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Multifactor Productivity Trends in Manufacturing News Release

For release 10:00 am (EDT) Tuesday, April 23, 2019	USDL-19-0694
Technical information:	(202) 691-5606  •  mfpweb@bls.gov  • www.bls.gov/mfp 
Media contact:	        (202) 691-5902  •  PressOffice@bls.gov

	MULTIFACTOR PRODUCTIVITY TRENDS IN MANUFACTURING - 2017
	
Manufacturing sector multifactor productivity declined 1.4 percent in 2017, the
U.S. Bureau of Labor Statistics reported today. (See table A.) The multifactor
productivity decline in 2017 reflected a 0.4-percent increase in sectoral
output and a 1.9-percent increase in combined inputs. The decrease in
multifactor productivity followed a 2.8-percent decrease in 2016.

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 3.2 percent
in 2017. The decline reflected a 0.3-percent increase in sectoral output and a
3.7-percent increase in combined inputs. Nondurable manufacturing sector 
multifactor productivity increased 0.5 percent in 2017. The increase reflected
a no change 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 2017. The largest declines in multifactor productivity were in
the apparel, leather, and allied products industry and the transportation 
equipment industry. Printing and related support activities and petroleum and 
coal products industries showed the largest gains in multifactor productivity.
Sectoral output increased in 5 industries and combined inputs increased in 9
industries in 2017. (See table 3.)

Contributions take into account the relative importance of each industry to the
manufacturing sector multifactor productivity. Transportation equipment made
the largest negative contribution to manufacturing multifactor productivity.
Petroleum and coal products made the largest positive contribution to 
manufacturing multifactor productivity in 2017, partially offsetting the
overall productivity decline.

Trends in the manufacturing sector

Manufacturing sectoral output grew in 2017 with an annual increase of 0.4
percent compared to the 0.1-percent decline in 2016. The 1.9-percent increase
in combined inputs was driven by a 1.1-percent growth in materials. 
(See table 1.)

Multifactor productivity in the manufacturing sector grew at an average annual
rate of 0.6 percent from 1987 to 2017 with sectoral output increasing at an
average annual rate of 1.6 percent, faster than the 0.9-percent average annual
rate of increase in combined inputs. During the same period, labor productivity
grew at an average annual rate of 2.7 percent. (See table A.) Of the 
2.7-percent average annual increase in labor productivity, multifactor
productivity contributed 0.6 percentage points, capital intensity contributed
0.7 percentage points, intermediate inputs intensity contributed 1.1 percentage
points, and labor composition contributed 0.2 percentage points. (See table B.)

For the most recent 2007-17 period, multifactor productivity declined at a
0.7-percent average annual rate as compared to an increase of 1.8 percent
during the 2000-07 period. (See table A.) Sectoral output decreased at a
0.4-percent annual average rate and combined inputs rose at a 0.3-percent
annual average rate over the 2007-17 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 Comprehensive Update of the National Income and Product Accounts (NIPA) 
released on July 27, 2018 and the Gross Domestic Product by Industry data
released on November 1, 2018.

Over the 1987-2016 period, manufacturing multifactor productivity growth was
unrevised. It was previously reported as 0.7 percent. Revisions over the
1987-2016 period resulted in a 0.1-percentage point downward revision to
multifactor productivity in nondurable manufacturing, with a 0.1-percentage
point upward revision to multifactor productivity growth in durable
manufacturing.

In 2016, multifactor productivity in the manufacturing sector was revised
upward 0.4 percentage points, the upward revision was due to 0.8 percent and
0.5 percent downward revisions to combined inputs and sectoral output
respectively. Multifactor productivity was revised upward 1.0 percent in the
durable manufacturing sector and downward 0.3 percent in the nondurable
manufacturing sector. Materials were revised downward 4.3 percent in
manufacturing, 4.9 percent in durable manufacturing, and 1.4 percent in
nondurable manufacturing. (See table D.)

