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Multifactor productivity in manufacturing down 1.0 percent in 2014

June 29, 2016

Manufacturing sector multifactor productivity decreased at a 1.0-percent annual rate in 2014, the third decline in four years. The 2014 decrease followed a 0.1-percent increase in 2013. The 2014 decline reflected a 1.7-percent increase in output and a 2.6-percent increase in combined inputs.

Manufacturing sector multifactor productivity, percent change from previous year, 1988–2014
Year Multifactor productivity

1988

2.5

1989

-0.9

1990

-0.8

1991

-0.9

1992

-0.5

1993

2.4

1994

2.8

1995

1.6

1996

0.2

1997

2.5

1998

1.2

1999

1.9

2000

3.8

2001

-1.8

2002

2.5

2003

5.4

2004

2.3

2005

0.8

2006

2.0

2007

1.0

2008

0.1

2009

-2.2

2010

3.8

2011

-1.3

2012

-2.8

2013

0.1

2014

-1.0

Multifactor productivity in manufacturing grew 0.9-percent annually from 1987 to 2014 with output increasing at an annual rate of 2.2 percent, faster than the 1.3-percent annual increase in combined inputs.

For the recent 2007 to 2014 period, manufacturing output increased 0.4 percent, combined inputs rose 0.9 percent, and multifactor productivity declined at a 0.5-percent annual rate. This compares with a 1.7-percent annual increase in multifactor productivity for the 2000 to 2007 period.

These data are from the Multifactor Productivity program. To learn more, see "Multifactor Productivity Trends in Manufacturing — 2014" (HTML) (PDF). Multifactor productivity measures the joint influences of technological change, efficiency improvements, returns to scale, reallocation of resources, and other factors on economic growth, allowing for the effects of capital and labor.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Multifactor productivity in manufacturing down 1.0 percent in 2014 on the Internet at https://www.bls.gov/opub/ted/2016/multifactor-productivity-in-manufacturing-down-1-percent-in-2014.htm (visited November 19, 2019).

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