Productivity and Costs News Release



Transmission of material in this release is embargoed until  USDL-10-0255
8:30 a.m. (EST) Thursday, March 4, 2010
Technical information: (202) 691-5606 •  dprweb@bls.gov • www.bls.gov/lpc
Media contact:         (202) 691-5902 •  PressOffice@bls.gov


                        PRODUCTIVITY AND COSTS
            Fourth Quarter and Annual Averages 2009, Revised

Nonfarm business sector labor productivity increased at a 6.9 percent 
annual rate during the fourth quarter of 2009, the U.S. Bureau of Labor 
Statistics reported today. The gain in productivity reflects a 7.6 percent 
increase in output partially offset by a 0.6 percent increase in hours 
worked. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.)  From the fourth quarter of 2008 to the fourth 
quarter of 2009, productivity increased 5.8 percent as output declined 0.2 
percent and hours fell 5.7 percent (table A). The annual measure of 
productivity increased 3.8 percent from 2008 to 2009 (table D).

Labor productivity, or output per hour, is calculated by dividing an index 
of real output by an index of hours of all persons, including employees, 
proprietors, and unpaid family workers.

Unit labor costs in nonfarm businesses fell 5.9 percent in the fourth 
quarter of 2009, the result of productivity increasing faster than hourly 
compensation. Unit labor costs decreased 4.7 percent from the same quarter 
a year ago, the largest four-quarter decline since the series began in 
1948 (table A).  The annual average index of unit labor costs declined 1.7 
percent from 2008 to 2009, the largest decline in that series (table D).

BLS defines unit labor costs as the ratio of hourly compensation to labor 
productivity; increases in hourly compensation tend to increase unit labor 
costs and increases in output per hour tend to reduce them. 

==============================================================================
Data in this release reflect annual benchmark revision of BLS Current 
Employment Statistics program data on nonfarm employee hours, and revised 
seasonal adjustment of those data.  Also, hours of other nonfarm and farm 
workers based on the BLS Current Population Survey incorporate new 
seasonal adjustment factors.  More detail can be found in tables 1 through 
6 and appendix tables 1 through 6.  See Revised measures. 
==============================================================================

Manufacturing sector productivity rose 6.6 percent in the fourth quarter 
of 2009, as output increased 5.5 percent and hours decreased 1.0 percent. 
Productivity grew 6.8 percent in the durable goods industries and 6.4 
percent in the nondurable goods industries (table A). Over the last four 
quarters, manufacturing productivity increased 6.1 percent as output 
declined 4.6 percent and hours worked fell 10.1 percent. Unit labor costs 
in manufacturing declined 6.3 percent in the fourth quarter of 2009 and 
decreased 4.7 percent over the last four quarters.

The data sources and methods used in the preparation of the manufacturing 
output series differ from those used in preparing the business and nonfarm 
business output series, and these measures are not directly comparable.  
See Technical Notes for further information on data sources. 


Revised measures

Quarterly and annual measures for all sectors were revised back to 2005 to 
incorporate the annual benchmark adjustment and updated information on 
seasonal trends from the BLS nonfarm payroll series.  Hours and related 
measures for the business and nonfarm business sectors were revised to 
incorporate updated information on seasonal trends in Current Population 
Survey data on hours worked. Revised and previous measures for the third 
and fourth quarters of 2009 are shown in table B for the business, nonfarm 
business and manufacturing sectors and table C for the third quarter 
measures for the nonfinancial corporate sector. Quarterly and annual data 
for all sectors appear in tables 1-6 for 2007 through 2009, and in 
appendix tables 1-6 for 2005 and 2006. Full historical annual and 
quarterly measures can be found on the labor productivity and costs home 
page http://www.bls.gov/lpc/#data.

In the fourth quarter of 2009, nonfarm business productivity growth was 
revised up to 6.9 percent from the estimate of 6.2 percent published on 
February 4, 2010. The larger productivity gain reflects a 0.4 percentage 
point upward revision to output and a similar downward revision to hours. 
Unit labor costs for nonfarm business fell 5.9 percent--more than 
previously reported. In manufacturing, productivity was revised down from 
7.8 percent to 6.6 percent due to a downward revision to output and a 
smaller decline in hours than in the preliminary estimate.

In the third quarter of 2009, nonfarm business productivity was revised up 
to 7.8 percent from 7.2 percent when hours were revised downward and 
output was not revised. A large downward revision to unit labor costs was 
due more to the large downward revision in hourly compensation than the 
small upward revision in output per hour. In manufacturing, productivity 
was revised up slightly. As in the nonfarm business sector, there were 
large downward revisions to hourly compensation and unit labor costs. 
Productivity in nonfinancial corporations was revised down for the third 
quarter, as output was revised down much more than hours (table C). 

Table D presents Annual Averages for the most recent five years. In the 
nonfarm business sector, productivity increased 3.8 percent in 2009, and 
reflected the largest annual declines in output and hours (-3.6 percent 
and -7.1 percent, respectively) for these measures, which begin in 1948. 
Unit labor costs fell over the year, by 1.7 percent, as hourly 
compensation grew less than productivity. Over the long run, from 2000 to 
2009, nonfarm business productivity increased at an average annual rate of 
2.7 percent.

Manufacturing sector productivity grew 1.8 percent in 2009, due to a 
slightly larger decline in hours (-12.6 percent) than in output (-11.1 
percent). These were the largest annual declines in the output and hours 
series, which begin in 1988. Unit labor costs in manufacturing increased 
2.6 percent in 2009, in contrast to the decline in the nonfarm business 
sector. Manufacturing productivity increased at an average annual rate of 
3.2 percent from 2000 to 2009. 



___________
The preliminary Productivity and Costs press release for first-quarter 
2010 is scheduled to be released on Thursday, May 6, 2010 at 8:30 a.m. (EDT).



======================================================================================================
Table A. Revised fourth-quarter 2009 measures: percent change from previous quarter at annual rate 
         (Q to Q) and from same quarter a year ago (Y to Y)

Sector                   Nonfarm                                         Durable         Nondurable
                         Business         Business       Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------

Productivity             6.9     5.8     7.2     5.9     6.6      6.1    6.8      4.8     6.4    5.1
Output                   7.6    -0.2     7.5    -0.2     5.5     -4.6    5.7     -8.7     5.4   -0.7
Hours                    0.6    -5.7     0.3    -5.7    -1.0    -10.1   -1.0    -12.8    -0.9   -5.5
Hourly 
 compensation            0.6     0.8     0.6     0.9    -0.1      1.1    0.6      2.1    -1.4   -0.1
Real hourly
 compensation           -2.8    -0.6    -2.7    -0.6    -3.5     -0.4   -2.8      0.6    -4.7   -1.5
Unit labor costs        -5.9    -4.7    -6.2    -4.7    -6.3     -4.7   -5.8     -2.6    -7.3   -4.9
======================================================================================================