   Table A. Productivity, sectoral output, and inputs in the manufacturing
                    sector for selected periods, 1987-2017

                                                                               
Compound annual growth rates                                                   
                                                                               
                             1987-  1987-  1990-  1995-  2000-  2007-  2016-
                             2017   1990   1995   2000   2007   2017   2017 
                                                                               
  Productivity                                                                 
                                                                               
     Multifactor              0.6    0.2    0.9    1.8    1.8   -0.7   -1.4 
     productivity1                                                          
     Labor productivity2      2.7    1.7    3.3    4.6    4.3    0.5   -0.4 
     Output per unit of      -0.7   -0.8    0.6    0.3   -0.4   -2.1   -1.0 
     capital services                                                       
                                                                               
                                                                               
                                                                               
  Sectoral Output             1.6    1.8    3.2    4.5    1.1   -0.4    0.4 
                                                                               
  Inputs                                                                       
                                                                               
     Combined Inputs3         0.9    1.6    2.2    2.6   -0.6    0.3    1.9 
      Labor input4           -0.5    0.5    0.6    0.4   -2.4   -0.5    1.1 
        Hours                -1.1    0.1   -0.1   -0.1   -3.1   -0.9    0.8 
        Labor composition5    0.6    0.4    0.7    0.5    0.7    0.4    0.3 
      Capital Services        2.3    2.7    2.6    4.2    1.5    1.8    1.5 
      Energy                 -1.1    2.0    1.6   10.0   -5.6   -5.2  -15.3 
      Materials               1.5    0.5    3.3    3.8    0.2    0.6    1.1 
      Purchased business      1.0    5.4    3.1    1.3   -0.5   -0.3    8.5 
     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,
1987-2017 

                                                                               
 Compound annual growth rates                                                  
                                                                               
                           1987-  1987-  1990-  1995-  2000-  2007-  2016-
                           2017   1990   1995   2000   2007   2017   2017 
                                                                               
  Labor productivity1       2.7    1.7    3.3    4.6    4.3    0.5   -0.4 
                                                                          
                                                                          
                                                                               
    Contribution of         0.7    0.5    0.5    0.9    1.0    0.6    0.2 
    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    0.2 
       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   -0.1 
       services intensity                                                 
                                                                          
                                                                          
                                                                               
    Contribution of         1.1    0.9    1.6    1.7    1.3    0.5    0.8 
    Intermediate Inputs                                                   
    Intensity6                                                            
                                                                          
                                                                          
                                                                               
       Energy intensity7    0.0    0.1    0.0    0.3   -0.1   -0.1   -0.3 
                                                                          
                                                                          
                                                                               
       Materials            0.8    0.1    1.0    1.2    1.0    0.5    0.1 
       intensity8                                                         
                                                                          
                                                                          
                                                                               
       Purchased business   0.3    0.7    0.5    0.2    0.4    0.1    1.0 
       services                                                           
       intensity9                                                         
                                                                          
                                                                          
                                                                               
    Contribution of         0.2    0.1    0.2    0.2    0.2    0.1    0.1 
    labor composition10                                                   
                                                                          
                                                                          
                                                                               
    Multifactor             0.6    0.2    0.9    1.8    1.8   -0.7   -1.4 
    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
1987-2017 total, durable, and nondurable manufacturing sectors

                                                                               
Average annual growth                                                          
                                                                               
                                                                         
                                1987- 1987- 1990- 1995- 2000- 2007- 2016-
                                2017  1990  1995  2000  2007  2017  2017 
                                                                               
  Manufacturing                                                                
                                                                               
   Multifactor productivity1      0.6   0.2   0.9   1.8   1.8  -0.7  -1.4
   Labor productivity             2.7   1.7   3.3   4.6   4.3   0.5  -0.4
   Sectoral Output                1.6   1.8   3.2   4.5   1.1  -0.4   0.4
   Combined Inputs2               0.9   1.6   2.2   2.6  -0.6   0.3   1.9
   Capital Services               2.3   2.7   2.6   4.2   1.5   1.8   1.5
   Labor input3                  -0.5   0.5   0.6   0.4  -2.4  -0.5   1.1
   Energy                        -1.1   2.0   1.6  10.0  -5.6  -5.2 -15.3
   Materials                      1.5   0.5   3.3   3.8   0.2   0.6   1.1
   Purchased business services    1.0   5.4   3.1   1.3  -0.5  -0.3   8.5
                                                                               
