U.S. productivity soared and labor costs tumbled in the third quarter.

Meanwhile, factory orders unexpectedly climbed in October, with demand for expensive goods not as weak as first estimated.

Separately, growth in U.S. services sector cooled in November, amid an uptick in price pressures.

Nonfarm business productivity swelled at a 6.3% annualized rate between July and September, the U.S. Labor Department said today, up from the previous estimate of a 4.9% increase. Last quarter’s gain was the biggest in four years and nearly triple the 2.2% rate in the second quarter. Productivity is defined as output per unit of labour.

The third quarter productivity revision was slightly above Wall Street expectations of a 6.2% rise, and reflects last quarter’s mix of strong economic growth data with slower gains in payrolls.

Unit labour costs fell 2% last quarter, the biggest drop since 2003. Economists had expected a 1.5% decline. The second quarter was revised down as well. Third-quarter labour costs were up just 3% from a year ago, signaling that compensation costs are under wraps.

In other economic news, orders for U.S. manufactured goods increased 0.5%, following a revised 0.3% climb in September, the U.S. Commerce Department reported today. Originally, factory orders were seen 0.2% higher in September. Economists had forecast that factory goods orders were unchanged in October.

Demand in October for durable goods, expensive things designed to last at least three years, decreased a revised 0.2%. Durables orders fell an unrevised 1.4% in September. October nondurable goods orders increased by 1.3%, after rising 2.1% in the prior month.

Meanwhile, a yardstick for capital spending by businesses — non-defense capital goods orders excluding aircraft — fell 2% in October, after increasing 1.4% in September.

Also today, a report from the U.S. Institute for Supply Management said the private research group’s nonmanufacturing index, which is comprised mostly of service-related companies, moved to a reading of 54.1 in November from 55.8 in October and 54.8 in September. The index was expected to have hit 54.8. index readings above 50 indicate expansion of activity, while readings under 50 denote contraction.