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Internet address: http://stats.bls.gov/mprhome.htm
Historical, technical USDL 99-36
information: (202) 606-5606 For Release: 10:00 AM EST
Media contact: (202) 606-5902 Thursday February 11, 1999
MULTIFACTOR PRODUCTIVITY TRENDS, 1997
Private Business, Private Nonfarm Business, and Manufacturing
The Bureau of Labor Statistics of the U.S. Department of
Labor today reported multifactor productivity data--output per
unit of combined labor and capital inputs--for 1997. Multifactor
productivity differs from the labor productivity (output per
hour) measures that are published quarterly by BLS. Multifactor
productivity, unlike labor productivity, requires information on
capital services and other data that are not available on a
quarterly basis.
In the most recent year available, multifactor productivity
in the private business and private nonfarm business sectors
changed at the following percentage rates:
1996-97
Private business 0.7
Private nonfarm business 0.4
CHART 1 GOES HERE, BUT IT IS OMITTED FROM THIS DOCUMENT
Chart 1 shows the annual indexes of multifactor productivity,
output per hour worked, and output per unit of capital services
for 1948-1997. Output per hour historically has grown at a
faster rate than multifactor productivity. This reflects changes
in the contribution of capital intensity (the capital-hours
ratio) and changes in the contribution of labor composition,
factors that are controlled for in the multifactor productivity
measures. However, the short-term fluctuations of multifactor
productivity and output per hour generally move in the same
direction.
Multifactor productivity increased for the sixth consecutive
year in both the private business and private nonfarm business
sectors. The 1997 annual changes are summarized in table A;
further detail and historical measures are shown in tables 1
through 8.
Table A. Productivity and related data, percent changes, 1996-97
Private
Private Nonfarm
Business1 Business1
Productivity
Multifactor Productivity2 0.7 0.4
Output per hour of all persons 1.5 1.2
Output per unit of capital services 0.3 0.0
Output 4.7 4.5
Inputs
Labor input3 3.7 3.9
Capital services 4.4 4.5
Combined units of labor and 3.9 4.1
capital inputs4
Analytic ratio:
Capital services per hour 1.2 1.2
of all persons
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. Labor input index combined with capital service input index,
weighted by labor's and capital's shares of nominal output.
Private business and private nonfarm business
For 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. The difference is that the output of
government enterprises is omitted. Multifactor productivity does
not measure the specific contributions of labor, capital, or any
other factor of production. Instead, it reflects the joint
effects of many factors, including new technology, economies of
scale, managerial skill, and changes in the organization of
production.
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 1996-97
Private business sector
Multifactor productivity rose 0.7 percent in 1997, after
having risen 1.7 percent in 1996 (tables 1 and 4). Multifactor
productivity has not declined since the recession year of 1991.
The multifactor productivity gain in 1997 reflected a 4.7 percent
increase in output and a 3.9 percent increase in the combined
inputs of capital and labor. The growth in output was the
largest since 1984.
In 1997, for the third year in a row, capital services grew
faster than labor input. Capital services accelerated to a
growth rate of 4.4 percent -- the steepest gain since 1985.
Equipment and inventories grew most rapidly (table 7). Equipment
posted its largest growth, 8.0 percent, since 1980. Labor input
growth was 3.7 percent, the largest increase since 1994. Most of
the rise in labor input was due to gains in employment (2.6
percent). Changes in the distribution of workers by educational
attainment and work experience accounted for 0.6 percent. The
remainder was due to a small increase in average weekly hours.
Labor productivity (output per hour worked) grew 1.5 percent
in 1997. Capital productivity (output per unit of capital
services) grew 0.3 percent. Capital services per hour posted a
gain of 1.2 percent.
Private nonfarm business
Multifactor productivity in the private nonfarm business
sector increased by 0.4 percent in 1997. This was the sixth
consecutive year of growth. Output rose 4.5 percent, and
combined units of capital and labor inputs advanced 4.1 percent.
The percentage increases in output and in combined inputs were
the highest since 1984. Labor input grew 3.9 percent; most of
this growth was due to increased employment. Capital services
grew 4.5 percent, the largest gain since the mid-1980s. The
fastest growing components of capital services were the services
of equipment and of inventories (table 7). Equipment posted its
steepest gain since 1980.
Labor productivity grew 1.2 percent in 1997. Capital
productivity showed no change. In 1997, capital services per
hour increased for the third straight year, posting a 1.2 percent
gain.
Long-term trends in private business and private nonfarm business
Labor productivity growth (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 shifts 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. However, multifactor productivity (MFP)
treats capital as an explicit factor of production, and so it is
computed net of changes in capital intensity. In addition, BLS
measures labor input as the combined effect of changes in hours
at work and shifts in the educational attainment and work
experience of the work force. Therefore, MFP is computed net of
changes in labor composition as well. Long-term labor
productivity growth (output per hour) 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
costs. 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 costs.
Historically, capital's share has been slightly less than one-
third of total costs.
From 1948 to 1997, output per hour grew at an annual rate of
2.3 percent in private business and 2.0 percent in private
nonfarm business (table B). Of the 2.3 percent growth rate in
labor productivity in private business, 1.3 percent can be
attributed to increases in multifactor productivity, 0.7 percent
to the contribution of capital intensity, and 0.2 percent to
changes in labor composition. (Note that the sum of multifactor
productivity and the contributions of capital intensity and labor
composition may not equal labor productivity due to independent
rounding.) The trends in the private nonfarm business sector
were similar.
