· 2.4 percent in the business sector and
· 2.6 percent in the non-farm business sector
.
In both sectors, the first-quarter productivity gains were greater than the preliminary estimates reported on May 7, due primarily to upward revisions to output growth.
In manufacturing, the revised productivity changes in the first quarter were:
· 3.6 percent in manufacturing,
· 2.6 percent in durable goods manufacturing, and
· 5.7 percent in non-durable goods manufacturing.
Manufacturing productivity growth was slower in the first quarter of 2008 than reported on May 7 as output was revised down by more than hours. Output and hours in manufacturing, which includes about 12 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the aggregate business and non-farm business sectors.
Productivity grew at a 3.6 percent annual rate in the manufacturing sector during the first quarter of 2008, reflecting a 1.2 percent decrease in output and a 4.7 percent decrease in hours. This was the largest decline in hours since a 6.3 percent drop in the third quarter of 2003. Output per hour rose at the highest rate in three years, 5.7 percent, in non-durable goods industries during the first quarter; hours fell by 6.9 percent and output declined 1.6 percent. Total manufacturing productivity grew 4.0 percent from the first quarter of 2007 to the first quarter of 2008, similar to the 3.8 percent average annual increase from 2000 to 2006.
Hourly compensation in manufacturing grew 7.9 percent during the first quarter of 2008. Real hourly compensation, which takes into account changes in consumer prices, increased 3.5 percent for all manufacturing workers, as a 3.1 percent rise in durable manufacturing real hourly compensation combined with a 4.0 percent rise in the nondurable goods industries.
Unit labor costs rose 4.2 percent in manufacturing during the first quarter of 2008, as hourly compensation increased faster than productivity in both subsectors. However, over the past four quarters total manufacturing unit labor costs edged down 0.2 percent, as durable goods unit labor costs declined 1.8 percent and nondurable goods unit labor costs rose 1.6 percent.
Read the full report and view all of the data tables by clicking on the link below: