Productivity and Costs News Release



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                             PRODUCTIVITY AND COSTS
                         Preliminary Fourth Quarter and
                            Annual Averages for 2008
                            
        The Bureau of Labor Statistics of the U.S. Department of Labor today 
reported preliminary productivity data--as measured by output per hour of all 
persons--for the fourth quarter and for the full year 2008.  The seasonally 
adjusted annual rates of productivity change in the fourth quarter and the 
annual average changes were:

                                         Fourth         Annual averages 
                                         quarter           2007-2008
                                
        Business sector                    3.1                2.7 
        Nonfarm business sector            3.2                2.8 

In the fourth quarter of 2008, productivity increased 3.1 percent in the 
business sector, with output and hours decreasing 5.2 percent and 8.1 
percent, respectively.  Output per hour for the nonfarm business sector rose 
3.2 percent as output declined 5.5 percent and hours fell 8.4 percent.  For 
the full year 2008 productivity rose 2.7 percent in the business sector and 
2.8 percent in the nonfarm business sector. 

        In the manufacturing sector, productivity changes were:
        
                                         Fourth         Annual averages 
                                         quarter           2007-2008
                                         
        Manufacturing sector              -3.0                1.3 
          Durable goods manufacturing    -13.4                1.4 
          Nondurable goods manufacturing   7.6                1.0
          
Manufacturing productivity decreased for the third consecutive quarter; 
output per hour fell at a 3.0 percent annual rate in the fourth quarter.  The 
fourth-quarter decline was concentrated in the durable goods sector.  Output 
per hour in total manufacturing posted a 1.3 percent increase in 2008 on an 
annual average basis.  Output and hours in manufacturing, which includes 
about 12 percent of U.S. business-sector employment, tend to vary more from 
quarter to quarter than data for the aggregate business and nonfarm business 
sectors.  Fourth quarter productivity and related measures are summarized in 
table A, and annual average data in table B.  Detailed information is 
presented in tables 1 through 5.

==============================================================================        
The data in this release do not reflect the annual benchmark revision of the 
BLS Current Employment Statistics program data to be released on February 6, 
2009.  This benchmark will be incorporated in our next release on March 5, 
2009.
==============================================================================

        The data sources and methods used in the preparation of the 
manufacturing series differ from those used in preparing the business and 
nonfarm business series, and these measures are not directly comparable.  
Output measures for business and nonfarm business are based on measures of 
gross domestic product prepared by the Bureau of Economic Analysis of the 
U.S. Department of Commerce.  Quarterly output measures for manufacturing 
reflect indexes of industrial production independently prepared by the Board 
of Governors of the Federal Reserve System.  See Technical Notes for further 
information on data sources.  
                                
------------------------------------------------------------------------------
Table A. Productivity and costs:  Preliminary fourth-quarter 2008 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------
                           Percent change from preceding quarter
                        
Business                3.1       -5.2     -8.1         4.7     15.3       1.5
Nonfarm business        3.2       -5.5     -8.4         5.0     15.6       1.8
Manufacturing          -3.0      -16.7    -14.1         9.8     20.9      13.3
  Durable             -13.4      -26.1    -14.7        10.1     21.2      27.1
  Nondurable            7.6       -6.5    -13.1         9.6     20.6       1.8
------------------------------------------------------------------------------  
                           Percent change from same quarter a year ago
                        
Business                2.7      -1.0      -3.6         3.4      1.9       0.7
Nonfarm business        2.7      -1.0      -3.6         3.5      1.9       0.7
Manufacturing          -1.4      -7.7      -6.5         5.1      3.6       6.6
  Durable              -3.6     -10.4      -7.0         5.5      4.0       9.5
  Nondurable            0.4      -5.1      -5.5         4.5      3.0       4.1
 ------------------------------------------------------------------------------


                        THIRD-TO-FOURTH QUARTER CHANGES, 2008
                        
Business

        Productivity in the business sector increased by 3.1 percent in the 
fourth quarter of 2008, reflecting a decrease of 5.2 percent in output and an 
even greater decline of 8.1 percent in hours of all persons (seasonally 
adjusted annual rates).  The decline in output was the largest since the 
first quarter of 1982 (-8.6 percent) and the drop in hours was the largest 
since first quarter 1975  (-12.1 percent). When the fourth quarter of 2008 is 
compared to the fourth quarter of 2007, business sector productivity grew 2.7 
percent, as output and hours fell 1.0 percent and 3.6 percent, respectively 
(table A).  Business sector productivity had grown at a 2.5 percent average 
annual rate for the 2000-2007 period.

        Hourly compensation grew 4.7 percent in the fourth quarter of 2008, up 
from a 4.2 percent increase one quarter earlier. This measure includes wages 
and salaries, supplements, employer contributions to employee-benefit plans, 
and taxes.  Real hourly compensation takes into account changes in consumer 
prices, which fell at a 9.2 percent annual rate in the fourth quarter.  The 
15.3 percent fourth-quarter increase in real hourly compensation was the 
largest since the first quarter of 1950 when it increased 16.1 percent.  When 
the fourth quarter of 2008 is compared to the fourth quarter of 2007, real 
hourly compensation increased 1.9 percent. 

        Unit labor costs, which relate hourly compensation to output per hour, 
increased 1.5 percent in the fourth quarter of 2008, as most of the 4.7 
percent increase in hourly compensation was offset by the 3.1 percent 
productivity gain. 


Nonfarm Business

        In the nonfarm business sector, productivity rose 3.2 percent in the 
fourth quarter of 2008, as output decreased 5.5 percent and hours of all 
persons--employees, proprietors, and unpaid family workers--fell more, 8.4 
percent (seasonally adjusted annual rates).  As in the business sector, the 
declines in output and hours were the largest since the first quarter of 1982 
for output (-8.7 percent) and the first quarter of 1975 for hours (-12.0 
percent).  During the four-quarter period ending with the fourth quarter of 
2008, nonfarm business sector productivity grew 2.7 percent--similar to the 
2.5 percent average rate of growth from 2000 to 2007 (table 2). 

