Productivity and Costs News Release — 2008-02-06

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 2007. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter of 2007, productivity increased 0.6 percent in the business sector, with output increasing 0.2 percent and hours decreasing 0.5 percent. In the nonfarm business sector, productivity rose 1.8 percent as output grew 0.4 percent and hours fell 1.5 percent. When the annual averages for 2007 were compared with annual averages for 2006, productivity rose 1.6 percent in the business and nonfarm business sectors--slightly more than the 1.0 percent gain in both sectors from 2005 to 2006. Manufacturing productivity grew at a 2.5 percent annual rate in the fourth quarter, as output fell but hours fell faster.