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Economic News Release
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Multifactor Productivity Trends in Manufacturing News Release

For release 10:00 a.m. (EDT) Tuesday, January 28, 2020	USDL-20-0136
Technical information:	(202) 691-5606 •  mfp@bls.gov  •  www.bls.gov/mfp
Media contact:	        (202) 691-5902 •  PressOffice@bls.gov

MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING - 2018

Manufacturing sector multifactor productivity declined 1.0 percent in 2018,
the U.S. Bureau of Labor Statistics reported today. (See chart 1, table A.)
The multifactor productivity decline in 2018 reflected a 0.6-percent decrease
in sectoral output and a 0.3-percent increase in combined inputs. The 
decrease in multifactor productivity followed a revised 0.3-percent 
increase in 2017. 

Multifactor productivity is calculated by dividing an index of real
sectoral output by an index of combined units of labor input, capital
services, and intermediate inputs. Multifactor productivity annual measures
differ from BLS quarterly labor productivity or output per hour measures 
because the former also includes information on capital services, shifts 
in the composition of the workforce, and intermediate inputs. 

Durable manufacturing sector multifactor productivity decreased 
1.1 percent in 2018. The decline reflected a 0.4-percent decrease
in sectoral output and a 0.7-percent increase in combined inputs. 
Nondurable manufacturing sector multifactor productivity decreased
0.5 percent in 2018. The decline reflected a 1.0-percent decrease 
in sectoral output and a 0.5-percent decrease in combined inputs.
(See table C, table 3.)
 
Among the 18 manufacturing industries, 13 experienced declines in multifactor
productivity in 2018. The largest declines in multifactor productivity were 
in the primary metal products and transportation equipment industries. 
Printing and related support activities and machinery industries showed the
largest gains in multifactor productivity. Sectoral output declined in 13 
industries; the fourth year in which at least half of manufacturing 
industries reported sectoral output declines. (See chart 2, table 3.) 

Trends in the manufacturing sector

Manufacturing sectoral output declined in 2018 with an annual decrease of 
0.6 percent compared to the 0.6-percent increase in 2017. Combined inputs 
increased 0.3 percent, the same increase as 2017. (See table 1.) 

Over the longer term, multifactor productivity in the manufacturing sector 
grew at an average annual rate of 0.9 percent from 1987 to 2018 with 
sectoral output increasing at an average annual rate of 1.5 percent, faster
than the 0.5-percent average annual rate of increase in combined inputs. 
During the same period, labor productivity grew at an average annual rate 
of 2.5 percent. (See table A.) Of the 2.5-percent average annual increase 
in labor productivity, multifactor productivity contributed 0.9 percentage 
points which represents about 40 percent of the growth in the 1987-2018
period. Capital intensity contributed 0.7 percentage points, intermediate
inputs intensity contributed 0.6 percentage points, and labor composition 
contributed 0.2 percentage points to the increase in labor productivity. 
(See table B.) 

For the more recent 2007-18 period, multifactor productivity declined at 
a 0.4-percent average annual rate compared to an increase of 1.7 percent 
during the 2000-07 period. (See table A.) Sectoral output decreased 
0.5-percent (average annual rate) and combined inputs decreased 0.1-percent
(average annual rate) over the 2007-18 period.

Revised measures

Annual rates of multifactor productivity and related series were revised 
historically for all three sectors. (See table D.) The revisions were a 
result of newly released historical series for energy, materials, and 
business services from the Bureau of Economic Analysis for the 1987-1997 
period, and incorporation of the 2017 Economic Census First Look data.

Over the 1987-2017 period, multifactor productivity in the manufacturing 
sector was revised up 0.4 percentage points to 1.0 percent. The upward 
revision was due to a 0.4-percentage point downward revision to intermediate
inputs stemming from the newly incorporated historical detail. The revisions
to the longer term reflect mostly revisions to the 1987-2000 period and the
more recent 2012-2017 period.  Revisions over the 1987-2017 period resulted
in a 0.1-percentage point upward revision to multifactor productivity in 
nondurable manufacturing (0.0 percent), with a 0.5-percentage point upward
revision to multifactor productivity growth (1.8 percent) in durable 
manufacturing. 

In 2017, multifactor productivity in the manufacturing sector was revised 
upward 1.7 percentage points to 0.3 percent. The upward revision was 
primarily due to a 1.6-percentage point downward revision to combined inputs.
Multifactor productivity was revised upward 3.5 percentage points in the 
durable manufacturing sector and downward 0.2 percentage point in the 
nondurable manufacturing sector. Materials were revised downward 8.7 
percentage points in manufacturing, 11.2 percentage points in durable 
manufacturing, and 3.9 percentage points in nondurable manufacturing. 
(See table D.)


