BLS: Manufacturing productivity up 2.9%, labor costs down 1.3% in 3rd quarter

The revised, third quarter 2014 productivity and labor cost report from the U.S. Bureau of Labor Statistics showed that the nonfarm business sector labor productivity increased at a 2.3 percent annual rate, as output increased 4.9 percent and hours worked increased 2.4 percent. From the third quarter of 2013 to the third quarter of 2014, productivity rose 1.0 percent as output and hours worked increased 3.1 percent and 2.1 percent, respectively.

Unit labor costs in the nonfarm business sector fell 1.0 percent in the third quarter of 2014, as a 1.3 percent increase in hourly compensation was smaller than the 2.3 percent gain in productivity. Unit labor costs increased 1.2 percent over the last four quarters.

Manufacturing sector productivity increased 2.9 percent in the third quarter of 2014, as output increased 4.2 percent and hours worked increased 1.3 percent. Productivity increased 3.2 percent in the durable goods sector and increased 3.5 percent in the nondurable goods sector. Over the last four quarters, manufacturing productivity increased 2.7 percent, as output increased 4.4 percent and hours increased 1.6 percent.

Unit labor costs in manufacturing fell 1.3 percent in the third quarter of 2014 and decreased 0.5 percent from the same quarter a year ago.

More information can be found here.