A dip in manufacturing multifactor productivity
February 11, 2004
Multifactor productivity—measured as output per unit of combined inputs—fell by 0.8 percent in manufacturing in 2001. The decline was the first in 10 years.
The decline in multifactor productivity was the result of a 4.5-percent decline in manufacturing output and a 3.7-percent decrease in combined inputs. Capital services posted a 1.5-percent advance in 2001. In contrast, hours fell 5.6 percent.
On average, multifactor productivity in manufacturing grew 1.2 percent annually from 1949 (when the series started) to 2001. Output increased at a 3.1-percent annual rate, and combined inputs rose 1.9 percent per year.
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.
These data are a product of the BLS Multifactor Productivity program. Additional information is available in "Multifactor Productivity Trends in Manufacturing, 2001" (PDF) (TXT), news release USDL 04-148. This is the last release of manufacturing multifactor productivity measures based on the Standard Industrial Classification (SIC) system. SIC-based productivity and related series through 2001 will remain available but will no longer be updated. In the future, historical and new measures will be based on the North American Industry Classification System (NAICS).
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, A dip in manufacturing multifactor productivity on the Internet at https://www.bls.gov/opub/ted/2004/feb/wk2/art03.htm (visited January 24, 2018).
Recent editions of Spotlight on Statistics
Industry on Tap: Breweries
A look at employment, wages, and job safety in breweries and producer prices for beer.
Differences in Parents’ Time Use between the Summer and the School Year
A look at how parents of school-age children spend their time in the summer and the school year.
Hispanics in the United States: Celebrating National Hispanic Heritage Month
A look at employment, earnings, consumer spending, time use, and workplace injuries and illnesses for the Hispanic or Latino U.S. population.
Expenditures on Admissions to the Arts, Movies, Sporting Events, and Other Entertainment
A look at consumer spending and attendance at arts, sports, and entertainment events.