Posted March 8, 2017

Manufacturing productivity up 2.0 percent in Q4

Manufacturing sector labor productivity increased 2.0 percent in the fourth quarter of 2016.

The U.S. Bureau of Labor Statistics reported that output increased 1.6 percent and hours worked decreased 0.4 percent.

Output per hour increased 1.5 percent in the durable goods manufacturing sector and 2.7 percent in the nondurable goods sector. Over the last four quarters, manufacturing sector productivity increased 0.5 percent, as output increased 0.5 percent and hours worked were unchanged. Unit labor costs in manufacturing increased 2.4 percent in the fourth quarter of 2016 and rose 2.1 percent from the same quarter a year ago. Hourly compensation increased 4.4 percent in the fourth quarter of 2016.

Total nonfarm business sector labor productivity increased at a 1.3-percent annual rate during the fourth quarter of 2016. Output increased 2.4 percent and hours worked increased 1.0 percent.