Table B. Compound average annual rates of growth in output per
hour of all persons, the contributions of capital intensity,
labor composition, and multifactor productivity, by major sector,
1948 to 1997
(percent per year)
1948-97 1948-73 1973-79 1979-90 1990-97
Private business1
Output per hour of all persons 2.3 3.3 1.3 1.2 1.3
Contribution of capital 0.7 0.9 0.6 0.7 0.4
intensity2
Contribution of labor 0.2 0.2 0.0 0.3 0.4
composition3
Multifactor productivity4 1.3 2.1 0.5 0.2 0.5
Private nonfarm business1
Output per hour of all persons 2.0 2.9 1.1 1.0 1.2
Contribution of capital 0.7 0.8 0.6 0.7 0.4
intensity2
Contribution of labor 0.2 0.1 0.0 0.3 0.4
composition3
Multifactor productivity4 1.1 1.9 0.4 0.0 0.4
Contribution of R&D to 0.2 0.2 0.1 0.2 0.2
multifactor productivity
1. Excludes government enterprises.
2. Growth rate in capital services per hour times capital's share of
current dollar costs.
3. Growth rate of labor composition (the growth rate of labor input less
the growth rate of hours of all persons) times labor's share of
current dollar costs.
4. 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.
CHART 2 GOES HERE, BUT IT IS OMITTED FROM THIS DOCUMENT
From 1948 to 1973, multifactor productivity grew at an
average annual rate of 2.1 percent in private business and 1.9
percent in private nonfarm business. These rates, combined with
the growth rates of the contributions of capital intensity and
labor composition, resulted in labor productivity growth rates of
3.3 percent and 2.9 percent, respectively, in private business
and private nonfarm business.
The post-1973 productivity slowdown is apparent in chart 2.
During the period 1973 to 1979, gains in multifactor productivity
slowed to only 0.5 percent per year in private business. At the
same time, the average annual contribution of capital intensity
to labor productivity growth decreased to 0.6 percent, and labor
composition made no contribution. Labor productivity, therefore,
increased only 1.3 percent per year from 1973 to 1979. A similar
slowdown occurred in private nonfarm business during the 1973-79
period.
Between 1979 and 1990, multifactor productivity growth was
0.2 percent in private business and unchanged in private nonfarm
business. Output per hour, nevertheless, continued to advance at
almost the same rates as in the 1973-79 period. The contribution
of labor composition increased to 0.3 percent per year in both
sectors, essentially offsetting the decline in multifactor
productivity growth.
During the 1990-97 period, labor productivity advanced at an
annual rate of 1.3 percent in the private business sector and 1.2
percent in nonfarm business. However, the sources of labor
productivity shifted after 1990. The contribution of capital
services slowed from 0.7 percent per year during the 1979-90
period to only 0.4 percent per year in private business. As the
baby boom generation completed its entrance into prime working
age, the contribution of labor composition accelerated to 0.4
percent per year. Multifactor productivity grew 0.5 percent per
year. Trends in private nonfarm business were similar.
Contribution of R&D to multifactor productivity in private
nonfarm business
While MFP reflects many influences, it is generally believed
that technological change is one of the primary contributors.
For private nonfarm business, BLS also reports estimates of the
direct effects of firms' spending for research and development
(R&D) on MFP growth within their own industries. Because many
people associate R&D spending and the resulting technological
improvements with productivity, BLS has not adjusted MFP to
exclude the effects of R&D. The contribution of R&D averaged 0.2
percent per year for the entire 1948-97 period, accounting for
more than ten percent of multifactor productivity growth (table
B). The contribution of R&D was 0.2 percent during the 1948-73
period, slowed to 0.1 percent during the 1973-79 period, and
returned to 0.2 percent for the periods 1979-90 and 1990-97.
Manufacturing
The BLS multifactor productivity measures (MFP) for
manufacturing differ in several ways from those for private
business and private nonfarm business measures 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.
In addition, the output concept used for the data on
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 what is
produced 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, MFP 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 in this release compare "value-added" output with two
classes of inputs, capital and labor. Because of all these
differences in methods, productivity change in manufacturing
cannot be directly compared with changes in private business or
private nonfarm business.
Manufacturing productivity in 1996 and historical trends
Measures of multifactor productivity and related measures
have been revised to incorporate additional data not available
for the May 6, 1998, release. Manufacturing measures are now
benchmarked to the 1992 input-output table, and measures from
1988 through 1996 reflect this additional information. Other
revisions to manufacturing data are described on page 10.
Multifactor productivity in manufacturing rose 2.1 percent
in 1996 (table C). While multifactor productivity growth slowed
from the 3.9 percent rate recorded for 1995, the increase was
still larger than the average over the postwar period (tables 3
and 6).
Table C. Productivity and related data in manufacturing,
percent changes, 1949-96
(percent per year)
1949- 1949- 1973- 1979- 1990- 1994- 1995-
96 73 79 90 96 95 96
Productivity
Multifactor 1.2 1.5 -0.5 1.0 1.7 3.9 2.1
Productivity1
Output per hour 2.6 2.6 2.1 2.6 3.4 3.9 4.1
of all persons
persons
Output per unit -0.4 -0.1 -2.0 -0.9 0.9 1.5 0.2
of capital services
Sectoral Output 3.2 4.0 2.5 1.9 3.2 4.3 3.7
Inputs
Hours2 0.6 1.4 0.3 -0.7 -0.2 0.4 -0.4
Capital services 3.6 4.0 4.6 2.8 2.3 2.8 3.5
Energy 2.8 4.9 0.8 0.3 1.1 2.1 -2.3
Non-energy materials 2.6 2.3 5.9 1.7 2.4 -2.8 3.9
Purchased 4.2 5.1 5.5 1.9 3.3 2.9 0.6
business services
Combined inputs3 2.0 2.4 3.0 0.9 1.5 0.4 1.6
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.
In 1996, the 2.1 percent gain in multifactor productivity
was accompanied by a 3.7 percent advance in sector output and a
1.6 percent increase in combined inputs. Output growth was
similar to gains in recent years. The increase in combined
inputs was slightly below the postwar average. Energy use
declined 2.3 percent in 1996, the largest decrease since 1985.
Materials reversed its 1995 decline with a gain in 1996 of 3.9
percent. Capital services continued its strong growth, posting a
3.5 advance, the largest increase since 1981. Hours declined 0.4
percent.
