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 1997. The seasonally-adjusted annual rates of productivity growth in the third quarter were:

4.0 percent in the business sector, and

4.1 percent in the nonfarm business sector.

The third-quarter increase in labor productivity in the nonfarm business sector was the largest since the fourth quarter of 1992.

In manufacturing, revised productivity increases in the third quarter were:

9.3 percent in manufacturing,

13.1 percent in durable goods manufacturing, and

5.2 percent in nondurable goods manufacturing.

The third- quarter productivity increase in manufacturing occurred as output rose at a 7.2 percent rate and hours of all persons working in the sector fell 1.9 percent. 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.

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.

Sector				Productivity	Output	Hours
Percent change from previous quarter
Business				 4.0	 3.8	—0.2
Nonfarm business			 4.1	 4.0	—0.1
Manufacturing				 9.3	 7.2	—1.9
Durable					13.1	12.1	—0.9
Nondurable				 5.2	 1.6	—3.4

Percent change from same quarter a year ago
Business				2.5	4.8	 2.2
Nonfarm business			2.4	4.7	 2.2
Manufacturing				4.6	5.2	 0.6
Durable					5.8	7.6	 1.7
Nondurable				3.3	2.4	—0.9

						Real		Unit
				Hourly		Hourly		Labor
Sector				Compensation 	Compensation	Costs
Percent change from previous quarter
Business				4.3	2.3		 0.3
Nonfarm business			3.9	1.9		—0.2
Manufacturing				3.4	1.4		—5.4
Durable					2.4	0.4		—9.5
Nondurable				5.0	2.9		—0.2

Percent change from same quarter a year ago
Business				3.8	1.6		 1.3
Nonfarm business			3.8	1.5	 	 1.3

Manufacturing				3.1	0.9		—1.4
Durable					2.4	0.2		—3.2
Nondurable				4.0	1.8		 0.7
Revised Measures

Productivity, output, and hourly compensation increases are smaller
than those reported on Nov. 13, based on the information available at that
time.

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				4.4	4.2	—0.2
Current					4.0	3.8	—0.2

Nonfarm Business
Previous				4.5	4.3	—0.1
Current					4.1	4.0	—0.1

Manufacturing
Previous				9.8	7.9	—1.7
Current					9.3	7.2	—1.9

						Real		Unit
				Hourly		Hourly		Labor
Sector				Compensation	Compensation	Costs
Percent change from previous quarter

Business
Previous				4.6	2.5	 	0.2
Current					4.3	2.3	 	0.3

Nonfarm Business
Previous				4.2	2.1		—0.3
Current					3.9	1.9		—0.2

Manufacturing
Previous				3.6	1.5		—5.7
Current					3.4	1.4		—5.4

December 4, 1997 U.S. Department of Labor

Statistics

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Consensus National Futures and Financial On Line Index

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