        Hourly compensation in the nonfarm business sector rose 5.0 percent in 
the fourth quarter of 2008 following a 4.2 percent increase in the third 
quarter.  When the 9.2 percent decrease in consumer prices was factored in, 
real hourly compensation jumped 15.6 percent during the fourth quarter 
(seasonally adjusted annual rates).  This was the largest increase in real 
hourly compensation since the beginning of the series in the second quarter 
of 1947.  However, real hourly compensation had declined in each of the first 
three quarters of 2008, and as in the business sector, the change from the 
same quarter a year ago was 1.9 percent.

        Unit labor costs rose 1.8 percent in the fourth quarter of 2008, and 0.7 
percent over the last four quarters.  As in the business sector, unit labor 
costs increased at a 1.4 percent average annual rate from 2000 to 2007.  The 
implicit price deflator for nonfarm business output declined 0.5 percent in 
the fourth quarter after increasing 4.7 percent in the previous quarter.

  
Manufacturing

        Manufacturing productivity, output, and hours all declined in the fourth 
quarter of 2008;  output per hour fell 3.0 percent, output dropped 16.7 
percent, and hours fell 14.1 percent (seasonally adjusted annual rates).  The 
decreases in hours and output were the largest for these  series, which begin 
with data for the second quarter of 1987.  From the fourth quarter of 2007 to 
the fourth quarter of 2008 manufacturing productivity decreased 1.4 percent, 
output fell 7.7 percent and hours declined 6.5 percent (table A).  
Manufacturing productivity had grown at a 3.7 percent average annual rate 
from 2000 to 2007.

        In the durable goods manufacturing sector, productivity dropped 13.4 
percent in the fourth quarter of 2008, as output fell 26.1 percent and hours 
declined 14.7 percent (table 4).  These were the largest decreases in output 
per hour, hours and output for the entire series dating back to second-
quarter 1987.  In the nondurable goods sector, productivity rose 7.6 percent 
in the fourth quarter as hours fell faster than output; output declined 6.5 
percent and hours dropped 13.1 percent (table 5).  

        Hourly compensation of all manufacturing workers increased 9.8 percent 
during the fourth quarter of 2008, reflecting increases of 10.1 percent in 
durable goods industries and 9.6 percent in nondurable goods industries.  
When the decrease in consumer prices was taken into account, real hourly 
compensation in total manufacturing increased 20.9 percent in the fourth 
quarter, which was the largest increase in the series. 

        Unit labor costs for the manufacturing sector rose 13.3 percent in 
fourth-quarter 2008.  These cost increases were concentrated in durable goods 
manufacturing where unit labor costs rose 27.1 percent; unit labor costs rose 
1.8 percent in nondurable goods industries.  Over the last four quarters 
manufacturing unit labor costs increased 6.6 percent.   
       

                        ANNUAL AVERAGE CHANGES, 2007-2008
                        
Business and Nonfarm Business

        When annual averages for 2008 were compared with annual averages for 
2007, labor productivity increased 2.7 percent in the business sector and 2.8 
percent in the nonfarm business sector.  In both sectors, the productivity 
increases were the largest since similar gains in 2004, due more to the 
declines in hours than the small gains in output (table B).

------------------------------------------------------------------------------
Table B. Annual average changes in productivity and related measures,1999-2008
------------------------------------------------------------------------------
Measure         1999  2000  2001  2002  2003  2004  2005   2006   2007   2008
------------------------------------------------------------------------------
Business:   

 Produc-
 tivity         3.1   2.9   2.5   4.1    3.8   2.9   1.8    0.9     1.5    2.7
 
 Output         5.1   3.9   0.3   1.5    3.1   4.2   3.5    3.0     2.0    1.0
 
 Hours          2.0   1.0  -2.2  -2.5   -0.7   1.3   1.6    2.1     0.5   -1.7
 
 Hourly 
 compensation   4.9   7.1   4.2   3.5    4.1   3.8   4.0    3.8     4.2    3.3
          
 Real hourly  
 compensation   2.8   3.6   1.4   1.9    1.8   1.0   0.6    0.5     1.3   -0.5
        
 Unit labor
 costs          1.8   4.1   1.6  -0.5    0.2   0.9   2.1    2.9     2.6    0.6   
------------------------------------------------------------------------------
Nonfarm Business:

 Produc-
 tivity         2.9   2.8   2.5   4.1    3.7   2.8   1.8    1.0     1.4    2.8
 
 Output         5.2   3.8   0.4   1.5    3.1   4.1   3.4    3.2     2.0    1.0
                                             
 Hours          2.2   1.0  -2.0  -2.6   -0.6   1.3   1.6    2.2     0.5   -1.8
 
 Hourly  
 compensation   4.7   7.2   4.0   3.6    4.0   3.6   4.0    3.8     4.1    3.4
  
 Real hourly 
 compensation   2.6   3.7   1.1   2.0    1.8   0.9   0.7    0.5     1.2   -0.4
 
 Unit labor 
 costs          1.8   4.2   1.4  -0.5    0.3   0.9   2.2    2.8     2.7    0.5
------------------------------------------------------------------------------
Manufacturing:  

 Produc-
 tivity         4.5   4.1   1.6   6.9   6.2    2.2   4.9    1.1     3.4    1.3
                                                                  
 Output         3.8   2.7  -5.1  -0.7   1.0    1.7   3.7    1.8     1.6   -2.4
 
 Hours         -0.7  -1.3  -6.5  -7.1  -4.9   -0.5  -1.2    0.8    -1.7   -3.7
 
 Hourly   
 compensation   4.0   9.1   2.3   7.2   7.0    2.1   1.9    4.1     3.5    3.9
 
 Real hourly 
 compensation   1.8   5.6  -0.5   5.5   4.7   -0.6  -1.4    0.8     0.7    0.1
 
 Unit labor
 costs         -0.5   4.9   0.7   0.3   0.8   -0.2  -2.8    3.0     0.1    2.5
------------------------------------------------------------------------------


        In 2008, hourly compensation increased 3.3 percent and 3.4 percent in 
business and nonfarm business, respectively.  Because consumer prices 
increased more, 3.8 percent, real hourly compensation fell slightly.  The 
annual decline in this measure of purchasing power was the first since small 
declines occurred in three consecutive years--1993, 1994, and 1995.  

