Material Is Embargoed — 2005-11-03

The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the third quarter of 2005. The preliminary seasonally-adjusted annual rates of productivity growth in the third quarter were: 4.8 percent in the business sector and 4.1 percent in the nonfarm business sector. Productivity increased 4.8 percent in the business sector, as output grew 4.3 percent and hours declined 0.4 percent. The 4.1-percent rise in nonfarm business productivity occurred as output rose 4.2 percent and hours rose 0.1 percent (table A). The effects of Hurricanes Katrina and Rita, which struck the Gulf Coast during the third quarter, could not be separately identified in the productivity and costs measures. The measures reported in this news release reflect both these effects and ongoing trends in ouput, hours, and compensation. 4.5 percent in manufacturing, 7.5 percent in durable goods manufacturing, and 1.7 percent in nondurable goods manufacturing.