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Manufacturing multifactor productivity declined 1.6 percent in 2019

December 01, 2020

Manufacturing multifactor productivity fell 1.6 percent in 2019. The decline in 2019 reflected a 1.1-percent decrease in output and a 0.5-percent increase in combined inputs. The decrease in multifactor productivity followed a revised 0.7-percent increase in 2018. Multifactor productivity decreased in both durable manufacturing (−1.3 percent) and nondurable manufacturing (−1.8 percent) in 2019.

Annual percent change in manufacturing multifactor productivity and related measures, 1988–2019
Year Multifactor productivity, manufacturing Output Combined inputs Multifactor productivity, durable manufacturing Multifactor productivity, nondurable manufacturing

1988

2.3% 4.2% 1.8% 3.3% 0.7%

1989

-1.2 1.2 2.4 -0.7 -1.4

1990

0.0 0.0 0.0 0.0 0.0

1991

-0.2 -1.8 -1.6 -0.3 0.0

1992

1.8 4.1 2.2 1.5 1.9

1993

1.0 3.7 2.7 0.7 1.2

1994

1.3 5.6 4.2 1.7 0.6

1995

1.5 4.3 2.8 3.4 -1.0

1996

0.9 3.9 2.9 2.9 -1.5

1997

1.8 6.9 5.0 2.8 0.3

1998

0.9 4.8 3.9 2.3 -1.1

1999

2.2 4.1 1.9 2.7 1.0

2000

3.3 2.5 -0.7 4.3 1.2

2001

-1.6 -4.4 -2.8 -2.4 -0.4

2002

2.5 0.8 -1.6 4.3 -0.1

2003

4.9 1.3 -3.4 5.1 3.7

2004

2.7 2.2 -0.5 2.6 2.2

2005

0.8 4.0 3.2 3.3 -1.9

2006

2.4 1.6 -0.7 3.2 1.2

2007

0.6 3.0 2.4 1.6 -0.4

2008

0.1 -4.5 -4.6 0.1 0.1

2009

-3.7 -12.0 -8.6 -5.4 -1.8

2010

4.1 6.5 2.3 6.9 1.2

2011

-0.5 2.8 3.3 1.9 -2.3

2012

-1.6 1.3 3.0 0.5 -3.0

2013

-0.1 1.9 2.0 -0.1 -0.1

2014

1.1 1.2 0.0 -0.4 2.3

2015

-0.8 -0.9 -0.2 -0.5 -1.0

2016

-2.3 -0.1 2.2 -1.3 -2.9

2017

0.8 0.7 -0.1 1.3 0.3

2018

0.7 2.3 1.5 0.9 0.5

2019

-1.6 -1.1 0.5 -1.3 -1.8

Among the 19 manufacturing industries, 16 experienced declines in multifactor productivity growth in 2019. The largest declines were in chemical products (−5.2 percent), furniture and related products (−4.3 percent), and apparel, leather, and allied products (−4.1 percent). The largest multifactor productivity gains were in primary metals (4.1 percent) and petroleum and coal products (2.6 percent).

Annual percent changes in multifactor productivity for manufacturing industries in selected periods, 1987–2019
Industry 1987–2019 2007–19 2018–19

Manufacturing, total

0.7% -0.3% -1.6%

Food, beverage, and tobacco products

-0.2 -0.6 -0.8

Textile mills and textile product mills

0.5 0.0 -1.9

Apparel, leather, and allied products

-0.3 0.1 -4.1

Paper products

0.1 -0.2 -1.9

Printing and related support activities

0.5 0.2 -2.7

Petroleum and coal products

0.7 0.2 2.6

Chemical products

-0.8 -2.1 -5.2

Plastics and rubber products

0.5 -0.2 -2.1

Wood products

-0.2 0.3 0.1

Nonmetallic mineral products

0.3 0.3 -0.7

Primary metal products

0.6 0.7 4.1

Fabricated metal products

-0.1 -0.6 -1.6

Machinery

-0.1 -0.4 -1.9

Computer and electronic products

6.0 2.3 -0.3

Electrical equipment, appliances, and components

0.2 0.0 -1.2

Motor vehicles, bodies and trailers, and parts

0.2 -0.6 -3.0

Other transportation equipment

-0.2 0.0 -1.0

Furniture and related products

-0.1 -0.3 -4.3

Miscellaneous manufacturing

0.9 0.2 -0.6

From 1987 to 2019, multifactor productivity in manufacturing grew at an average annual rate of 0.7 percent. For the more recent 2007-19 period, multifactor productivity declined at a 0.3-percent average annual rate.

These data are from the Multifactor Productivity program. To learn more, see “Multifactor Productivity Trends in Manufacturing — 2019.” Also see our video that explains how we measure multifactor productivity. Multifactor productivity is calculated by dividing an index of real output by an index of combined inputs of labor, capital services, energy, materials, and purchased business services.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Manufacturing multifactor productivity declined 1.6 percent in 2019 at https://www.bls.gov/opub/ted/2020/manufacturing-multifactor-productivity-declined-1-point-6-percent-in-2019.htm (visited September 17, 2021).

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