Productivity Up at 3.6% Rate

The nation’s efficiency in churning out goods and services improved at an annual rate of 3.6% in the first quarter of this year--four times more rapidly than it did in 1987, the government reported today. But annualized hourly wage gains of 3.4% failed to put workers ahead of inflation for the fifth quarter in a row--a phenomenon not seen since the spiraling inflation of 1979-81.

The Commerce Department’s report on productivity and costs indicated that services rather than manufacturing accounted for most of the improved efficiency, a reversal of past trends. In manufacturing, productivity figures showed a 2.8% improvement for the quarter.