WASHINGTON — The productivity of America's workers grew at a 1.8 percent annual rate in the third quarter, the slowest pace in nearly two years, the government reported on Tuesday.
The deceleration in this vital economic indicator, however, raised some hope that employers who have squeezed so much efficiencies out of their existing work forces may seek to boost hiring as a way to meet customer demand.
The Labor Department's latest snapshot of productivity — the amount an employee produces for every hour of work — showed that efficiency gains were slightly weaker than the 1.9 percent growth rate first estimated for the July-to-September quarter.
The new figure, based on more complete data, marked a slowing from the 3.9 percent productivity pace logged in the second quarter.
"I think we are setting ourselves up for much better, firmer hiring," said Anthony Chan, senior economist at JPMorgan Fleming Asset Management.
In other economic news, consumers stepped up their borrowing at a seasonally adjusted annual rate of 4.4 percent in October, or by $7.7 billion, from the previous month, the Federal Reserve reported.
Consumers' borrowing appetite — led by higher demand for car loans and other nonrevolving credit — was stronger than the $6 billion increase analysts were expecting.
In September, consumer credit surged at a 7.9 percent pace, or by a whopping $13.6 billion.
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