U.S. Factory Productivity Revised Higher on Stronger Durable-Goods Output

U.S. manufacturing productivity rose more than initially estimated in the third quarter, driven by a stronger showing in durable-goods output, a development that points to improved efficiency on factory floors.

Productivity in the durable-goods manufacturing sector increased at a 5.4 percent annual rate in the third quarter, revised up from a 4.7 percent gain in the preliminary estimate. Output in durables was revised higher to a 3.6 percent increase, while hours worked fell 1.7 percent.

For total manufacturing, productivity rose at a 3.7 percent annual rate, revised up from 3.3 percent. Manufacturing output was revised up to a 3.0 percent increase, while hours worked fell 0.7 percent.

The revised figures underscore a quarter in which manufacturers produced more with fewer labor hours, particularly in industries