Table A. Productivity, sectoral output, and inputs in the manufacturing
sector for selected periods, 1987-2018

                                                                               
Compound annual growth rates                                                   
                                                                               
                             1987-  1987-  1990-  1995-  2000-  2007-  2017-
                             2018   1990   1995   2000   2007   2018   2018 
                                                                               
  Productivity                                                                 
                                                                               
     Multifactor               0.9    0.8    1.7    2.2    1.7   -0.4   -1.0
     productivity1                                                          
     Labor productivity2       2.5    1.7    3.2    4.5    4.3    0.2   -2.6
     Output per unit of       -0.8   -0.9    0.5    0.2   -0.3   -2.2   -2.1
     capital services                                                       
 
  Sectoral Output              1.5    1.8    3.1    4.4    1.2   -0.5   -0.6
  
  Inputs                                                                       
  
     Combined Inputs3          0.5    1.0    1.5    2.1   -0.6   -0.1    0.3
      Labor input4            -0.4    0.5    0.7    0.5   -2.4   -0.3    1.9
        Hours                 -1.0    0.1   -0.1   -0.1   -3.1   -0.7    2.0
        Labor composition5     0.6    0.4    0.7    0.6    0.7    0.4   -0.1
      Capital Services         2.3    2.7    2.7    4.3    1.5    1.8    1.5
      Energy                  -2.1   -0.8   -2.6   10.9   -5.5   -5.4   -3.9
      Materials                0.5   -0.9    3.1    1.5    0.5   -0.7   -0.9
      Purchased business       0.4    3.9   -0.2    2.2   -0.4   -0.7   -2.0
      services                                                               
                                                                               
 1. Output per combined units of labor input, capital services, energy,        
    materials, and purchased business services.                                
 2. Output per hour worked.                                                    
 3. The growth rate of each input is weighted by its share of current dollar   
    costs.                                                                     
 4. Hours at work by age, education, and gender group are weighted by each     
    group's share of total wages.                                              
 5. Ratio of labor input to hours.                                             
                                                                               
Table B. Labor productivity and contributions of capital intensity,   
intermediate inputs intensity, labor composition, and multifactor productivity 
to labor productivity in the manufacturing sector for selected periods
, 1987-2018 

                                                                               
 Compound annual growth rates                                                  
                                                                               
                           1987-  1987-  1990-  1995-  2000-  2007-  2017-
                           2018   1990   1995   2000   2007   2018   2018 
                                                                               
  Labor productivity1       2.5    1.7    3.2    4.5    4.3    0.2   -2.6 
                                                                          
                                                                          
                                                                               
    Contribution of         0.7    0.5    0.5    0.9    1.0    0.6   -0.1 
    Capital Intensity2                                                    
                                                                          
                                                                          
                                                                               
       Information          0.1    0.1    0.1    0.2    0.1    0.0    0.0 
       processing                                                         
       equipment                                                          
       intensity3                                                         
                                                                          
                                                                          
                                                                               
       Research and         0.3    0.2    0.1    0.3    0.4    0.3    0.1 
       Development                                                        
       intensity4                                                         
                                                                          
                                                                          
                                                                               
       All Other            0.1    0.1    0.1    0.1    0.0    0.0    0.0 
       intellectual                                                       
       property products                                                  
       intensity5                                                         
                                                                          
                                                                          
                                                                               
       All other capital    0.3    0.2    0.2    0.3    0.5    0.2   -0.2 
       services intensity                                                 
                                                                          
                                                                          
                                                                               
    Contribution of         0.6    0.3    0.7    1.1    1.4   -0.1   -1.5 
    Intermediate Inputs                                                   
    Intensity6                                                            
                                                                          
                                                                          
                                                                               
       Energy intensity7    0.0    0.0   -0.1    0.3   -0.1   -0.1   -0.1 
                                                                          
                                                                          
                                                                               
       Materials            0.4   -0.3    0.8    0.5    1.0    0.0   -0.9 
       intensity8                                                         
                                                                          
                                                                          
                                                                               
       Purchased business   0.2    0.6    0.0    0.4    0.4    0.0   -0.5 
       services                                                           
       intensity9                                                         
                                                                          
                                                                          
                                                                               
    Contribution of         0.2    0.1    0.2    0.2    0.2    0.1    0.0 
    labor composition10                                                   
                                                                          
                                                                          
                                                                               
    Multifactor             0.9    0.8    1.7    2.2    1.7   -0.4   -1.0 
    productivity11                                                        
                                                                          
                                                                          
                                                                               
