2014 Multifactor Productivity Trends for Detailed Industries — 2016-09-20

Multifactor productivity rose in 38 of the 86 4-digit NAICS manufacturing industries in 2014, as well as in the two transportation industries that are measured, the U.S. Bureau of Labor Statistics reported today. This was down from 2013, when multifactor productivity increased in 47 manufacturing industries and in the two transportation industries. Multifactor productivity relates the change in real output to the change in the combined inputs of labor, capital, and intermediate purchases (energy, materials, and purchased services) used in producing that output. Multifactor productivity is also known as total factor productivity. A variety of factors that influence economic growth are not specifically accounted for among measured inputs, including: technological change, returns to scale, enhancements in managerial and staff skills, changes in the organization of production, and other efficiency improvements. Multifactor productivity reflects these factors.