======================================================================================================
Table B. Revised and previous measures for: fourth quarter and third quarter 2009

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change annual rate, fourth quarter 2009
Productivity     6.9     6.2     7.2     6.5       6.6      7.8       6.8       6.2     6.4     9.8
Output           7.6     7.2     7.5     7.2       5.5      6.1       5.7       5.0     5.4     7.2
Hours            0.6     1.0     0.3     0.6      -1.0     -1.6      -1.0      -1.1    -0.9    -2.4
Hourly 
 compensation    0.6     1.5     0.6     1.6      -0.1     -0.2       0.6      -0.6    -1.4     0.5
Real hourly
 compensation   -2.8    -1.9    -2.7    -1.8      -3.5     -3.5      -2.8      -3.9    -4.7    -2.8
Unit labor
 costs          -5.9    -4.4    -6.2    -4.7      -6.3     -7.4      -5.8      -6.4    -7.3    -8.5
------------------------------------------------------------------------------------------------------
                                Percent change annual rate, third quarter 2009
Productivity     7.8     7.2     8.0     7.4      14.8     14.4      23.0      21.9     6.2     6.5
Output           2.2     2.2     2.2     2.2       9.0      9.5      14.6      14.9     3.9     4.7
Hours           -5.3    -4.7    -5.3    -4.8      -5.1     -4.2      -6.8      -5.8    -2.2    -1.7
Hourly
 compensation   -0.4     5.5     0.0     5.9      -1.0      6.4      -2.9       7.1     3.2     5.5
Real hourly
 compensation   -3.8     1.9    -3.5     2.2      -4.4      2.7      -6.3       3.4    -0.4     1.8
Unit labor
 costs          -7.6    -1.5    -7.4    -1.4     -13.7     -7.0     -21.1     -12.2    -2.9    -1.0
======================================================================================================
Table C. Nonfinancial corporations: revised third-quarter 2009 productivity and cost measures
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------ 
                                        Percent change, annual rate
Revised       3.9      -1.7      -5.4        1.0        -2.5          -2.8          19.9        -1.8
Previous      6.3       1.4      -4.6        5.3         1.6          -1.0          16.2        -1.8
======================================================================================================
Table D. Annual average changes in productivity and related measures, 2005-2009

Sector                            Nonfarm Business                         Manufacturing
                        2005    2006    2007    2008    2009  |  2005    2006    2007    2008     2009
--------------------------------------------------------------|----------------------------------------
Productivity            1.7     1.0     1.8      2.0     3.8  |  4.8     1.1     3.1     1.0      1.8
Output                  3.4     3.1     2.3     -0.1    -3.6  |  3.7     1.8     1.3    -3.1    -11.1
Hours                   1.7     2.1     0.5     -2.1    -7.1  | -1.1     0.8    -1.7    -4.0    -12.6
Hourly                                                        |
 compensation           4.0     3.8     4.2      3.0     2.0  |  3.3     2.0     4.3     3.1      4.4
Real hourly                                                   |
 compensation           0.6     0.5     1.3     -0.8     2.3  |  0.0    -1.2     1.4    -0.7      4.8
Unit labor                                                    |
 costs                  2.3     2.8     2.3      1.0    -1.7  | -1.4     0.9     1.1     2.1      2.6
======================================================================================================





                        TECHNICAL NOTES
                        
Labor Hours: Hours data for the labor productivity and cost measures 
include hours for all persons working in the sector—wage 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 77 
percent of the value of GDP in 2005. Nonfarm business, which excludes 
farming, accounted for about 76 percent of GDP in 2005.
     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 50 percent of the value of GDP in 2005.
     
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.  Revision marks in this release are based 
on revisions 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

2007       I    r139.0      168.4    r121.1    r175.2      r122.7     r126.0      r136.7      130.0
          II    r140.0      169.8    r121.3    r176.3      r122.2     r125.9      r139.4      130.9
         III    r142.0      171.4    r120.7    r177.7      r122.5     r125.1      r141.9      131.4
          IV    r142.8      172.3    r120.6    r179.9      r122.3     r126.0      r141.9      131.9

      ANNUAL    r141.0      170.5    r120.9    r177.3      r122.4     r125.7      r140.0      131.0

2008       I    r142.8      171.7    r120.3    r180.3      r121.2     r126.3      r141.7      132.1
          II    r143.8      172.2    r119.8    r181.0      r120.3     r125.8      r143.8      132.5
         III    r144.3      170.6    r118.2    r183.6      r120.3     r127.2      r145.3      134.0
          IV    r145.0      167.4    r115.4    r185.4      r124.1     r127.8      r143.4      133.6

      ANNUAL    r144.0      170.5    r118.4    r182.5      r121.4     r126.8      r143.6      133.0

2009       I    r145.3      163.6    r112.6    r183.5      r123.6     r126.2      r148.0      134.3
          II    r148.0      163.2    r110.3    r186.8      r125.4     r126.2      r147.7      134.2
         III    r150.9      164.1    r108.7    r186.8      r124.3     r123.8      r151.9      134.3
          IV    r153.6     r167.1    r108.8    r187.1      r123.4     r121.8      r155.3     r134.3

      ANNUAL    r149.4     r164.5    r110.1    r186.0      r124.2     r124.5      r150.8     r134.3

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

2007       I      r0.7        0.8      r0.1      r4.1        r0.3       r3.4        r5.0        4.0
          II      r2.9        3.5      r0.5      r2.4       r-1.7      r-0.5        r8.2        2.8
         III      r5.7        3.7     r-1.9      r3.2        r0.9      r-2.3        r7.2        1.4
          IV      r2.4        2.1     r-0.3      r5.1       r-0.6       r2.7        r0.0        1.6

      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6

2008       I     r-0.2       -1.3     r-1.1      r0.9       r-3.5       r1.1       r-0.3        0.6
          II      r2.9        1.1     r-1.8      r1.4       r-3.0       -1.5        r6.1        1.4
         III      r1.4       -3.7     r-5.0      r5.9       r-0.2       r4.5        r4.1        4.3
          IV      r2.1       -7.2     r-9.1      r4.1       r13.5       r1.9       r-5.2       -1.0

      ANNUAL      r2.1        0.0     r-2.1      r3.0       r-0.8        0.8         2.6        1.5

2009       I      r0.9       -8.7     r-9.5     r-4.1       r-1.8      r-5.0       r13.4        2.1
          II      r7.6       -1.0     r-8.0      r7.5        r6.1      r-0.1       r-0.7       -0.3
         III      r8.0        2.2     r-5.3      r0.0       r-3.5      r-7.4       r11.9        0.1
          IV      r7.2       r7.5      r0.3      r0.6       r-2.7      r-6.2        r9.3       r0.1

      ANNUAL      r3.8       -3.5     r-7.0      r1.9         2.3      r-1.8        r5.0       r0.9

