Productivity And Costs — 1996-12-05

The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity data--as measured by output per hour of all persons--for the third quarter of 1996. The seasonally-adjusted annual rates of productivity growth in the third quarter were: 0.0 percent in the business sector, and -0.3 percent in the nonfarm business sector. In the business sector, productivity was unchanged as a 2.1 percent output increase in the third quarter was accompanied by a nearly-equal increase (2.0 percent) in the hours of all persons engaged in the sector. Similarly, labor productivity in the nonfarm business sector fell as hours of all persons rose 2.1 percent, but output grew only 1.8 percent. 6.3 percent in manufacturing, 8.3 percent in durable goods manufacturing, and 3.9 percent in nondurable goods manufacturing. The third-quarter productivity increase in manufacturing occurred as output rose at a 5.6 percent rate and hours fell 0.7 percent. Output and hours in manufacturing, which includes about 18 percent of U.S.