  Durable Manufacturing                                                        
                                                                               
   Multifactor productivity1      1.3   0.7   1.2   3.0   2.5  -0.2  -3.2
   Labor productivity             3.1   2.0   4.4   6.0   4.5   0.4  -0.1
   Sectoral Output                2.1   1.9   4.2   6.7   1.3  -0.6   0.3
   Combined Inputs2               0.8   1.1   3.0   3.7  -1.2  -0.4   3.7
   Capital Services               2.1   2.5   2.2   5.3   1.1   1.2   0.9
   Labor input3                  -0.5   0.3   0.5   1.2  -2.4  -0.7   0.7
   Energy                        -2.1   1.3   0.8  10.3  -5.7  -7.7 -13.8
   Materials                      1.6   1.1   6.1   5.3  -1.2  -0.2   6.2
   Purchased business services    0.8   1.8   3.7   2.7   0.0  -1.4  11.1
                                                                               
  NonDurable Manufacturing                                                     
                                                                               
   Multifactor productivity1     -0.1  -0.4   0.4   0.0   0.7  -1.0   0.5
   Labor productivity             1.9   1.2   1.9   2.9   3.7   0.4  -1.6
   Sectoral Output                0.7   1.6   1.9   1.4   0.6  -0.3   0.0
   Combined Inputs2               0.9   2.1   1.5   1.4  -0.1   0.7  -0.5
   Capital Services               2.5   2.8   3.0   3.1   1.8   2.2   2.0
   Labor input3                  -0.6   0.9   0.8  -0.9  -2.4  -0.2   1.9
   Energy                        -0.4   2.6   2.2   9.9  -5.4  -3.9 -16.0
   Materials                      0.8   0.6   0.8   1.6   0.8   0.5  -3.4
   Purchased business services    1.3  10.0   2.5  -0.4  -1.2   1.0   5.9
                                                                               
 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 1987-2016

                                                                               
Average annual growth                                                          
                                                                               
                                                                               
                                1987- 1987- 1990- 1995- 2000- 2007- 2014- 2015-
                                2016  1990  1995  2000  2007  2016  2015  2016 
                                                                               
  Manufacturing                                                                
                                                                               
   Multifactor productivity1      0.0   0.0  -0.1   0.0   0.1   0.2   0.2   0.4
   Labor productivity             0.0   0.0   0.0   0.0   0.0   0.0   0.0  -0.4
   Sectoral Output                0.0   0.0   0.0   0.0   0.0   0.0   0.0  -0.5
   Combined Inputs2               0.0   0.0   0.0   0.0   0.0  -0.1  -0.2  -0.8
   Capital Services               0.1   0.0  -0.1   0.0   0.2   0.0  -0.2  -0.5
   Labor input3                   0.0  -0.1   0.0   0.1   0.0   0.1   0.0   0.1
   Energy                         0.4   0.1   0.0   3.4  -1.7   0.8   3.2  -1.7
   Materials                      0.1   0.1   0.1  -0.5  -0.1   0.4   1.6  -4.3
   Purchased business services   -0.7   0.1  -0.1   0.0   0.0  -2.2  -3.8   2.8
                                                                               
  Durable Manufacturing                                                        
                                                                               
   Multifactor productivity1      0.1   0.0  -0.1  -0.1   0.0   0.5   0.6   1.0
   Labor productivity             0.0   0.0   0.0   0.0   0.0   0.0  -0.1  -0.2
   Sectoral Output                0.0   0.0  -0.1   0.0   0.0   0.1   0.0  -0.4
   Combined Inputs2              -0.1   0.0   0.1   0.2   0.0  -0.4  -0.6  -1.4
   Capital Services               0.1  -0.1  -0.1  -0.1   0.2   0.3   0.4   0.0
   Labor input3                   0.0  -0.1   0.0   0.1   0.0   0.1  -0.1  -0.1
   Energy                        -0.1   0.1  -0.1   3.9  -1.1  -1.3   4.5 -10.5
   Materials                     -0.1   0.2   0.0   0.1   0.1  -0.5   1.2  -4.9
   Purchased business services   -0.7   0.1  -0.1   0.2   0.4  -2.7  -7.5   0.6
                                                                               