        Unit labor costs rose just 0.6 percent and 0.5 percent in the business 
and nonfarm business sectors in 2008, as hourly compensation growth was 
largely offset by productivity growth.  Unit labor costs had increased 2.7 
percent per year on average from 2005 to 2007.  


Manufacturing

        In the manufacturing sector, labor productivity rose 1.3 percent in 
2008 as output fell 2.4 percent but hours fell faster, 3.7 percent (table B).  
Over the year there was little difference between the durable and nondurable 
manufacturing subsectors.  Durable manufacturing output per hour increased 
1.4 percent as output fell 2.5 percent and hours fell 3.9 percent, while in 
nondurable goods industries productivity increased 1.0 percent, output fell 
2.4 percent, and hours fell 3.4 percent.  

        Hourly compensation of manufacturing workers increased 3.9 percent in 
2008, consistent with the trend rate of 4.0 percent per year from 2000 to 
2007.  The gain in hourly compensation was offset by the 3.8 percent increase 
in consumer prices, and real hourly compensation edged up 0.1 percent.  Unit 
labor costs in manufacturing increased 2.5 percent in 2008, as hourly 
compensation increased more than productivity.  These costs had increased at 
a 0.3 percent average annual rate from 2000 to 2007. 


Revised Measures

        Current and previous measures for the third quarter of 2008 for the 
business, nonfarm business, and manufacturing sectors are compared in table 
C.  In both the business and nonfarm business sectors, productivity growth 
was revised up slightly in the third quarter because hours worked fell faster 
than reported Dec. 3.  The upward revisions to productivity led to small 
downward revisions to unit labor costs. 

        In the manufacturing sector, productivity fell 0.6 percentage points 
faster in the third quarter than previously reported, as a downward revision 
to output was partially offset by a downward revision to hours.  As revised, 
manufacturing productivity decreased 3.3 percent, reflecting an 8.8 percent 
decrease in output and a 5.7 percent decrease in hours. Unit labor costs 
increased more in the third quarter than reported Dec. 3, reflecting both the 
downward revision to productivity and a small upward revision to hourly 
compensation.                           

------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rates
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------
                        
                                    Third quarter 2008
                                    
Business:                                               
  Previous              1.5       -1.7     -3.2         4.2     -2.4      2.6
  Revised               1.7       -1.8     -3.5         4.2     -2.3      2.5
Nonfarm business:                                               
  Previous              1.3       -1.9     -3.1         4.1     -2.4      2.8
  Revised               1.5       -1.9     -3.4         4.2     -2.4      2.6
Manufacturing:                                          
  Previous             -2.7       -7.8     -5.3         4.7     -1.9      7.6
  Revised              -3.3       -8.8     -5.7         4.9     -1.7      8.4
------------------------------------------------------------------------------


Revised Measures: Nonfinancial Corporations 

        Revised third-quarter productivity and costs measures for nonfinancial 
corporations also were announced today, and reflect updated information on 
output, compensation and employee hours.  In the third quarter of 2008, 
productivity grew faster than reported on Dec. 3, as a result of both an 
upward revision to output and a downward revision to hours worked.  Unit 
labor costs were revised down as the upward revision to productivity was 
larger than the upward revision to hourly compensation (table D).                                                               
        
        
-----------------------------------------------------------------------------
Table D.  Nonfinancial corporations:  Previous and revised productivity and 
cost measures
Quarterly percent change at seasonally adjusted annual rates
------------------------------------------------------------------------------
                                           Real
                                  Hourly   hourly   Unit              Implicit
         Produc-                  compen-  compen-  labor   Unit      price
         tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------                                  
                           Third quarter 2008

Previous   4.9      1.8    -3.0    5.0      -1.6     0.1     24.6       4.0
Revised    5.5      2.1    -3.2    5.1      -1.5    -0.4     26.8       3.8
------------------------------------------------------------------------------  

        Real output for nonfinancial corporations was revised beginning with 
data for the first quarter of 2005 in the national income and product 
accounts (NIPA) data released by the Bureau of Economic Analysis, U.S. 
Department of Commerce on December 23, 2008.  As a result of the 
incorporation of these revisions, output and all measures relying on output 
for this sector, such as productivity and unit labor costs, were subject to 
revision back to the first quarter of 2005.  Revised data for 2006 forward 
appear in table 6.  The full historical measures can be found via the 
productivity and costs home page of the BLS website, 
http://www.bls.gov/lpc/#data.



                                Next release date
                                
                                
        The next release of Productivity and Costs is scheduled for 8:30 A.M. 
EST, Thursday, March 5, 2009.  Revised fourth-quarter and annual average 
measures for business, nonfarm business, and manufacturing will be released 
at that time.  This release will incorporate the annual benchmark revision to 
the employment levels in the BLS establishment survey data that will be 
released February 6.  All employment and hours series will incorporate new 
information on seasonal patterns. 
 
 



				TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include 
hours for all persons working in the sectorówage and salary workers, the 
self-employed and unpaid family workers.  The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  
Weekly paid hours are adjusted to hours at work using data from the National 
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this 
purpose, was used for earlier years.  The Office of Productivity and 
Technology estimates average weekly hours at work for nonproduction and 
supervisory workers using information from the Current Population Survey 
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input for government 
enterprises are derived from the CPS, the CES, and the National Income and 
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of 
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is a chain-type, current-weighted index 
constructed after excluding from gross domestic product (GDP) the following 
outputs: general government, nonprofit institutions, and private households 
(including owner-occupied housing). Corresponding exclusions also are made in 
labor inputs. Business output accounted for about 78 percent of the value of 
GDP in 2000. Nonfarm business, which excludes farming, accounted for about 77 
percent of GDP in 2000.
      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 
BLS.  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 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery 
manufacturing; computer and electronic product manufacturing; electrical 
equipment and appliance manufacturing; transportation equipment 
manufacturing; furniture and related product manufacturing; and miscellaneous 
manufacturing. Nondurables include: food manufacturing; beverage and tobacco 
product manufacturing; textile mills; textile product mills; apparel 
manufacturing; leather and allied product manufacturing; paper manufacturing; 
printing and related support activities; petroleum and coal products 
manufacturing; chemical manufacturing; and plastics and rubber products 
manufacturing.
      Nonfinancial corporate output is a chain-type, current-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; private households; 
unincorporated business; and those corporations classified as offices of bank 
holding companies, offices of other holding companies, or offices in the 
finance and insurance sector. Nonfinancial corporations accounted for about 
54 percent of the value of GDP in 2000.
      
Productivity: These productivity measures describe the relationship between 
real output and the labor time involved in its production. They show the 
changes from period to period in the amount of goods and services produced 
per hour. Although these measures relate output to hours at work of all 
persons engaged in a sector, they do not measure the specific contribution of 
labor, capital, or any other factor of production. Rather, they reflect the 
joint effects of many influences, including changes in technology; capital 
investment; level of output; utilization of capacity, energy, and materials; 
the organization of production; managerial skill; and the characteristics and 
effort of the work force.

Labor Compensation: Estimates of labor compensation by major sector, required 
for measures of hourly compensation and unit labor costs, are based primarily 
on employee compensation data from the NIPA, prepared by the BEA.  The 
compensation of employees in general government, nonprofit institutions and 
private households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor compensation 
of proprietors cannot be explicitly identified and must be estimated.  This 
is done by assuming that proprietors have the same hourly compensation as 
employees in the same sector.  The quarterly labor productivity and cost 
measures do not contain estimates of compensation for unpaid family workers.  
        
Unit Labor Costs:  The measures of unit labor costs in this release describe 
the relationship between compensation per hour and productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on 
producers.  Increases in hourly compensation increase unit labor costs; labor 
productivity increases offset compensation increases and lower unit labor 
costs. 

Presentation of the data:  The quarterly data in this release are presented 
in three ways; as index number series where 1992=100, as percent changes from 
the corresponding quarter of the previous year, and as percent changes from 
the previous quarter presented at a compound annual rate.  Annual data are 
presented both as index number series and percent changes from the previous 
year.  
	The index numbers and rates of change reported in the productivity and 
costs news release are rounded to one decimal place.  All percent changes in 
this release and on the BLS web site are calculated using index numbers to 
three decimal places.  These index numbers are available at the BLS web site, 
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major 
Sector Productivity.  (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
        
        Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service 
number: 1-800-877-8339.




Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2006       I     136.1      162.8     119.6     168.0       120.7      123.5       133.4      127.2
          II     136.6      164.0     120.1     168.1       119.7      123.1       136.2      128.0
         III     135.9      164.1     120.8     169.0       119.1      124.3       136.2      128.8
          IV     135.9      164.8     121.2     172.6       122.1      127.0       133.4      129.4

      ANNUAL     136.1      163.9     120.4     169.5       120.4      124.5       134.8      128.3

2007       I     135.9      164.5     121.0     174.7       122.4      128.5       134.3      130.7
          II     137.6      166.8     121.2     175.5       121.6      127.5       137.4      131.2
         III     139.7      169.0     121.0     177.0       121.9      126.7       139.7      131.6
          IV     139.7      168.8     120.8     178.9       121.7      128.1       139.2      132.2

      ANNUAL     138.2      167.3     121.0     176.5      r121.9      127.7       137.7      131.4

2008       I     140.5      169.1     120.3     180.6       121.5      128.5       140.2      132.9
          II     141.8      170.2     120.0     181.1       120.4      127.7       142.3      133.2
         III    r142.4     r169.4    r119.0    r183.0      r119.7     r128.5      r144.7     r134.6
          IV     143.5      167.2     116.5     185.1       124.0      129.0       142.9      134.2

      ANNUAL     142.0      169.0     119.0     182.4       121.3      128.4       142.5      133.7

---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I       2.6        5.6       3.0       5.5         3.6        2.8         3.1        3.0
          II       1.4        2.9       1.5       0.2        -3.3       -1.2         8.6        2.6
         III      -2.0        0.3       2.4       2.0        -1.9        4.1        -0.1        2.4
          IV       0.2        1.7       1.5       9.0        10.6        8.8        -8.0        1.9

      ANNUAL       0.9        3.0       2.1       3.8         0.5        2.9         3.3        3.0

2007       I      -0.1       -0.7      -0.6       4.8         1.1        4.8         2.8        4.0
          II       5.0        5.6       0.6       1.9        -2.6       -2.9         9.6        1.7
         III       6.2        5.5      -0.7       3.6         0.8       -2.5         6.9        1.1
          IV       0.1       -0.6      -0.7       4.4        -0.6        4.3        -1.6        2.0

      ANNUAL       1.5        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       2.3        0.7      -1.6       3.6        -0.6        1.3         3.1        2.0
          II       3.7        2.6      -1.0       1.2        -3.7       -2.4         6.1        0.9
         III      r1.7      r-1.8     r-3.5       4.2       r-2.3       r2.5        r7.0       r4.2
          IV       3.1       -5.2      -8.1       4.7        15.3        1.5        -5.0       -1.1

      ANNUAL       2.7        1.0      -1.7       3.3        -0.5        0.6         3.5        1.7

---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.3        3.6       2.3       4.3         0.5        2.9         3.9        3.3
          II       1.7        3.5       1.8       4.0         0.1        2.3         5.2        3.4
         III       0.2        2.4       2.2       2.9        -0.4        2.7         3.5        3.0
          IV       0.5        2.6       2.1       4.1         2.1        3.6         0.7        2.5

      ANNUAL       0.9        3.0       2.1       3.8         0.5        2.9         3.3        3.0

2007       I      -0.1        1.0       1.2       3.9         1.5        4.1         0.7        2.7
          II       0.7        1.7       1.0       4.4         1.7        3.6         0.9        2.5
         III       2.8        3.0       0.2       4.8         2.4        1.9         2.6        2.2
          IV       2.8        2.4      -0.3       3.7        -0.3        0.9         4.3        2.2

      ANNUAL       1.5        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       3.4        2.8      -0.6       3.4        -0.7        0.0         4.4        1.7
          II       3.0        2.0      -1.0       3.2        -1.0        0.2         3.6        1.5
         III       1.9        0.2     r-1.7      r3.4        -1.8        1.4        r3.6        2.3
          IV       2.7       -1.0      -3.6       3.4         1.9        0.7         2.7        1.5

      ANNUAL       2.7        1.0      -1.7       3.3        -0.5        0.6         3.5        1.7

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 5, 2009
r=revised                                                              Source: Bureau of Labor Statistics



Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
and prices, seasonally adjusted
                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2006       I     135.1      163.2     120.8     166.8       119.8      123.5       135.5      127.9
          II     135.7      164.3     121.1     167.1       118.9      123.2       138.6      128.8
         III     135.0      164.4     121.8     167.9       118.3      124.4       138.3      129.5
          IV     135.0      165.0     122.2     171.7       121.4      127.1       134.8      130.0

      ANNUAL     135.2      164.2     121.5     168.4       119.6      124.6       136.8      129.1

2007       I     135.0      164.7     122.0     173.7       121.8      128.7       135.2      131.1
          II     136.4      167.0     122.4     174.1       120.7      127.7       138.2      131.5
         III     138.3      169.2     122.3     175.5       120.8      126.9       140.3      131.8
          IV     138.6      168.9     121.9     177.8       120.9      128.3       139.8      132.5

      ANNUAL     137.1      167.5     122.2     175.3      r121.1      127.9       138.4      131.7

2008       I     139.5      169.3     121.4     179.5       120.8      128.7       141.0      133.2
          II     140.8      170.5     121.1     179.9       119.6      127.8       143.3      133.5
         III    r141.3     r169.7    r120.1    r181.8      r118.9     r128.6      r146.0     r135.0
          IV     142.4      167.3     117.5     184.0       123.3      129.2       144.6      134.9

      ANNUAL     141.0      169.2     120.0     181.3       120.6      128.6       143.7      134.2

---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I       2.5        6.0       3.3       5.2         3.3        2.6         3.9        3.1
          II       1.8        2.9       1.1       0.7        -2.8       -1.1         9.4        2.9
         III      -2.1        0.3       2.4       1.9        -2.0        4.1        -0.9        2.1
          IV       0.2        1.4       1.2       9.3        11.0        9.1        -9.5        1.5

      ANNUAL       1.0        3.2       2.2       3.8         0.5        2.8         3.6        3.1

2007       I       0.0       -0.9      -0.8       4.9         1.2        4.9         0.9        3.4
          II       4.1        5.8       1.6       0.8        -3.6       -3.2         9.4        1.5
         III       5.8        5.5      -0.3       3.3         0.5       -2.4         6.3        0.9
          IV       0.8       -0.7      -1.6       5.3         0.3        4.5        -1.5        2.1

      ANNUAL       1.4        2.0       0.5       4.1        r1.2        2.7         1.2        2.1

2008       I       2.6        0.9      -1.7       3.8        -0.4        1.2         3.6        2.1
          II       3.6        2.8      -0.8       0.9        -3.9       -2.6         6.6        0.9
         III      r1.5       -1.9     r-3.4      r4.2        -2.4       r2.6        r7.8       r4.7
          IV       3.2       -5.5      -8.4       5.0        15.6        1.8        -3.8       -0.5

      ANNUAL       2.8        1.0      -1.8       3.4        -0.4        0.5         3.9        1.8

---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.3        3.7       2.4       4.2         0.5        2.9         4.3        3.4
          II       1.7        3.7       2.0       3.9         0.0        2.2         5.9        3.6
         III       0.3        2.6       2.3       2.9        -0.5        2.6         3.8        3.1
          IV       0.6        2.6       2.0       4.3         2.2        3.6         0.5        2.4

      ANNUAL       1.0        3.2       2.2       3.8         0.5        2.8         3.6        3.1

2007       I       0.0        0.9       1.0       4.2         1.7        4.2        -0.2        2.5
          II       0.5        1.6       1.1       4.2         1.5        3.7        -0.2        2.1
         III       2.5        2.9       0.4       4.5         2.1        2.0         1.5        1.8
          IV       2.7        2.4      -0.3       3.6        -0.4        0.9         3.7        2.0

      ANNUAL       1.4        2.0       0.5       4.1        r1.2        2.7         1.2        2.1

2008       I       3.3        2.8      -0.5       3.3        -0.8        0.0         4.3        1.6
          II       3.2        2.1      -1.1       3.3        -0.9        0.1         3.7        1.5
         III      r2.2        0.3      -1.8      r3.6        -1.6        1.4        r4.0       r2.4
          IV       2.7       -1.0      -3.6       3.5         1.9        0.7         3.4        1.8

