US productivity grinds to a halt

US labour productivity slowed to a standstill in the three months to the end of September, the latest indication that the American economy is slowing.

With analysts expecting productivity to grow 1.1% in the third quarter, the zero growth rate from the Labor Department came as a surprise.

Unit labour costs were up 5.3% from the same period in 2005, the worst annual rise in 24 years.