 1. Output per hour worked.                                                    
 2. Capital intensity multiplied by capital's share of current dollar          
    costs.                                                                     
 3. Information processing equipment per hour multiplied by its share of       
    current dollar costs.                                                      
 4. Research and development per hour multiplied by its share of current       
    dollar costs.                                                              
 5. Software and artistic originals per hour multiplied by its share of        
    current dollar costs.                                                      
 6. Intermediate inputs per hour multiplied by intermediate inputs' share of   
    current dollar costs.                                                      
 7. Energy per hour multiplied by energy’s share of current dollar costs.      
 8. Materials per hour multiplied by materials’ share of current dollar costs. 
 9. Purchased business services per hour multiplied by purchased business'     
    services' share of current dollar costs.                                   
 10. Labor composition multiplied by labor’s share of current dollar costs.    
 11. Output per combined units of labor input, capital services, energy,       
     materials, and purchased business services.                               
                                                                               
Table C. Multifactor productivity and related measures for selected periods 1987-2018
 total, durable, and nondurable manufacturing sectors

                                                                                     
Average annual growth                                                                
                                                                                     
                                                                         
                                1987- 1987- 1990- 1995- 2000- 2007- 2017-
                                2018  1990  1995  2000  2007  2018  2018 
                                                                                     
  Manufacturing                                                                      
                                                                                     
   Multifactor productivity1      0.9   0.8   1.7   2.2   1.7  -0.4  -1.0
   Labor productivity             2.5   1.7   3.2   4.5   4.3   0.2  -2.6
   Sectoral Output                1.5   1.8   3.1   4.4   1.2  -0.5  -0.6
   Combined Inputs2               0.5   1.0   1.5   2.1  -0.6  -0.1   0.3
   Capital Services               2.3   2.7   2.7   4.3   1.5   1.8   1.5
   Labor input3                  -0.4   0.5   0.7   0.5  -2.4  -0.3   1.9
   Energy                        -2.1  -0.8  -2.6  10.9  -5.5  -5.4  -3.9
   Materials                      0.5  -0.9   3.1   1.5   0.5  -0.7  -0.9
   Purchased business services    0.4   3.9  -0.2   2.2  -0.4  -0.7  -2.0
                                                                                     
  Durable Manufacturing                                                              
                                                                                     
   Multifactor productivity1      1.7   1.5   2.3   3.7   2.5   0.0  -1.1
   Labor productivity             2.9   2.0   4.5   5.9   4.5   0.2  -2.7
   Sectoral Output                2.0   1.9   4.3   6.7   1.3  -0.6  -0.4
   Combined Inputs2               0.3   0.3   1.9   2.8  -1.2  -0.6   0.7
   Capital Services               2.2   2.6   2.3   5.4   1.1   1.3   1.4
   Labor input3                  -0.4   0.3   0.5   1.3  -2.4  -0.4   2.1
   Energy                        -3.3  -2.6  -3.3  10.1  -5.7  -7.6  -4.9
   Materials                      0.4  -1.3   5.2   2.3  -1.2  -1.2   0.2
   Purchased business services    0.1   1.2   0.7   3.6   0.0  -2.1  -2.6
                                                                                     
  NonDurable Manufacturing                                                           
                                                                                     
   Multifactor productivity1      0.0  -0.2   0.6   0.0   0.6  -0.7  -0.5
   Labor productivity             1.7   1.2   1.8   2.9   3.7   0.1  -2.5
   Sectoral Output                0.7   1.7   1.8   1.4   0.6  -0.4  -1.0
   Combined Inputs2               0.7   1.9   1.2   1.4  -0.1   0.3  -0.5
   Capital Services               2.4   2.8   3.1   3.1   1.8   2.2   1.7
   Labor input3                  -0.5   0.8   0.9  -0.8  -2.4   0.0   1.6
   Energy                        -1.1   1.0  -1.8  11.7  -5.4  -3.9  -2.2
   Materials                      0.5   0.6   1.6   1.1   1.0  -0.5  -2.2
   Purchased business services    0.7   7.3  -1.0   0.7  -1.2   1.0  -1.0
                                                                                     
 1. Output per combined units of hours, capital services, energy, materials          
   ,and purchased business services.                                                 
 2. The growth rate of each input is weighted by its share of current dollar costs.  
 3. Hours at work by age, education, and gender group, weighted by each              
    group’s share of total wages.                                                    
                                                                                     
Table D. Difference between revised and previous multifactor productivity 
and related measures, for selected periods 1987-2017

                                                                                     
Average annual growth                                                                
                                                                                     
                                                                               
                                1987- 1987- 1990- 1995- 2000- 2007- 2015- 2016-
                                2017  1990  1995  2000  2007  2017  2016  2017 
                                                                                     