      ANNUAL       2.8        1.0      -1.8       3.4        -0.4        0.5         3.9        1.8

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       February 5, 2009
r=revised                                                              Source: Bureau of Labor Statistics



Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2006       I            172.6        147.2         85.3        170.9          122.7          99.0
          II            172.7        147.4         85.4        169.5          120.7          98.2
         III            174.5        148.0         84.8        170.3          120.0          97.6
          IV            175.4        147.4         84.0        174.6          123.5          99.5

      ANNUAL            173.8        147.5         84.9        171.3          121.7          98.6

2007       I            177.0        147.8         83.5        176.9          124.0         100.0
          II            178.7        149.6         83.7        176.4          122.3          98.7
         III            180.6        151.2         83.7        176.4          121.4          97.6
          IV            182.5        151.0         82.8        179.7          122.2          98.5

      ANNUAL            179.7        149.9         83.4        177.3         r122.5          98.7

2008       I            184.0        150.7         81.9        181.4          122.1          98.6
          II           r182.9       r149.3         81.6        182.4          121.3         r99.7
         III           r181.4       r145.9        r80.4       r184.6         r120.7        r101.7
          IV            180.0        139.4         77.4        189.0          126.6         105.0

      ANNUAL            182.1        146.3         80.3        184.2          122.6         101.2

--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I             -0.6          1.8          2.4         14.3           12.3          15.0
          II              0.2          0.6          0.4         -3.1           -6.5          -3.3
         III              4.3          1.6         -2.5          1.8           -2.1          -2.3
          IV              2.2         -1.7         -3.8         10.4           12.1           8.0

      ANNUAL              1.1          1.8          0.8          4.1            0.8           3.0

2007       I              3.6          1.2         -2.3          5.5            1.8           1.8
          II              3.8          4.9          1.0         -1.1           -5.5          -4.8
         III              4.5          4.3         -0.2         -0.1           -2.8          -4.4
          IV              4.2         -0.4         -4.4          7.8            2.7           3.4

      ANNUAL              3.4          1.6         -1.7          3.5            0.7           0.1

2008       I              3.3         -0.8         -4.0          3.8           -0.5           0.5
          II            r-2.3        r-3.8         -1.5          2.2           -2.7          r4.6
         III            r-3.3        r-8.8        r-5.7         r4.9          r-1.7          r8.4
          IV             -3.0        -16.7        -14.1          9.8           20.9          13.3

      ANNUAL              1.3         -2.4         -3.7          3.9            0.1           2.5

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              1.5          2.4          0.9          5.4            1.6           3.8
          II              0.4          2.1          1.7          3.3           -0.6           2.9
         III              0.9          2.3          1.4          2.3           -1.0           1.4
          IV              1.5          0.6         -0.9          5.6            3.6           4.1

      ANNUAL              1.1          1.8          0.8          4.1            0.8           3.0

2007       I              2.6          0.4         -2.1          3.5            1.1           0.9
          II              3.5          1.5         -1.9          4.1            1.4           0.6
         III              3.5          2.1         -1.3          3.6            1.2           0.0
          IV              4.0          2.5         -1.5          2.9           -1.0          -1.1

      ANNUAL              3.4          1.6         -1.7          3.5            0.7           0.1

2008       I              4.0          2.0         -1.9          2.5           -1.6          -1.4
          II              2.4         -0.2         -2.5          3.4           -0.8          r1.0
         III             r0.4        r-3.5        r-3.9         r4.7           -0.6          r4.2
          IV             -1.4         -7.7         -6.5          5.1            3.6           6.6

      ANNUAL              1.3         -2.4         -3.7          3.9            0.1           2.5

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 5, 2009
r=revised                                                       Source: Bureau of Labor Statistics



Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2006       I            198.8        179.6         90.3        166.0          119.2          83.5
          II            198.9        180.5         90.7        164.6          117.1          82.7
         III            201.7        181.1         89.8        165.3          116.5          81.9
          IV            202.4        180.1         89.0        170.2          120.4          84.1

      ANNUAL            200.4        180.3         90.0        166.5          118.3          83.1

2007       I            204.4        180.3         88.2        173.0          121.3          84.7
          II            207.9        183.9         88.4        172.5          119.6          83.0
         III            210.9        186.9         88.6        172.2          118.6          81.7
          IV            214.3        187.0         87.3        175.5          119.4          81.9

      ANNUAL            209.4        184.5         88.1        173.3         r119.7          82.8

2008       I            215.5        186.9         86.7        176.6          118.9          82.0
          II           r213.1       r184.1         86.4        178.1          118.4         r83.6
         III           r214.1       r180.9        r84.5       r180.9         r118.3         r84.5
          IV            206.6        167.7         81.2        185.3          124.1          89.7

      ANNUAL            212.4        179.9         84.7        180.1          119.8          84.8

--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I             -1.8          0.4          2.3         13.7           11.7          15.9
          II              0.3          2.1          1.8         -3.3           -6.6          -3.6
         III              5.7          1.2         -4.3          1.6           -2.3          -3.9
          IV              1.4         -2.1         -3.4         12.6           14.4          11.1

      ANNUAL              2.2          3.3          1.1          3.9            0.6           1.7

2007       I              3.9          0.4         -3.4          6.7            3.0           2.7
          II              7.1          8.2          1.0         -1.2           -5.5          -7.7
         III              6.0          6.8          0.8         -0.7           -3.3          -6.2
          IV              6.6          0.3         -6.0          7.9            2.8           1.2

