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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.
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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.
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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.