Material Is Embargoed — 2004-11-04

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 2004. The preliminary seasonally-adjusted annual rates of productivity growth in the third quarter were: 2.3 percent in the business sector and 1.9 percent in the nonfarm business sector. Productivity increased 2.3 percent in the business sector, as output grew 4.2 percent and hours increased 1.9 percent. The 1.9-percent rise in nonfarm business productivity occurred as output rose 4.1 percent and hours rose 2.1 percent (table A). 4.3 percent in manufacturing, 5.0 percent in durable goods manufacturing, and 4.3 percent in nondurable goods manufacturing. The third-quarter increase in manufacturing productivity is much lower than the 8.3-percent rise reported for the previous quarter (as revised). Output and hours in manufacturing, which includes about 13 percent of U.S.