Internet address: http://www.bls.gov/mprhome.htm Historical, technical USDL 01-125 information: (202) 691-5606 (Replaces USDL 01-82, Media contact: (202) 691-5902 issued April 10, 2001) For Release: 10:00 AM EDT Tuesday, May 3, 2001 MULTIFACTOR PRODUCTIVITY TRENDS, 1999 Private Business, Private Nonfarm Business, and Manufacturing (Incorporating Corrected Estimates for Manufacturing) From 1998 to 1999, multifactor productivity rose 0.8 percent in the private business sector and 0.6 percent in the private nonfarm business sector, the Bureau of Labor Statistics of the U.S. Department of Labor reported. Multifactor productivity is designed to measure the joint influences on economic growth of technological change, efficiency improvements, returns to scale, reallocation of resources, and other factors. Multifactor productivity, therefore, differs from the labor productivity (output per hour) measures that are published quarterly by BLS since it requires information on capital services and other data that are not available on a quarterly basis. Multifactor productivity increased for the eighth consecutive year in both the private business and private nonfarm business sectors, but at the lowest rates since 1995. The 1999 annual changes are summarized in tables A and C; further detail and historical measures are shown in tables 1 through 9. ------------------------------------------------------------------------------- This news release corrects errors in multifactor productivity published in USDL 01-82 on April 10, 2001. The errors were confined to measures for the manufacturing sector and manufacturing industries. The 1999 data for manufacturing output and materials were incorrect because of a programming error. There were also errors in the 1990-1995 trends in manufacturing for all variables in table C due to a posting error. The errors did not affect any data for private business or private nonfarm business, nor did they affect any data in the Productivity and Cost news releases. ------------------------------------------------------------------------------- In manufacturing, the increase in multifactor productivity for 1998-1999 was 2.9 percent. Multifactor productivity increased for the eighth consecutive year in manufacturing. In five of the last six years, productivity has advanced at the relatively rapid rate of at least 2 percent per year, a faster rate than in earlier periods (see table C). The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the private business and private nonfarm business series, and these measures are not directly comparable. See page 8 and the Summary of Methods for further information on data sources and methods. Chart 1 shows the annual indexes of multifactor productivity, output per hour worked, and output per unit of capital services for 1948-1999 for the private business sector. Over the last 50 years, capital services have grown more rapidly than hours in the private business sector. The skills of workers as measured by their education and worker experience have also risen over this period. These shifts toward more capital intensive production and to workers with more human capital have supplemented multifactor productivity growth. As a result, output per hour has usually grown at a faster rate than multifactor productivity. However, short-term fluctuations of multifactor productivity and output per hour generally move in the same direction. Private business and private nonfarm business In private business and private nonfarm business, the change in multifactor productivity reflects the difference between the change in real gross domestic product for the sector and the change in labor and capital inputs engaged in the production of this output. The output measures for private business and private nonfarm business are similar to the indexes of output for business and nonfarm business used in the quarterly labor productivity measures, but omit the output of government enterprises. A change in multifactor productivity reflects the change in output that cannot be accounted for by the change in combined inputs of labor and capital. In contrast, a change in labor productivity reflects the change in output that cannot be accounted for by the change in hours of all persons engaged in production. Changes in 1998-99 Private business sector Multifactor productivity rose 0.8 percent in 1999, the lowest rate of increase since 1995. Multifactor productivity has not declined since the recession year of 1991. The multifactor productivity gain in 1999 reflected a 4.8 percent increase in output and a 3.9 percent increase in the combined inputs of capital and labor. By comparison, in 1998, the rate of increase was 5.1 percent in output and 3.6 percent in combined inputs. In 1999, capital services grew by 6.4 percent, while labor input grew by 2.7 percent. The disparity between capital services growth and labor input growth was the largest since 1982 (table 4). In fact, capital services showed the steepest gain since the time series started in 1948-49. Equipment and inventories grew more rapidly than the other asset categories (table 7). Equipment posted its largest growth rate ever, 11.6 percent, since 1949. The growth in equipment has accelerated during the entire 1992-99 period. Labor input in 1999 continued to grow faster than the average for the 1990s. The growth rate of labor input reflects the growth rate of hours at work, adjusted for the effects of changing labor composition. Changes in hours at work reflect the combined effects of changes in the average work week and employment. In previous years, labor input followed a pattern of small declines in the work week and modest increases in labor composition. Labor input in 1999, however, reflected small increases in the work week as well as relatively large increases in labor composition. Employment continues to be the principal source of labor input growth. Employment rose 1.8 percent in 1999, accounting for two-thirds of the increase in labor input. Unlike multifactor productivity, labor productivity continued to grow at almost the same rate in 1999 as in 1998. Labor productivity (output per hour worked) increased 2.7 percent in 1999. Capital productivity (output per unit of capital services) fell 1.6 percent, the lowest rate since 1991. Capital services per hour jumped 4.3 percent, the largest gain since 1991. Table A. Productivity and related data, percent changes, 1998-99 Private Private Business1 Nonfarm Business1 Productivity Multifactor Productivity2 0.8 0.6 Output per hour of all persons 2.7 2.5 Output per unit of capital services -1.6 -1.8 Output 4.8 4.7 Inputs Labor input3 2.7 2.9 Hours 2.0 2.2 Labor Composition4 0.6 0.7 Capital services 6.4 6.6 Combined units of labor and capital inputs5 3.9 4.1 Analytic ratio: Capital services per hour of all persons 4.3 4.3 1. Excludes government enterprises. 