Technical notes

Technical Notes 

Information and computer technologies (ICT) Sector 

Information and computer technologies (ICT) is made up of the following 
industries (and removed from their usual category), NAICS 334 (Computer 
and electronic products), NAICS 517 (Telecommunications), NAICS 5415 
(Computer systems design and related services), and NAICS 51 (Information)
except traditional paper publishers. This definition is generally comparable
to that used by the Organization for Economic Cooperation and Development 
(OECD), which defines the ICT sector using the International Standard 
Industrial Classification (ISIC) (OECD 2011).

Capital Services 

Data on investment for fixed assets are obtained from BEA. Data on 
inventories are estimated using data from BEA and additional information
from IRS Corporation Income Returns. Data for land in the farm industry 
are obtained from USDA. Nonfarm industry detail for land is based on IRS
book value data. Current-dollar value-added data, obtained from BEA, are
used in estimating capital rental prices. 

Labor Input 

Hours at work data reflect Productivity and Costs data as of the September
3, 2020 “Productivity and Costs” news release (USDL-20-1649). The growth 
rate of labor composition is defined as the difference between the growth 
rate of weighted labor input and the growth rate of the hours.

Intermediate Inputs 

Data on intermediate inputs are obtained from BEA based on BEA annual 
input-output tables. Tornqvist indexes of each of these three input classes
are derived at the NAICS industry level and then aggregated to the 
industries. Materials inputs are adjusted to exclude transactions between
establishments within the same industry.
	
Sectoral Output 


The output concept used to measure total factor productivity for industries
is “sectoral output”. Sectoral output equals gross output (sales, receipts,
and other operating income, plus commodity taxes plus changes in 
inventories), excluding transactions between establishments within the
same industry. This is not the same output measure used for private
business and private nonfarm business is “real value-added output”, 
described below in “Real Value-Added Output” section. 

Industry output measures for 2018 and earlier years are constructed 
primarily using data from the economic censuses and annual surveys of
the U.S. Census Bureau together with data on price changes primarily
from BLS. These measures have been revised due to new and revised data
from the Bureau of Economic Analysis, used in part to construct 
intra-industry transactions. Manufacturing industry output for 2019 is 
estimated based on historical relationships between BLS industrial 
output, BLS price indexes, and data on industrial production from the
Federal Reserve Board. Data from the Quarterly Services Survey from 
the Census Bureau are used to construct preliminary output measures 
for 2019 for some industries.

Real Value-Aded Output Concept Used for Private Business and 
Private Nonfarm Business Sectors

Real value-added output in private business equals gross domestic 
product less general government, government enterprises, private 
households (including the rental value of owner-occupied real estate),
and non-profit institutions. Real value-added output excludes intermediate
transactions between businesses.

Other information 

Comprehensive tables containing more detailed data than that which 
is published in this press release are available upon request at 
202-691-5606 or at www.bls.gov/mfp/mprdload.htm. Industry specific 
contributions to output are available at 
www.bls.gov/mfp/contributions-to-output.htm.

More detailed information on methods, limitations, and data sources
of capital and labor are provided in BLS Bulletin 2178 
(September 1983), Trends in Multifactor Productivity, 1948-81 and
on the BLS Multifactor Productivity website under the title 
“Technical Information About the BLS Multifactor Productivity Measures”
for Major Industrys and 18 NAICS industry Manufacturing Industries at
www.bls.gov/mfp/mprtech.pdf. 

General information is available on the BLS Multifactor Productivity
website at www.bls.gov/mfp/mprover.htm. Additional data not contained
in the release can be obtained in print or at www.bls.gov/mfp. 
A number of comprehensive tables set up as zip files can be obtained
at www.bls.gov/mfp/mprdload.htm. Methods for measuring manufacturing
multifactor productivity are discussed in the July 1995 issue of the
Monthly Labor Review, "Measurement of productivity growth in U.S. 
manufacturing”. See www.bls.gov/mfp/mprgul95.pdf.