Definition of the Output factor in productivity:
Output: Business sector output is an annual-weighted index
constructed after excluding from gross domestic product (GDP) the
following outputs: General government, nonprofit institutions, paid
employees of private households, and the rental value of owner-
occupied dwellings. Corresponding exclusions also are made in labor
inputs. Business output accounted for about 77 percent of the value
of GDP in 1996. Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
Annual indexes for manufacturing and its durable and nondurable
goods components are constructed by deflating current-dollar industry
value of production data from the U.S. Bureau of the Census with
deflators from the BEA. These deflators are based on data from the
BLS producer price program and other sources. The industry shipments
are aggregated using annual weights, and intrasector transactions are
removed. Quarterly manufacturing output measures are based on the
index of industrial production prepared monthly by the Board of
Governors of the Federal Reserve System adjusted to be consistent
with annual indexes of manufacturing sector output prepared by BLS.
Durables include the following 2-digit SIC industries: Primary metal
industries; fabricated metal products; nonelectrical machinery;
industrial and commercial machinery and computer equipment;
electronic and other electrical equipment; transportation equipment;
instruments; lumber and lumber products; furniture and fixtures;
stone, clay, and glass and concrete products; and miscellaneous
manufactures. Nondurables include: Food and kindred products, tobacco
products, textile mill products, apparel products, paper and allied
products, printing and publishing, chemicals and chemical products,
petroleum refining and related industries, rubber and plastic
products, and leather and leather products.
Nonfinancial corporate output is an annual-weighted index
calculated on the basis of the costs incurred and the incomes earned
from production. The output measure excludes the following outputs
from GDP: general government; nonprofit institutions; employees of
private households; the rental value of owner-occupied dwellings;
unincorporated business; and those corporations which are depository
institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small
business investment offices, and real estate investment trusts.
Nonfinancial corporations accounted for about 53 percent of the value
of GDP in 1996. |
