U.S. labor productivity experienced a slower increase in the third quarter, the U.S. Labor Department reported on Thursday.

Nonfarm business sector labor productivity, which measures the output per hour of workers on nonfarm payrolls, increased at a 2.2 percent seasonally adjusted annual rate during the third quarter of 2018, lower than the revised 3 percent increase in the second quarter, according to the department.

In the third quarter of 2018, productivity was 1.3 percent higher than the same period last year, reflecting a 3.7 percent increase in output and a 2.4 percent increase in hours worked, the department said.

For U.S. manufacturing sector, labor productivity was 0.5 percent higher than previous quarter, as output increased 3.4 percent and hours worked increased 2.9 percent. Manufacturing sector productivity increased 1.3 percent over the last four quarters.

Unit labor costs, which was the ratio of hourly compensation to labor productivity, rose at a 1.2 percent rate after a 1-percent decrease in the second quarter. Over the last four quarters, the figure rose 1.5 percent.

Economists believe rising productivity helps an economy to sustain prosperity, while the rising unit labor costs put more inflation pressure on an economy.