Source: U.S. Bureau of Labor Statistics
Multifactor productivity is calculated by dividing an index of real output by an index of combined units of labor input and capital services. It is designed to measure the joint influences of technological change, efficiency improvements, returns to scale, reallocation of resources, and other factors of economic growth, accounting for the effects of capital and labor. The real value is the added output divided by combined inputs.
For more information, please go to http://www.bls.gov/mfp/
Source Indicator: MPU4900013
U.S. Bureau of Labor Statistics, Private Business Sector: Multifactor Productivity [MPU4900013], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MPU4900013, February 21, 2019.