  Manufacturing                                                                      
                                                                                     
   Multifactor productivity1      0.4   0.6   0.8   0.4  -0.1   0.3   0.6   1.7
   Labor productivity            -0.1   0.0  -0.1  -0.1   0.1   0.0  -0.2   0.2
   Sectoral Output               -0.1   0.0   0.0  -0.1   0.1  -0.1  -0.1   0.2
   Combined Inputs2              -0.4  -0.6  -0.7  -0.5   0.0  -0.4  -0.7  -1.6
   Capital Services               0.1   0.0   0.1   0.1   0.0   0.0   0.2   0.1
   Labor input3                   0.0   0.0   0.1   0.1   0.0   0.0   0.1  -0.1
   Energy                        -0.9  -2.8  -4.2   0.9   0.1  -0.4  -5.9  12.0
   Materials                     -0.9  -1.3  -0.2  -2.3   0.3  -1.3  -2.0  -8.7
   Purchased business services   -0.6  -1.5  -3.3   0.9   0.1  -0.3   0.3   9.3
                                                                                     
  Durable Manufacturing                                                              
                                                                                     
   Multifactor productivity1      0.5   0.8   1.1   0.7   0.0   0.4   0.1   3.5
   Labor productivity             0.0   0.0   0.1  -0.1   0.0   0.1   0.0   0.4
   Sectoral Output                0.0   0.0   0.1   0.0   0.0   0.0   0.0   0.4
   Combined Inputs2              -0.5  -0.8  -1.1  -0.9   0.0  -0.4  -0.2  -3.3
   Capital Services               0.1   0.2   0.1   0.0   0.0   0.1   0.1   0.1
   Labor input3                   0.0   0.0   0.0   0.1   0.0   0.0   0.1  -0.2
   Energy                        -1.2  -4.0  -4.1  -0.2   0.0  -0.2   1.9  -1.4
   Materials                     -1.2  -2.4  -0.9  -3.0   0.0  -1.1  -1.1 -11.2
   Purchased business services   -0.7  -0.6  -3.0   0.9   0.0  -0.6   0.4   2.8
                                                                                     
  NonDurable Manufacturing                                                           
                                                                                     
   Multifactor productivity1      0.1   0.2   0.2   0.0  -0.1   0.2   0.9  -0.2
   Labor productivity             0.0   0.0  -0.1  -0.1   0.0   0.0  -0.2   0.1
   Sectoral Output                0.0   0.0  -0.1   0.0   0.0  -0.1  -0.1   0.1
   Combined Inputs2              -0.2  -0.2  -0.3   0.0   0.0  -0.3  -1.1   0.2
   Capital Services               0.0   0.0   0.1   0.0   0.0   0.0   0.3  -0.1
   Labor input3                   0.1  -0.1   0.1   0.1   0.0   0.0   0.2  -0.1
   Energy                        -0.6  -1.6  -4.0   1.8   0.0  -0.2  -9.7  19.9
   Materials                     -0.2   0.0   0.8  -0.5   0.2  -0.8  -1.7  -3.9
   Purchased business services   -0.6  -2.7  -3.5   1.1   0.0   0.1  -0.2  15.5
                                                                                     
 1. Output per combined units of hours, capital services, energy, materials          
   ,and purchased business services.                                                 
 2. The growth rate of each input is weighted by its share of current dollar costs.  
 3. Hours at work by age, education, and gender group, weighted by each              
    group’s share of total wages.                                                    
                                                                                     


Technical Notes

BLS includes a measure of the effects of changes in the composition of the
work force for manufacturing sectors and industries. Labor input in 
manufacturing sectors and NAICS industry groups is obtained by chained 
superlative Tornqvist aggregation of the hours at work, classified by 
age, education, and gender with weights determined by each group’s share
of total wages. The labor composition index estimates the effect of 
shifts in the age, education, and gender composition of the work force
on hours worked. 

Capital Services 

Capital services are the services derived from the stock of physical
assets and intellectual property assets. There are 90 asset types for
fixed business equipment, structures, inventories, land, and intellectual
property products. The aggregate capital services measures are obtained
by Tornqvist aggregation of the capital stocks for each asset type within
each of the eighteen manufacturing NAICS industry groupings using 
estimated rental prices for each asset type. Each rental price reflects 
the nominal rate of return to all assets within the industry and rates 
of economic depreciation and revaluation for the specific asset; rental
prices are adjusted for the effects of taxes. Data on investment for 
fixed assets are obtained from BEA. Data on inventories are estimated
using data from BEA and additional information from IRS Corporation Income
Returns. Data for land in the farm sector are obtained from USDA. Nonfarm
industry detail for land is based on IRS book value data. Current-dollar
value-added data, obtained from BEA, are used in estimating capital rental
prices.