Multifactor productivity grew 1.2 percent annually between
1949 and 1996. Sectoral output increased at a 3.2 percent annual
rate, and combined inputs rose 2.0 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 0.5 percent per year
between 1973 and 1979. Since the growth rate of combined inputs
did not increase much after 1973, the decline in the growth rate
of productivity was associated mainly with slower output growth.
Between 1979 and 1990, multifactor productivity growth in
manufacturing rebounded sharply to 1.0 percent per year.
Sectoral output growth continued to slow, and, in this period,
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 is associated mainly with slower growth
in combined inputs. Between 1990 and 1996, multifactor
productivity growth accelerated, exceeding the pre-1973 growth
rate. Multifactor productivity advanced 1.7 percent per year
during this period, primarily because output growth nearly
doubled to 3.2 percent per year while combined inputs rose only
1.5 percent annually. The decline in hours abated, and there was
a large increase in the growth rate of materials. Energy use
showed a modest gain of 1.1 percent per year after 1990.
Among detailed manufacturing industries, electrical and
electronic machinery and textile mills reported the largest long-
term gains in multifactor productivity (table 8). Over the 1949-
96 period, multifactor productivity fell gradually in the
printing and publishing industry. Since 1990, productivity in
electrical and electronic machinery has grown rapidly at 8.9
percent per year. Industrial and commercial machinery also has
posted large productivity gains of 4.6 percent annually.
Revisions
Beginning with the May 6, 1998, release of these data,
historical data for multifactor productivity in all sectors and
industries reflect several important changes and revisions to the
data sources used to develop these series. As announced in the
May 6, 1998, Multifactor Productivity Trends, the measures
reflect new work by the Bureau of Economic Analysis (BEA), U.S.
Department of Commerce, on fixed reproducible tangible wealth.
(These new measures are described in an article by Arnold Katz
and Shelby Herman, "Improved Estimates of Fixed Reproducible
Tangible Wealth, 1929-95," in the May 1997 Survey of Current
Business.) BLS uses the BEA data on investment spending (updated
by BEA in September 1998) in estimating capital services. In
addition to data revisions, BEA also expanded the detail
available on office, accounting, and computer equipment. BEA
also used new empirical evidence on economic depreciation in
revising its wealth estimates. BLS adjusted its service-life
estimates of non-residential capital for consistency with this
new evidence. A description of the revisions (released May 1998)
to the capital measures, entitled "Revisions to Capital Inputs
for the BLS Multifactor Productivity Measures," is available upon
request and can be found on the BLS web site at
http://stats.bls.gov/mprcaptl.htm. A printed version of this
paper may be requested by calling (202) 606-5606.
Private business and private nonfarm business output series
reflect the annual revisions to the National Income and Product
Accounts (NIPAs) announced by the Bureau of Economic Analysis in
July 1998. Hours data have been revised to reflect the annual
benchmarking of employment derived from the BLS Current
Establishment Statistics survey.
The hours data in this release incorporate the results of
the 1997 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 1997 Hours at Work survey can be found on the
web at http://stats.bls.gov/lprlabor.htm or in print.
Labor composition measures have been updated through 1997.
A brief description, entitled "Changes in the Composition of
Labor for the BLS Multifactor Productivity Measures, 1997," is
available on the BLS website at http://stats.bls.gov/mprlabor.htm
or in print.
Manufacturing transactions now reflect data available from
the 1992 input-output table. Incorporating this table resulted
in revised data on sectoral output, nonenergy materials and
purchased business services for the years 1988 through 1996.
(See Ann M. Lawson, "Benchmark Input-Output Accounts for the
U.S.," Survey of Current Business, November 1997.) Measures of
these transactions between years for which input-output tables
are available are determined by BLS estimates of annual input-
output tables. For the year 1991, these transactions are
measured by direct interpolation of input-output table
coefficients. Input-output tables are not extrapolated beyond
1992.
Small revisions to the manufacturing data for all years are
based on more detailed benchmark input-output tables developed by
the Office of Employment Projections (OEP) of the BLS. OEP has
developed these benchmark input-output tables approximately every
five years between 1963 and 1992. Beginning with data for 1963,
business services in current dollars are now based on these more
detailed input-output tables. Service input prices for benchmark
years are determined as the ratio of nominal business services to
the Tornqvist index of real business services. Annual service
input prices for the years 1963-87 are interpolated between the
benchmark years using the former service price series. Energy
and nonenergy materials prices are revised in a similar manner.
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.
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. The private nonfarm business sector also 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.
These 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, they reflect the joint effects of many factors,
including new technology, economies of scale, managerial skill, and change
in the organization of production.
Private business and private nonfarm business
The multifactor productivity data for private business and private nonfarm
business indexes 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 1997, 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. The assets included are fixed business equipment, structures,
inventories, and land. 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
November 1998.
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 Manufacturers (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.
