2016 Multifactor Productivity Trends — 2017-03-30

(Note: The Bureau of Labor Statistics identified an error in the estimates of the contribution of intellectual property products (IPP) excluding research and development (R&D) to labor productivity and the contribution of capital services excluding information processing equipment (IPE) & IPP to labor productivity. This error affects Table B of Multifactor Productivity Trends � 2016. No other measures besides the measures listed above were affected by this error. The data in this release will not be corrected. For more information, please visit https://www.bls.gov/bls/errata/productivity-correction-11082017.htm.) Private nonfarm business sector multifactor productivity decreased at a 0.2-percent annual rate in 2016, the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.) This 2016 decline reflected a 1.7-percent increase in output and a 1.9-percent increase in the combined inputs of capital and labor. Capital services grew by 2.4 percent and labor input�which is the combined effect of hours worked and labor composition�grew by 1.6 percent.