Wabash
11-07-2007, 01:53 PM
Wednesday, Nov. 7, 2007
WASHINGTON -- Worker productivity surged in the summer at the fastest pace in four years while wage pressures eased.
The Labor Department reported that productivity — the amount of output per hour of work — jumped at an annual rate of 4.9 percent in the July-September quarter. That was double the 2.2 percent rise in the second quarter and represented the fastest surge in worker efficiency since 2003.
At the same time, wage pressures eased with unit labor costs dropping at an annual rate of 0.2 percent, the best showing in more than a year.
The Federal Reserve last week cut a key interest rate for the second time in two months while at the same time expressing concerns that inflation remained a problem, especially in light of rising oil prices. Crude oil prices have soared in recent weeks over concerns about rising tensions in the Middle East, hitting a record $96.70 per barrel on Tuesday.
Fed Chairman Ben Bernanke is scheduled to testify on the economic outlook on Thursday before Congress' Joint Economic Committee. That testimony will be closely scrutinized for any signs that the Fed may cut rates again should the economy should more signs of faltering.
Economists say that the next six months represent the point of maximum danger that the economy could slip into a recession brought on by the steepest slump in housing in more than two decades, a severe credit crunch and surging oil prices.
http://moneynews.newsmax.com/money/archives/articles/2007/11/7/084247.cfm?s=al&promo_code=3C86-1
WASHINGTON -- Worker productivity surged in the summer at the fastest pace in four years while wage pressures eased.
The Labor Department reported that productivity — the amount of output per hour of work — jumped at an annual rate of 4.9 percent in the July-September quarter. That was double the 2.2 percent rise in the second quarter and represented the fastest surge in worker efficiency since 2003.
At the same time, wage pressures eased with unit labor costs dropping at an annual rate of 0.2 percent, the best showing in more than a year.
The Federal Reserve last week cut a key interest rate for the second time in two months while at the same time expressing concerns that inflation remained a problem, especially in light of rising oil prices. Crude oil prices have soared in recent weeks over concerns about rising tensions in the Middle East, hitting a record $96.70 per barrel on Tuesday.
Fed Chairman Ben Bernanke is scheduled to testify on the economic outlook on Thursday before Congress' Joint Economic Committee. That testimony will be closely scrutinized for any signs that the Fed may cut rates again should the economy should more signs of faltering.
Economists say that the next six months represent the point of maximum danger that the economy could slip into a recession brought on by the steepest slump in housing in more than two decades, a severe credit crunch and surging oil prices.
http://moneynews.newsmax.com/money/archives/articles/2007/11/7/084247.cfm?s=al&promo_code=3C86-1