Multifactor productivity (MFP) for the Australian market sector rose 0.5 per cent in 2017-18, which was the lowest MFP growth in five years, according to data released by the Australian Bureau of Statistics (ABS).
ABS Chief Economist Bruce Hockman said "the latest MFP and labour productivity was below the long term annual average”.
“The slowdown in productivity growth is partly due to significant variation in productivity across industry groups. While seven industries recorded MFP growth, with administrative and support services (8.2 per cent) the strongest, nine industries recorded a fall. Agriculture, forestry and fishing recorded the largest fall (-7.0 per cent) in 2017-18.”
This release also marks the second year of experimental estimates of state and territory productivity.
“In 2017-18, MFP growth was strongest in the ACT (2.6 per cent), followed by Tasmania (1.4 per cent) while NSW and Victoria recorded negative MFP growth coming off a strong 2016-17 result,” Mr Hockman said.