2. Output per unit of combined labor and capital inputs. 3. Index of hours worked; hours worked by education and experience group are weighted by each group’s share of labor compensation. 4. Ratio of labor input to hours. 5. Labor input index combined with capital service input index, weighted by labor's and capital's shares of nominal output. Private nonfarm business Multifactor productivity in the private nonfarm business sector increased by 0.6 percent in 1999. This was the eighth consecutive year of growth, but the lowest rate since 1995. Output showed a 4.7 percent rate of growth. The growth of combined units of capital and labor inputs was 4.1 percent. By comparison, in 1998, the rate of increase was 5.2 percent in output and 3.7 percent in combined inputs. Labor input grew 2.9 percent in 1999; a little more than two-thirds of this growth was due to increased employment. Capital services growth continued to accelerate, increasing 6.6 percent in 1999, the largest gain since the series began in 1948. The fastest growing component of capital services was equipment, which posted its steepest gain ever (table 8). Labor productivity grew 2.5 percent in 1999. Capital productivity dipped 1.8 percent. In 1999, capital services per hour increased at its highest rate since 1991, posting a 4.3 percent gain. Long-term trends in private business and private nonfarm business Labor productivity (output per hour) differs from multifactor productivity (output per unit of combined capital and labor inputs) in the treatment of both capital and hours. Labor productivity measures do not explicitly account for the effects of capital or of changes in the composition of labor on output growth. As a result, changes in capital intensity (the capital-hours ratio) and labor composition can influence labor productivity growth. In contrast, multifactor productivity treats capital as an explicit factor of production, and, therefore, is net of changes in capital intensity. In addition, the labor input measure used to calculate multifactor productivity reflects the combined effects of changes in hours at work and of shifts in the educational attainment and in the experience of the work force. Therefore, multifactor productivity accounts for changes in labor composition as well. Long-term labor productivity growth can be viewed as the sum of three components: multifactor productivity growth, the contribution of increased capital intensity, and the contribution of shifts in labor composition (table B and chart 2). The contribution of capital intensity equals the change in the capital-hours ratio multiplied by capital's share of total payments to inputs. The contribution of labor composition equals the difference between the growth rate of labor input and the growth rate of hours multiplied by labor's share of total payments. Historically, capital's share has been slightly less than one-third of the total payments. From 1948 to 1999, output per hour grew at an annual rate of 2.5 percent in private business (table B). Of the 2.5 percent growth rate in labor productivity, 1.4 percent can be attributed to increases in multifactor productivity, 0.8 percent to the contribution of capital intensity, and 0.2 percent to changes in labor composition. The contribution of capital intensity is composed of the contribution of information processing equipment and software and of the contribution of other types of capital. Information processing equipment and software is composed of computers and related equipment, communications equipment, instruments and photocopying equipment, and software. Investment in these forms of capital were small prior to 1979 but has grown to nearly half of all investment in recent years. From 1948 to 1973, multifactor productivity grew at an average annual rate of 2.1 percent in private business. This rate, combined with the 1.0 percent contribution of capital intensity and the 0.2 percent contribution of labor composition, resulted in a labor productivity growth rate of 3.3 percent in private business. Table B and chart 2 show the post-1973 slowdown. During 1973 to 1979, gains in multifactor productivity slowed to 0.6 percent per year in private business. At the same time, the average annual contribution of capital intensity to labor productivity growth decreased to 0.7 percent, and labor composition made no contribution. Labor productivity, therefore, increased 1.3 percent per year from 1973 to 1979. Between 1979 and 1990, labor productivity increased 1.6 percent, slightly faster than the 1.3 percent growth in the 1973-79 period, but still a relatively slow rate of growth. All of the faster labor productivity growth was the result of changes in the composition of the work force, which went from a 0.0 percent rate in 1973-79 to a 0.3 percent rate of growth for 1979-90. Information processing capital began to play an increasingly important role during this period. These forms of capital contributed 0.5 percent per year to labor productivity growth, or nearly three-quarters of the 0.8 percent growth in the contribution of all capital services. From 1990 to 1995, labor productivity advanced at an annual rate of 1.5 percent in the private business sector. This was 0.1 percentage point less than in the 1979-90 period. The slower rate of growth was due to the decline in the rate of growth of the contribution of capital services, from 0.8 percent in 1979-90 to 0.5 percent in 1990-95. This lower rate of growth offset small increases in the rate of growth in multifactor productivity and in the contribution of labor composition for this period. Information processing capital became increasingly important during the 1990-95 period. During this period, information processing equipment contributed 0.4 percent per year to labor productivity growth, or 80 percent of the contribution of all capital. Table B. Compound average annual rates of growth in output per hour of all persons and the contributions