Energy input is constructed using price 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,
input measures 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 (R&D) in private nonfarm business is
derived by cumulating constant dollar measures of R&D expenditures and
allowing for depreciation. Current dollar expenditures for privately
financed R&D for the years 1953-97 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, 1948-971
Indexes 1992=100
Productivity Inputs
Output Output Combined Capital
per per Multi- units per
hour unit factor of labor hour
of all of Product- Labor Capital and of all
Year persons capital ivity2 Output3 Input4 Services5 capital6 persons
1948 34.7 114.6 55.9 23.0 57.3 20.1 41.1 30.3
1949 35.9 111.6 56.6 23.0 55.4 20.6 40.6 32.2
1950 39.0 117.7 60.6 25.3 56.5 21.5 41.7 33.2
1955 45.6 121.6 67.1 30.8 60.2 25.3 45.9 37.5
1956 45.8 119.6 66.8 31.4 61.2 26.2 47.0 38.2
1957 47.2 118.1 67.8 31.9 60.5 27.0 47.0 40.0
1958 48.6 113.5 68.1 31.2 57.9 27.5 45.9 42.8
1959 50.0 118.7 70.3 33.4 60.3 28.2 47.5 42.1
1960 50.8 117.3 70.7 34.0 60.6 29.0 48.1 43.3
1961 52.7 116.9 72.1 34.7 60.0 29.7 48.1 45.0
1962 55.2 121.0 74.7 36.9 61.6 30.5 49.4 45.6
1963 57.3 122.3 76.8 38.6 62.1 31.6 50.2 46.9
1964 60.0 125.4 79.8 41.1 63.1 32.7 51.4 47.8
1965 62.1 128.1 82.3 43.9 65.2 34.3 53.4 48.5
1966 64.6 129.5 84.8 46.9 66.9 36.2 55.3 49.9
1967 66.0 124.7 85.0 47.8 66.8 38.3 56.2 53.0
1968 68.4 124.9 87.2 50.2 67.6 40.2 57.6 54.7
1969 68.7 122.6 86.7 51.7 69.5 42.2 59.6 56.0
1970 70.1 117.1 86.5 51.6 68.3 44.1 59.7 59.9
1971 73.1 116.7 89.2 53.6 67.8 45.9 60.1 62.7
1972 75.6 119.4 91.9 57.3 70.1 47.9 62.3 63.3
1973 78.0 121.2 94.5 61.3 72.6 50.6 64.9 64.4
1974 76.7 113.4 91.1 60.3 73.1 53.2 66.2 67.7
1975 79.4 108.4 92.0 59.7 69.9 55.1 64.9 73.3
1976 82.2 112.4 95.4 63.7 71.9 56.7 66.8 73.2
1977 83.6 114.6 97.1 67.4 74.8 58.8 69.4 72.9
1978 84.5 116.5 98.3 71.5 78.6 61.3 72.7 72.5
1979 84.1 114.1 97.5 73.6 81.0 64.4 75.4 73.7
1980 83.8 107.3 95.3 72.6 80.5 67.7 76.2 78.1
1981 85.4 104.9 95.3 74.5 81.6 71.0 78.1 81.4
1982 85.1 97.8 92.4 72.2 80.3 73.9 78.2 87.0
1983 87.7 99.8 94.7 75.8 82.1 76.0 80.1 87.9
1984 90.0 103.8 97.5 82.4 87.0 79.3 84.5 86.7
1985 91.6 103.3 98.3 85.6 89.1 82.9 87.1 88.7
1986 94.0 102.5 99.5 88.4 90.1 86.3 88.9 91.7
1987 94.0 102.3 99.3 91.1 93.0 89.1 91.8 91.9
1988 94.7 103.2 99.5 94.6 96.7 91.7 95.1 91.7
1989 95.5 103.8 100.0 97.8 99.6 94.2 97.8 92.0
1990 96.1 102.1 99.6 98.6 100.2 96.5 99.0 94.1
1991 96.7 98.6 98.1 96.9 99.0 98.3 98.7 98.1
1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1993 100.1 100.7 100.1 102.7 102.9 102.0 102.6 99.4
1994 100.6 102.3 100.6 107.0 107.1 104.6 106.3 98.3
1995 101.0 101.9 100.7 110.0 109.8 108.0 109.3 99.2
1996 103.7 102.3 102.4 114.7 112.0 112.2 112.1 101.4
1997 105.2 102.6 103.1 120.1 116.2 117.1 116.5 102.6
See footnotes following table 6. Source: Bureau of Labor Statistics
Table 2. Private nonfarm business sector: Productivity and related measures, 1948-971
Indexes 1992=100
Productivity Inputs
Output Output Combined Capital
per per Multi- units per
hour unit factor of labor hour
of all of Product- Labor Capital and of all
Year persons capital ivity2 Output3 Input4 Services5 capital6 persons
1948 39.2 122.1 61.0 22.3 49.6 18.2 36.5 32.1
1949 41.0 119.0 62.2 22.3 47.5 18.7 35.8 34.4
1950 43.7 125.9 66.0 24.5 49.2 19.5 37.1 34.7
1955 49.8 131.0 71.9 30.3 54.7 23.1 42.2 38.0
