Productivity growth in third quarter higher than originally reported

Productivity in the nonfarm business sector—as measured by output per hour—increased at a revised seasonally adjusted annual rate of 9.4 percent in the third quarter of 2003.

[Chart data—TXT]

A preliminary estimate of 8.1 percent had been reported on November 6, based on information available at that time. The upward revision to productivity reflects a much larger upward revision to output than to hours.

Output in the nonfarm business sector grew at an annual rate of 10.3 percent in the third quarter, revised upward from a preliminary estimate of 8.8 percent. The output increase was the largest since the third quarter of 1983, when it rose 11.5 percent.

Hours of all persons were up 0.8 percent, following an initially reported estimate of 0.7 percent (seasonally adjusted annual rates). Hours last increased in the first quarter of 2000, when they rose 1.6 percent.

These data are from the BLS Productivity and Costs program. Data are subject to revision. Additional information is available in "Productivity and Costs, Third Quarter 2003, Revised" (PDF) (TXT), news release USDL 03-815.