labor productivity saw a 3.3% increase, with output growing by 2.6% despite a 0.7% reduction in hours worked. Compared to the same quarter in the previous year, nonfarm business sector labor productivity rose by 1.9%, a decline from a previously revised 3.3% increase.

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