Productivity And Costs — 2007-02-07

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 fourth quarter and for the full year 2006. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter, productivity increased 2.4 percent in the business sector and 3.0 percent in the nonfarm business sector. In both sectors, the fourth-quarter productivity increases reflected faster growth in output than in hours worked. When the annual averages for 2006 were compared with annual averages for 2005, productivity rose 2.2 percent in the business sector and 2.1 percent in nonfarm businesses--slightly less than the 2.3- percent gains in both sectors from 2004 to 2005. Manufacturing productivity grew at a 2.2-percent annual rate in the fourth quarter, as output fell, but hours fell faster.