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

2007       I       0.3        1.5       1.1       4.0         1.6        3.7         1.6        2.9
          II       1.0        2.0      r1.0      r4.3        r1.6        3.3         1.9        2.8
         III      r2.9        3.0      r0.1      r4.7         2.4        1.7         3.3        2.4
          IV       2.9        2.5     r-0.4       3.7        -0.3        0.8        r5.0        2.5

      ANNUAL       1.8        2.2       0.4       4.2         1.3        2.4         3.0        2.6

2008       I       2.7        2.0      -0.7       2.9        -1.2        0.2         3.7        1.6
          II      r2.7        1.4     r-1.3      r2.7       r-1.6        0.0         3.2        1.2
         III      r1.6       -0.5     r-2.1      r3.3       r-1.8       r1.7        r2.4        2.0
          IV      r1.5       -2.8     r-4.3      r3.0        r1.5       r1.5        r1.1        1.3

      ANNUAL      r2.1        0.0     r-2.1      r3.0       r-0.8        0.8         2.6        1.5

2009       I      r1.8       -4.7     r-6.4      r1.7        r1.9      r-0.1        r4.4        1.7
          II      r3.0       -5.2     r-7.9      r3.3        r4.2       r0.3        r2.7        1.3
         III      r4.6       -3.8     r-8.0      r1.8        r3.4      r-2.7        r4.6        0.2
          IV      r5.9       -0.2     r-5.7      r0.9       r-0.6      r-4.7        r8.3       r0.5

      ANNUAL      r3.8       -3.5     r-7.0      r1.9         2.3      r-1.8        r5.0       r0.9

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       March 4, 2010
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

2007       I    r138.3      168.8    r122.1    r174.3      r122.1     r126.0      r138.2      130.5
          II    r139.0      170.3    r122.5    r174.9      r121.3     r125.8      r141.0      131.4
         III    r141.0      172.0    r122.0    r176.2      r121.5     r125.0      r143.3      131.7
          IV    r142.0      172.8    r121.7    r178.8      r121.5     r125.9      r142.9      132.2

      ANNUAL    r140.1      171.0    r122.1    r176.1      r121.6     r125.7      r141.4      131.5

2008       I    r141.8      172.0    r121.3    r179.3      r120.5     r126.4      r142.5      132.3
          II    r142.8      172.6    r120.8    r179.7      r119.5     r125.9      r144.9      132.9
         III    r143.2      170.8    r119.3    r182.4      r119.5     r127.4      r146.5      134.4
          IV    r144.0      167.5    r116.3    r184.4      r123.5     r128.1      r145.1      134.3

      ANNUAL    r142.9      170.7    r119.4    r181.4      r120.7     r126.9      r144.7      133.5

2009       I    r144.3      163.7    r113.4    r182.5      r122.9     r126.4      r150.3      135.2
          II    r147.0      163.2    r111.1    r185.9      r124.8     r126.4      r150.0      135.1
         III    r149.8      164.1    r109.6    r185.7      r123.6     r124.0      r154.6      135.2
          IV    r152.3     r167.2    r109.7    r186.0      r122.7     r122.1      r157.5     r135.1

      ANNUAL    r148.3     r164.6    r110.9    r185.0      r123.5     r124.7      r153.2     r135.2

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

2007       I      r0.9        0.9      r0.0      r4.3        r0.4       r3.4        r4.1        3.6
          II      r2.2        3.7      r1.5      r1.4       r-2.7      r-0.8        r8.3        2.7
         III      r5.7        3.9     r-1.6      r3.0        r0.6      r-2.5        r6.8        1.1
          IV      r2.9        1.8     r-1.0      r6.0        r0.2       r3.1       r-1.0        1.4

      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3

2008       I     r-0.5       -1.7     r-1.2      r1.1       r-3.3       r1.6       r-1.3        0.5
          II      r3.0        1.3     r-1.6      r1.1       r-3.3      r-1.9        r7.1        1.6
         III      r1.1       -4.0     r-5.0      r6.0       r-0.1       r4.9        r4.2        4.6
          IV      r2.2       -7.6     r-9.6      r4.5       r14.0       r2.2       r-3.7       -0.2

      ANNUAL      r2.0       -0.1     r-2.1      r3.0       r-0.8        1.0         2.4        1.5

2009       I      r0.9       -8.8     r-9.6     r-4.2       r-1.9       -5.0       r15.3        2.7
          II      r7.6       -1.1     r-8.1      r7.7        r6.3       r0.1       r-0.9       -0.3
         III      r7.8        2.2     r-5.3     r-0.4       r-3.8      r-7.6       r13.0        0.4
          IV      r6.9       r7.6      r0.6      r0.6       r-2.8      r-5.9        r7.7      r-0.4

      ANNUAL      r3.8       -3.6     r-7.1       2.0        r2.3      r-1.7        r5.8        1.3

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

2007       I      r0.6        1.5       0.9       4.3         1.8        3.7         1.0        2.7
          II      r1.0        2.1       1.1      r4.2        r1.5        3.1        r1.4        2.4
         III       2.9        3.2      r0.3      r4.5         2.2        1.6         2.8        2.1
          IV      r2.9        2.6      -0.3       3.6        -0.4        0.7         4.5        2.2

      ANNUAL       1.8        2.3       0.5       4.2         1.3        2.3         2.4        2.3

2008       I       2.5        1.9      -0.6      r2.8        -1.3        0.3         3.1        1.4
          II      r2.7        1.3     r-1.4      r2.8       r-1.4        0.1         2.8        1.1
         III      r1.6       -0.7     r-2.2      r3.5       r-1.6        1.9        r2.2        2.0
          IV      r1.4       -3.0     r-4.4      r3.1        r1.6       r1.7        r1.5        1.6

      ANNUAL      r2.0       -0.1     r-2.1      r3.0       r-0.8        1.0         2.4        1.5

2009       I      r1.8       -4.8     r-6.5      r1.8        r2.0       r0.0        r5.5        2.2
          II      r2.9       -5.4     r-8.1      r3.4        r4.4       r0.5        r3.5        1.7
         III      r4.6       -3.9     r-8.2      r1.8        r3.4      r-2.7        r5.6        0.6
          IV      r5.8      r-0.2     r-5.7      r0.8       r-0.6      r-4.7        r8.6       r0.6

      ANNUAL      r3.8       -3.6     r-7.1       2.0        r2.3      r-1.7        r5.8        1.3

---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       March 4, 2010
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

2007       I           r176.8        148.0        r83.7       r172.7         r121.0         r97.7
          II           r177.6        149.3        r84.1       r172.2         r119.4         r97.0
         III           r180.1        150.3        r83.4       r172.9         r119.2          96.0
          IV           r182.3        150.4        r82.5       r176.3         r119.9         r96.7

      ANNUAL           r179.2        149.5        r83.4       r173.5         r119.9          96.9

2008       I           r182.7        149.9        r82.1       r175.6         r118.0         r96.1
          II           r180.9        148.0        r81.8       r176.1         r117.1         r97.4
         III           r180.7        144.4        r79.9       r179.2         r117.4         r99.2
          IV           r179.5        137.2        r76.5       r185.4         r124.1        r103.3