1956 49.6 128.8 71.3 30.9 56.2 24.0 43.4 38.5
1957 50.9 127.2 72.0 31.5 56.1 24.8 43.8 40.0
1958 52.1 122.1 72.2 30.9 53.7 25.3 42.8 42.7
1959 53.6 128.1 74.7 33.2 56.2 25.9 44.5 41.9
1960 54.3 126.1 74.9 33.7 56.4 26.7 45.0 43.0
1961 56.0 125.4 75.9 34.4 56.3 27.4 45.3 44.7
1962 58.6 129.9 78.6 36.7 58.1 28.3 46.7 45.1
1963 60.7 131.1 80.6 38.4 58.8 29.3 47.6 46.3
1964 63.3 134.7 83.7 41.0 60.2 30.5 49.0 47.0
1965 65.2 137.2 86.0 43.9 62.4 32.0 51.0 47.5
1966 67.4 138.7 88.5 47.1 64.5 33.9 53.2 48.6
1967 68.7 133.0 88.4 47.9 64.4 36.0 54.2 51.6
1968 71.1 133.2 90.7 50.4 65.4 37.8 55.5 53.3
1969 71.2 130.3 90.0 51.9 67.5 39.8 57.7 54.6
1970 72.2 124.1 89.4 51.8 66.6 41.8 58.0 58.2
1971 75.3 123.4 92.0 53.8 66.2 43.6 58.4 61.0
1972 77.8 126.1 94.9 57.5 68.5 45.6 60.7 61.7
1973 80.3 128.1 97.5 61.8 71.1 48.2 63.3 62.7
1974 79.1 119.5 94.1 60.8 71.6 50.9 64.6 66.2
1975 81.2 113.1 94.4 59.7 68.4 52.8 63.3 71.8
1976 84.2 117.5 98.1 64.0 70.5 54.5 65.2 71.6
1977 85.5 119.7 99.7 67.7 73.5 56.5 67.9 71.4
1978 86.6 121.7 101.1 72.0 77.2 59.2 71.2 71.1
1979 85.9 118.7 100.0 74.0 79.8 62.3 74.0 72.3
1980 85.6 111.4 97.6 73.1 79.3 65.6 74.9 76.8
1981 86.6 107.8 97.0 74.5 80.5 69.1 76.8 80.3
1982 86.1 100.0 93.8 72.1 79.2 72.1 76.9 86.1
1983 89.6 102.7 96.9 76.5 81.1 74.5 79.0 87.2
1984 91.2 106.2 99.1 82.7 86.1 77.9 83.5 85.9
1985 92.2 104.9 99.3 85.7 88.4 81.7 86.3 87.9
1986 94.7 103.9 100.4 88.6 89.6 85.3 88.3 91.1
1987 94.5 103.3 100.0 91.3 92.7 88.4 91.3 91.5
1988 95.3 104.3 100.3 95.1 96.5 91.2 94.8 91.4
1989 95.9 104.6 100.5 98.1 99.5 93.9 97.7 91.7
1990 96.3 102.6 99.8 98.8 100.2 96.3 99.0 93.8
1991 96.9 98.8 98.4 97.0 98.8 98.2 98.6 98.1
1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1993 100.1 100.8 100.1 103.0 103.1 102.2 102.9 99.3
1994 100.6 102.1 100.5 107.1 107.2 104.8 106.5 98.5
1995 101.2 101.8 100.8 110.4 109.9 108.4 109.5 99.4
1996 103.7 102.1 102.3 115.0 112.3 112.6 112.4 101.6
1997 104.9 102.1 102.7 120.2 116.6 117.7 117.0 102.8
See footnotes following table 6. Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity and related measures, 1949-96
Indexes 1992=100
Productivity Inputs
Output Output Multi- Combined
per hour per factor Purchased units
of all unit of Produc- Sectoral Capital business of all
Year persons capital tivity7 Output8 Hours9 Services5 Energy Materials services inputs10
1949 33.7 127.3 63.7 26.7 79.1 21.0 29.0 31.5 16.4 41.9
1950 34.2 135.3 67.0 29.3 85.5 21.7 30.4 31.1 19.1 43.7
1955 39.1 137.3 71.4 36.9 94.6 26.9 42.3 38.4 24.6 51.7
1956 38.9 132.2 70.5 37.3 96.0 28.2 46.4 38.9 25.8 53.0
1957 39.7 128.3 70.9 37.5 94.4 29.2 47.2 38.5 26.6 52.9
1958 40.3 118.2 69.6 34.9 86.6 29.6 47.4 37.0 25.2 50.2
1959 41.2 126.6 72.7 38.1 92.4 30.1 50.5 37.5 26.9 52.3
1960 42.1 125.6 72.9 38.7 92.0 30.9 51.5 39.1 27.3 53.1
1961 43.1 123.0 73.5 38.7 89.7 31.4 51.8 38.9 27.2 52.6
1962 44.5 128.3 76.4 41.5 93.4 32.4 54.9 39.4 29.1 54.4
1963 46.0 130.2 78.5 43.4 94.3 33.3 57.8 39.2 31.7 55.3
1964 47.8 133.7 80.7 46.0 96.3 34.4 63.7 40.3 33.6 57.0
1965 48.8 137.5 82.8 49.8 101.9 36.2 67.3 42.2 35.9 60.1
1966 49.3 137.6 83.1 53.6 108.6 38.9 72.2 44.8 40.6 64.4
1967 51.1 131.0 82.6 55.2 107.9 42.1 77.5 46.7 46.2 66.8
1968 52.9 130.1 84.8 57.9 109.5 44.5 82.2 47.7 46.3 68.3
1969 53.8 127.2 85.5 59.6 110.8 46.9 85.1 47.5 49.1 69.7
1970 54.5 116.3 84.2 56.8 104.2 48.8 85.4 46.0 47.4 67.4
1971 58.2 116.2 86.7 58.5 100.5 50.3 87.3 49.0 46.9 67.5
