U.S. Productivity Rate Low

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.