  NonDurable Manufacturing                                                     
                                                                               
   Multifactor productivity1     -0.1   0.0   0.0   0.2   0.1  -0.3  -0.2  -0.3
   Labor productivity             0.0   0.0   0.1   0.0   0.0   0.0   0.0  -0.6
   Sectoral Output                0.0  -0.1   0.0   0.0   0.0   0.1   0.0  -0.2
   Combined Inputs2               0.0   0.0   0.1  -0.2  -0.1   0.3   0.3   0.1
   Capital Services               0.1   0.0   0.0   0.1   0.3  -0.1  -0.6  -0.8
   Labor input3                   0.1   0.0  -0.1   0.0   0.1   0.2   0.2   0.4
   Energy                         0.6   0.1   0.0   3.1  -2.1   1.9   2.3   2.9
   Materials                      0.1   0.0   0.1  -0.9   0.0   0.9   1.1  -1.4
   Purchased business services   -0.7   0.0   0.1  -0.3  -0.5  -1.6   1.3   5.5
                                                                               
 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 February 1, 2018 
“Productivity and Costs” news release (USDL-18-0153). 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 http://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 2016 and earlier years are 
constructed primarily using data from the economic censuses and annual surveys
of the U.S. Census Bureau together with data data on 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 2017 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 http://www.bls.gov/mfp/mprdload.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 at http://www.bls.gov/mfp/mprtech.pdf. General 
information is available on the BLS Multifactor Productivity website at
http://www.bls.gov/mfp/mprover.htm. Additional data not contained in 
the release can be obtained in print or at http://www.bls.gov/mfp. A 
number of comprehensive tables set up as zip files can be obtained at
http://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 http://www.bls.gov/mfp/mprgul95.pdf.  


Table 1. Manufacturing sector: productivity and related measures for the       
           1987-2017 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   2.0     1.8      2.3    4.1   2.3     2.3   4.4   -1.9   8.7      1.8  
1989  -0.3    -1.6     -0.7    1.0   1.7     2.7  -0.5   -0.2   6.0      1.8  
1990   3.3    -2.6     -0.9    0.3  -2.3     2.9   2.1    3.7   1.6      1.2  
1991   1.9    -4.2     -0.9   -1.8  -3.0     2.6  -0.3   -0.9  -0.7     -0.9  
1992   5.9     2.4     -0.9    4.9  -0.1     2.4  -0.9   14.9   7.4      5.9  
1993   2.4     1.3      2.3    3.6   2.1     2.3   3.2   -0.1   0.7      1.3  
1994   2.8     2.8      2.3    5.3   3.2     2.4   3.5    2.4   3.7      2.9  
1995   3.5     0.8      1.9    4.1   1.1     3.3   2.5    1.2   4.6      2.1  
1996   4.2     0.1     -0.1    4.2   0.5     4.1  -2.8   11.3  -0.7      4.2  
1997   4.8     2.1      2.5    6.9   2.5     4.7  -2.2    6.3   3.8      4.2  
1998   4.4    -0.2      1.0    4.7   0.9     4.9   0.3    5.4   4.8      3.7  
1999   5.6    -0.1      2.5    3.9  -1.2     4.0  44.0   -0.2   0.5      1.4  
2000   4.1    -0.5      3.1    2.8  -0.6     3.3  17.6   -3.3  -1.9     -0.3  
2001   2.5    -6.4     -1.4   -4.2  -6.0     2.3  16.7   -8.4   2.4     -2.8  
2002   8.0    -1.0      2.5    0.4  -6.0     1.5 -34.2    8.6  -6.1     -2.0  
2003   6.2     0.1      5.2    1.0  -4.0     0.8 -17.9   -9.0   1.0     -4.1  
2004   2.9     1.7      2.5    2.2  -0.1     0.5   0.5    6.5 -13.8     -0.3  
2005   5.0     2.7      0.7    4.0  -0.5     1.3  18.1    4.9   7.1      3.2  
2006   1.2     0.0      2.3    1.7   0.8     1.7 -19.0   -3.5   5.3     -0.6  
2007   4.6     0.7      0.5    3.0  -0.7     2.4  10.4    4.4   2.2      2.5  
2008  -0.6    -7.6      0.6   -4.7  -3.0     3.2   4.7   -7.8 -17.1     -5.3  
2009   1.8   -12.8     -3.7  -11.6 -12.3     1.5 -25.5  -11.8  -1.2     -8.2  
2010   5.7     5.1      3.7    6.1   0.9     0.9  -4.3    4.5   2.9      2.2  
2011   0.7     1.5     -0.7    2.8   2.1     1.2   9.9    8.0  -4.0      3.5  
2012  -1.0    -0.3     -1.8    1.2   2.6     1.5   1.1    4.0   4.2      3.1  
2013   1.4     0.2     -0.3    2.2   1.0     2.1   4.2    4.2   0.8      2.6  
2014  -0.3    -0.9      0.7    1.3   1.9     2.2 -10.3    0.3  -1.0      0.6  
2015  -1.5    -2.4     -1.3   -0.6   1.1     1.9  -8.6   -0.1   1.7      0.7  
2016  -0.2    -1.8     -2.8   -0.1   0.6     1.8  -2.5    5.1   4.1      2.8  
2017  -0.4    -1.0     -1.4    0.4   1.1     1.5 -15.3    1.1   8.5      1.9  
                                                                               