1972 60.7 122.9 90.0 63.7 105.1 51.9 89.0 52.3 49.9 70.8
1973 61.9 125.8 92.0 68.3 110.5 54.3 91.9 54.1 54.2 74.3
1974 61.7 116.1 87.0 66.5 107.9 57.3 94.4 59.1 58.4 76.5
1975 64.7 104.6 84.6 62.9 97.3 60.1 87.9 62.0 56.7 74.4
1976 67.3 110.0 87.6 68.6 101.9 62.4 91.2 67.1 57.9 78.3
1977 70.1 114.2 89.0 74.3 106.1 65.1 91.3 75.2 62.8 83.6
1978 70.7 115.2 89.7 78.2 110.5 67.9 92.5 78.4 66.5 87.2
1979 70.2 111.3 89.0 79.1 112.7 71.1 96.3 76.2 74.8 88.9
1980 70.4 101.5 87.3 75.7 107.5 74.6 92.5 74.5 71.9 86.7
1981 71.2 97.4 88.2 76.0 106.7 78.0 92.1 73.3 69.4 86.2
1982 75.0 90.8 89.9 73.1 97.5 80.5 83.3 71.3 60.0 81.3
1983 77.2 93.7 91.7 76.3 98.8 81.4 84.2 72.2 67.5 83.2
1984 79.8 100.5 94.4 84.0 105.3 83.6 89.6 79.6 71.9 89.0
1985 82.8 100.3 96.0 86.6 104.5 86.3 86.7 84.4 67.8 90.2
1986 86.5 100.7 97.7 89.1 103.0 88.5 87.4 86.5 71.6 91.2
1987 88.9 101.9 100.7 92.1 103.6 90.4 92.9 83.0 76.3 91.5
1988 90.5 104.9 102.2 96.5 106.6 91.9 96.6 84.9 82.9 94.4
1989 90.7 103.5 100.4 97.1 107.1 93.8 96.8 88.3 88.9 96.7
1990 93.0 101.3 99.8 97.5 104.8 96.3 99.9 91.3 91.8 97.7
1991 95.1 97.3 98.6 95.5 100.4 98.2 100.1 93.1 91.9 96.9
1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1993 102.2 101.8 101.2 103.6 101.4 101.7 103.7 103.0 104.3 102.3
1994 105.3 105.2 104.4 109.1 103.6 103.6 107.3 104.4 107.8 104.5
1995 109.4 106.8 108.4 113.8 104.0 106.6 109.5 101.4 111.0 105.0
1996 113.8 107.0 110.7 118.0 103.7 110.3 107.0 105.4 111.6 106.6
See footnotes following table 6. Source: Bureau of Labor Statistics
Table 4. Private business sector: Productivity and related measures, 1948-97
Percent Change
Productivity Inputs
Output Output Combined Capital
per per Multi- units per
hour unit factor of labor hour
of all of Product- Labor Capital and of all
Year persons capital ivity2 Output3 Input4 Services5 capital6 persons
1949 3.5 -2.6 1.2 -0.2 -3.3 2.5 -1.4 6.3
1950 8.8 5.5 7.1 10.1 2.0 4.3 2.8 3.1
1955 4.6 5.0 4.6 8.5 3.9 3.3 3.7 -0.4
1956 0.3 -1.7 -0.4 1.8 1.7 3.5 2.3 2.0
1957 3.2 -1.3 1.5 1.6 -1.1 2.9 0.1 4.5
1958 2.9 -3.8 0.5 -2.0 -4.4 1.9 -2.4 7.0
1959 2.9 4.6 3.3 7.1 4.2 2.4 3.6 -1.6
1960 1.7 -1.2 0.5 1.7 0.5 3.0 1.3 3.0
1961 3.6 -0.3 2.0 1.9 -1.1 2.2 -0.1 4.0
1962 4.7 3.5 3.7 6.5 2.7 3.0 2.8 1.2
1963 3.9 1.1 2.8 4.5 0.8 3.4 1.6 2.8
1964 4.6 2.6 3.9 6.4 1.7 3.7 2.4 2.0
1965 3.5 2.2 3.1 7.0 3.3 4.7 3.8 1.3
1966 4.0 1.0 3.0 6.7 2.6 5.6 3.6 3.0
1967 2.3 -3.7 0.2 1.9 -0.2 5.8 1.7 6.2
1968 3.5 0.2 2.6 5.0 1.2 4.8 2.4 3.3
1969 0.5 -1.9 -0.5 3.0 2.9 5.0 3.5 2.4
1970 2.1 -4.4 -0.2 -0.1 -1.7 4.5 0.1 6.8
1971 4.3 -0.3 3.1 3.9 -0.8 4.2 0.7 4.7
1972 3.3 2.3 3.0 6.8 3.4 4.3 3.7 1.0
1973 3.2 1.5 2.8 7.0 3.5 5.5 4.1 1.7
1974 -1.6 -6.5 -3.6 -1.6 0.7 5.2 2.0 5.1
1975 3.5 -4.4 1.0 -1.1 -4.4 3.5 -2.0 8.3
1976 3.5 3.7 3.8 6.8 2.9 3.0 2.9 -0.2
1977 1.7 2.0 1.8 5.7 4.0 3.7 3.9 -0.3
1978 1.1 1.7 1.2 6.1 5.1 4.3 4.8 -0.6
1979 -0.5 -2.1 -0.7 2.9 3.1 5.1 3.7 1.6
1980 -0.4 -6.0 -2.3 -1.3 -0.6 5.0 1.0 6.0
1981 1.9 -2.2 0.1 2.6 1.4 4.9 2.5 4.2
1982 -0.3 -6.8 -3.1 -3.0 -1.7 4.1 0.1 6.9
1983 3.0 2.0 2.4 5.0 2.3 2.9 2.5 1.0
1984 2.6 4.1 3.0 8.6 6.0 4.4 5.5 -1.4
1985 1.8 -0.6 0.8 3.9 2.4 4.5 3.1 2.3
1986 2.6 -0.7 1.2 3.3 1.1 4.1 2.1 3.4
1987 0.0 -0.2 -0.2 3.0 3.3 3.2 3.3 0.2
1988 0.7 0.9 0.2 3.9 3.9 2.9 3.6 -0.2
1989 0.9 0.6 0.5 3.4 3.0 2.8 2.9 0.3
1990 0.7 -1.6 -0.4 0.8 0.6 2.5 1.2 2.3
1991 0.6 -3.5 -1.5 -1.8 -1.2 1.8 -0.3 4.2
1992 3.4 1.4 1.9 3.2 1.1 1.8 1.3 1.9
