Manufacturing & The Economy
Nonfarm business sector labor productivity increased at a 2.5% annual rate during the second quarter of 2014, the U.S. Bureau of Labor Statistics reported today, as hours increased 2.7% and output increased 5.2%. Economists surveyed by Bloomberg predicted a median increase of 1.6%. From the second quarter of 2013 to the second quarter of 2014, productivity increased 1.2% as output and hours worked rose 3.2% and 2.0%, respectively.
Manufacturing sector productivity increased 3.6% in the second quarter of 2014, as output increased 7.0% and hours worked increased 3.2%. Productivity increased 2.9% in the durable goods sector and increased 5.9% in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 2.1%, as output increased 3.7% and hours increased 1.5%. Unit labor costs in manufacturing decreased 1.3% in the second quarter of 2014 and increased 0.8% from the same quarter a year ago.