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 2. Manufacturing sector: indexes of productivity and related measures,   
                                   1987-2017

Indexes 2012=100                                                               
                                                                               
      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
 1987    45.0   117.7    78.4  64.7  123.0  55.0   97.2  71.5    84.6     82.6
 1988    45.9   119.8    80.2  67.4  125.9  56.2  101.5  70.2    91.9     84.0
 1989    45.8   117.8    79.6  68.1  128.0  57.8  100.9  70.0    97.4     85.5
 1990    47.3   114.8    78.9  68.3  125.0  59.5  103.1  72.6    99.0     86.5
 1991    48.2   109.9    78.2  67.0  121.3  61.0  102.8  71.9    98.3     85.8
 1992    51.1   112.6    77.4  70.3  121.2  62.5  101.9  82.7   105.6     90.8
 1993    52.3   114.0    79.2  72.8  123.8  63.9  105.2  82.6   106.4     91.9
 1994    53.7   117.2    81.1  76.7  127.7  65.5  108.8  84.6   110.4     94.6
 1995    55.6   118.1    82.6  79.8  129.1  67.6  111.6  85.6   115.4     96.6
 1996    57.9   118.1    82.6  83.2  129.8  70.4  108.5  95.2   114.7    100.7
 1997    60.7   120.6    84.7  88.9  133.0  73.7  106.1 101.2   119.0    105.0
 1998    63.4   120.4    85.5  93.1  134.2  77.3  106.4 106.6   124.8    108.9
 1999    67.0   120.2    87.6  96.7  132.7  80.5  153.2 106.4   125.4    110.4
 2000    69.7   119.7    90.3  99.5  131.9  83.1  180.2 102.9   123.0    110.1
 2001    71.5   112.0    89.1  95.3  124.0  85.1  210.2  94.2   125.9    107.0
 2002    77.2   110.8    91.3  95.7  116.6  86.4  138.4 102.3   118.3    104.8
 2003    81.9   111.0    96.1  96.6  111.9  87.1  113.6  93.1   119.4    100.6
 2004    84.3   112.9    98.5  98.7  111.8  87.5  114.2  99.1   102.9    100.2
 2005    88.6   115.9    99.2 102.7  111.2  88.6  134.9 104.0   110.1    103.5
 2006    89.6   116.0   101.5 104.4  112.2  90.1  109.3 100.3   116.0    102.9
 2007    93.8   116.7   102.1 107.6  111.3  92.2  120.7 104.7   118.5    105.4
 2008    93.2   107.8   102.7 102.6  107.9  95.1  126.3  96.5    98.2     99.9
 2009    94.9    94.0    98.9  90.7   94.6  96.5   94.1  85.2    97.1     91.7
 2010   100.4    98.8   102.6  96.2   95.5  97.4   90.1  89.0    99.9     93.8
 2011   101.0   100.3   101.9  98.8   97.5  98.5   99.0  96.1    95.9     97.0
 2012   100.0   100.0   100.0 100.0  100.0 100.0  100.0 100.0   100.0    100.0
 2013   101.4   100.2    99.7 102.2  101.0 102.1  104.2 104.2   100.8    102.6
 2014   101.0    99.3   100.3 103.6  102.9 104.3   93.5 104.5    99.8    103.3
 2015    99.5    96.9    99.1 103.0  104.1 106.3   85.4 104.4   101.5    104.0
 2016    99.3    95.2    96.3 102.9  104.7 108.2   83.4 109.8   105.7    106.9
 2017    98.8    94.2    94.9 103.3  105.8 109.8   70.6 110.9   114.7    108.9
                                                                               