1993 0.1 0.7 0.1 2.7 2.9 2.0 2.6 -0.6
1994 0.5 1.6 0.5 4.2 4.2 2.5 3.6 -1.0
1995 0.4 -0.5 0.1 2.8 2.5 3.3 2.7 0.8
1996 2.7 0.4 1.7 4.3 2.0 3.8 2.6 2.3
1997 1.5 0.3 0.7 4.7 3.7 4.4 3.9 1.2
See footnotes following table 6. Source: Bureau of Labor Statistics
Table 5. Private nonfarm business sector: Productivity and related measures, 1948-97
Percent Change
Productivity Inputs
Output Output Combined Capital
per per Multi- units per
hour unit factor of labor hour
of all of Product- Labor Capital and of all
Year persons capital ivity2 Output3 Input4 Services5 capital6 persons
1949 4.4 -2.5 2.0 0.0 -4.1 2.5 -2.0 7.1
1950 6.7 5.8 6.1 10.0 3.6 4.0 3.7 0.9
1955 4.7 5.2 4.7 8.9 4.2 3.5 4.0 -0.4
1956 -0.4 -1.6 -0.9 2.1 2.6 3.8 3.0 1.3
1957 2.5 -1.2 1.0 1.8 -0.1 3.1 0.9 3.8
1958 2.4 -4.1 0.3 -2.1 -4.3 2.0 -2.4 6.7
1959 2.9 4.9 3.4 7.6 4.7 2.6 4.0 -1.9
1960 1.2 -1.5 0.3 1.6 0.4 3.2 1.3 2.7
1961 3.2 -0.6 1.4 1.9 -0.3 2.5 0.6 3.8
1962 4.7 3.6 3.6 6.9 3.2 3.2 3.2 1.0
1963 3.5 1.0 2.6 4.5 1.2 3.6 1.9 2.5
1964 4.3 2.7 3.8 6.8 2.3 4.0 2.9 1.6
1965 3.0 1.9 2.8 7.0 3.8 5.0 4.2 1.1
1966 3.5 1.0 2.8 7.1 3.3 6.0 4.2 2.4
1967 1.8 -4.1 -0.1 1.7 -0.1 6.0 1.8 6.1
1968 3.5 0.2 2.7 5.3 1.4 5.1 2.6 3.4
1969 0.1 -2.2 -0.9 3.0 3.3 5.3 3.9 2.3
1970 1.5 -4.8 -0.7 -0.2 -1.3 4.8 0.5 6.6
1971 4.2 -0.5 3.0 3.8 -0.6 4.3 0.8 4.7
1972 3.4 2.2 3.1 7.0 3.4 4.7 3.8 1.2
1973 3.2 1.6 2.8 7.4 3.8 5.7 4.4 1.6
1974 -1.6 -6.7 -3.5 -1.6 0.6 5.5 2.0 5.5
1975 2.7 -5.4 0.3 -1.8 -4.4 3.8 -2.1 8.6
1976 3.6 3.9 4.0 7.2 3.1 3.1 3.1 -0.3
1977 1.5 1.8 1.6 5.7 4.2 3.8 4.1 -0.3
1978 1.3 1.7 1.4 6.4 5.1 4.6 4.9 -0.4
1979 -0.8 -2.4 -1.1 2.8 3.3 5.4 3.9 1.7
1980 -0.4 -6.2 -2.3 -1.2 -0.6 5.3 1.1 6.2
1981 1.2 -3.2 -0.6 1.9 1.5 5.3 2.6 4.5
1982 -0.5 -7.2 -3.3 -3.2 -1.6 4.4 0.2 7.2
1983 4.0 2.7 3.3 6.1 2.4 3.4 2.7 1.3
1984 1.8 3.4 2.2 8.0 6.2 4.5 5.6 -1.5
1985 1.1 -1.2 0.2 3.6 2.7 4.8 3.4 2.3
1986 2.7 -1.0 1.1 3.5 1.3 4.4 2.3 3.6
1987 -0.2 -0.6 -0.4 3.0 3.4 3.6 3.5 0.4
1988 0.8 0.9 0.3 4.1 4.1 3.2 3.8 -0.1
1989 0.6 0.3 0.2 3.2 3.1 2.9 3.0 0.3
1990 0.4 -1.9 -0.7 0.7 0.8 2.6 1.3 2.4
1991 0.7 -3.7 -1.4 -1.8 -1.4 1.9 -0.4 4.5
1992 3.2 1.2 1.7 3.1 1.2 1.9 1.4 2.0
1993 0.1 0.8 0.1 3.0 3.1 2.2 2.9 -0.7
1994 0.5 1.3 0.4 3.9 3.9 2.6 3.5 -0.8
1995 0.6 -0.3 0.3 3.1 2.5 3.4 2.8 0.9
1996 2.5 0.3 1.4 4.2 2.2 3.9 2.7 2.2
1997 1.2 0.0 0.4 4.5 3.9 4.5 4.1 1.2
See footnotes following table 6. Source: Bureau of Labor Statistics
Table 6. Manufacturing sector: Productivity and related measures, 1950-96
Percent Change
Productivity Inputs
Output Output Multi- Combined
per hour per factor Purchased units
of all unit of Produc- Sectoral Capital business of all
Year persons capital tivity7 Output8 Hours9 Services5 Energy Materials services inputs10
1950 1.5 6.2 5.2 9.7 8.1 3.3 4.7 -1.4 16.5 4.3
1955 4.0 5.8 3.0 9.7 5.5 3.8 13.8 8.3 10.9 6.5
1956 -0.4 -3.7 -1.3 1.0 1.5 4.9 9.5 1.3 4.8 2.4
1957 2.1 -2.9 0.6 0.4 -1.6 3.4 1.9 -0.9 3.0 -0.2
1958 1.5 -7.9 -1.8 -6.8 -8.2 1.2 0.4 -4.1 -5.2 -5.1
1959 2.2 7.2 4.5 9.0 6.7 1.8 6.5 1.5 6.6 4.4
1960 2.2 -0.8 0.2 1.8 -0.4 2.6 1.9 4.2 1.7 1.5
1961 2.4 -2.1 0.8 -0.2 -2.6 1.9 0.6 -0.5 -0.5 -1.1
1962 3.2 4.4 3.8 7.5 4.1 3.0 6.0 1.4 7.1 3.5
1963 3.5 1.4 2.8 4.5 1.0 3.0 5.3 -0.7 8.9 1.7
1964 3.8 2.7 2.9 5.9 2.1 3.2 10.2 3.0 6.0 3.0
1965 2.3 2.9 2.6 8.3 5.9 5.2 5.8 4.7 6.9 5.6
1966 1.0 0.1 0.4 7.6 6.5 7.5 7.3 6.1 13.0 7.2
1967 3.6 -4.8 -0.6 3.0 -0.6 8.3 7.2 4.3 13.9 3.6
1968 3.5 -0.7 2.6 5.0 1.4 5.7 6.1 2.0 0.1 2.3
