Manufacturing Productivity Down 0.1% in 4Q - Modern Distribution Management

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Manufacturing Productivity Down 0.1% in 4Q

Productivity increases 0.5 percent in durable goods, decreases 1.5 percent in nondurable goods.

Manufacturing sector productivity decreased 0.1 percent in the fourth quarter as output increased 4.3 percent and hours worked increased 4.4 percent, according to the U.S. Bureau of Labor Statistics. Productivity increased 0.5 percent in the durable goods sector and decreased 1.5 percent in the nondurable goods sector.

Over the last four quarters, manufacturing productivity increased 2.4 percent, as output increased 4.5 percent and hours increased 2 percent. Unit labor costs in manufacturing increased 1.5 percent in the fourth quarter of 2014 and were unchanged from the same quarter a year ago.

Nonfarm business sector labor productivity decreased at a 2.2 percent annual rate during the fourth quarter as output increased 2.6 percent and hours worked increased 4.9 percent.

Unit labor costs in nonfarm businesses increased 4.1 percent in the fourth quarter of 2014, reflecting a 1.9 percent increase in hourly compensation and a 2.2 percent decline in productivity. Unit labor costs increased 2.6 percent over the last four quarters. 

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