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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Dec. 4, 2003)
SI> 5 NATION ^iTALI® TH e BATTALION 5B Thursday, December 4, 2003 ^ Productivity leaps 9.4 percent onrawl 1H Cl best since 1983 ■eceive^j A ' turns, fe;; oMi; ossliaai; mianoff' thing aiil ve idbyli® role.A*: WASHINGTON — roductivity of U.S. companies ocketed at a 9.4 percent annu- rate in the third quarter, the test showing in 20 years, offer- ng an encouraging sign that he economic resurgence will le lasting. a free..: The increase in productivity stlOgi: eported by the Labor )epartment on Wednesday was ven stronger than the 8.1 per- ent pace initially estimated for he July-to-September quarter ect.led [month ago. It was up from a 7 we’regr icrcent growth rate posted in ihat spori: led atxi last seisi comefe les re;;::; ) t! i ’ leasonJ® five in 'a 291 t Soii le year. :en al-lr 7-1 nversiit • lost a b Last scan : the toi® G.i By Jeannine Aversa THE ASSOCIATED PRESS he second quarter. “The booming productivity ^ains are translating into better refits, which are now induc ing businesses to expand activ ities — namely investing and |iring,” said Mark Zandi, chief conomist at Economy.com. The report suggests that the iconomic expansion that is ow unfolding will be solid md durable.” On Wall Street, the good ews on productivity lifted locks. The Dow Jones indus- rials were up 31 points and the Nasdaq index gained 6 points morning trading. The third-quarter’s produc- ivity gain, based on more com- llete data, was better than the 1.2 percent growth rate econo- am to mists were forecasting and otherefl- jnarked the strongest perform- ince since the second quarter 1983, when productivity rew at a blistering 9.7 if l toumaM icrcent rate. The report raised new hopes it businesses may be more onfident than before that the iconomic rebound is genuine. Productivity Here is a took at non-farm business productivity, percent change from previous quarter. Seasonally adjusted 10 9.4% 2001 2002 2003 SOURCE: U.S. Bureau of Labor AP Statistics For the economy’s long term health and for rising liv ing standards, productivity gains are vital. They allow the economy to grow faster with out triggering inflation. Companies can pay workers more without raising prices, which would eat up those wage gains. And, productivity can bolster a company’s profitability. That’s particularly impor tant in the current economic climate. As profits improve, companies may be more will ing to boost capital investment and hiring. That labor market has recently shown signs of turning around. The nation’s payrolls are expected to grow in November for the fourth month in a row by around 150,000, economists predict. The government will release the employment report for November on Friday. Businesses in the third quar ter pumped out more and actu ally increased workers’ hours, compared with a long string of quarters where hours were either cut or were flat. Companies’ output in the third quarter surged at a 10.3 percent rate, the biggest increase since the third quarter of 1983. That was better than the 8.8 percent growth rate pre viously estimated for the third quarter and up from a 4.6 per cent pace in the second quarter. Workers’ hours increased at a 0.8 percent rate in the third quarter, the best showing since the first quarter of 2000. That was stronger than the 0.7 per cent growth rate first estimated and better than the 2.2 percent rate of decline registered in the second quarter. Companies’ unit labor costs fell at a rate of 5.8 percent in the third quarter, boding well for profit margins. That was better than the 4.6 percent rate of decline previously estimated for the third quarter and the 3.2 percent rate of decline reported for the second quarter. Economists said the increase in workers’ hours may be a harbinger of stronger job creation in the months ahead. Businesses, economists said, may be running out of ways to squeeze more out of existing workers to meet customers’ demands for goods and services. With the job market improv ing and the economy gaining traction, economists believe the Federal Reserve will hold a key short-term interest rate at a 45-year low of 1 percent at its next meeting Dec. 9. Recording industry files 41 more suits By Ted Bridis THE ASSOCIATED PRESS WASHINGTON —The recording industry has filed 41 more lawsuits against computer users in at least 11 states it said were caught illegally distributing songs over the Internet, continuing its aggressive campaign against online music piracy. The latest copyright suits this week bring to 382 filed since the Washington-based Recording Industry Association of America announced its legal campaign nearly six months ago. The group’s president, Cary Sherman, said i the group has no plans to cut back, even as I media coverage over the continuing lawsuits wanes. “People who engage in illegal file-sharing should be aware, whether or not they hear about it this month, that doesn’t mean the 1 enforcement program has been reduced in any i way,” Sherman said. The recording industry is monitoring popu lar Internet services where computer users can ; download song files, searching for people ille- : gaily distributing the largest music collections. | Court-issued subpoenas compel Internet providers to identify their customers linked to the online accounts used to download songs. Among the RIAA’s recent targets is retiree Ernest Brenot, 79, of Ridgefield, Wash., who wrote in a handwritten note to a federal judge that he does not own a computer nor can he operate one. Brenot was accused of illegally offering for download 774 songs by artists including Vanilla Ice, U2, Creed, Linkin Park and Guns N’ Roses. Brenot’s wife, Dorothy, said she and her husband were stunned by the claims, offended at the suggestion they listened to such music. Brenot was targeted in the previous round of 80 suits the recording organization filed late in October. Brenot and her husband said their son-in- law briefly added Internet service to their own cable television account while living with the couple because Comcast Cable Communications Inc. said it would add a sur charge to send separate bills to the same mail ing address. The 41 most recent suits were filed against Internet users in Massachusetts, Colorado, Arizona, Connecticut, New Jersey, Wisconsin, Florida, Tennessee, Georgia, Illinois and Washington. The recording industry also said Wednesday that it has reached financial settlements against at least 220 computer users. Defense lawyers familiar with some of the cases have said penalties ranged from $2,500 to $7,500 each. 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