Productivity And Costs — 2006-08-08

The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data--as measured by output per hour of all persons- -for the second quarter of 2006. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 1.1 percent in the business sector and 1.1 percent in the nonfarm business sector. These rates of growth are lower than those in the previous quarter. As revised, productivity increased 4.5 percent in the business sector and 4.3 percent in the nonfarm business sector in the first quarter of 2006. 3.0 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 2.6 percent in nondurable goods manufacturing. Manufacturing productivity grew 3.0 percent in the second quarter as output increased 5.4 percent and hours increased 2.3 percent (seasonally adjusted annual rates). Output and hours in manufacturing, which includes about 13 percent of U.S.