Worker productivity grew 3% in third quarter, Labor Department says

U.S. worker productivity jumped in the third quarter, increasing by 3%, the largest increase in nearly four years, the Labor Department reported Monday.

The gain is revision from a previous preliminary reading of 1.9%.

Overall, the country’s economic outlook has improved sharply in recent weeks amid a string of surprisingly robust economic data: Businesses have stepped up hiring, new factory orders from abroad are at a two-year high and consumers have been buying cars and eating out at restaurants.

The Labor Department also said labor costs fell in the third quarter, decreasing 1.4% from the previous quarter. Hourly wages also grew 1.6% in the last quarter, the report said.

There was some weakness, however: Productivity in the manufacturing sector declined 0.1%, rather than increasing 0.4% in a previous estimate.

The boost in worker productivity follows recent data that show that economic growth during the same quarter was higher than previously expected. The value of the country’s gross domestic product grew 3.6% in the third quarter, the Bureau of Economic Analysis said early this month.