Productivity Falls In Third Quarter

Workplace productivity fell 0.3 percent at an annual rate from July through September, the first decline since late 1995 that reflected slower economic growth in the summer.

The Labor Department said today that nonfarm productivity - defined as output per number of hours worked - was far weaker than its 0.2 percent estimated gain last month.

It followed revised annualized advances of 0.6 percent during the April-June quarter and 1.9 percent during the first three months of the year. The rates are adjusted for seasonal variations.

Bonds fell sharply after the report. The yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs, which moves in opposite direction from prices - shot up to nearly 6.48 percent from late Wednesday’s 6.39 percent.

Meanwhile, major retailers reported today that consumers got a head start on their holiday shopping, lured by sales promotions in November even before the official start of the Christmas season on the day after Thanksgiving.