Labor Input 

Labor input in manufacturing sectors and industries is obtained by chained
superlative Tornqvist aggregation of the hours at work, classified by age,
education, and gender with weights determined by each group’s share of 
total wages. The labor composition index estimates the effect of shifts in 
the age, education, and gender composition of the work force on hours worked.
Hours at work data reflect Productivity and Costs data as of the December 10,
2019 “Productivity and Costs” news release (USDL-19-2143). The growth rate of
labor composition is defined as the difference between the growth rate of 
weighted labor input and the growth rate of the hours.

The growth rate of labor composition in manufacturing may be underestimated 
due to limitations in the source data. The education proxy does not include 
training certifications and licensing. The proxy only includes number of years
of schooling.

Additional information concerning data sources and methods of measuring labor
composition can be found in “Changes in the Composition of Labor for BLS 
Multifactor Productivity Measures, 2014” (www.bls.gov/mfp/mprlabor.pdf).

Intermediate Inputs 

In manufacturing, intermediate inputs consist of energy, materials, and
purchased business services, and represent a large share of production costs.
Research has shown that substitution among inputs, including intermediate
inputs, affects productivity change. Therefore, it is important to account 
for intermediate inputs in productivity measures at the industry level. In 
contrast, the more aggregate productivity measures compare "value-added"
output with two classes of inputs, capital and labor. Because of these 
differences in concepts and methodology, productivity change in manufacturing
cannot be directly compared with changes in private business or private 
nonfarm business.  

Data on intermediate inputs are obtained from BEA based on BEA annual 
input-output tables. Tornqvist indexes of each of these three input classes
are derived at the three-digit NAICS level and then aggregated to the 
manufacturing sectors. Materials inputs are adjusted to exclude transactions
between establishments within the same sector.

Combined Inputs 
The five input indexes (capital services, labor, energy, materials, and 
purchased business services) are combined using chained superlative Tornqvist
aggregation, applying weights that represent each component's share of total
costs. Total costs are defined as the current dollar value of manufacturing
sectoral output. Most taxes on production and imports, such as excise taxes,
are excluded from costs; however, property and motor vehicle taxes remain in
total costs. 

Capital Intensity 
Capital intensity is the ratio of capital services to hours worked in the 
production process. The higher the capital to hours ratio, the more capital
intensive the production process is. 

In a production process, profit maximizing/cost-minimizing firms adjust the
factor proportions of capital and labor if the price of one factor falls 
relative to the price of the other factor; there would be a tendency for the 
firms to substitute the less expensive factor for the more expensive one. In
the short run, changes in hours worked are more variable than changes in 
capital services. Changes in hours worked in business cycles can result in 
volatility of the capital intensity ratio over short periods of time. In
the long run an increase in wages relative to the price of capital will 
induce the firm to substitute capital for labor, resulting in an increase
in capital intensity. Rising labor costs are, in fact, an incentive for 
firms to introduce automated production processes. Industry estimates 
of capital to hours ratios can be obtained at www.bls.gov/mfp/mprdload.htm.  

Sectoral Output 

The output concept used for multifactor productivity in manufacturing is 
“sectoral output”. Sectoral output equals gross output (sales, receipts,
and other operating income, plus commodity taxes plus changes in inventories),
excluding transactions between establishments within the same sector. 
In contrast, the output concept used for private business and private 
nonfarm business is “real value-added”. Real value-added output in private
business equals gross domestic product less general government, government
enterprises, private households (including the rental value of 
owner-occupied real estate), and non-profit institutions. Real value-added 
output excludes intermediate transactions between businesses.

The output index for manufacturing is constructed using a chained 
superlative index (Tornqvist) of three-digit NAICS industry outputs.
Industry output is measured as sectoral output, the total value of goods
and services leaving the industry. The indexes of industry output are 
calculated with the Tornqvist index formula. This index formula aggregates
the growth rates of the various industry outputs between two periods, 
using their relative shares in industry value of production averaged 
over the two periods as weights. 

Manufacturing industry output measures for 2017 and earlier years are 
constructed primarily using data from the economic censuses and annual
surveys of the U.S. Census Bureau together with data on price changes 
primarily from BLS. These measures have been revised due to new and revised
data from the Bureau of Economic Analysis, used in part to construct 
intra-industry transactions. Manufacturing industry output for 2018 is
estimated based on historical relationships between BLS sectoral output,
BLS price indexes, and data on industrial production from the Federal 
Reserve Board.

Multifactor Productivity 

The manufacturing multifactor productivity measures describe the 
relationship between output in real terms and the inputs involved in
its production. Multifactor productivity measures are not intended to 
capture the specific contributions of labor, capital, or intermediate 
inputs. Rather, they are designed to measure the joint influences on 
economic growth of technological change, efficiency improvements, returns
to scale, reallocation of resources and other factors of economic growth,
allowing for the effects of capital, labor, and intermediate inputs. The 
multifactor productivity indexes are derived by dividing an output index 
by an index of the combined inputs of labor, capital services, energy, 
non-energy materials, and purchased business services.

