2008 Fourth Quarter (Preliminary) Productivity and Costs — 2009-02-05

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 fourth quarter and for the full year 2008. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: In the fourth quarter of 2008, productivity increased 3.1 percent in the business sector, with output and hours decreasing 5.2 percent and 8.1 percent, respectively. Output per hour for the nonfarm business sector rose 3.2 percent as output declined 5.5 percent and hours fell 8.4 percent. For the full year 2008 productivity rose 2.7 percent in the business sector and 2.8 percent in the nonfarm business sector. Manufacturing productivity decreased for the third consecutive quarter; output per hour fell at a 3.0 percent annual rate in the fourth quarter. The fourth-quarter decline was concentrated in the durable goods sector.