Productivity rises for the quarter
Nonfarm business sector labor productivity increased at a 3.1-percent annual rate during the third quarter of 2016, the U.S. Bureau of Labor Statistics reported today.
Output increased 3.4 percent and hours worked increased 0.3 percent.
The quarterly increase in nonfarm business sector labor productivity was the first increase after three consecutive declines in the measure.
Manufacturing sector labor productivity increased 1.0 percent, as output and hours worked increased 1.1 percent and 0.1 percent, respectively. Output per hour increased 2.5 percent in the durable goods manufacturing sector, the combined effect of a 1.9-percent increase in output and a 0.6-percent decline in hours worked. Productivity decreased 1.1 percent in the nondurable goods sector in the third quarter of 2016, following a 4.6-percent second-quarter decrease. Over the last four quarters, manufacturing sector productivity increased 0.2 percent, as output was unchanged and hours worked declined 0.1 percent.