of capital intensity, labor composition, and multifactor productivity, by major sector, 1948 to 1999 (percent per year) 1948-99 1948-73 1973-79 1979-90 1990-95 1995-99 Private business1 Output per hour of all persons 2.5 3.3 1.3 1.6 1.5 2.6 Contribution of capital intensity2 0.8 1.0 0.7 0.8 0.5 1.0 Contribution of information processing equipment and software3 0.3 0.1 0.3 0.5 0.4 0.9 Contribution of all other capital services 0.5 0.8 0.5 0.3 0.1 0.1 Contribution of labor composition4 0.2 0.2 0.0 0.3 0.4 0.3 Multifactor productivity5 1.4 2.1 0.6 0.5 0.6 1.3 Private nonfarm business1 Output per hour of all persons 2.2 2.9 1.2 1.4 1.6 2.4 Contribution of capital intensity2 0.8 0.8 0.7 0.8 0.5 1.0 Contribution of information processing equipment and software3 0.3 0.1 0.3 0.5 0.4 0.9 Contribution of all other capital services 0.5 0.7 0.5 0.3 0.1 0.1 Contribution of labor composition4 0.2 0.2 0.0 0.3 0.4 0.3 Multifactor productivity5 1.2 1.9 0.4 0.3 0.6 1.1 Contribution of R&D to multifactor productivity 0.2 0.2 0.1 0.2 0.2 0.2 1. Excludes government enterprises. 2. Growth rate in capital services per hour times capital's share of current dollar costs. 3. Growth rate of information processing equipment and software times its share of total costs. 4. Growth rate of labor composition (the growth rate of labor input less the growth rate of the hours of all persons) times labor's share of current dollar costs. 5. Output per unit of combined labor and capital inputs. Note: The sum of multifactor productivity and the contributions may not equal labor productivity due to independent rounding. During 1995-99, output per hour grew 2.6 percent per year in private business, 1.1 percentage points faster than during the 1990-95 period. Most of the larger growth can be attributed to faster multifactor productivity growth, which more than doubled from 0.6 percent to 1.3 percent per year. Larger contributions from information processing capital account for the remainder of the increase. Continuing the trend in substitution of information processing equipment for other forms of capital, information capital accounted for 90 percent of the contribution of all capital. The trends of the various measures in the private nonfarm business sector were similar to those in the private business sector in each period. So, the pattern of productivity slowdowns after 1973 and recoveries after 1979 seen in private business can also be seen in the private nonfarm business sector. Contribution of research and development to multifactor productivity in private nonfarm business While multifactor productivity reflects many influences, technological change is one of the primary contributors. For private nonfarm business, BLS also reports estimates of the impact on multifactor productivity growth from the effects of firms' spending for research and development (R&D) on all firms within the same industries. Because many people associate research and development spending and the resulting technological improvements with productivity, multifactor productivity has not been adjusted to exclude the effects of research and development. The contribution of research and development averaged 0.2 percent per year for the entire 1948-99 period, or nearly 15 percent of total multifactor productivity growth (table B). The contribution of research and development was 0.2 percent per year during the 1948-73 period, slowing to 0.1 percent during the 1973-79 period and returning to 0.2 percent for the periods 1979-90, 1990-95, and 1995-99. Manufacturing The multifactor productivity measures for manufacturing differ in several ways from those for private business and private nonfarm business in their treatment of labor input, output, and classes of factor inputs. First, the manufacturing measure of labor input is a direct aggregate of hours. This is in contrast to the major sector measures for which estimates of the effects of changing labor composition have been developed. Additionally, the output concept used for multifactor productivity in manufacturing is "sectoral output." Sectoral output is similar to gross output, but excludes shipments from one manufacturing establishment to another. The resulting multifactor productivity measure compares production in the manufacturing sector for use outside of manufacturing with the inputs used in the manufacturing process obtained from outside of manufacturing. The comparison excludes flows between manufacturing establishments from measures of both output and inputs. Finally, multifactor productivity in manufacturing compares "sectoral output" to three classes of inputs: 1) hours at work of labor employed within manufacturing; 2) capital services employed by manufacturing establishments; and 3) purchases of energy, materials, and business services from outside of manufacturing (intermediates). In manufacturing, intermediates are the largest input in terms of costs. Furthermore, research has shown that substitution among inputs, including intermediates, affects productivity change. It is therefore important to include intermediates in productivity measures at the level of manufacturing. In contrast, the more aggregate productivity measures compare "value-added" output with two classes of inputs, capital and labor. Because of these differences in methods, productivity change in manufacturing cannot be directly compared with changes in private business or private nonfarm business. Manufacturing productivity in 1999 and historical trends Multifactor productivity in manufacturing rose 2.9 percent in 1999 (table C). This was about the same rate as the 2.6 percent gain in 1998. Multifactor productivity grew 2 per cent or more in five of the last six years. These rates are much faster than the 1.2 percent per year rate averaged over the 1949-99 period. In 1999, the 2.9 percent gain in multifactor productivity was the result of a 3.7 percent advance in sector output less a 0.7 percent increase in combined inputs. Growth in output and combined inputs slowed markedly in 1999. Combined inputs growth was the slowest since a decline in 1991. Energy input grew for a second year in a row, rising 2.8 percent in 1999. Inputs of materials rose 0.3 percent in 1999, the smallest increase since a decline in 1987. Capital services continued to accelerate, posting a 5.2 percent advance, the largest increase since 1974. Hours fell for the second year in a row, declining 