      ANNUAL              4.5          2.3         -2.0          4.1           r1.2          -0.3

2008       I              2.1         -0.4         -2.5          2.5           -1.7           0.4
          II            r-4.4        r-5.7         -1.4          3.5           -1.5          r8.2
         III             r2.0        r-6.9        r-8.8         r6.3          r-0.4          r4.1
          IV            -13.4        -26.1        -14.7         10.1           21.2          27.1

      ANNUAL              1.4         -2.5         -3.9          3.9            0.1           2.5

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              3.2          4.8          1.6          4.9            1.1           1.6
          II              2.0          4.6          2.5          3.1           -0.8           1.1
         III              2.2          3.6          1.4          1.9           -1.5          -0.4
          IV              1.4          0.4         -1.0          5.9            3.9           4.5

      ANNUAL              2.2          3.3          1.1          3.9            0.6           1.7

2007       I              2.8          0.4         -2.4          4.3            1.8           1.4
          II              4.5          1.8         -2.5          4.8            2.1           0.3
         III              4.6          3.2         -1.3          4.2            1.8          -0.3
          IV              5.9          3.9         -1.9          3.1           -0.8          -2.6

      ANNUAL              4.5          2.3         -2.0          4.1           r1.2          -0.3

2008       I              5.4          3.7         -1.7          2.1           -2.0          -3.2
          II              2.5         r0.1         -2.3          3.3           -1.0          r0.8
         III             r1.5        r-3.2        r-4.7          5.0          r-0.2          r3.4
          IV             -3.6        -10.4         -7.0          5.5            4.0           9.5

      ANNUAL              1.4         -2.5         -3.9          3.9            0.1           2.5

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 5, 2009
r=revised                                                       Source: Bureau of Labor Statistics



Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                            Real
     Year           Output per                  Hours       Compensa-       compensa-      Unit 
     and            hour of                     of all      tion per        tion per       labor
     quarter        all persons     Output      persons     hour (1)        hour (2)       costs
--------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2006       I            148.0        115.0         77.7        178.0          127.8         120.2
          II            148.4        114.8         77.3        176.6          125.7         119.0
         III            149.0        115.4         77.4        177.8          125.3         119.3
          IV            150.3        115.1         76.6        180.4          127.6         120.0

      ANNUAL            148.9        115.1         77.2        178.2          126.6         119.6

2007       I            151.2        115.6         76.5        181.9          127.5         120.3
          II            151.4        116.0         76.6        181.4          125.8         119.9
         III            152.7        116.4         76.3        181.8          125.2         119.1
          IV            152.9        116.1         75.9        185.3          126.0         121.2

      ANNUAL            152.0        116.0         76.3        182.6         r126.1         120.1

2008       I            155.0        115.7         74.6        188.0          126.5         121.3
          II           r155.0       r115.2         74.3        187.9          124.9        r121.2
         III           r150.8       r112.1        r74.3       r189.3         r123.8        r125.5
          IV            153.6        110.2         71.8        193.7          129.8         126.1

      ANNUAL            153.6        113.3         73.8        189.7          126.2         123.5

--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I              1.0          3.6          2.6         15.5           13.4          14.4
          II              1.1         -0.9         -1.9         -3.1           -6.5          -4.1
         III              1.5          2.2          0.6          2.6           -1.4           1.1
          IV              3.5         -1.1         -4.4          6.1            7.7           2.5

      ANNUAL              0.2          0.3          0.1          4.5            1.1           4.3

2007       I              2.5          2.0         -0.5          3.3           -0.3           0.8
          II              0.4          1.3          0.9         -1.0           -5.3          -1.4
         III              3.5          1.6         -1.9          0.7           -2.0          -2.7
          IV              0.6         -1.1         -1.7          7.9            2.8           7.3

      ANNUAL              2.1          0.9         -1.2          2.5          r-0.4           0.4

2008       I              5.8         -1.3         -6.7          6.0            1.7           0.3
          II              0.0         -1.7         -1.7         -0.3           -5.0          -0.3
         III           r-10.5       r-10.6         r0.0         r3.0          r-3.5         r15.1
          IV              7.6         -6.5        -13.1          9.6           20.6           1.8

      ANNUAL              1.0         -2.4         -3.4          3.9            0.1           2.8

--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I              0.2         -0.1         -0.3          6.2            2.4           6.0
          II             -0.7         -0.6          0.1          3.5           -0.4           4.2
         III             -0.4          1.0          1.4          3.1           -0.2           3.6
          IV              1.8          0.9         -0.8          5.1            3.0           3.2

      ANNUAL              0.2          0.3          0.1          4.5            1.1           4.3

2007       I              2.1          0.5         -1.6          2.2           -0.2           0.0
          II              2.0          1.1         -0.9          2.7            0.1           0.7
         III              2.5          0.9         -1.5          2.3           -0.1          -0.2
          IV              1.7          0.9         -0.8          2.7           -1.2           1.0

      ANNUAL              2.1          0.9         -1.2          2.5          r-0.4           0.4

2008       I              2.5          0.1         -2.4          3.4           -0.8           0.8
          II              2.4         -0.7         -3.0          3.6           -0.7           1.1
         III             -1.2        r-3.8        r-2.6         r4.1          r-1.1          r5.4
          IV              0.4         -5.1         -5.5          4.5            3.0           4.1

      ANNUAL              1.0         -2.4         -3.4          3.9            0.1           2.8

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                February 5, 2009
r=revised                                                       Source: Bureau of Labor Statistics



Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
              Output                      Hourly    Real                Unit     Total    Unit   Implicit
    Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
    and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
    quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

2006       I   r146.3   r176.1     120.4    164.5     118.1    r112.5   r113.0   r112.6   r182.6   r118.8
          II   r145.8   r176.2     120.9    164.5     117.0    r112.8   r114.6   r113.3   r183.4   r119.5
         III   r146.7   r178.1     121.5    165.1     116.3    r112.5   r114.5   r113.1   r193.4   r120.3
          IV   r145.6   r177.3     121.8    167.8     118.7    r115.3   r116.5   r115.6   r174.4   r120.8

