wmeubank@ocp.kcmo.com
PRODUCTIVITY AND COSTS
Third Quarter 1997
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 third quarter of 1997. The preliminary seasonally-adjusted annual rates of productivity growth in the third quarter were:
4.4 percent in the business sector, and 4.5 percent in the nonfarm business sector.
In both the business and the nonfarm business sectors, productivity increases in the third quarter were the largest recorded since the fourth quarter of 1992.
In manufacturing, productivity increases in the third quarter were:
9.8 percent in manufacturing,
13.3 percent in durable goods manufacturing, and
5.7 percent in nondurable goods manufacturing.
The 9.8 percent rise in manufacturing productivity was the largest recorded since the second quarter of 1982. Output and hours in manufacturing, which includes about 18 percent of U.S. business sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors. Third-quarter measures are summarized in table A and appear in detail in tables 1 through 5.
The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System.
Productivity And Costs:
Preliminary Third-Quarter 1997 Measures
(Seasonally Adjusted Annual Rates)
Sector Productivity Output Hours Percent change from previous quarter Business 4.4 4.2 —0.2 Nonfarm business 4.5 4.3 —0.1 Manufacturing 9.8 7.9 —1.7 Durable 13.3 12.5 —0.7 Nondurable 5.7 2.5 —3.1 Percent change from same quarter a year ago Business 2.6 4.8 2.2 Nonfarm business 2.5 4.8 2.3 Manufacturing 4.7 5.4 0.7 Durable 5.9 7.7 1.7 Nondurable 3.4 2.6 —0.8 Real Unit Hourly Hourly Labor Sector Compensation Compensation Costs Percent change from previous quarter Business 4.6 2.5 0.2 Nonfarm business 4.2 2.1 —0.3 Manufacturing 3.6 1.5 —5.7 Durable 2.6 0.6 —9.4 Nondurable 5.0 2.9 —0.7 Percent change from same quarter a year ago Business 3.9 1.6 1.2 Nonfarm business 3.8 1.6 1.3 Manufacturing 3.1 0.9 —1.5 Durable 2.5 0.3 —3.2 Nondurable 4.0 1.8 0.6
Revised Measures
Current and previous measures for the second quarter of 1997 for the business, nonfarm business, and manufacturing sectors are compared in table B. In the business and nonfarm business sectors, the quarterly movements in output per hour and output are slightly lower, and unit labor costs correspondingly higher, than those reported on September 9 based on information then available. Productivity and output movements in the manufacturing sector were revised upward and unit labor costs revised downward, based on newer information from the Federal Reserve Board's Indexes of Industrial Production.
Revised Measures: Nonfinancial Corporations
Second quarter 1997 productivity and cost measures for nonfinancial corporations also were revised to incorporate more recent information than was available on September 9. Productivity, output, and unit profits were revised downward, while unit labor costs and the implicit price deflator were revised upward.
Previous And Revised Productivity
And Related Measures; Quarterly Percent Change
At Seasonally Adjusted Annual Rates
Sector Productivity Output Hours Percent change from previous quarter Business Previous 2.7 4.3 1.5 Current 2.4 3.9 1.5 Nonfarm Business Previous 2.7 4.2 1.5 Current 2.4 3.8 1.4 Manufacturing Previous 2.4 3.6 1.1 Current 2.8 3.9 1.1 Real Unit Hourly Hourly Labor Sector Compensation Compensation Costs Percent change from previous quarter Business Previous 3.2 2.1 0.4 Current 3.3 2.2 0.9 Nonfarm Business Previous 3.2 2.1 0.5 Current 3.3 2.2 0.9 Manufacturing Previous 2.6 1.5 0.1 Current 2.6 1.5 —0.2
November 13, 1997U.S. Department of Labor
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com