0.8 percent, the largest decline in hours since 1991. Multifactor productivity grew 1.2 percent annually from 1949 to 1999 (when the manufacturing series started). Sectoral output increased at a 3.3 percent annual rate, and combined inputs rose 2.1 percent per year (table C). Unlike the private business and private nonfarm business sectors, the productivity slowdown in manufacturing was confined to the 1973-79 period. Multifactor productivity, which had been growing 1.5 percent annually prior to 1973, fell 0.6 percent per year between 1973 and 1979. Output growth slowed to 2.5 percent, while combined inputs grew 3.1 percent over the 1973-79 time period. From 1979 to 1990, multifactor productivity growth in manufacturing rebounded sharply to 1.1 percent per year. Sectoral output growth continued to slow, and, in this period, all input growth rates also fell. Hours declined, and the growth rates for both capital services and materials fell sharply. As a result, combined inputs grew less than 1 percent annually. The rebound in productivity was associated mainly with slower growth in combined inputs. From 1990 to 1995, multifactor productivity growth advanced at about the same rate as in the previous decade. Multifactor productivity increased 1.2 percent per year during this period. Output growth increased to 3.1 percent per year, while combined inputs rose 1.8 percent annually. Hours declined 0.1 percent, less than in the previous period, and energy, materials, and purchased business services all grew much more rapidly than in the 1979-90 period. From 1995 to 1999, the multifactor productivity growth rate doubled to 2.5 percent per year. Sectoral output growth increased to 4.5 percent per year, while combined inputs continued to advance at about the same rate as in the early 1990s. Hours increased slightly during the 1995-99 period, but the increase in the growth rate of capital services, to 4.4 percent, was most notable. Among detailed manufacturing industries, durable goods manufacturers experienced considerably faster multifactor productivity gains than nondurable goods manufacturers (table 9). While little difference existed prior to 1979, the productivity gap widened thereafter, primarily due to the rapid productivity growth in the two machinery industries: industrial and commercial machinery and electronic and other electrical equipment. Table C. Productivity and related data in manufacturing, percent changes, 1949-99 (percent per year) 1949- 1949- 1973- 1979- 1990- 1995- 1998- 1999 1973 1979 1990 1995 1999 1999 Productivity Multifactor productivity1 1.2 1.5 -0.6 1.1 1.2 2.5 2.9 Output per hour of all persons 2.7 2.6 2.2 2.6 3.3 4.4 4.5 Output per unit of capital services -0.4 0.0 -2.1 -0.7 0.7 0.1 -1.5 Sectoral output 3.3 4.0 2.5 2.0 3.1 4.5 3.7 Inputs Hours2 0.6 1.4 0.3 -0.7 -0.1 0.1 -0.8 Capital services 3.7 4.0 4.7 2.7 2.4 4.4 5.2 Energy 2.7 4.9 0.8 0.3 1.8 0.2 2.8 Non-energy materials 2.9 2.3 6.2 1.7 3.7 4.1 0.3 Purchased business services 3.8 5.1 5.4 1.7 3.5 0.4 -1.4 Combined inputs3 2.1 2.4 3.1 0.8 1.8 2.0 0.7 1. Output per unit of combined hours, capital, energy, materials and purchased business services inputs. 2. Hours at work of all persons. 3. The growth rate of each input is weighted by its share of nominal costs. Note: Data in table C have been corrected. See box on page 1. Over the 1949-99 period, multifactor productivity advanced most rapidly in electronic and other electrical equipment, textile mill products, and industrial machinery. The printing and publishing industry was the only industry to experience a decline in multifactor productivity over the entire period. In the more recent period of 1995-99, multifactor productivity in electronic and other electrical equipment advanced 8.1 percent per year and it rose 6.9 percent per year in industrial machinery. Most information processing equipment is made within these two industries. Revisions The multifactor productivity data for 1998 and earlier years issued on Sept. 21, 2000, incorporated definition and classification changes in the National Income and Product Accounts (NIPAs). The data issued today reflect a number of revisions to source data. Private business and private nonfarm business output series reflect the annual revisions to the NIPAs, announced by the Bureau of Economic Analysis in August 2000. The hours data in this release incorporate the results of the 1999 Hours at Work survey. This survey is designed to measure the ratio of hours at work to hours paid for production and nonsupervisory employees in nonagricultural establishments. BLS converts hours paid from the Current Employment Statistics program to hours at work using data from this survey. The results from the 1999 Hours at Work survey can be found at http://www.bls.gov/lprhome.htm or in print. Labor composition measures have been updated through 1999. A brief description, entitled "Changes in the Composition of Labor for the BLS Multifactor Productivity Measures," is available at http://www.bls.gov/mprlabor.htm or in print. Small revisions to the manufacturing industry price indexes for 1993-98 have been incorporated. Comprehensive tables containing additional data beyond the scope of this press release are available upon request or at http://www.bls.gov/mprdload.htm. Summary of Methods The following note describes the major data sources and the procedures used in deriving BLS multifactor productivity indexes. More detailed information on methods, limitations, and data sources is provided in BLS Bulletin 2178 (September 1983), "Trends in Multifactor Productivity, 1948-81." Methods for measuring manufacturing multifactor productivity are discussed in William Gullickson, "Measurement of productivity growth in U.S. manufacturing," in the July 1995 issue of the Monthly Labor Review. Additional data not contained in the release can be obtained in print or at http://stats.bls.gov/mprhome.htm. This release presents data for the private business, private nonfarm business, and manufacturing sectors. The private business sector, which accounts for about 76 percent of gross domestic product, includes all of gross domestic product except the output of general government, government enterprises, non-profit institutions, the rental value of owner-occupied real estate, and the output of paid employees of private households. Additionally, the private nonfarm business sector excludes farms, but