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, 1987-2017                                 

                                                                          
Compound annual growth rates                                              
                                                                          
                         1987-  1987-  1990-  1995-  2000-  2007-  2016-
                         2017   1990   1995   2000   2007   2017   2017 
                                                                        
  Manufacturing           0.6    0.2    0.9    1.8    1.8   -0.7    -1.4
                                                                        
                                                                        
  Nondurable             -0.1   -0.4    0.4    0.0    0.7   -1.0     0.5
    manufacturing                                                       
  Food, beverage, and    -0.3   -1.4    1.3   -1.4    0.7   -0.9    -0.6
    tobacco products                                                    
  Textile mills and       0.7    1.0    0.6    1.9    0.7   -0.1    -0.4
    textile product                                                     
    mills                                                               
  Apparel, leather, and  -0.3    0.0    2.6    0.1    1.9   -3.6   -10.8
    allied products                                                     
  Paper products          0.1   -0.3   -0.1    0.2    0.8   -0.2    -0.2
  Printing and related    1.0    0.3   -0.6    0.9    2.7    0.8     4.0
    support activities                                                  
  Petroleum and coal      0.5   -1.1    1.7    2.7    0.0   -0.3     1.8
    products                                                            
  Chemical products      -0.9   -0.8   -1.1   -0.2    0.9   -2.4     0.8
  Plastics and rubber     0.6    0.8    0.3    1.6    0.7    0.1     1.2
    products                                                            
                                                                        
                                                                        
  Durable manufacturing   1.3    0.7    1.2    3.0    2.5   -0.2    -3.2
  Wood products           0.1    1.2   -1.6   -0.6    0.8    0.5    -0.4
  Nonmetallic mineral     0.1    0.1    0.4   -0.1    0.1    0.0    -1.4
    products                                                            
  Primary metals          0.5    0.9   -0.2    1.1    0.5    0.6    -3.4
  Fabricated metal       -0.2   -0.2    0.7   -0.1    0.6   -1.3    -1.8
    products                                                            
  Machinery              -0.4    1.0   -2.2   -1.3    1.5   -0.8     0.1
  Computer and            6.4    4.9    9.1   13.1    6.6    2.3    -3.5
    electronic products                                                 
  Electrical equipment,  -0.8   -1.9   -2.5   -2.8    1.8   -0.5    -1.4
    appliances, and                                                     
    components                                                          
  Transportation          0.0   -1.4   -0.4    0.5    1.7   -0.9    -5.1
    equipment                                                           
  Furniture and related  -0.1   -0.8    0.2    0.2    0.1   -0.2    -0.3
    products                                                            
  Miscellaneous           0.7    2.2   -0.5    1.2    1.6   -0.1    -0.1
    manufacturing                                                       
                                                                        
                                                                        

Last Modified Date: April 23, 2019