Other information 

Comprehensive tables containing more detailed data than that which is 
published in this press release are available upon request at 202-691-5606 
or at www.bls.gov/mfp/mprdload.htm. Industry specific contributions to 
output are available at www.bls.gov/mfp/contributions-to-output.htm.

More detailed information on methods, limitations, and data sources of capital
and labor are provided in BLS Bulletin 2178 (September 1983), Trends in 
Multifactor Productivity, 1948-81 and on the BLS Multifactor Productivity 
website under the title “Technical Information About the BLS Multifactor 
Productivity Measures” for Major Sectors and 18 NAICS 3-digit Manufacturing
Industries www.bls.gov/mfp/mprtech.pdf.

General information is available on the BLS Multifactor Productivity website
at www.bls.gov/mfp/mprover.htm. Additional data not contained in the release 
can be obtained in print or at www.bls.gov/mfp. A number of comprehensive 
tables set up as zip files can be obtained at www.bls.gov/mfp/mprdload.htm.
Methods for measuring manufacturing multifactor productivity are discussed
in the July 1995 issue of the Monthly Labor Review, "Measurement of 
productivity growth in U.S. manufacturing”. See www.bls.gov/mfp/mprgul95.pdf.


Table 1. Manufacturing sector: productivity and related measures for the       
  1987-2018 period                                           

Annual percent change from previous year                                       
                                                                               
     Productivity                Inputs                                        
                                                                               
              Output                                                           
              per      Multi-                                  Pur-     Com-   
              unit     factor Sec-          Capi-              chased   bined  
      Labor   of       pro-   toral         tal                busi-    units  
      produc- capital  ducti- out-          Ser-         Mate- ness     of all 
 Year tivity1 services vity2  put   Labor3  vices Energy rials services Inputs4
 1988   1.9     1.7      2.3    4.2   2.5     2.4   0.6   -1.5   6.3      1.9  
 1989  -0.1    -1.5      0.0    1.2   1.7     2.8   0.2   -2.1   4.3      1.2  
 1990   3.5    -2.9      0.0    0.0  -2.7     3.0  -3.2    1.1   1.3      0.0  
 1991   1.9    -4.2     -1.6   -1.8  -2.9     2.6  -5.9    4.2  -3.2     -0.2  
 1992   5.2     1.6      1.8    4.1  -0.1     2.5  -3.1    5.5   2.7      2.2  
 1993   2.5     1.3      3.6    3.7   2.1     2.4  -3.4   -1.7  -2.7      0.2  
 1994   2.9     3.0      1.4    5.6   3.3     2.5  -1.4    9.2   0.5      4.1  
 1995   3.7     0.8      3.3    4.3   1.2     3.5   0.9   -1.4   1.8      1.0  
 1996   3.9    -0.3      0.9    3.9   0.6     4.2  -3.1    6.0   0.8      2.9  
 1997   4.9     2.1      3.9    6.9   2.6     4.7   2.3   -0.3   7.3      2.8  
 1998   4.5    -0.2      0.9    4.8   0.9     5.0   0.4    6.1   4.8      3.9  
 1999   5.6     0.1      2.2    4.1  -0.9     4.0  44.7    0.9   1.0      1.9  
 2000   3.7    -0.8      3.3    2.6  -0.5     3.4  16.7   -4.8  -2.4     -0.7  
 2001   2.3    -6.6     -1.6   -4.4  -6.0     2.4  16.2   -7.9   1.7     -2.8  
 2002   8.4    -0.7      2.5    0.8  -6.0     1.5 -33.7    9.6  -5.1     -1.6  
 2003   6.5     0.4      4.9    1.3  -4.0     0.8 -17.3   -7.5   1.5     -3.5  
 2004   2.7     1.7      2.7    2.1   0.1     0.4   0.3    5.6 -13.9     -0.6  
 2005   5.1     2.7      0.7    3.9  -0.7     1.2  18.0    5.1   7.1      3.2  
 2006   1.0     0.0      2.4    1.6   0.9     1.6 -19.1   -4.1   5.0     -0.8  
 2007   4.6     0.7      0.6    3.0  -0.8     2.3  10.5    4.3   2.3      2.4  
 2008  -0.5    -7.5      0.1   -4.6  -2.8     3.2   5.1   -6.8 -16.8     -4.7  
 2009   1.3   -13.0     -3.6  -11.9 -12.0     1.2 -26.5  -12.7  -2.3     -8.6  
 2010   6.2     5.5      4.1    6.4   0.9     0.8  -3.2    4.3   3.6      2.2  
 2011   0.8     1.5     -0.5    2.7   1.9     1.3   9.9    7.4  -3.9      3.2  
 2012  -0.9    -0.2     -1.6    1.3   2.6     1.5   1.2    3.7   4.4      2.9  
 2013   1.1    -0.1     -0.1    1.9   0.9     2.1   3.5    3.1   0.2      2.0  
 2014  -0.4    -1.1      1.1    1.2   1.7     2.2  -8.1   -1.6  -0.6      0.0  
 2015  -1.8    -2.8     -1.0   -0.9   1.0     2.0 -19.5    2.5  -8.6      0.1  
 2016  -0.4    -2.1     -2.2   -0.2   0.6     2.0  -8.3    3.0   4.4      2.0  
 2017  -0.3    -0.9      0.3    0.6   1.0     1.5  -3.4   -7.6  17.9      0.3  
 2018  -2.6    -2.1     -1.0   -0.6   1.9     1.5  -3.9   -0.9  -2.0      0.3  
                                                                               