includes agricultural services. Manufacturing sector output is measured as the value of all production delivered to non-manufacturing industries plus deliveries to final demand. The private business, private nonfarm business, and manufacturing multifactor productivity measures describe the relationship between output in real terms and the inputs involved in its production. They do not measure the specific contributions of labor, capital, or any other factor of production. Rather, multifactor productivity is designed to measure the joint influences on economic growth of technological change, efficiency improvements, returns to scale, reallocation of resources due to shifts in factor inputs across industries, and other factors. Private business and private nonfarm business The multifactor productivity indexes for private business and private nonfarm business are derived by dividing an output index by an index of labor input and capital services. The output indexes are computed as chained superlative indexes (Fisher Ideal indexes) of components of real output. For the years 1948 to 1999, the Bureau of Economic Analysis (BEA) supplies the output indexes. BLS adjusts these to eliminate the output of government enterprises. Capital input measures the services derived from the stock of physical assets and software. The assets included are fixed business equipment, structures, inventories, and land. Among equipment, BLS provides additional detail for information processing equipment and software (IPES). IPES is composed of four broad classes of assets: computers and related equipment, software, communications equipment, and other IPES equipment. Computers and related equipment includes mainframe computers, personal computers, printers, video displays, and other related equipment. Software is comprised of pre-packaged, custom, and own-account software. Communications equipment is not further differentiated. Other IPES includes scientific and related equipment, photocopying and related equipment, and office and accounting equipment. Structures include nonresidential structures and residential capital that is rented out by profit-making firms or persons. Financial assets are excluded, as are owner-occupied residential structures. The aggregate capital measures are obtained by Tornqvist aggregation of the capital stocks for each asset type within each of 53 industries 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 investments in physical assets are obtained from BEA. Current-dollar gross product originating (GPO) data, obtained from BEA, are used in estimating capital rental prices. This news release makes use of revised GPO data, released by BEA in December 2000. Labor input in private business and private nonfarm business is obtained by Tornqvist-aggregation of the hours worked by all persons, classified by education, work experience, and gender with weights determined by their shares of labor compensation. Hours paid of employees are obtained from the Current Employment Statistics program. The hours at work of proprietors, unpaid family workers, and farm employees are derived from the Current Population Survey. The hours of employees are converted to an at-work basis by using the Hours at Work survey. 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 of all persons. Additional information concerning data sources and methods of measuring labor composition can be found in BLS Bulletin 2426 (December 1993), "Labor Composition and U.S. Productivity Growth, 1948-90." The labor and capital components of the input indexes are combined with (Tornqvist) weights that represent each component's share of total costs. Total costs are defined as the value of output (gross product originating) less a portion of indirect business taxes. Most indirect taxes, such as excise taxes, are excluded from costs; however, property and motor vehicle taxes remain in total costs. The index uses changing weights: The share in each year is averaged with the preceding year's share. Manufacturing sector and manufacturing industries The manufacturing multifactor productivity index is derived by dividing an output index by an index of combined hours, capital services, energy, materials, and purchased business services. The output index for total manufacturing is computed using a chained superlative index (Tornqvist) of 4-digit SIC industry outputs. Industry outputs are developed by BLS from data obtained from the Annual Survey of Manufactures (ASM) and the Census of Manufactures (CM) from the Bureau of the Census, U.S. Department of Commerce, together with Producer Price Indexes from BLS and price data from BEA. Labor input in manufacturing is measured as the sum of hours at work of all persons. The construction of hours at work follows the methods used in the private business sector described above, except that hours in manufacturing are directly aggregated and do not include the effects of changing labor composition. Capital inputs in manufacturing are measured using the same methods and data sources as capital services in private business. Energy input is constructed using costs and quantity data from the ASM, the CM, and the Manufacturing Energy Consumption Survey of the Energy Information Administration, U.S. Department of Energy, together with BLS Producer Price Indexes. The series on non-energy materials input also relies on ASM and CM data. Indexes of purchased business services are developed by BLS using input-output tables to estimate the proportion of costs attributed to nine types of services. Tornqvist indexes of each of these three input classes are developed at the 2-digit SIC level and then aggregated to total manufacturing. As with the sectoral output measures, materials and energy inputs are adjusted to exclude transactions between establishments within the same sector. The five input indexes (capital services, hours, energy, materials, and purchased business services) are combined using Tornqvist aggregation, employing weights that represent each component's share of total costs. Total costs are defined as the value of manufacturing sectoral output. The index uses changing weights: The share in each year is averaged with the preceding year's share. Research and development The stock of research and development in private nonfarm business is derived by cumulating constant dollar measures of research and development expenditures and