      ANNUAL           r181.0        144.9        r80.1       r179.0         r119.0         r98.9

2009       I           r178.2        129.1        r72.4       r185.0         r124.6        r103.8
          II           r181.1        126.4        r69.8       r187.8         r126.1        r103.7
         III           r187.4       r129.1        r68.9       r187.4         r124.7        r100.0
          IV           r190.4       r130.9        r68.7       r187.3         r123.6         r98.4

      ANNUAL           r184.2       r128.9        r70.0       r186.9         r124.7        r101.5

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

2007       I             r2.4          1.8        r-0.6         r6.8           r2.9           4.3
          II             r1.9          3.4         r1.5        r-1.2          r-5.1          -3.0
         III             r5.7          2.7        r-2.9         r1.5          r-0.9         r-4.0
          IV             r5.0          0.3        r-4.5         r8.3           r2.4           3.1

      ANNUAL             r3.1          1.3        r-1.7          4.3            1.4           1.1

2008       I             r0.8         -1.2        r-2.0        r-1.7          r-6.0          -2.5
          II            r-3.9         -5.2        r-1.4         r1.3          r-3.0          r5.3
         III            r-0.3         -9.3        r-9.0         r7.2           r1.0          r7.6
          IV            r-2.7        -18.4       r-16.1        r14.3          r24.8          17.5

      ANNUAL             r1.0         -3.1        r-4.0         r3.1          r-0.7           2.1

2009       I            r-2.9        -21.7       r-19.4        r-0.8           r1.6          r2.1
          II             r6.6         -8.1       r-13.8         r6.3           r4.9          -0.2
         III            r14.8         r9.0        r-5.1        r-1.0          r-4.4        r-13.7
          IV             r6.6         r5.5        r-1.0        r-0.1           -3.5         r-6.3

      ANNUAL             r1.8       r-11.1       r-12.6         r4.4           r4.8          r2.6

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

2007       I              2.5          0.4         -2.0          4.3           r1.8           1.8
          II             r3.0          1.3        r-1.7         r4.6           r1.9           1.5
         III             r3.2          1.6         -1.6         r4.4            2.1           1.2
          IV             r3.7          2.0        r-1.6         r3.8          r-0.2           0.0

      ANNUAL             r3.1          1.3        r-1.7          4.3            1.4           1.1

2008       I             r3.4          1.3         -2.0          1.6           -2.5          -1.7
          II              1.9         -0.9         -2.7          2.3           -1.9           0.4
         III             r0.4         -3.9        r-4.3         r3.7          r-1.5           3.3
          IV            r-1.5         -8.7        r-7.3         r5.1           r3.5           6.7

      ANNUAL             r1.0         -3.1        r-4.0         r3.1          r-0.7           2.1

2009       I            r-2.4        -13.9       r-11.7         r5.4           r5.6           8.0
          II             r0.1        -14.6       r-14.7         r6.6           r7.7           6.5
         III             r3.7       r-10.6       r-13.8         r4.6           r6.2          r0.8
          IV             r6.1        r-4.6       r-10.1         r1.1          r-0.4         r-4.7

      ANNUAL             r1.8       r-11.1       r-12.6         r4.4           r4.8          r2.6

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                March 4, 2010
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

2007       I           r203.9        180.4        r88.5       r167.9         r117.6         r82.3
          II           r206.0        183.0        r88.8       r166.6         r115.5         r80.9
         III           r209.7        185.0        r88.2       r167.5         r115.4         r79.9
          IV           r214.0        185.7        r86.8       r170.9         r116.2         r79.9

      ANNUAL           r208.4        183.5        r88.1       r168.2         r116.2          80.7

2008       I           r213.5        185.3        r86.8       r169.4         r113.9          79.4
          II           r209.9        181.8        r86.6       r170.2         r113.2         r81.1
         III           r212.7        178.1        r83.7       r174.0         r114.0         r81.8
          IV           r205.8        165.1        r80.2       r179.4         r120.1         r87.2

      ANNUAL           r210.5        177.6        r84.4       r173.1         r115.1         r82.2

2009       I           r199.9        150.1        r75.1       r179.5         r120.9         r89.8
          II           r201.4        143.7        r71.3       r184.2         r123.7         r91.5
         III           r212.1       r148.6        r70.1       r182.8         r121.7         r86.2
          IV           r215.6       r150.7        r69.9       r183.1         r120.8         r84.9

      ANNUAL           r207.1       r148.3        r71.6       r182.4         r121.7         r88.1

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

2007       I             r2.6          1.2        r-1.4         r8.3           r4.3           5.6
          II             r4.1          6.0         r1.8        r-3.1          r-7.0          -6.9
         III             r7.4          4.4        r-2.7         r2.1          r-0.2          -4.9
          IV             r8.4          1.4        r-6.5         r8.6           r2.6           0.1

      ANNUAL              4.0          1.8         -2.1         r4.6            1.8           0.7

2008       I            r-1.0         -0.9         r0.1        r-3.6          r-7.8         r-2.6
          II            r-6.5         -7.3        r-0.8         r1.9          r-2.5          r9.0
         III             r5.5         -7.9       r-12.7         r9.4           r3.0          r3.7
          IV           r-12.3        -26.2       r-15.9        r13.0          r23.3          28.8

      ANNUAL             r1.0         -3.3         -4.2         r2.9          r-0.9           1.9

2009       I           r-11.1        -31.6       r-23.0         r0.1           r2.5          12.6
          II             r3.0        -16.1       r-18.6        r11.0           r9.5           7.7
         III            r23.0        r14.6        r-6.8        r-2.9          r-6.3        r-21.1
          IV             r6.8         r5.7        r-1.0         r0.6          r-2.8         r-5.8

      ANNUAL            r-1.6        -16.5       r-15.1         r5.4           r5.7          r7.1

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

2007       I              2.6          0.3        r-2.2         r4.8           r2.3           2.2
          II             r3.7          1.4        r-2.2         r5.0           r2.2           1.2
         III             r3.9          2.3         -1.6          5.0           r2.6           1.0
          IV             r5.6          3.2        r-2.2         r3.9          r-0.1          -1.6

      ANNUAL              4.0          1.8         -2.1         r4.6            1.8           0.7

2008       I             r4.7          2.7        r-1.9          0.9           -3.2          -3.6
          II             r1.9         -0.7        r-2.5         r2.2          r-2.0           0.3
         III             r1.4         -3.7        r-5.1         r3.9          r-1.2           2.5
          IV            r-3.8        -11.1        r-7.6         r5.0           r3.4           9.1

      ANNUAL             r1.0         -3.3         -4.2         r2.9          r-0.9           1.9

