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Thursday, December 4, 2003
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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
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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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