Material Is Embargoed — 2003-08-07

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 2003. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 6.1 percent in the business sector and 5.7 percent in the nonfarm business sector. In the business sector, productivity grew as output rose 3.2 percent and hours dropped 2.7 percent. A similar pattern occurred in nonfarm businesses, output grew 3.4 percent and hours fell 2.2 percent. 4.2 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 4.4 percent in nondurable goods manufacturing. Manufacturing productivity grew 4.2 percent in the second quarter reflecting declines in output and hours of 2.1 and 6.1 percent, respectively. Output and hours in manufacturing, which includes about 15 percent of U.S. business- sector employment, tend to vary more from quarter to quarter than data for the aggregate business and nonfarm business sectors.