Material Is Embargoed — 2006-02-02

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 fourth quarter and for the full year 2005. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter, productivity declined 0.2 percent in the business sector and 0.6 percent in the nonfarm business sector. In both sectors, the fourth-quarter productivity decline was the first since the first quarter of 2001. When the annual averages for 2005 were compared with annual averages for 2004, productivity rose 2.6 percent in the business sector and 2.7 percent in nonfarm businesses. Fourth Annual averages quarter 2004-2005 Manufacturing sector 3.9 4.8 Durable goods manufacturing 8.2 6.6 Nondurable goods manufacturing -1.0 2.9 Manufacturing productivity grew 3.9 percent in the fourth quarter. On an annual average basis, output per hour in the manufacturing sector posted a 4.8-percent increase in 2005.