Productivity And Costs — 2006-12-05

The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity data--as measured by output per hour of all persons--for the third quarter of 2006. The seasonally adjusted annual rates of productivity growth in the third quarter were: 0.4 percent in the business sector and 0.2 percent in the nonfarm business sector. In both sectors, changes in productivity are higher than the preliminary estimates published November 2, as output was revised up more than hours (See table C). In manufacturing, revised productivity increases in the third quarter were: 6.7 percent in manufacturing, 9.0 percent in durable goods manufacturing, and 3.1 percent in nondurable goods manufacturing. Productivity growth in the manufacturing sector was revised up, reflecting an upward revision to output and no change to the previously- reported decrease in hours (table C). Output and hours in manufacturing, which includes about 13 percent of U.S.