Labor productivity is the ratio of the output of goods and
services to the labor hours devoted to the production of that
output. Multifactor productivity relates output to a combination
of inputs used in the production of that output, such as labor
and capital or capital, labor, energy, materials, and purchased
business services (KLEMS). Capital includes equipment,
structures, inventories, and land. Some source data needed to
construct such measures are not available quarterly. The most
commonly used multifactor productivity measure is for the
private business sector of the economy. This sector essentially
measures the for-profit sector of the economy and it is the
broadest sector for which multifactor productivity measures are
available. Because satisfactory capital measures are unavailable
for government enterprises, government enterprises are excluded
when multifactor productivity is calculated. The labor
productivity measures include government enterprises. Capital
input is measured as “capital services”