1. Output per hour worked.                                                     
2. Output per combined units of labor input, capital services, energy, material
   and purchased business services.                                            
3. Hours at work by age, education, and gender group, weighted by each group’s 
   share of total wages.                                                       
4. The growth rate of each input is weighted by its share of current dollar    
   cost.                                                                       
                                                                               
Source:  The Bureau of Labor Statistics (BLS) develops productivity measures   
         using output data published by the Bureau of the Census, U.S.         
         Department of Commerce, and modified by BLS. Compensation and hours   
         data are from the BLS. Capital measures are based on data supplied    
         by the BEA, U.S. Department of Commerce. See also Technical Notes in  
         this release.                                                         
                                                                               

Table 2. Manufacturing sector: indexes of productivity and related measures,   
1987-2018

Indexes 2012=100                                                               
                                                                               
      Productivity                  Inputs                                     
                                                                               
              Output                                                          
              per      Multi-                                 Pur-     Combine
              unit     factor Sec-         Capi-              chased   d_Input
      Labor   of       pro-   toral        tal                busi-    s_quant
      produc- capital  ducti- out-         Ser-         Mate- ness     ity_ind
 Year tivity1 services vity2  put   Labor3 vices Energy rials services      ex
 1987    45.1   118.2    72.7  64.8  122.2  54.8  124.3  83.5    98.3     89.1
 1988    45.9   120.3    74.4  67.5  125.3  56.1  125.0  82.2   104.5     90.8
 1989    45.9   118.5    74.4  68.3  127.4  57.7  125.3  80.5   109.0     91.9
 1990    47.5   115.1    74.4  68.3  124.0  59.4  121.2  81.4   110.4     91.9
 1991    48.3   110.2    73.2  67.1  120.3  60.9  114.0  84.8   106.9     91.8
 1992    50.8   112.0    74.5  69.9  120.2  62.4  110.4  89.5   109.7     93.8
 1993    52.1   113.4    77.1  72.5  122.6  63.9  106.6  88.0   106.8     93.9
 1994    53.6   116.8    78.2  76.5  126.6  65.5  105.1  96.0   107.3     97.8
 1995    55.6   117.8    80.8  79.8  128.1  67.8  106.1  94.7   109.2     98.8
 1996    57.8   117.4    81.5  82.9  128.9  70.6  102.8 100.4   110.1    101.7
 1997    60.6   119.8    84.7  88.6  132.3  73.9  105.2 100.1   118.1    104.5
 1998    63.3   119.6    85.5  92.8  133.4  77.7  105.6 106.2   123.8    108.6
 1999    66.9   119.7    87.4  96.7  132.2  80.8  152.8 107.2   125.0    110.6
 2000    69.4   118.8    90.3  99.1  131.5  83.5  178.3 102.1   122.0    109.8
 2001    71.0   110.9    88.8  94.8  123.6  85.5  207.2  94.0   124.1    106.7
 2002    77.0   110.2    91.0  95.6  116.2  86.8  137.4 103.0   117.7    105.0
 2003    82.0   110.6    95.5  96.8  111.5  87.5  113.7  95.3   119.5    101.4
 2004    84.2   112.6    98.1  98.8  111.6  87.8  114.0 100.6   102.9    100.8
 2005    88.5   115.5    98.8 102.7  110.8  88.9  134.6 105.7   110.2    104.0
 2006    89.4   115.5   101.1 104.3  111.8  90.3  108.9 101.4   115.8    103.2
 2007    93.5   116.3   101.7 107.5  110.9  92.4  120.3 105.7   118.4    105.6
 2008    93.1   107.6   101.8 102.5  107.7  95.3  126.4  98.6    98.4    100.7
 2009    94.2    93.6    98.1  90.3   94.8  96.5   92.9  86.0    96.2     92.0
 2010   100.1    98.8   102.1  96.1   95.6  97.3   89.9  89.7    99.7     94.1
 2011   100.9   100.2   101.6  98.7   97.5  98.5   98.8  96.4    95.8     97.1
 2012   100.0   100.0   100.0 100.0  100.0 100.0  100.0 100.0   100.0    100.0
 2013   101.1    99.9    99.9 101.9  100.9 102.1  103.5 103.1   100.2    102.0
 2014   100.6    98.8   101.0 103.1  102.6 104.3   95.2 101.4    99.5    102.0
 2015    98.8    96.0   100.0 102.2  103.7 106.4   76.6 104.0    90.9    102.2
 2016    98.4    94.0    97.8 102.0  104.4 108.5   70.2 107.2    94.9    104.3
 2017    98.2    93.1    98.1 102.6  105.4 110.2   67.9  99.0   111.8    104.6
 2018    95.6    91.1    97.1 101.9  107.5 111.8   65.2  98.1   109.6    104.9
                                                                               
