Multifactor Productivity Across 16 Industries Up 0.6 % In 2016-17

Multifactor Productivity Across 16 Industries Up 0.6 % In 2016-17

Australian Bureau Of Statistics

Agriculture Productivity Growth Stands Out In 2016-17

Victor P Taffa

Multifactor productivity across 16 of Australia’s industries increased 0.6 % in 2016-17, driven in part by growth in agriculture productivity, according to data released by the Australian Bureau of Statistics (ABS).

ABS Chief Economist Bruce Hockman said the latest multifactor productivity (MFP) estimates show that the annual rise was below the long term annual average of 0.9 % and included “significant variations across industry groups”.

“An exceptionally good season for agricultural products in 2016-17 saw agriculture productivity rise 18.3 %, the fastest rate of growth since 2003-04.” Mr. Hockman said.

“MFP growth was also strong in the Arts and Recreation services industry (6.2%) due to a fall in hours worked in that industry.”

“Largest decline was seen in Construction which fell 7.3 %. Growth was weighed down by reductions in new mining and heavy industrial projects, which outweighed the demand for new infrastructure work.”

“Manufacturing MFP fell 4.7% and Other services MFP fell 4.6%, both on the back of an increase in reported hours worked.”

“Total MFP growth reflected 1.9 % real Gross value added (GVA) growth outpacing combined inputs growth of 1.3 %. The growth in combined inputs was driven by 0.8 % increase in hours worked and 1.9 % rise in capital services.” Mr. Hockman said.

This reflected the relatively equal share recently published between labour and capital income, although again there was significant variation between industries.

Mr. Hockman also said that for the first time the ABS was releasing experimental estimates of state and territory productivity, providing an indication over two decades of relative state productivity growth rates.

“These estimates show varied MFP growth for states and territories across the available time series. From 1994-95 to 2016-17, average MFP growth for states ranged from 0.3 % (Tasmania) to 1.0 % (New South Wales).” Mr. Hockman said.