FX.co ★ US Q3 Productivity Growth Confirmed at 2-Year High

In the third quarter of 2025, labor productivity within the US nonfarm business sector experienced a notable 4.9% increase, building on a 4.1% rise observed in the previous quarter. This growth aligns with preliminary estimates and represents the strongest performance since the third quarter of 2023. During this period, output escalated by 5.4%, following a 5.2% increase in the second quarter, while the hours worked rose by 0.5%, compared to a previous 1% increment. In the manufacturing sector, labor productivity saw an upward revision, growing by 3.7% compared to an initial estimate of 3.3%, with output rising by 3% as hours worked decreased by 0.7%. Year-over-year, from the same quarter in the prior year, nonfarm business sector labor productivity saw a 1.9% improvement, consistent with earlier estimates. Meanwhile, productivity in the manufacturing sector expanded by 2.4% over the same timeframe, marking the most significant increase since the second quarter of 2021.