Material Is Embargoed — 2001-08-07

The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data--as measured by output per hour of all persons- -for the second quarter of 2001. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 2.8 percent in the business sector and 2.5 percent in the nonfarm business sector. In the business sector, productivity growth was the result of a drop of 2.7 percent in hours, while output showed no change. This same pattern occurred in nonfarm businesses, as hours fell 2.4 percent and output grew only 0.1 percent. -0.2 percent in manufacturing, 1.0 percent in durable goods manufacturing, and -2.3 percent in nondurable goods manufacturing. Manufacturing productivity fell 0.2 percent in the second quarter, after falling 3.6 percent (as revised) in the previous quarter. These were the first declines in manufacturing productivity since the second and third quarters of 1993, when labor productivity fell 0.3 and 0.6 percent, respectively.