Material Is Embargoed — 2004-05-06

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 first quarter of 2004. The seasonally adjusted annual rates of productivity change in the first quarter were: 4.5 percent in the business sector and 3.5 percent in the nonfarm business sector. In both the business and nonfarm business sectors, productivity and output increased more in the first quarter than they had in the fourth quarter of 2003 (as revised) while the hours of all persons grew more slowly. 3.1 percent in manufacturing, 5.9 percent in durable goods manufacturing, and 0.1 percent in nondurable goods manufacturing. Productivity growth in manufacturing in the first quarter of 2004 reflected increases in both output and hours; output rose 5.8 percent and hours of all persons grew 2.7 percent (seasonally adjusted annual rates). Output and hours in manufacturing, which includes about 13 percent of U.S.