2009       I            r-6.4        -19.0       r-13.5         r6.0           r6.2         r13.2
          II            r-4.1        -21.0       r-17.6         r8.2           r9.3          12.8
         III            r-0.3        -16.5       r-16.3         r5.1           r6.7          r5.4
          IV             r4.8        r-8.7        -12.8         r2.1           r0.6         r-2.6

      ANNUAL            r-1.6        -16.5       r-15.1         r5.4           r5.7          r7.1

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                March 4, 2010
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

2007       I           r151.2        115.9        r76.6       r179.6         r125.8        r118.8
          II           r151.1        116.0        r76.8       r180.8         r125.4        r119.7
         III           r152.6        116.3        r76.2       r180.8         r124.7        r118.5
          IV           r152.6        116.0        r76.0       r184.4         r125.4        r120.8

      ANNUAL           r151.9        116.1        r76.4       r181.4         r125.3         119.5

2008       I           r154.3        115.6        r74.9       r185.2         r124.5        r120.0
          II           r154.0        114.8        r74.5       r185.2         r123.1        r120.2
         III           r150.7        111.6        r74.1       r187.0         r122.5        r124.1
          IV           r153.6        108.7        r70.8       r194.5         r130.2        r126.6

      ANNUAL           r153.1        112.7        r73.6       r187.9         r124.9        r122.7

2009       I           r154.4        105.6        r68.4       r193.7         r130.5        r125.5
          II           r156.5        105.6        r67.5       r193.5         r129.9        r123.6
         III           r158.9       r106.6        r67.1       r195.0         r129.8        r122.7
          IV           r161.4       r108.0        r66.9       r194.3         r128.2        r120.4

      ANNUAL           r157.8       r106.5        r67.5       r194.1         r129.6        r123.0

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

2007       I             r1.6          2.4         r0.8         r4.0           r0.2           2.4
          II            r-0.3          0.7         r1.0         r2.6          r-1.5           3.0
         III             r4.1          0.8        r-3.2         r0.1          r-2.2         r-3.8
          IV             r0.1         -0.9        r-1.0         r8.2           r2.3          r8.1

      ANNUAL              2.0          0.9         -1.1          3.6           r0.7           1.6

2008       I             r4.4         -1.4        r-5.5         r1.6          r-2.9          -2.7
          II            r-0.6         -2.8        r-2.3         r0.0          r-4.3           0.6
         III            r-8.5        -10.6        r-2.3         r4.1          r-1.9         r13.8
          IV             r8.0         -9.9       r-16.6        r16.9          r27.6          r8.3

      ANNUAL             r0.8         -2.9        r-3.7         r3.6          r-0.3           2.7

2009       I             r2.1        -11.1       r-12.9        r-1.6           r0.8          -3.6
          II             r5.7          0.0        r-5.4        r-0.4          r-1.7          -5.8
         III             r6.2         r3.9        r-2.2         r3.2          r-0.4         r-2.9
          IV             r6.4         r5.4        r-0.9        r-1.4          r-4.7         r-7.3

      ANNUAL             r3.0        r-5.5        r-8.3         r3.3           r3.7          r0.3

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

2007       I             r2.2          0.7        r-1.5         r3.3            0.9           1.1
          II             r1.9          1.2        r-0.8         r4.0           r1.3           2.0
         III             r2.4          0.9        r-1.5          3.4           r1.0           0.9
          IV             r1.4          0.8        r-0.6          3.7          r-0.3           2.3

      ANNUAL              2.0          0.9         -1.1          3.6           r0.7           1.6

2008       I              2.0         -0.2         -2.2          3.1           -1.1           1.0
          II             r2.0         -1.1        r-3.0         r2.4          r-1.8           0.4
         III            r-1.3         -4.0        r-2.8         r3.4          r-1.7           4.7
          IV             r0.6         -6.3        r-6.9         r5.4           r3.9           4.8

      ANNUAL             r0.8         -2.9        r-3.7         r3.6          r-0.3           2.7

2009       I             r0.1         -8.7        r-8.7         r4.6           r4.8           4.5
          II             r1.6         -8.0        r-9.5         r4.5           r5.5           2.8
         III             r5.5        r-4.5        r-9.4          4.3            5.9         r-1.1
          IV             r5.1        r-0.7        r-5.5        r-0.1          r-1.5         r-4.9

      ANNUAL             r3.0        r-5.5        r-8.3         r3.3           r3.7          r0.3

--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                March 4, 2010
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

2007       I   r143.6    175.1    r122.0   r164.3    r115.1     114.4    123.1    116.8    171.2    121.8
          II   r144.3    176.5    r122.3   r165.0    r114.4     114.4    124.9    117.2    171.8    122.2
         III   r144.0    175.8    r122.1   r166.1    r114.5     115.3    127.4    118.6    155.6    122.0
          IV   r146.2    178.5    r122.1   r168.6    r114.6     115.3    127.9    118.7    149.9    121.6

      ANNUAL   r144.5    176.5    r122.1   r166.0    r114.6     114.9    125.8    117.8    162.1    121.9

2008       I   r145.0    176.9    r122.0   r168.7    r113.4     116.3    129.1    119.8    133.0    121.0
          II   r147.3    178.8    r121.3   r169.7    r112.8     115.1    129.2    118.9    134.7    120.4
         III   r149.1    178.4    r119.7   r172.4    r112.9     115.6    129.8    119.4    145.3    121.8
          IV   r149.2    174.6    r117.0   r175.0    r117.2     117.3    134.1    121.8    129.5    122.5

      ANNUAL   r147.6    177.2    r120.0   r171.4    r114.0     116.1    130.5    120.0    135.7    121.4

2009       I   r146.6    166.6    r113.7   r173.2    r116.6     118.1    139.1    123.8    127.5    124.1
          II   r149.9    166.4    r111.0   r175.4    r117.8     117.1    138.0    122.7    133.8    123.7
         III   r151.3   r165.7    r109.5   r175.9    r117.0    r116.3   r135.7   r121.5   r140.0    123.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2007       I    r-0.6      0.2      r0.8     r3.9      r0.1       4.5      7.5      5.3    -10.2      3.2
          II     r2.0      3.2      r1.2     r1.7     r-2.4      -0.3      5.8      1.4      1.5      1.4
         III    r-0.8     -1.5     r-0.7     r2.6      r0.3       3.4      8.2      4.8    -32.7     -0.7
          IV     r6.3      6.2     r-0.1     r6.3      r0.5       0.0      1.5      0.5    -13.8     -1.3

      ANNUAL      1.0      1.7       0.7      3.6      r0.7       2.6      5.8      3.5     -9.9      1.7

2008       I    r-3.2     -3.6     r-0.4     r0.1     r-4.2       3.5      3.9      3.6    -38.0     -1.9
          II     r6.6      4.4     r-2.1     r2.3     r-2.0      -4.0      0.5     -2.7      5.0     -2.0
         III     r4.9     -0.8     r-5.4     r6.5      r0.3       1.6      1.8      1.6     35.5      4.8
          IV     r0.2     -8.3     r-8.5     r6.3     r16.0       6.1     13.9      8.3    -37.0      2.4

