US shares on the rise

After official figures showed that US business productivity has increased at its highest rate for six years, US shares have also increased strongly. ┬á Productivity, as measured by output per hour of work, rose at an annual rate of 9.5 percent between July and September, and the data suggests that firms, which have cut jobs in the downturn, are now increasing their output, leading to a possible need for more staff. ┬á "We believe businesses will have to start to increase hours worked and payrolls around the turn of the year since they cannot expect their current work force to sustain such rapid productivity growth," said Michelle Meyer, an economist at Barclays Capital. ┬á Fellow analyst Michelle Girard, a senior economist at RBS in Connecticut agreed, saying, "Companies will be forced to add workers earlier in this recovery than was the case following the last two recessions." ┬á While the US economy grew 3.5 percent from July to SeptemberÔÇö its first expansion since June 2008ÔÇö the official jobless rate rose to 9.8 percent in September, the highest in twenty years, and if firms do begin to add staff quicker than had been expected, it would be a good sign for an economy where the labor market is trailing behind the wider recovery. ┬á The Federal Reserve, the US central bank, reiterated its view that rates would need to stay at the historic low between 0 percent and 0.25 percent on Thursday, where they have remained since December of last year, for an ÔÇ£extended periodÔÇØ to help the continuing economic recovery. ┬á