Productivity and Costs News Release

[RTFX-Trading]

PRODUCTIVITY AND COSTS
Fourth Quarter and Annual Averages, 2006 Revised

The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised fourth-quarter seasonally-adjusted annual rates of
productivity change--as measured by output per hour of all persons--and
revised changes for calendar year 2006. Percent changes in business and
nonfarm business productivity were:

Fourth Annual averages
quarter 2005-2006

Business sector 1.0 1.7
Nonfarm business sector 1.6 1.6

In both the business and nonfarm business sectors, productivity growth
for the fourth quarter of 2006 was revised down by 1.4 percentage points from
the estimates published February 7, due solely to downward revisions to
output. Productivity growth during calendar year 2006 also was less than
previously reported in both sectors, but the revisions to annual data were
almost entirely explained by upward revisions to hours worked.

In the manufacturing sector, increases in productivity were:

Fourth Annual averages
quarter 2005-2006

Manufacturing 2.2 4.0
Durable goods manufacturing 3.4 6.2
Nondurable goods manufacturing 0.8 1.7


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Data in this release reflect the annual benchmark revision of BLS Current
Employment Statistics program data on nonfarm employee hours, and revised
seasonal adjustment of those data. Also, hours of other nonfarm and farm
workers based on the BLS Current Population Survey and contributing to
measures for the business and nonfarm business sectors incorporate new
seasonal adjustment factors. Due to these hours revisions, measures for all
major sectors were subject to revision beginning with data for the first
quarter of 2002. Revised seasonally-adjusted values of the BLS Consumer
Price Index for all urban consumers are reflected in measures of real hourly
compensation beginning with data for the first quarter of 2006. See Revised
Measures.
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Productivity in total manufacturing grew at a 2.2 percent annual rate in
the fourth quarter of 2006, the same as the preliminary estimate. In total
manufacturing and in both subsectors, the reported increases in productivity
resulted when hours fell faster than output. When revised annual averages
for 2005 and 2006 were compared, productivity increased slightly more in
total manufacturing and in nondurable manufacturing than reported Feb. 7 and
the increase in durable manufacturing was not revised. 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 nonfarm business sectors. Fourth-quarter productivity
and related measures are summarized in table A and appear in detail in tables
1 through 5. Preliminary and revised fourth-quarter and annual data appear
in table C.

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