2006 Multifactor Productivity Trends for Detailed Industries — 2008-08-29

Multifactor productivity -- defined as output per unit of combined inputs -- increased in almost three out of five four-digit NAICS manufacturing industries in 2006. More manufacturing industries experienced an increase in multifactor productivity over a longer period. From 1987 to 2006, multifactor productivity increased in almost two- thirds of manufacturing industries. This news release now covers two transportation industries, air transportation (NAICS 481) and line-haul railroads (NAICS 482111), that were previously published in separate reports. Multifactor productivity increased for both of these transportation industries in 2006 and over the longer term. Multifactor productivity indexes relate the change in output to the change in the combined inputs of labor, capital, and intermediate purchases consumed in producing that output. Multifactor productivity measures the joint influences on economic growth of a variety of factors, including technological change, returns to scale, enhancements in managerial and staff skills, changes in the organization of production, and other efficiency improvements.