U.S. Productivity Rate Low

WASHINGTON — The efficiency of the American economy in producing goods and services fell sharply the last three months of 1986 to limit the annual productivity gain to less than 1% for the second consecutive year, the government reported today.

Non-farm business productivity dropped at an annual rate of 1.7% the fourth quarter, offsetting increased efficiencies the first half of 1986, to produce a total productivity gain for the year of 0.7%, the Labor Department said.