      ANNUAL     r2.2      0.4     r-1.7     r3.2     r-0.6       1.1      3.7      1.8    -16.3     -0.4

2009       I    r-6.8    -17.1    r-11.0    r-4.1     r-1.8       2.9     15.8      6.6     -5.8      5.3
          II     r9.2     -0.6     r-9.0     r5.3      r3.9      -3.6     -3.2     -3.5     21.0     -1.3
         III     r3.9    r-1.7     r-5.4     r1.0     r-2.5     r-2.8    r-6.5    r-3.9    r19.9     -1.8
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2007       I      0.3      1.4       1.1      3.3       0.8       2.9      5.5      3.7     -3.0      2.8
          II     r1.6      2.6      r1.0     r3.6      r0.9       2.0      5.0      2.8     -2.2      2.1
         III     r0.4      0.9      r0.5     r3.9       1.6       3.5      7.0      4.5    -18.7      1.1
          IV     r1.7      2.0       0.3      3.6      -0.4       1.9      5.7      3.0    -14.7      0.6

      ANNUAL      1.0      1.7       0.7      3.6      r0.7       2.6      5.8      3.5     -9.9      1.7

2008       I      1.0      1.0       0.0      2.7      -1.5       1.7      4.8      2.6    -22.3     -0.6
          II     r2.1      1.3     r-0.8     r2.8     r-1.4       0.7      3.5      1.5    -21.6     -1.5
         III     r3.5      1.5     r-2.0     r3.8     r-1.4       0.2      1.9      0.7     -6.6     -0.1
          IV     r2.0     -2.2     r-4.1     r3.8      r2.2       1.7      4.9      2.6    -13.6      0.8

      ANNUAL     r2.2      0.4     r-1.7     r3.2     r-0.6       1.1      3.7      1.8    -16.3     -0.4

2009       I     r1.1     -5.8     r-6.8     r2.7      r2.9       1.6      7.7      3.4     -4.1      2.6
          II     r1.7     -6.9     r-8.5     r3.4      r4.4       1.7      6.8      3.2     -0.7      2.8
         III     r1.5    r-7.1     r-8.5     r2.1      r3.7      r0.6     r4.5     r1.7    r-3.7      1.1
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        March 4, 2010
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 +1.4 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 2009.


                        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 1978-2008 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.



Appendix table 1.
 Business sector: Revised 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

 2005       I    r137.0      160.3    r117.1    r161.8      r120.4     r118.1      r129.9      122.5
           II    r136.4      161.0    r118.0    r162.5      r120.2     r119.1      r130.5      123.3
          III    r137.6      162.5    r118.1    r164.9      r120.2     r119.9      r132.7      124.7
           IV    r137.7      163.4    r118.7    r166.2      r119.8     r120.7      r134.3      125.8

       ANNUAL    r137.2      161.8    r118.0    r163.8      r120.2     r119.5      r131.9      124.1

 2006       I    r138.6      166.0    r119.8    r168.4      r120.8     r121.5      r134.5      126.4
           II    r138.7      166.6    r120.1    r169.0      r120.3     r121.8      r136.7      127.4
          III    r137.9      166.4    r120.6    r169.7      r119.6     r123.0      r137.3      128.3
           IV    r138.8      168.1    r121.1    r173.5      r122.7     r125.0      r135.1      128.7

       ANNUAL    r138.5      166.8    r120.4    r170.1      r120.8     r122.8      r135.9      127.7

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

 2005       I      r3.3        4.5      r1.2      r2.8        r0.8       -0.5         9.6        3.3
           II     r-1.6        1.7      r3.3      r1.7       r-0.8       r3.3         1.7        2.7
          III      r3.4        3.7      r0.3      r6.2        r0.2       r2.7        r7.2        4.5
           IV      r0.3        2.3      r2.0      r3.0       r-1.4        2.7         4.7        3.5

       ANNUAL       1.7        3.4       1.6       4.0         0.6        2.2         4.9        3.2

 2006       I      r2.7        6.5      r3.7      r5.6        r3.5       r2.8        r0.8        2.0
           II      r0.4        1.4      r1.1      r1.3       r-1.8        1.0         6.7        3.2
          III      -2.2       -0.4      r1.8      r1.6       r-2.1       r3.9        r1.6        2.9
           IV      r2.6        4.0      r1.5      r9.3       r10.5       r6.6        -6.3        1.3

       ANNUAL       1.0        3.1       2.1       3.8         0.5        2.8         3.1        2.9

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

 2005       I       2.3        3.7       1.3       4.8         1.7        2.4         4.2        3.1
           II      r1.2        3.3       2.0       3.9        r0.9        2.6         3.5        3.0
          III       1.9        3.4       1.5       3.8        r0.1        1.9         5.9        3.4
           IV       1.3        3.0       1.7       3.4       r-0.3        2.0         5.8        3.5

       ANNUAL       1.7        3.4       1.6       4.0         0.6        2.2         4.9        3.2

 2006       I       1.2        3.5       2.3       4.1         0.4        2.9         3.6        3.2
           II       1.7        3.4       1.8       4.0         0.1        2.3         4.8        3.3
          III       0.3        2.4       2.1       2.9        -0.5        2.6         3.4        2.9
           IV       0.8        2.9      r2.0      r4.4        r2.4        3.5         0.6        2.4

       ANNUAL       1.0        3.1       2.1       3.8         0.5        2.8         3.1        2.9

 --------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                      March 4, 2010
 r=revised                                                             Source: Bureau of Labor Statistics





Appendix table 2.
 Nonfarm business sector: Revised 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

 2005       I    r136.0      160.6    r118.1    r160.6      r119.5     r118.1      r131.5      123.0
           II    r135.7      161.2    r118.8    r161.6      r119.6     r119.1      r132.1      123.9
          III    r136.7      162.7    r119.0    r164.0      r119.5     r120.0      r134.6      125.3
           IV    r136.6      163.6    r119.7    r165.0      r119.0     r120.7      r136.2      126.4

       ANNUAL    r136.2      162.0    r118.9    r162.8      r119.4     r119.5      r133.6      124.7

 2006       I    r137.5      166.4    r120.9    r167.1      r119.9     r121.5      r136.8      127.1
           II    r137.7      166.8    r121.1    r167.9      r119.5     r122.0      r139.1      128.3
          III    r137.0      166.7    r121.7    r168.6      r118.9     r123.0      r139.5      129.1
           IV    r138.0      168.4    r122.1    r172.5      r122.0     r125.0      r136.8      129.3

       ANNUAL    r137.5      167.1    r121.5    r169.0      r120.0     r122.9      r138.0      128.5