      ANNUAL   r146.1   r176.9     121.1    165.5     117.5    r113.3   r114.6   r113.6   r183.5   r119.9

2007       I   r145.7   r177.2     121.7    170.3     119.4    r116.9   r117.6   r117.1   r172.4   r122.1
          II   r146.9   r179.1     121.9    171.3     118.7    r116.6   r117.9   r116.9   r173.1   r122.0
         III   r147.6   r180.2     122.1    172.5     118.7    r116.9   r118.2   r117.2   r167.4   r121.7
          IV   r148.4   r181.2     122.1    175.0     119.0    r117.9   r119.3   r118.3   r156.4   r121.7

      ANNUAL   r147.1   r179.4     122.0    172.3    r119.0    r117.1   r118.3   r117.4   r167.3   r121.9

2008       I   r148.3   r180.6     121.8    176.2     118.6    r118.9   r119.4   r119.0   r150.8   r121.8
          II   r151.1   r183.2     121.3    177.2     117.8    r117.3   r119.8   r118.0   r147.8   r120.6
         III   r153.1   r184.2    r120.3   r179.5    r117.4    r117.2   r121.4   r118.3   r156.8   r121.8
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2006       I     r3.8     r6.3       2.4      8.3       6.3      r4.3     r0.1     r3.1    r12.8     r4.4
          II    r-1.2     r0.4       1.7      0.0      -3.5      r1.2     r5.7     r2.4     r1.8     r2.3
         III     r2.4     r4.4       1.9      1.5      -2.5     r-0.9    r-0.2    r-0.7    r23.7     r2.4
          IV    r-2.9    r-1.9       1.0      6.9       8.5     r10.0     r7.2     r9.2   r-34.0     r2.0

      ANNUAL     r1.8     r4.1       2.2      3.6       0.3      r1.8     r1.7     r1.8    r12.6     r3.1

2007       I     r0.2    r-0.2      -0.3      6.1       2.4      r5.9     r3.8     r5.4    r-4.5     r4.0
          II      3.4     r4.2       0.8      2.2      -2.3     r-1.1     r0.9    r-0.6      1.7    r-0.3
         III     r1.9     r2.7       0.7      2.8       0.1      r0.9     r1.2      1.0   r-12.6     -0.8
          IV     r2.2     r2.1       0.0      5.9       0.9      r3.7     r3.7     r3.7   r-23.8     r0.0

      ANNUAL     r0.7     r1.4       0.7      4.1      r1.2      r3.4     r3.2     r3.3    r-8.8     r1.7

2008       I     -0.2     -1.4      -1.1      2.9      -1.3       3.2      0.3      2.4    -13.6      0.5
          II      7.7      6.0      -1.6      2.3      -2.6      -5.0      1.2     -3.4     -7.7     -3.8
         III     r5.5     r2.1     r-3.2     r5.1     r-1.5     r-0.4     r5.5     r1.2    r26.8     r3.8
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2006       I     r3.0     r5.7       2.6      4.1       0.4      r1.1     r1.6     r1.2    r17.3     r3.2
          II     r1.3     r3.6       2.3      3.7      -0.2      r2.4     r3.0     r2.6    r10.1     r3.5
         III     r2.5     r4.8       2.2      2.6      -0.7      r0.1    r-0.9    r-0.2    r27.3     r3.0
          IV     r0.5     r2.2       1.8      4.1       2.1      r3.6     r3.1     r3.5    r-1.6     r2.8

      ANNUAL     r1.8     r4.1       2.2      3.6       0.3      r1.8     r1.7     r1.8    r12.6     r3.1

2007       I    r-0.4     r0.7       1.1      3.6       1.1      r4.0     r4.1     r4.0    r-5.6     r2.7
          II     r0.7     r1.6       0.8      4.1       1.4      r3.4     r2.9     r3.2    r-5.6     r2.0
         III     r0.6     r1.2       0.6      4.5       2.1      r3.8     r3.2     r3.7   r-13.5     r1.2
          IV      1.9      2.2       0.3      4.3       0.3       2.3      2.4      2.3    -10.3      0.7

      ANNUAL     r0.7     r1.4       0.7      4.1      r1.2      r3.4     r3.2     r3.3    r-8.8     r1.7

2008       I     r1.8     r1.9       0.1      3.5      -0.7      r1.6     r1.5     r1.6    -12.5    r-0.2
          II      2.8      2.3      -0.5      3.5      -0.7      r0.6     r1.6     r0.9    -14.6    r-1.1
         III     r3.7     r2.2     r-1.5     r4.1     r-1.1      r0.3     r2.7     r0.9    r-6.3     r0.1
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        February 5, 2009
r=revised                                                               Source: Bureau of Labor Statistics






SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.5 and +1.3 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the third quarter of 2008.



			Footnotes, Tables 1-6
			
			
(1)  Wages and salaries of employees plus employers' contributions for social 
insurance and private benefit plans.  Except for nonfinancial 
corporations, where there are no self-employed, data also include an 
estimate of wages, salaries, and supplemental payments for the self-
employed.

(2)  The change for recent quarters is based on the Consumer Price Index for 
all urban consumers (CPI-U).  The trend from 1978-2007 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital, 
taxes on production and imports less subsidies, net interest and 
miscellaneous payments, business current transfer payments, rental 
income of persons, and the current surplus of government enterprises.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate is 
calculated using index numbers to three decimal places.  Indexes 
published in the news release are rounded to one decimal place for 
convenience.  Annual changes:  Percent change is calculated using annual 
average indexes to three decimal places.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on 
production and imports less subsidies, net interest and miscellaneous 
payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory 
valuation and capital consumption adjustments. 


Last Modified Date: February 05, 2009