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Manufacturing multifactor productivity declined 1.4 percent in 2017

May 01, 2019

Multifactor productivity in manufacturing declined 1.4 percent in 2017. The decline reflected a 0.4-percent increase in manufacturing output and a 1.9-percent increase in combined inputs. The decrease in multifactor productivity followed a 2.8-percent decrease in 2016.

Percent change from previous year in manufacturing multifactor productivity and related measures, 1988–2017
Year Multifactor productivity Output Combined inputs

1988

2.3% 4.1% 1.8%

1989

-0.7 1.0 1.8

1990

-0.9 0.3 1.2

1991

-0.9 -1.8 -0.9

1992

-0.9 4.9 5.9

1993

2.3 3.6 1.3

1994

2.3 5.3 2.9

1995

1.9 4.1 2.1

1996

-0.1 4.2 4.2

1997

2.5 6.9 4.2

1998

1.0 4.7 3.7

1999

2.5 3.9 1.4

2000

3.1 2.8 -0.3

2001

-1.4 -4.2 -2.8

2002

2.5 0.4 -2.0

2003

5.2 1.0 -4.1

2004

2.5 2.2 -0.3

2005

0.7 4.0 3.2

2006

2.3 1.7 -0.6

2007

0.5 3.0 2.5

2008

0.6 -4.7 -5.3

2009

-3.7 -11.6 -8.2

2010

3.7 6.1 2.2

2011

-0.7 2.8 3.5

2012

-1.8 1.2 3.1

2013

-0.3 2.2 2.6

2014

0.7 1.3 0.6

2015

-1.3 -0.6 0.7

2016

-2.8 -0.1 2.8

2017

-1.4 0.4 1.9

Multifactor productivity is calculated by dividing an index of real output by an index of combined inputs of labor, capital services, energy, materials, and purchased business services.

Manufacturing output grew 0.4 percent in 2017, compared with a 0.1-percent decline in 2016. The 1.9-percent increase in combined inputs in 2017 was driven by a 1.1-percent growth in materials.

Multifactor productivity in manufacturing grew at an average annual rate of 0.6 percent from 1987 to 2017. Manufacturing output increased at an average annual rate of 1.6 percent, faster than the 0.9-percent average annual increase in combined inputs.

For the 2007–17 period, multifactor productivity in manufacturing declined at a 0.7-percent average annual rate. That compares with an increase of 1.8 percent during the 2000–07 period.

These data are from the Multifactor Productivity program. To learn more, see “Multifactor Productivity Trends in Manufacturing — 2017.” Also see our video that explains how we measure multifactor productivity.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Manufacturing multifactor productivity declined 1.4 percent in 2017 on the Internet at https://www.bls.gov/opub/ted/2019/manufacturing-multifactor-productivity-declined-1-point-4-percent-in-2017.htm (visited November 21, 2019).

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