Productivity And Costs — 2006-11-02

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 third quarter of 2006. The preliminary seasonally-adjusted annual rates of productivity growth in the third quarter were: 0.1 percent in the business sector and 0.0 percent in the nonfarm business sector. Productivity increased 0.1 percent in the business sector, as both output and hours grew 1.4 percent (seasonally adjusted annual rates). Nonfarm business productivity remained unchanged as output and hours both increased 1.6 percent (table A). 5.9 percent in manufacturing, 8.6 percent in durable goods manufacturing, and 2.0 percent in nondurable goods manufacturing. The 5.9-percent increase in manufacturing productivity reflected increases of 8.6 percent in durable goods manufacturing and 2.0 percent in the nondurable goods sector. Output and hours in manufacturing, which includes about 13 percent of U.S.