Manufacturing Productivity Growth Outpaces Rest Of Business Economy

Jan. 13, 2005
By John S. McClenahen On a seasonally adjusted annual basis, productivity growth in manufacturing during the third quarter of this year was higher than productivity growth in both the business and nonfarm business sectors of the U.S. economy. Overall, ...
ByJohn S. McClenahen On a seasonally adjusted annual basis, productivity growth in manufacturing during the third quarter of this year was higher than productivity growth in both the business and nonfarm business sectors of the U.S. economy. Overall, productivity in manufacturing increased 4.3%, with productivity rising 5% among durable-goods manufacturers and 4.3% among nondurable-goods producers, the U.S. Labor Department reported on Nov. 4. In contrast, productivity rose 2.3% in the business sector and 1.9% in the nonfarm business sector. However, manufacturing's overall gain from July through September was only about half the 8.3% rate of productivity growth recorded during this year's second quarter. "Nonfarm productivity did slow in [the third quarter] as expected, to an annualized rate of 1.9%, from a sharply upwardly revised 3.9% in [the second quarter]," notes Merrill Lynch & Co. senior economist Kathy Bostjancic. "However, given we are in the third year of an economic recovery, productivity remains very sturdy, with the year-on-year pace at 3.1%."

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!