Getting harder to make the case for inflation...
Gonna be tough to beat a raise out of the boss this year...
Business sector productivity grew at a 1.5 percent annual rate during
the third quarter of 2008, less than the 1.9 percent rate of growth from the
third quarter of 2007 to the third quarter of 2008 and the 2.5 percent
average annual rate from 2000 to 2007. Productivity growth in the third
quarter was the result of hours worked falling faster than output. The hours
decline of 3.2 percent was the largest since the fourth quarter of 2001 (4.2
percent), and the output decline of 1.7 percent was the largest since the
third quarter of 2001 (3.1 percent).
Hourly compensation in the business sector increased 4.2 percent during
the third quarter of 2008, following a 1.2 percent increase in the second
quarter (seasonally adjusted annual rates). This series includes accrued
wages and salaries, supplements, employer contributions to employee benefit
plans, and taxes. Real hourly compensation fell 2.4 percent, the fourth
consecutive quarter in which it declined. This reflected the 6.7 percent
increase in consumer prices during the third quarter, the fastest growth
since a similar increase in the third quarter of 1990.