allowing for depreciation. Current dollar expenditures for privately-financed research and development for the years 1953-99 are obtained from annual issues of Research and Development in Industry published by the National Science Foundation. BLS develops price deflators and estimates of the rate of depreciation. Further description of these data and methods can be found in BLS Bulletin 2331 (September 1989), "The Impact of Research and Development on Productivity Growth." Table 1. Private business sector: Productivity and related measures, 1948-991 Indexes 1996=100 Output Combined per Output Multi- units of Capital hour per factor Capital capital services of all unit of Product- Out- Labor Serv- and per hour of Year persons capital ivity2 put3 Input4 ices5 labor6 all persons 1948 31.1 107.8 51.5 18.6 51.1 17.3 36.2 28.8 1949 32.2 104.8 52.1 18.6 49.4 17.7 35.6 30.7 1950 35.0 111.0 55.9 20.5 50.3 18.4 36.6 31.5 1955 40.9 114.7 61.9 24.9 53.7 21.7 40.3 35.6 1960 45.6 111.1 65.3 27.5 54.0 24.8 42.2 41.1 1965 55.9 122.4 76.4 35.6 58.0 29.1 46.7 45.7 1966 58.2 123.7 78.7 38.1 59.5 30.8 48.3 47.0 1967 59.5 119.0 78.8 38.8 59.4 32.6 49.2 50.0 1968 61.4 119.8 80.9 40.7 60.3 34.0 50.4 51.2 1969 61.7 117.5 80.4 42.0 62.1 35.7 52.2 52.5 1970 63.0 112.3 80.3 42.0 61.0 37.4 52.3 56.1 1971 65.8 112.0 82.8 43.6 60.5 38.9 52.7 58.8 1972 68.0 114.6 85.3 46.5 62.6 40.6 54.6 59.3 1973 70.2 116.1 87.6 49.8 64.8 42.9 56.9 60.4 1974 69.0 108.4 84.4 49.0 65.2 45.2 58.1 63.6 1975 71.5 103.4 85.2 48.5 62.4 46.9 57.0 69.1 1976 74.1 107.1 88.4 51.9 64.2 48.4 58.7 69.1 1977 75.2 108.9 89.8 54.8 66.8 50.3 61.0 69.1 1978 76.1 110.9 91.0 58.2 70.2 52.5 64.0 68.6 1979 76.0 109.1 90.6 60.2 72.4 55.1 66.4 69.6 1980 75.8 102.7 88.6 59.4 71.9 57.9 67.1 73.8 1981 77.3 100.5 88.8 61.0 73.0 60.8 68.8 76.9 1982 77.2 93.6 86.1 59.3 71.7 63.3 68.9 82.4 1983 79.9 95.7 88.5 62.5 73.4 65.3 70.6 83.4 1984 82.2 99.7 91.4 68.1 77.7 68.3 74.5 82.4 1985 83.9 99.2 92.4 71.0 79.6 71.5 76.9 84.6 1986 86.5 98.8 93.8 73.6 80.5 74.6 78.5 87.6 1987 87.0 98.9 94.1 76.3 83.1 77.1 81.1 88.0 1988 88.1 100.2 94.7 79.6 86.3 79.4 84.0 87.9 1989 89.0 100.8 95.3 82.4 88.9 81.8 86.5 88.3 1990 90.2 99.5 95.4 83.6 89.4 84.0 87.6 90.6 1991 91.3 96.3 94.5 82.6 88.3 85.8 87.5 94.8 1992 94.8 97.8 96.6 85.7 89.3 87.6 88.7 96.9 1993 95.4 98.6 97.1 88.5 91.8 89.8 91.1 96.7 1994 96.6 100.3 98.1 92.8 95.6 92.5 94.6 96.3 1995 97.3 99.7 98.4 95.8 98.0 96.0 97.3 97.6 1996 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1997 102.2 100.3 101.2 105.2 103.5 104.9 104.0 101.9 1998 105.1 99.6 102.6 110.6 106.1 111.0 107.7 105.5 1999 107.9 98.1 103.5 115.8 108.9 118.1 111.9 110.0 See footnotes following table 6. Source: Bureau of Labor Statistics Table 2. Private nonfarm business sector: Productivity and related measures, 1948-991 Indexes 1996=100 Productivity Inputs Output Combined per Output Multi- units of Capital hour per factor Capital capital services of all unit of Product- Out- Labor Serv- and per hour of Year persons capital ivity2 put3 Input4 ices5 labor6 all persons 1948 35.1 117.4 56.3 18.0 44.1 15.3 31.9 29.9 1949 36.7 114.3 57.4 17.9 42.2 15.7 31.2 32.1 1950 39.1 120.7 60.9 19.7 43.7 16.4 32.4 32.4 1955 44.6 125.3 66.3 24.4 48.6 19.5 36.8 35.6 1960 48.7 120.8 69.2 27.2 50.1 22.5 39.3 40.3 1965 58.6 132.0 79.8 35.5 55.4 26.9 44.4 44.4 1966 60.7 133.4 82.1 38.0 57.2 28.5 46.3 45.5 1967 61.8 127.8 82.0 38.7 57.1 30.3 47.1 48.3 1968 63.8 128.6 84.2 40.8 58.2 31.7 48.4 49.6 1969 63.8 125.7 83.4 42.0 60.1 33.4 50.3 50.8 1970 64.9 119.6 82.9 41.9 59.3 35.1 50.6 54.3 1971 67.6 118.9 85.4 43.6 58.9 36.6 51.0 56.9 1972 69.9 121.5 88.0 46.6 60.9 38.4 52.9 57.6 1973 72.1 123.2 90.4 50.0 63.3 40.6 55.3 58.6 1974 71.0 114.7 87.2 49.2 63.7 42.9 56.4 61.9 1975 73.0 108.2 87.4 48.4 60.9 44.7 55.3 67.4 1976 75.8 112.4 90.9 51.9 62.8 46.2 57.1 67.4 1977 76.9 114.0 92.2 54.9 65.4 48.1 59.5 67.4 1978 77.8 116.1 93.5 58.4 68.8 50.3 62.5 67.0 1979 77.5 113.9 92.9 60.3 71.1 52.9 64.9 68.1 1980 77.3 106.9 90.8 59.6 70.7 55.7 65.6 72.3 1981 78.3 103.6 90.3 60.8 71.8 58.7 67.4 75.6 1982 78.0 96.1 87.3 59.0 70.6 61.4 67.5 81.2 1983 81.4 98.7 90.5 62.8 72.3 63.6 69.4 82.4 1984 83.2 102.3 92.9 68.1 76.7 66.6 73.3 81.4 1985 84.4 101.1 93.3 70.8 78.8 70.0 75.9 83.5 1986 87.1 100.4 94.7 73.5 79.8 73.2 77.6 86.7 1987 87.5 100.2 94.8 76.2 82.5 76.0 80.4 87.3 1988 88.6 101.5 95.5 79.7 85.9 78.5 83.5 87.3 1989 89.3 101.8 95.8 82.4 88.5 81.0 86.0 87.7 1990 90.3 100.3 95.7 83.5 89.2 83.3 87.3 90.0 1991 91.4 96.8 94.8 82.5 88.0 85.2 87.1 94.4 1992 94.8 98.1 96.7 85.5 89.0 87.1 88.4 96.6 1993 95.3 98.9 97.2 88.4 91.8 89.4 91.0 96.4 1994 96.5 100.4 98.1 92.6 95.4 92.3 94.4 96.2 1995 97.5 99.9 98.6 95.8 97.8 95.9 97.2 97.6 1996 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1997 102.0 100.0 101.0 105.1 103.6 105.1 104.1 101.9 1998 104.7 99.3 102.4 110.6 106.4 111.3 108.0 105.5 1999 107.3 97.6 103.0 115.8 109.5 118.7 112.4 110.0 See footnotes following table 6. Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity and related measures, 1949-99 Indexes 1996=100 Productivity Inputs Output Output Purchased Comb- per per Multi- Sect- Busi- inded hour unit factor oral Capital ness units of all of Product- Out- Hours Serv- Mater- serv- of all Year person capital ivity7 put8 9 ices5 Energy ials ices inputs10 1949 29.7 120.4 59.7 22.7 76.3 18.8 27.0 25.9 15.5 38.0 1950 30.1 127.7 62.8 24.9 82.5 19.5 28.3 25.5 18.1 39.6 1955 34.4 129.6 66.9 31.4 91.2 24.2 39.4 31.5 23.3 46.9 1960 37.1 118.8 68.3 32.9 88.8 27.7 48.0 32.1 25.9 48.2 1965 43.1 130.6 77.7 42.3 98.3 32.4 62.6 34.7 34.1 54.5 1966 43.5 130.8 78.0 45.6 104.7 34.8 67.1 36.9 38.5 58.4 1967 45.1 124.6 77.5 47.0 104.1 37.7 72.3 38.6 43.6 60.6 1968 46.7 124.9 79.9 49.3 105.6 39.5 76.9 39.0 43.5 61.7 1969 47.5 122.0 80.5 50.8 106.8 41.6 79.6 39.0 46.2 63.1 1970 48.1 111.5 79.2 48.3 100.5 43.4 79.8 37.7 44.6 61.0 1971 51.3 111.3 81.4 49.7 96.9 44.6 81.0 40.2 44.1 61.0 1972 53.4 117.5 84.4 54.1 101.3 46.1 83.2 43.2 47.1 64.2 1973 54.4 119.7 85.9 58.0 106.5 48.5 85.8 45.0 51.3 67.5 1974 54.3 110.2 81.3 56.5 104.1 51.3 88.2 49.2 54.9 69.6 1975 57.0 99.2 78.9 53.4 93.8 53.9 82.1 51.8 53.1 67.7 1976 59.3 104.2 81.7 58.3 98.3 56.0 85.2 56.2 54.4 71.4 1977 61.8 108.1 82.9 63.2 102.3 58.5 85.3 63.2 58.9 76.3 1978 62.4 109.1 83.5 66.5 106.6 61.0 86.4 66.1 62.3 79.6 1979 61.9 105.6 82.7 67.3 108.7 63.7 90.0 64.7 70.1 81.3 1980 62.1 96.5 81.3 64.4 103.7 66.7 86.4 63.0 67.2 79.2 1981 62.8 92.6 81.9 