Manufacturing Sector: Total Factor Productivity
MPU9900013 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-3.20
Year-over-Year Change
700.00%
Date Range
1/1/1988 - 1/1/2023
Summary
Total factor productivity measures the overall efficiency of the manufacturing sector, providing insights into technological progress and production capacity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
Total factor productivity (TFP) is an economic metric that assesses the combined efficiency of labor, capital, and other inputs in the manufacturing sector. It serves as an important indicator of technological change, innovation, and the sector's long-term growth potential.
Methodology
The Bureau of Labor Statistics calculates TFP by dividing the total output of the manufacturing sector by a weighted combination of labor and capital inputs.
Historical Context
Policymakers and analysts closely monitor manufacturing TFP to gauge the sector's competitiveness and inform strategies for fostering productivity growth.
Key Facts
- Manufacturing TFP has grown at an average annual rate of 1.1% since 1987.
- High TFP indicates greater output with the same level of inputs.
- Improving TFP is a key policy goal for enhancing manufacturing competitiveness.
FAQs
Q: What does this economic trend measure?
A: Total factor productivity (TFP) measures the overall efficiency of the manufacturing sector, capturing the combined productivity of labor, capital, and other inputs.
Q: Why is this trend relevant for users or analysts?
A: Manufacturing TFP is a crucial indicator of technological progress, innovation, and the sector's long-term growth potential, making it highly relevant for policymakers and economic analysts.
Q: How is this data collected or calculated?
A: The Bureau of Labor Statistics calculates manufacturing TFP by dividing total output by a weighted combination of labor and capital inputs.
Q: How is this trend used in economic policy?
A: Policymakers monitor manufacturing TFP to assess the sector's competitiveness and inform strategies for fostering productivity growth, which is a key policy goal.
Q: Are there update delays or limitations?
A: The manufacturing TFP data is published quarterly by the Bureau of Labor Statistics, with some delay in the release of the most recent data.
Related Trends
Intermediate Inputs Productivity for Manufacturing: Textile and Fabric Finishing and Fabric Coating Mills (NAICS 3133) in the United States
IPUEN3133P001000000
Capital Share for Manufacturing: Iron and Steel Mills and Ferroalloy Production (NAICS 3311) in the United States
IPUEN3311C030000000
Sectoral Output for Manufacturing: Other Motor Vehicle Parts (NAICS 336390) in the United States
IPUEN336390T301000000
Real Sectoral Output for Manufacturing: Motor Vehicle Parts Manufacturing (NAICS 3363) in the United States
IPUEN3363T010000000
Combined Inputs for Manufacturing: Railroad Rolling Stock Manufacturing (NAICS 336510) in the United States
IPUEN336510M011000000
Sectoral Output for Manufacturing: All Other Fabricated Metal Product Manufacturing (NAICS 33299) in the United States
IPUEN33299T301000000
Citation
U.S. Federal Reserve, Manufacturing Sector: Total Factor Productivity (MPU9900013), retrieved from FRED.