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

 2005       I      r4.0        4.8      r0.8      r3.2        r1.2       -0.8        11.0        3.7
           II     r-0.9        1.6      r2.5      r2.7        r0.1        3.6        r1.9        2.9
          III      r3.0        3.7      r0.7      r5.9        r0.0       r2.8        r7.5        4.6
           IV     r-0.1        2.4      r2.5      r2.5       r-1.9        2.6         5.1        3.6

       ANNUAL       1.7        3.4       1.7       4.0         0.6        2.3         5.5        3.5

 2006       I      r2.7        6.8      r4.1      r5.3        r3.3        2.6        r1.7        2.2
           II      r0.3        1.0      r0.7      r1.8       r-1.4        1.5         6.8        3.6
          III      -1.9       -0.1      r1.8      r1.6       r-2.1       r3.5        r1.1        2.6
           IV      r2.9        4.2      r1.2      r9.7       r10.9       r6.6        -7.3        0.9

       ANNUAL      r1.0        3.1      r2.1       3.8         0.5        2.8         3.3        3.0

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

 2005       I       2.3        3.8      r1.4       4.7         1.6        2.4         4.9        3.3
           II       1.2        3.2       2.0      r3.9         1.0       r2.7         4.3        3.4
          III       1.7        3.4       1.6       3.8         0.0        2.0         6.4        3.7
           IV      r1.5        3.1       1.6      r3.6        -0.2        2.0         6.3        3.7

       ANNUAL       1.7        3.4       1.7       4.0         0.6        2.3         5.5        3.5

 2006       I       1.2        3.6       2.4       4.1         0.3        2.9         4.0        3.3
           II       1.5        3.4       2.0       3.9         0.0        2.4         5.2        3.5
          III       0.2        2.5       2.2       2.8        -0.6        2.5        r3.6        3.0
           IV      r1.0        2.9      r1.9       4.5         2.5        3.5        r0.4        2.3

       ANNUAL      r1.0        3.1      r2.1       3.8         0.5        2.8         3.3        3.0

 --------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                      March 4, 2010
 r=revised                                                             Source: Bureau of Labor Statistics





Appendix table 3.
 Manufacturing sector: Revised 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

 2005       I         r170.0        143.8        r84.6       r160.8         r119.7          94.6
           II         r171.9        144.5        r84.1       r163.1         r120.6         r94.9
          III         r172.7        144.5        r83.7       r165.3         r120.5          95.7
           IV         r173.1        146.6        r84.7       r163.6         r117.9         r94.5

       ANNUAL         r171.9        144.8        r84.3       r163.2         r119.7         r94.9

 2006       I         r172.5        147.4        r85.4       r165.6         r118.8         r96.0
           II         r172.4        147.4        r85.5       r164.7         r117.2         r95.5
          III         r174.5        147.9        r84.8       r165.6         r116.8         r94.9
           IV         r175.7        147.4        r83.9       r169.9         r120.2         r96.7

       ANNUAL         r173.8        147.5        r84.9       r166.4         r118.2          95.8

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

 2005       I            7.3          6.3         -1.0        r-2.2           -4.2          -8.9
           II           r4.5          1.9        r-2.5         r5.7           r3.1           1.2
          III           r1.8          0.0        r-1.7         r5.5          r-0.4           3.7
           IV           r1.0          5.8         r4.8        r-4.0          r-8.2          -5.0

       ANNUAL            4.8          3.7         -1.1          3.3            0.0          -1.4

 2006       I          r-1.3          2.2         r3.6         r5.1           r3.1           6.6
           II          r-0.3          0.1         r0.4        r-2.3          r-5.3          -2.0
          III           r5.0          1.3        r-3.5         r2.1          r-1.6          -2.7
           IV           r2.9         -1.4        r-4.2        r11.0          r12.2          r7.9

       ANNUAL           r1.1          1.8          0.8          2.0          r-1.2           0.9

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

 2005       I            5.1          3.9         -1.2          4.8            1.7          -0.3
           II            5.5          4.0         -1.4          4.3            1.3          -1.2
          III            5.2          3.3         -1.8          3.2           -0.5          -1.8
           IV           r3.6          3.5         -0.1          1.1          r-2.5          -2.4

       ANNUAL            4.8          3.7         -1.1          3.3            0.0          -1.4

 2006       I            1.5          2.5          1.0          3.0           -0.7           1.5
           II            0.3          2.0          1.7          1.0           -2.8           0.7
          III            1.0          2.3          1.3         r0.2           -3.1          -0.9
           IV           r1.5          0.5        r-1.0         r3.9           r1.9           2.3

       ANNUAL           r1.1          1.8          0.8          2.0          r-1.2           0.9

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               March 4, 2010
 r=revised                                                      Source: Bureau of Labor Statistics







Appendix table 4.
 Durable manufacturing sector: Revised 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

 2005       I         r192.7        171.5        r89.0       r155.4         r115.7         r80.7
           II         r195.1        172.7        r88.6       r156.9         r116.1         r80.5
          III          196.9        174.4         88.6        159.3          116.1          80.9
           IV         r200.0        179.5        r89.7       r157.3         r113.4         r78.6

       ANNUAL         r196.2        174.5        r89.0       r157.2         r115.3         r80.2

 2006       I         r198.8        179.9        r90.5       r160.2         r114.9         r80.5
           II         r198.6        180.5        r90.9       r158.7         r113.0         r79.9
          III         r201.8        180.9        r89.7       r159.5         r112.5          79.1
           IV         r202.6        179.9        r88.8       r164.5         r116.4         r81.2

       ANNUAL         r200.5        180.3        r89.9       r160.7         r114.1          80.2

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

 2005       I           r7.5          7.9         r0.4        r-1.2          r-3.1          -8.0
           II           r5.0          2.9        r-2.0         r3.9           r1.3          -1.1
          III           r3.9          4.0         r0.1         r6.2           r0.3           2.2
           IV           r6.5         12.0         r5.2        r-5.0          r-9.1         -10.8

       ANNUAL            5.3          5.2        r-0.2          3.1          r-0.2          -2.1

 2006       I          r-2.4          1.0         r3.5         r7.5           r5.4          10.1
           II          r-0.4          1.3         r1.7        r-3.6          r-6.6          -3.2
          III           r6.5          0.9        r-5.2         r2.1          r-1.6          -4.1
           IV           r1.7         -2.3        r-3.9        r13.2          r14.4          11.3

       ANNUAL           r2.2          3.3          1.1          2.2          r-1.0           0.0

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

 2005       I            4.3          4.0        r-0.3          5.0            1.9           0.7
           II            5.4          4.9        r-0.4          3.8            0.9          -1.5
          III            5.9          5.1         -0.8          2.8           -0.9          -3.0
           IV           r5.7          6.6         r0.9         r0.9           -2.8          -4.6

       ANNUAL            5.3          5.2        r-0.2          3.1          r-0.2          -2.1

 2006       I           r3.2          4.9         r1.7         r3.0          r-0.7          -0.2
           II           r1.8          4.5          2.6         r1.1          r-2.7          -0.7
          III           r2.5          3.7         r1.2          0.1          r-3.1          -2.3
           IV           r1.3          0.2        r-1.0         r4.6           r2.6           3.3

