Productivity And Costs — 2007-11-07

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 2007. The preliminary seasonally- adjusted annual rates of productivity growth in the third quarter were: 5.3 percent in the business sector and 4.9 percent in the nonfarm business sector. In both sectors, the productivity gains were the largest since the third quarter of 2003, and reflected 4.3 percent per year growth in output combined with small declines in hours worked (See table A). 4.6 percent in manufacturing, 5.7 percent in durable goods manufacturing, and 4.1 percent in nondurable goods manufacturing. Manufacturing productivity grew faster in the third quarter than it had one quarter earlier. In the second quarter of 2007, a 2.4 percent gain in overall manufacturing productivity reflected a 5.2 percent increase in durable goods output per hour and a 0.8 percent decline in nondurable goods productivity, as revised.