RJ and Makay

U.S. productivity finished 2010 strongly, climbing a seasonally adjusted 2.6% in the fourth quarter on decreasing labor costs, the Department of Labor (DOL) reports. Furthermore, U.S. productivity rose 3.6% for all of 2010, its fastest rate of growth in eight years, the DOL says.

Fourth-quarter results surpassed the expectations of economists, who forecasted a 2.2% rise during that period. The fourth-quarter productivity gain also bested the third quarter's revised 2.4% increase. Higher productivity is associated with a rising standard of living because it tends to enhance corporate profits, some of which may be passed on to employees as higher wages.

Investors across the globe have been favoring America lately. In November, worldwide demand for U.S. government bonds and other financial assets rose from October's levels as purchases by private investors offset record sales by foreign governments, the U.S. Treasury reports.

Indeed, net purchases of U.S. financial assets totaled more than $85 billion in November, the highest level since last August and far more than the net purchases of $28.9 billion in October. Net purchases by foreigners reached $39 billion compared with about $15 billion in October, the Treasury adds.