       ANNUAL           r2.2          3.3          1.1          2.2          r-1.0           0.0

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               March 4, 2010
 r=revised                                                      Source: Bureau of Labor Statistics




Appendix table 5.
 Nondurable manufacturing sector: Revised 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

 2005       I         r147.8        115.2        r78.0       r169.2         r125.9        r114.5
           II         r149.4        115.4        r77.3       r172.9         r127.9        r115.8
          III         r149.6        114.2        r76.3       r174.5         r127.2        r116.7
           IV         r147.9        114.0        r77.1       r173.5         r125.1        r117.3

       ANNUAL         r148.7        114.7        r77.2       r172.5         r126.6         116.1

 2006       I         r147.9        115.1        r77.8       r173.8         r124.7        r117.5
           II         r148.2        114.7        r77.4       r173.9         r123.8        r117.3
          III         r149.0        115.3        r77.4       r175.0         r123.4        r117.5
           IV         r150.6        115.2        r76.5       r177.8         r125.8        r118.1

       ANNUAL         r148.9        115.1        r77.3       r175.1         r124.4         117.6

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

 2005       I           r7.7          4.3        r-3.2        r-4.6          r-6.5         -11.4
           II            4.3          0.6         -3.5          9.2           r6.5           4.7
          III           r0.6         -4.1        r-4.7         r3.7          r-2.1           3.1
           IV          r-4.5         -0.6         r4.0        r-2.3          r-6.5           2.3

       ANNUAL            4.9          2.0         -2.8          3.6            0.2          -1.2

 2006       I           r0.0          3.8         r3.8         r0.7          r-1.2           0.7
           II           r0.8         -1.2        r-2.1         r0.1          r-3.0          -0.7
          III           r2.1          1.9        r-0.3         r2.6          r-1.2           0.4
           IV           r4.4         -0.3        r-4.5         r6.7           r7.9           2.2

       ANNUAL           r0.2          0.3         r0.1          1.5           -1.7           1.3

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

 2005       I            6.7          3.8        r-2.7         r4.2           r1.1          -2.3
           II            6.2          3.0        r-3.0         r4.9            2.0          -1.2
          III            4.9          1.4         -3.4          3.9            0.2          -1.0
           IV            1.9          0.0        r-1.9         r1.4          r-2.3          -0.5

       ANNUAL            4.9          2.0         -2.8          3.6            0.2          -1.2

 2006       I           r0.1         -0.1         -0.2         r2.8          r-0.9           2.7
           II           -0.8         -0.6          0.2         r0.5           -3.2           1.3
          III           -0.4          0.9         r1.3         r0.3           -3.0           0.7
           IV            1.8          1.0        r-0.8         r2.5           r0.5           0.7

       ANNUAL           r0.2          0.3         r0.1          1.5           -1.7           1.3

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               March 4, 2010
 r=revised                                                      Source: Bureau of Labor Statistics





Appendix table 6.
 Nonfinancial corporate sector: Revised 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

 2005       I   r140.0    164.5    r117.5   r154.0    r114.6     110.0    113.7    111.0    153.7    114.9
           II   r141.4    167.4    r118.3   r154.8    r114.5     109.5    114.3    110.8    162.6    115.5
          III   r140.3    166.8    r118.9   r157.0    r114.5     111.9    117.0    113.3    154.1    117.0
           IV   r142.4    170.4    r119.7   r157.1    r113.2     110.3    116.4    111.9    173.5    117.6

       ANNUAL   r141.0    167.3    r118.6   r155.7    r114.2     110.4    115.4    111.8    161.1    116.3

 2006       I   r143.1    172.6    r120.7   r159.1    r114.1     111.2    116.7    112.6    176.5    118.5
           II   r142.0    172.0    r121.1   r159.3    r113.4     112.2    118.9    114.0    175.8    119.6
          III   r143.4    174.3    r121.5   r159.8    r112.7     111.4    119.1    113.5    191.4    120.6
           IV   r143.8    175.0    r121.7   r162.7    r115.1     113.2    120.9    115.3    175.8    120.8

       ANNUAL   r143.1    173.5    r121.2   r160.2    r113.8     112.0    118.9    113.8    179.9    119.9

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

 2005       I     r4.6      5.2      r0.5     r1.8     r-0.2      -2.7      6.5     -0.3     23.0      2.2
           II     r4.0      7.0      r2.9     r2.1     r-0.4      -1.8      2.2     -0.7     25.3      2.2
          III    r-3.3     -1.4      r2.0     r5.7     r-0.2       9.3      9.9      9.4    -19.2      5.4
           IV     r6.3      9.1      r2.6     r0.2     r-4.2      -5.8     -2.1     -4.8     60.5      1.8

       ANNUAL      2.6      4.3       1.7      3.2      -0.1       0.6      3.7      1.5     12.8      2.8

 2006       I     r1.8      5.3      r3.4     r5.2      r3.1       3.3      0.9      2.6      7.0      3.2
           II    r-3.0     -1.5      r1.5     r0.6     r-2.6       3.7      7.9      4.8     -1.6      3.9
          III     r4.1      5.5      r1.4     r1.3     r-2.4      -2.7      0.5     -1.8     40.6      3.2
           IV     r1.0      1.6      r0.7     r7.6      r8.7       6.5      6.4      6.5    -28.7      0.7

       ANNUAL      1.4      3.7      r2.2      2.9      -0.4       1.4      3.1      1.9     11.7      3.1

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                          Percent change from corresponding quarter of previous year

 2005       I      3.5      4.7       1.2      4.2       1.1       0.7      1.9      1.0     15.1      2.6
           II     r3.1      5.0      r1.8      3.3       0.4       0.2      2.8      0.9     13.8      2.4
          III      0.9      2.8       1.9      3.1      -0.6       2.1      5.9      3.2      3.9      3.3
           IV      2.8      4.9      r2.0     r2.4     r-1.3      -0.4      4.0      0.8     18.9      2.9

       ANNUAL      2.6      4.3       1.7      3.2      -0.1       0.6      3.7      1.5     12.8      2.8

 2006       I      2.2      4.9       2.7      3.3      -0.5       1.1      2.6      1.5     14.8      3.1
           II      0.4      2.8       2.3      2.9      -1.0       2.5      4.0      2.9      8.1      3.6
          III      2.3      4.5       2.2      1.8      -1.5      -0.5      1.7      0.1     24.2      3.0
           IV      0.9      2.7      r1.7     r3.6      r1.6       2.6      3.9      3.0      1.4      2.8

       ANNUAL      1.4      3.7      r2.2      2.9      -0.4       1.4      3.1      1.9     11.7      3.1

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See footnotes following Table 6.                                        March 4, 2010
r=revised                                                               Source: Bureau of Labor Statistics


Last Modified Date: March 04, 2010