64.7 102.9 69.8 86.1 62.5 65.0 79.0 1982 66.1 86.5 83.3 62.1 94.0 71.9 77.8 60.9 56.3 74.6 1983 68.1 89.5 85.2 64.9 95.3 72.5 78.7 61.3 63.4 76.2 1984 70.5 96.1 87.8 71.5 101.5 74.5 83.7 67.6 67.4 81.5 1985 73.0 95.6 89.2 73.6 100.8 76.9 81.0 71.9 62.9 82.5 1986 76.2 95.9 90.7 75.7 99.3 78.9 81.7 73.5 67.0 83.5 1987 78.4 97.2 93.5 78.3 99.9 80.6 86.8 70.7 71.3 83.8 1988 80.0 100.2 95.2 82.2 102.8 82.0 90.2 72.0 77.7 86.4 1989 80.0 98.9 93.4 82.6 103.2 83.6 90.5 75.1 82.7 88.4 1990 82.3 97.2 93.3 83.2 101.1 85.6 93.4 77.6 84.7 89.2 1991 84.2 93.3 92.4 81.6 96.8 87.4 93.5 78.6 84.4 88.3 1992 88.7 95.7 94.0 85.5 96.4 89.3 93.4 83.9 91.7 91.0 1993 90.3 96.8 94.9 88.3 97.8 91.3 96.9 86.9 94.2 93.1 1994 93.1 99.6 97.3 93.0 99.9 93.3 100.2 90.3 96.2 95.6 1995 96.6 100.5 99.2 97.0 100.3 96.4 102.3 92.9 100.5 97.7 1996 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1997 104.3 101.8 103.5 106.1 101.7 104.2 97.0 101.5 104.8 102.5 1998 109.9 102.3 106.3 111.5 101.4 109.0 100.3 108.7 103.4 104.9 1999 114.9 100.8 109.4 115.6 100.6 114.6 103.2 109.1 102.0 105.7 See footnotes following table 6. Source: Bureau of Labor Statistics Note: Data in table 3 have been corrected. See box on page 1. Table 4. Private business sector: Productivity and related measures, 1948-99 Percent Change Output Combined per Output Multi- units of Capital hour per factor Capital capital services of all unit of Product- Out- Labor Serv- and per hour of Year persons capital ivity2 put3 Input4 ices5 labor6 all persons 1949 3.5 -2.8 1.2 -0.2 -3.3 2.7 -1.4 6.5 1950 8.8 5.9 7.3 10.1 2.0 3.9 2.6 2.7 1955 4.6 5.1 4.7 8.5 3.9 3.2 3.7 -0.4 1960 1.9 -1.1 0.6 1.8 0.5 2.9 1.3 3.0 1965 3.6 2.3 3.2 7.0 3.2 4.7 3.7 1.3 1966 4.1 1.1 3.1 6.8 2.6 5.7 3.6 3.0 1967 2.2 -3.8 0.1 1.9 -0.2 5.9 1.7 6.3 1968 3.2 0.7 2.6 5.1 1.6 4.4 2.5 2.5 1969 0.5 -1.9 -0.5 3.0 2.9 5.0 3.6 2.4 1970 2.2 -4.5 -0.2 0.0 -1.7 4.6 0.2 6.9 1971 4.4 -0.3 3.2 3.9 -0.8 4.2 0.7 4.7 1972 3.3 2.3 2.9 6.7 3.4 4.3 3.7 0.9 1973 3.2 1.3 2.8 7.0 3.5 5.6 4.2 1.9 1974 -1.6 -6.6 -3.6 -1.6 0.7 5.3 2.1 5.3 1975 3.5 -4.6 0.9 -1.0 -4.4 3.8 -1.9 8.6 1976 3.7 3.6 3.8 6.9 2.9 3.2 3.0 0.1 1977 1.6 1.7 1.6 5.7 4.0 3.9 4.0 -0.1 1978 1.1 1.8 1.2 6.2 5.2 4.3 4.9 -0.7 1979 -0.1 -1.6 -0.3 3.3 3.1 5.0 3.7 1.5 1980 -0.3 -5.9 -2.3 -1.2 -0.6 5.0 1.1 6.0 1981 2.0 -2.2 0.2 2.7 1.5 5.0 2.6 4.3 1982 -0.2 -6.8 -3.0 -2.9 -1.7 4.2 0.1 7.1 1983 3.5 2.3 2.8 5.4 2.3 3.1 2.5 1.2 1984 2.9 4.2 3.3 8.9 6.0 4.6 5.5 -1.2 1985 2.1 -0.5 1.1 4.3 2.4 4.8 3.1 2.6 1986 3.1 -0.5 1.6 3.7 1.1 4.3 2.1 3.6 1987 0.6 0.2 0.3 3.6 3.2 3.4 3.3 0.4 1988 1.2 1.3 0.7 4.3 3.9 3.0 3.6 -0.1 1989 1.0 0.6 0.6 3.5 2.9 2.9 2.9 0.5 1990 1.3 -1.2 0.2 1.5 0.6 2.7 1.3 2.6 1991 1.2 -3.3 -1.0 -1.1 -1.2 2.2 -0.1 4.6 1992 3.8 1.6 2.3 3.7 1.1 2.1 1.4 2.2 1993 0.6 0.8 0.5 3.2 2.8 2.5 2.7 -0.2 1994 1.3 1.8 1.1 4.9 4.1 3.1 3.8 -0.5 1995 0.8 -0.6 0.3 3.2 2.5 3.8 2.9 1.3 1996 2.8 0.3 1.6 4.4 2.1 4.2 2.8 2.5 1997 2.2 0.3 1.2 5.2 3.5 4.9 4.0 1.9 1998 2.8 -0.7 1.4 5.1 2.5 5.8 3.6 3.5 1999 2.7 -1.6 0.8 4.8 2.7 6.4 3.9 4.3 See footnotes following table 6. Source: Bureau of Labor Statistics Table 5. Private nonfarm business sector: Productivity and related measures, 1948-99 Percent Change Productivity Inputs Output Combined per Output Multi- units of Capital hour per factor Capital capital services of all unit of Product- Out- Labor Serv- and per hour of Year persons capital ivity2 put3 Input4 ices5 labor6 all persons 1949 4.5 -2.6 2.0 0.0 -4.2 2.7 -2.0 7.3 1950 6.7 5.6 6.0 10.0 3.6 4.2 3.8 1.0 1955 4.7 5.1 4.7 8.9 4.2 3.6 4.0 -0.4 1960 1.3 -1.3 0.5 1.7 0.4 3.1 1.2 2.7 1965 3.1 2.0 2.8 7.1 3.7 5.0 4.1 1.1 1966 3.5 1.1 2.9 7.2 3.3 6.1 4.2 2.5 1967 1.8 -4.2 -0.1 1.7 -0.2 6.2 1.8 6.3 1968 3.2 0.7 2.6 5.4 1.8 4.7 2.7 2.5 1969 0.1 -2.3 -0.9 3.0 3.3 5.4 3.9 2.5 1970 1.6 -4.9 -0.6 -0.1 -1.3 5.0 0.5 6.8 1971 4.2 -0.5 3.0 3.9 -0.7 4.4 0.8 4.8 1972 3.4 2.1 3.0 7.0 3.4 4.7 3.8 1.2 1973 3.2 1.4 2.8 7.4 3.9 5.9 4.5 1.8 1974 -1.5 -6.9 -3.6 -1.6 0.6 5.7 2.1 5.7 1975 2.8 -5.6 0.2 -1.8 -4.4 4.1 -2.0 8.9 1976 3.8 3.8 4.1 7.4 3.1 3.4 3.2 0.0 1977 1.5 1.5 1.4 5.7 4.2 4.1 4.2 0.0 1978 1.3 1.8 1.4 6.5 5.2 4.6 5.0 -0.5 1979 -0.4 -1.9 -0.7 3.2 3.3 5.2 3.9 1.5 1980 -0.3 -6.1 -2.3 -1.2 -0.5 5.3 1.1 6.2 1981 1.3 -3.1 -0.5 2.1 1.5 5.4 2.6 4.6 1982 -0.4 -7.3 -3.3 -3.1 -1.6 4.5 0.2 7.4 1983 4.4 2.8 3.6 6.5 2.4 3.6 2.7 1.5 1984 2.3 3.6 2.6 8.5 6.2 4.8 5.7 -1.3 1985 1.4 -1.1 0.5 3.9 2.7 5.1 3.5 2.6 1986 3.1 -0.7 1.5 3.9 1.3 4.6 2.3 3.8 1987 0.4 -0.2 0.1 3.6 3.4 3.8 3.5 0.6 1988 1.3 1.3 0.7 4.6 4.1 3.3 3.9 0.0 1989 0.8 0.2 0.3 3.4 3.0 3.1 3.1 0.5 1990 1.2 -1.5 0.0 1.4 0.8 2.9 1.4 2.6 1991 1.3 -3.4 -1.0 -1.2 -1.4 2.3 -0.2 4.9 1992 3.6 1.3 2.0 3.6 1.2 2.2 1.5 2.3 1993 0.6 0.8 0.5 3.5 3.1 2.6 3.0 -0.2 1994 1.3 1.5 1.0 4.7 3.9 3.2 3.7 -0.2 1995 1.0 -0.4 0.5 3.4 2.5 3.9 3.0 1.5 1996 2.5 0.1 1.4 4.4 2.3 4.3 2.9 2.5 1997 2.0 0.0 1.0 5.1 3.6 5.1 4.1 1.9 1998 2.7 -0.7 1.4 5.2 2.6 6.0 3.7 3.5 1999 2.5 -1.8 0.6 4.7 2.9 6.6 4.1 4.3 See footnotes following table 6. Source: Bureau of Labor Statistics Table 6. Manufacturing sector: Productivity and related measures, 1950-99 Percent Change Productivity Inputs Output Output Purchased Comb- per per Multi- Sect- Busi- inded hour unit factor oral Capital ness units of all of Product- Out- Hours Serv- Mater- serv- of all Year person capital ivity7 put8 9 ices5 Energy ials ices inputs10 1950 1.5 6.1 5.2 9.7 8.1 3.4 4.7 -1.4 16.8 4.3 1955 4.0 5.7 3.0 9.7 5.5 3.8 13.9 8.3 11.3 6.6 1960 2.2 -0.7 0.2 1.7 -0.4 2.4 1.9 4.2 1.6 1.5 1965 2.3 3.0 2.6 8.3 5.9 5.2 5.7 4.9 6.9 5.6 1966 1.1 0.2 0.4 7.7 6.5 7.4 7.3 6.3 12.9 7.2 1967 3.7 -4.8 -0.6 3.1 -0.6 8.2 7.8 4.5 13.4 3.7 1968 3.6 0.3 3.1 5.1 1.4 4.8 6.3 1.2 -0.2 1.9 1969 1.7 -2.3 0.8 2.9 1.2 5.3 3.5 -0.2 6.1 2.1 1970 1.2 -8.7 -1.6 -4.8 -5.9 4.2 0.3 -3.3 -3.4 -3.3 1971 6.7 -0.1 2.8 2.9 -3.6 3.0 1.5 6.7 -1.1 0.1 1972 4.1 5.6 3.6 8.9 4.6 3.2 2.7 7.3 6.7 5.1 1973 1.9 1.8 1.8 7.1 5.1 5.2 3.2 4.4 9.0 5.3 1974 -0.3 -7.9 -5.4 -2.5 -2.3 5.8 2.8 9.2 7.1 3.0 1975 4.9 -10.0 -2.9 -5.4 -9.9 5.1 -6.9 5.3 -3.3 -2.7 1976 4.2 5.0 3.5 9.2 4.8 3.9 3.8 8.4 2.4 5.4 1977 4.1 3.7 1.5 8.4 4.1 4.5 0.1 12.5 8.3 6.8 1978 1.0 0.9 0.8 5.2 4.2 4.3 1.2 4.6 5.7 4.4 1979 -0.8 -3.2 -1.0 1.1 1.9 4.5 4.2 -2.2 12.6 2.1 1980 0.4 -8.6 -1.7 -4.2 -4.6 4.7 -4.0 -2.5 -4.1 -2.6 1981 1.1 -4.1 0.7 0.4 -0.7 4.6 -0.4 -0.9 -3.4 -0.3 1982 5.2 -6.6 1.8 -3.9 -8.7 2.9 -9.6 -2.6 -13.3 -5.6 1983 3.0 3.5 2.2 4.4 1.4 0.9 1.1 0.7 12.6 2.1 1984 3.5 7.4 3.1 10.3 6.5 2.7 6.4 10.3 6.2 7.0 1985 3.6 -0.5 1.5 2.8 -0.8 3.3 -3.3 