Today’s economic reports offer a mixed assessment of the health of the U.S economy. Worker productivity cooled off in the fourth quarter of 2004, while orders for factory-goods rose in December.

The Labor Labor Department said that the productivity of nonfarm workers for the final three months of the year rose at an annual rate of just 0.8%, the slowest quarterly increase in almost three years.

Economists had called for a 1.2% increase in the fourth quarter.

The rapid gains in productivity seen in recent years began slowing in the July-September quarter when productivity rose by just 1.8% after increases of 3.7% in the first quarter and 3.9% in the second quarter.

In a separate report, the Labor Department said initial jobless claims decreased by 9,000 to 316,000, the lowest level in nearly two months, in the week ended Jan. 29. The four-week moving average, which smooths out shorter-term fluctuations in claims, fell by 10,250 to 331,500. Economists say averages below 350,000 are evidence of net job creation.

Meanwhile, U.S. factory-goods orders increased by 0.3% in December, the Commerce Department said today, following a revised 1.4% advance in November.

Thursday’s data was the second closely watched economic report this week on the manufacturing sector. Tuesday, the Institute for Supply Management, a private research group, said its index of manufacturing activity slipped to 56.4 in January from 57.3 in December.

Also today, the Institute for supply management said activity in the U.S. service sector showed slower growth, as its non-manufacturing business index slipped to a reading of 59.2 last month from 63.9 in December.

An ISM index above 50 suggests expansion of activity.