Material Is Embargoed — 2005-02-03

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 2004. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter, productivity increased 2.5 percent in the business sector--about the same as in the third quarter, when it increased 2.4 percent (seasonally adjusted annual rates). In nonfarm businesses, productivity grew more slowly in the fourth quarter, 0.8 percent, than in the third quarter, when it rose 1.8 percent. On an annual average basis, productivity rose 4.0 percent in the business sector and 4.1 percent in the nonfarm business sector. Manufacturing productivity grew 5.6 percent in the fourth quarter. On an annual average basis, output per hour in the manufacturing sector posted a 4.9-percent increase in 2004. Output and hours in manufacturing, which includes about 13 percent of U.S.