Productivity growth in third quarter revised upward

Productivity in the nonfarm business sector—as measured by output per hour—grew at a revised seasonally adjusted annual rate of 6.3 percent during the third quarter of 2007. Productivity growth for the third quarter was originally estimated at 4.9 percent.

[Chart data—TXT]

Output in the nonfarm business sector increased at an annual rate of 5.7 percent in the third quarter; the original estimate was 4.3 percent. Hours of all persons engaged in the sector declined 0.6 percent; the original estimate was a 0.5-percent decline.

The productivity gain in the third quarter of 2007 was the largest since a 10.4-percent increase in the third quarter of 2003, and the growth in hours was the lowest since the second quarter of 2003 when hours fell 1.3 percent.

In the second quarter of 2007, productivity increased 2.2 percent, reflecting gains of 4.2 percent in output and 2.0 percent in hours.

These data are from the BLS Productivity and Costs program. Data in this report are seasonally adjusted annual rates. These estimates are subject to revision. Additional information is available in "Productivity and Costs, Third Quarter 2007, Revised" (PDF) (TXT), news release USDL 07-1848.