1. Output per hour worked.                                                     
2. Output per combined units of labor input, capital services, energy, material
   and purchased business services.                                            
3. Hours at work by age, education, and gender group, weighted by each group’s 
   share of total wages.                                                       
4. The growth rate of each input is weighted by its share of current dollar    
   cost.                                                                       
                                                                               
Source:  The Bureau of Labor Statistics (BLS) develops productivity measures   
         using output data published by the Bureau of the Census, U.S.         
         Department of Commerce, and modified by BLS. Compensation and hours   
         data are from the BLS. Capital measures are based on data supplied    
         by the BEA, U.S. Department of Commerce. See also Technical Notes in  
         this release.                                                         
                                                                               

Table 3. Multifactor productivity measures for manufacturing industries   
         in selected periods, 1987-2018                                 

                                                                          
Compound annual growth rates                                              
                                                                          
                         1987-  1987-  1990-  1995-  2000-  2007-  2017-
                         2018   1990   1995   2000   2007   2018   2018 
                                                                        
  Manufacturing           0.9    0.8    1.7    2.2    1.7   -0.4    -1.0
                                                                        
                                                                        
  Nondurable              0.0   -0.2    0.6    0.0    0.6   -0.7    -0.5
    manufacturing                                                       
  Food, beverage, and    -0.2   -0.5    1.0   -1.5    0.7   -0.7    -0.3
    tobacco products                                                    
  Textile mills and       0.4    1.3    0.9    1.2    0.5   -0.3    -0.5
    textile product                                                     
    mills                                                               
  Apparel, leather, and  -0.2    0.7   -0.2   -0.5   -1.4    0.5    -1.4
    allied products                                                     
  Paper products          0.0   -0.8    0.0    0.2    0.8   -0.3    -0.3
  Printing and related    0.7    0.2   -0.3   -0.3    2.6    0.6     1.6
    support activities                                                  
  Petroleum and coal      0.5   -0.8    2.2    2.7   -0.1   -0.4    -2.1
    products                                                            
  Chemical products      -0.5   -0.5   -0.4   -0.3    1.0   -1.6     0.5
  Plastics and rubber     0.5    0.5    1.0    1.4    0.5   -0.1    -0.6
    products                                                            
                                                                        
                                                                        
  Durable manufacturing   1.7    1.5    2.3    3.7    2.5    0.0    -1.1
  Wood products          -0.2    0.0   -2.3   -1.1    0.9    0.3    -1.8
  Nonmetallic mineral     0.2    0.4    0.8   -0.2    0.1    0.2    -0.2
    products                                                            
  Primary metals          0.4   -0.4    0.1    1.6    0.6    0.1    -4.1
  Fabricated metal       -0.2   -0.5    0.6   -0.2    0.6   -0.9    -0.1
    products                                                            
  Machinery              -0.1    1.5   -1.6   -0.7    1.5   -0.7     1.3
  Computer and            6.2    4.7    8.8   12.5    6.5    2.4     1.2
    electronic products                                                 
  Electrical equipment,   0.1    0.1   -0.1   -0.9    1.5   -0.1    -1.1
    appliances, and                                                     
    components                                                          
  Transportation          1.1    0.6    2.4    2.7    1.8   -0.4    -2.4
    equipment                                                           
  Furniture and related  -0.1   -0.9    0.4    0.0   -0.1   -0.2    -0.1
    products                                                            
  Miscellaneous           0.8    3.8   -0.7    1.3    1.5    0.0     0.7
    manufacturing                                                       
                                                                        
                                                                        

Last Modified Date: January 28, 2020