6.3 -6.6 1.3 1986 4.3 0.2 1.7 2.8 -1.4 2.6 0.8 2.3 6.5 1.2 1987 2.9 1.4 3.2 3.6 0.6 2.1 6.2 -3.8 6.4 0.4 1988 2.0 3.1 1.8 4.9 2.8 1.7 4.0 1.8 9.0 3.1 1989 0.1 -1.4 -1.8 0.5 0.5 1.9 0.2 4.3 6.4 2.4 1990 2.9 -1.7 -0.2 0.7 -2.1 2.4 3.2 3.3 2.5 0.9 1991 2.3 -4.0 -1.0 -2.0 -4.2 2.1 0.2 1.3 -0.4 -1.0 1992 5.3 2.6 1.7 4.8 -0.4 2.2 -0.1 6.8 8.6 3.1 1993 1.9 1.1 1.0 3.3 1.4 2.2 3.7 3.5 2.7 2.3 1994 3.0 2.9 2.5 5.3 2.2 2.3 3.4 3.9 2.2 2.7 1995 3.8 0.9 2.0 4.3 0.4 3.3 2.1 3.0 4.5 2.2 1996 3.5 -0.5 0.8 3.1 -0.3 3.7 -2.3 7.6 -0.5 2.4 1997 4.3 1.8 3.5 6.1 1.7 4.2 -3.0 1.5 4.8 2.5 1998 5.4 0.5 2.6 5.1 -0.3 4.6 3.4 7.1 -1.3 2.4 1999 4.5 -1.5 2.9 3.7 -0.8 5.2 2.8 0.3 -1.4 0.7 See footnotes following table 6. Source: Bureau of Labor Statistics Data in table 6 have been corrected. See box on page 1. Footnotes, Tables 1-6 Source: Output data are from the Bureau of Economic Analysis (BEA), U.S. Department of Commerce, and modified by the Bureau of Labor Statistics (BLS), U.S. Department of Labor. Compensation and hours data are from BLS. Capital measures are based on data supplied by BEA and the U.S. Department of Agriculture. See also Summary of Methods in this release. (1) The private business sector includes all of gross domestic product except the output of general government, government enterprises, non-profit institutions, the rental value of owner-occupied real estate, and the output of paid employees of private households. The private nonfarm business sector also excludes farms but includes agricultural services. (2) Output per unit of combined labor and capital inputs. (3) Gross domestic product originating in the sector, superlative chained index. (4) Index of the hours at work of all persons including employees, proprietors, and unpaid family workers classified by education, work experience, and gender. This superlative chain index is computed by combining changes in the hours of each education, experience, and gender group weighted by each group's share of labor compensation. (5) A measure of the flow of capital services used in the sector. (6) Labor input combined with capital input, using labor's and capital's shares of costs as weights to form a superlative chained index. (7) Sectoral output per combined units of capital, hours, energy, non-energy materials, and purchased business services. (8) Manufacturing gross output excluding transactions between manufacturing establishments, superlative chained index. (9) Hours at work of all persons. (10) Combined units of capital services, hours, energy, non-energy materials, and purchased business services, superlative chained index. Table 7. Real capital input by asset type, private business, 1948-99 Average annual growth rates (percent) 1948- 1948- 1973- 1979- 1990- 1995- 1998- 1999 1973 1979 1990 1995 1999 1999 All Assets 3.8 3.7 4.3 3.9 2.7 5.3 6.4 Equipment 5.9 5.5 6.9 5.6 4.4 9.4 11.6 All Information 11.6 9.8 13.3 14.2 8.5 17.5 21.7 equipment & Software Computers & 28.2 25.3 35.8 32.1 14.6 42.8 48.6 related equipment Software 21.4 28.2 13.2 16.1 13.4 17.9 23.3 Communications 8.6 10.0 7.9 8.2 4.1 7.6 9.6 equipment Other IPES 6.5 6.8 11.0 5.9 3.2 3.5 3.7 All other equipment 3.8 4.8 5.1 1.8 1.0 4.0 4.8 Structures 3.0 3.2 3.0 3.6 1.8 2.2 2.3 Residential rental 2.2 2.8 2.6 1.9 0.6 1.3 1.3 capital Inventories 3.5 4.2 3.5 2.2 2.6 4.2 3.9 Land 2.0 2.0 2.3 2.6 0.9 1.2 1.5 Source: Bureau of Labor Statistics Note: For a brief discussion of methods used in preparing these data, see Summary of Methods in this release. Table 8. Real capital input by asset type, private nonfarm business, 1948-99 Average annual growth rates (percent) 1948- 1948- 1973- 1979- 1990- 1995- 1998- 1999 1973 1979 1990 1995 1999 1999 All Assets 4.1 4.0 4.5 4.2 2.9 5.5 6.6 Equipment 6.0 5.6 7.0 5.9 4.6 9.5 11.8 All Information 11.6 9.8 13.3 14.2 8.5 17.5 21.8 equipment & software Computers & 28.2 25.3 35.8 32.1 14.6 42.8 48.6 related equipment Software 21.4 28.2 13.2 16.0 13.3 17.9 23.3 Communications 8.6 10.0 7.9 8.2 4.1 7.6 9.6 equipment Other IPES 6.5 6.8 11.0 5.9 3.2 3.5 3.7 All other equipment 3.9 4.8 5.1 2.0 1.2 4.1 4.9 Structures 3.1 3.3 3.0 3.7 1.9 2.2 2.4 Residential rental 2.3 2.8 2.6 1.9 0.6 1.3 1.3 capital Inventories 3.7 4.4 3.7 2.4 2.6 4.2 4.0 Land 2.7 2.8 3.3 3.5 1.1 1.4 1.8 Source: Bureau of Labor Statistics Note: For a brief discussion of methods used in preparing these data, see Summary of Methods in this release. Table 9. Manufacturing industries: Multifactor productivity trends, 1949-99 Average annual growth rates 1948- 1948- 1973- 1979- 1990- 1995- 1998- Industry 1999 1973 1979 1990 1995 1999 1999 Manufacturing 1.2 1.5 -0.6 1.1 1.2 2.5 2.9 Nondurable manufacturing 0.7 1.3 -0.5 0.3 0.4 0.5 0.3 Food and kindred products 0.5 0.7 0.1 0.4 0.7 -0.3 2.1 Tobacco manufactures N.A. N.A. N.A. N.A. N.A. N.A. N.A. Textile mill products 2.3 2.3 3.3 2.1 1.7 2.1 5.8 Apparel & related products 0.9 0.7 1.9 0.6 0.5 1.6 1.8 Paper and allied products 0.7 1.6 -1.2 0.0 0.2 1.3 1.2 Printing and publishing -0.2 0.5 -0.7 -0.9 -1.2 -0.8 -0.8 Chemicals & allied products 1.1 2.5 -2.6 0.7 -0.2 0.9 -0.9 Petroleum refining 0.4 0.8 -0.6 -0.1 0.3 0.8 -0.8 Rubber & misc. plastic products 0.8 1.0 -1.9 1.4 1.2 1.4 0.5 Leather & leather products N.A. N.A. N.A. N.A. N.A. N.A. N.A. Durable manufacturing 1.5 1.5 -0.6 1.8 2.0 4.0 4.9 Lumber and wood products 1.1 1.7 0.5 2.5 -1.7 -1.2 0.0 Furniture and fixtures 0.6 0.6 0.4 0.6 0.7 1.2 0.7 Stone, clay, glass & concrete products 0.8 1.1 -1.3 1.4 0.7 1.0 0.7 Primary metals industries 0.2 0.4 -2.3 0.3 0.7 2.0 3.8 Fabricated metals products 0.3 0.5 -1.0 0.5 0.9 -0.1 -0.9 Industrial & commercial machinery 1.9 0.7 0.1 3.2 3.1 6.9 7.8 Electronic & other electrical equipment 3.0 2.1 1.0 3.1 5.8 8.1 12.5 Transportation equipment 0.8 1.5 -0.6 0.1 0.5 1.3 0.6 Instruments 1.4 1.8 1.2 1.4 0.1 1.0 2.6 Miscellaneous manufacturing 0.9 1.5 -1.1 1.1 -0.3 0.7 1.9 N.A. - Multifactor productivity measures are not published because of the small size of the industry and data limitations. This industry is included in the aggregate for total manufacturing. Note: Multifactor productivity measures by industry are not directly comparable to measures for aggregate manufacturing because industry measures exclude transactions only within the specific industry while the aggregate manufacturing measures also exclude transactions between all manufacturing industries. Note: Data in table 9 have been corrected. See box on page 1.