1969 1.8 -2.2 0.9 3.0 1.2 5.2 3.6 -0.4 6.1 2.1
1970 1.2 -8.6 -1.6 -4.8 -5.9 4.1 0.3 -3.1 -3.4 -3.3
1971 6.9 -0.1 2.9 3.0 -3.6 3.1 2.2 6.5 -1.0 0.1
1972 4.2 5.7 3.9 9.0 4.6 3.1 2.0 6.8 6.4 5.0
1973 2.0 2.4 2.2 7.2 5.1 4.7 3.2 3.3 8.7 4.9
1974 -0.3 -7.7 -5.4 -2.6 -2.3 5.6 2.8 9.3 7.7 3.0
1975 4.9 -9.9 -2.7 -5.5 -9.9 4.9 -6.9 4.9 -2.9 -2.8
1976 4.2 5.1 3.6 9.1 4.8 3.8 3.8 8.2 2.2 5.3
1977 4.0 3.9 1.5 8.3 4.1 4.3 0.1 12.1 8.4 6.7
1978 1.0 0.8 0.8 5.2 4.2 4.3 1.2 4.3 5.9 4.3
1979 -0.7 -3.3 -0.8 1.2 1.9 4.7 4.2 -2.8 12.6 2.0
1980 0.3 -8.8 -1.9 -4.3 -4.6 5.0 -4.0 -2.2 -3.9 -2.5
1981 1.1 -4.0 0.9 0.4 -0.7 4.6 -0.4 -1.7 -3.5 -0.6
1982 5.4 -6.7 2.0 -3.8 -8.7 3.2 -9.6 -2.8 -13.6 -5.7
1983 2.8 3.1 1.9 4.3 1.4 1.1 1.1 1.4 12.5 2.3
1984 3.4 7.3 3.0 10.1 6.5 2.7 6.4 10.1 6.5 7.0
1985 3.8 -0.2 1.7 3.0 -0.8 3.3 -3.3 6.2 -5.7 1.3
1986 4.4 0.4 1.8 2.9 -1.4 2.5 0.8 2.4 5.6 1.1
1987 2.8 1.2 3.0 3.4 0.6 2.1 6.3 -4.1 6.6 0.3
1988 1.8 3.0 1.5 4.7 2.8 1.7 4.0 2.4 8.7 3.2
1989 0.2 -1.4 -1.7 0.7 0.5 2.1 0.2 4.0 7.2 2.4
1990 2.5 -2.2 -0.6 0.4 -2.1 2.6 3.2 3.3 3.3 1.0
1991 2.3 -3.9 -1.2 -2.0 -4.2 2.0 0.2 2.0 0.1 -0.8
1992 5.1 2.8 1.4 4.7 -0.4 1.9 -0.1 7.4 8.8 3.2
1993 2.2 1.8 1.2 3.6 1.4 1.7 3.7 3.0 4.3 2.3
1994 3.0 3.4 3.1 5.3 2.2 1.9 3.4 1.4 3.4 2.1
1995 3.9 1.5 3.9 4.3 0.4 2.8 2.1 -2.8 2.9 0.4
1996 4.1 0.2 2.1 3.7 -0.4 3.5 -2.3 3.9 0.6 1.6
See footnotes following table 6. Source: Bureau of Labor Statistics
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, 1948-97
Average annual growth rates (percent)
Private business
Residen-
tial
Period All rental Inven-
Assets Equipment Structures capital tories Land
1948-97 3.7 5.5 3.0 2.3 3.5 2.1
1948-73 3.8 5.5 3.2 2.8 4.3 2.1
1973-79 4.1 6.7 2.9 2.7 3.7 2.2
1979-90 3.7 5.2 3.6 1.9 2.1 2.7
1990-97 2.8 4.6 1.8 0.6 2.6 1.1
1997 4.4 8.0 1.9 0.8 4.1 1.2
Private nonfarm business
Residen-
tial
Period All rental Inven-
Assets Equipment Structures capital tories Land
1948-97 3.9 5.6 3.1 2.3 3.7 2.7
1948-73 4.0 5.6 3.2 2.8 4.6 2.7
1973-79 4.4 6.8 2.9 2.7 3.9 3.1
1979-90 4.0 5.5 3.7 1.9 2.3 3.5
1990-97 2.9 4.8 1.9 0.6 2.7 1.2
1997 4.5 8.1 1.9 0.8 4.1 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. Manufacturing industries: Multifactor productivity trends, 1949-96
Average annual growth rates
Industry 1949-96 1949-73 1973-79 1979-96 1990-96
Manufacturing 1.2 1.5 -0.5 1.0 1.7
Nondurable 0.7 1.4 -0.5 0.3 0.3
manufacturing
Food and kindred 0.5 0.7 0.1 0.5 0.1
products
Tobacco manufactures N.A. N.A. N.A. N.A. N.A.
Textile mill products 2.3 2.3 3.5 2.2 1.3
Apparel & related 0.7 0.7 1.9 0.5 -0.5
products
Paper and allied 0.7 1.6 -1.1 0.0 0.6
products
Printing and -0.1 0.5 -0.6 -0.9 -0.7
publishing
Chemicals & allied 1.1 2.5 -2.4 0.7 0.2
products
Petroleum refining 0.4 0.8 -0.6 -0.1 0.3
Rubber & misc. 0.7 1.0 -1.8 1.4 1.2
plastic products
Leather & leather 0.0 -0.1 -0.1 0.6 -0.3
products
Durable manufacturing 1.5 1.5 -0.5 1.6 3.0
Lumber and wood 1.4 1.7 0.6 2.4 -1.1
products
Furniture and 0.6 0.6 0.6 0.6 0.6
fixtures
Stone, clay, glass & 0.7 1.1 -1.2 1.2 0.5
concrete products
Primary metals 0.2 0.4 -2.1 0.2 1.6
industries
Fabricated metals 0.4 0.5 -0.9 0.5 1.0
products
Industrial & 1.6 0.7 -0.2 2.9 4.6
commercial machinery
Electrical & 2.9 2.0 1.1 2.6 8.9
electronic machinery
Transportation 0.7 1.5 -0.5 0.1 0.0
equipment
Instruments 1.6 1.9 1.6 1.4 0.5
Miscellaneous 0.9 1.5 -0.9 1.1 -0.2
manufacturing
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.