The productivity of America’s workers grew at a 1.9 percent annual rate in the third quarter, the smallest gain since late 2002, the government reported Thursday. The increase in productivity – the amount an employee produces for every hour of work – followed a brisk 3.9 percent pace in the second quarter, the Labor Department said. The figure for the July-to-September period was better than the 1.7 percent growth rate some economists were expecting. Analysts have been expecting productivity growth to slow somewhat based on the hope that businesses would seek to hire workers to help meet customer demand, rather than rely largely on greater efficiencies from fewer or existing workers.
Marlboro maker plans a breakup
Tobacco and food giant Altria Group Inc. is moving ahead with preparations to break itself up into two or three businesses, the company’s chairman and CEO said Thursday. Louis Camilleri said splitting up Altria – whose brands include Marlboro cigarettes, Oreo cookies and Maxwell House coffee – would be a boon to investors who hold shares he described as significantly undervalued. Altria shares rose 8.5 percent Thursday, closing up $4.23 at $54.23. But that is still far short of the $80 to $85 a share some analysts have estimated the company would be worth if it were broken up.
Movie pirates to face lawsuits
Hollywood studios said Thursday they will file hundreds of lawsuits later this month against individuals who swap pirated copies of movies over the Internet. The move is a reversal of the studios’ earlier reluctance to follow the aggressive legal path taken by the music industry. Internet piracy of movies is not nearly as rampant as in the music industry, in large part because movie files are huge and can take hours to download, in contrast to less than a minute in most cases for songs. But Dan Glickman, the new head of the Motion Picture Association of America, said the lawsuits are necessary now, before high-speed Internet access makes downloading pirated copies of movies easier.
Dollar still falling against the euro
The dollar hit its lowest level in more than eight months against the euro on Thursday, falling sharply on worries about the economic effects of rising oil prices and expectations of continued trade and budget deficits in President Bush’s second term. The shared European currency neared its all-time high of $1.29 on Feb. 18, trading at $1.28 in late dealings in New York. Higher oil prices have raised doubts about the strength of the U.S. economy, adding new concerns on top of high U.S. trade and budget deficits, factors that have weighed on the dollar for months.
Herald news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
