to a new report published by the US department of labour,
US labour productivity growth has been at a standstill
for the three months ending September 2006, the latest
indication that the American economy is slowing.
labour department''s figures were released a day after
separate data showing that the US manufacturing sector
grew at its slowest pace for three years in October.
labour department measures productivity as the amount
of output per hour of work.
the same time unit labour costs increased 5.3 per cent
from the same period in 2005, increasing fears of inflation
at the US Federal Reserve.
sets of numbers reflect a weakness in the economy adding
to growing concerns of an economic slowdown, with some
analysts voicing fears of stagflation.
US Fed will have to take these sets of data in to account
when it meets in December to decide on interest rates
for the coming quarter.
say the increased labour cost suggest an increase in rates
might be necessary to control inflation, while the weakening
manufacturing sector data indicates that the manufacturing
sector would benefit from a cut.