Productivity and Costs News Release



Internet address: http://www.bls.gov/lpc/                USDL 08-0618
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                              PRODUCTIVITY AND COSTS
                         First Quarter 2008, Preliminary


   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 first quarter of 2008.  The seasonally adjusted annual 
rates of productivity change in the first quarter were:

                     1.9 percent in the business sector and
                     2.2 percent in the nonfarm business sector.
                     
   In both sectors, the productivity gains were due primarily to declines 
in hours worked.  In the business sector, output edged up 0.2 percent while 
hours fell 1.6 percent.  In nonfarm businesses, output rose 0.4 percent and 
hours declined 1.8 percent (seasonally adjusted annual rates).  In both 
sectors, productivity grew faster than in the fourth quarter of 2007, when 
output per hour rose 0.9 percent in the business sector and 1.8 percent in 
the nonfarm business sector.  First quarter measures are summarized in table 
A and appear in detail in tables 1 through 5.

    In manufacturing, productivity changes in the first quarter were:
    
                     4.1 percent in manufacturing,
                     2.3 percent in durable goods manufacturing, and
                     7.0 percent in nondurable goods manufacturing.
                     
   Manufacturing productivity growth in the first quarter reflected a 4.2 
percent decline in hours worked in the sector and an output decline of 0.3 
percent.  After revisions, manufacturing productivity increased 4.2 percent 
in the fourth quarter of 2007. 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.  First quarter measures are summarized in table A and 
appear in detail in tables 1 through 5.


------------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary first 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                  1.9       0.2    -1.6        4.2     -0.1       2.2
Nonfarm business          2.2       0.4    -1.8        4.4      0.1       2.2
Manufacturing             4.1      -0.3    -4.2        6.7      2.3       2.5
  Durable                 2.3      -0.5    -2.8        6.6      2.2       4.1
  Nondurable              7.0      -0.1    -6.6        6.5      2.1      -0.4
------------------------------------------------------------------------------
                           Percent change from same quarter a year ago
                           
Business                  3.2       2.6    -0.6        3.5     -0.7       0.2
Nonfarm business          3.2       2.6    -0.6        3.4     -0.7       0.2
Manufacturing             4.1       2.1    -2.0        2.8     -1.3      -1.3
  Durable                 5.5       3.6    -1.8        2.9     -1.2      -2.5
  Nondurable              2.8       0.4    -2.3        2.6     -1.5      -0.2
------------------------------------------------------------------------------

   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. 


Business

   Productivity in the business sector rose 1.9 percent in the first 
quarter of 2008, as output grew 0.2 percent and hours of all persons at work 
in the sector--employees, proprietors, and unpaid family workers--fell 1.6 
percent (seasonally adjusted annual rates).  The decrease in hours was the 
largest since the second quarter of 2003, when they fell 2.1 percent.  When 
the first quarter of 2008 is compared to the first quarter of 2007, 
productivity in the business sector grew 3.2 percent.  This was the largest 
four quarter change since a 3.4 percent increase from the second quarter of 
2003 to the second quarter of 2004 (see tables A and 1).

   Hourly compensation increased 4.2 percent during the first quarter of 
2008 following a 3.7 percent rise in the previous quarter.  Hourly 
compensation includes wages and salary accruals, supplements, employer 
contributions to employee benefit plans, and taxes.  Real hourly 
compensation, which takes into account changes in consumer prices, decreased 
0.1 percent in the first quarter of 2008 after falling 1.3 percent in the 
fourth quarter of 2007.

   Unit labor costs rose 2.2 percent in the first quarter of 2008, compared 
to a 2.8 percent increase in the fourth quarter.  Growth in unit labor costs 
is roughly equivalent to the change in hourly compensation minus the change 
in output per hour.  The implicit price deflator for the business sector, 
which reflects changes in both unit labor costs and unit nonlabor payments, 
grew at a 2.0 percent rate in the first quarter and 1.9 percent in the final 
quarter of 2007.
        
        
Nonfarm business

   Productivity increased 2.2 percent in the nonfarm business sector in the 
first quarter of 2008 as output rose 0.4 percent and hours of all persons 
fell 1.8 percent (seasonally adjusted annual rates).  The decrease in hours 
was the largest since the first quarter of 2003, when hours fell 2.3 percent, 
and followed a 1.6 percent decline in the previous quarter (see tables A and 
2.)

   Productivity in the nonfarm business sector grew 3.2 percent from the 
first quarter of 2007 to the first quarter of 2008, the largest four quarter 
change since a 3.8 percent increase between the second quarters of 2003 and 
2004.

   Hourly compensation grew at a 4.4 percent annual rate in the first 
quarter of 2008; similar to the fourth quarter rate of 4.6 percent.  When the 
rise in consumer prices was taken into account, real hourly compensation rose 
0.1 percent in the first quarter following a 0.4 percent decline in the 
fourth quarter of 2007. 

   Unit labor costs grew 2.2 percent in the first quarter of 2008 and 2.8 
percent in the previous quarter.  The implicit price deflator for nonfarm 
business output increased 2.2 percent in the first quarter of 2008 and 1.6 
percent in the fourth quarter of 2007.


Manufacturing

   Productivity increased 4.1 percent in manufacturing in the first quarter 
of 2008 as output decreased 0.3 percent and hours of all persons dropped 4.2 
percent (seasonally adjusted annual rates).  This 4.2 percent hours decrease 
reflected a 2.8 percent decline in durable goods hours and a 6.6 percent drop 
in hours worked in nondurable goods industries.  Productivity rose 2.3 
percent in durable manufacturing and 7.0 percent in nondurable manufacturing. 

   The hourly compensation of all manufacturing workers increased 6.7 
percent during the first quarter of 2008 and real hourly compensation rose 
2.3 percent (seasonally adjusted annual rates).  Because hourly compensation 
of manufacturing workers rose more rapidly than productivity, unit labor 
costs increased in the first quarter, by 2.5 percent.  Unit labor costs 
increased 4.1 percent in durable goods manufacturing and fell 0.4 percent in 
nondurable goods manufacturing.


Fourth quarter and annual measures for nonfinancial corporations

   Fourth quarter and annual 2007 measures of productivity and costs also 
were announced today for the nonfinancial corporate sector (tables B, C, and 
6).  Output per all employee hour grew 0.9 percent from the third to the 
fourth quarter of 2007 as output rose 0.9 percent and employee hours were 
unchanged.  

------------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth quarter 2007 productivity and 
cost measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                           Real
                                  Hourly   hourly   Unit              Implicit
         Produc-                  compen-  compen-  labor   Unit      price
Period   tivity   Output  Hours   sation   sation   costs   profits   deflator
------------------------------------------------------------------------------

                     Percent change from preceding quarter

2007 IV  0.9       0.9     0.0     3.5     -1.4      2.6    -16.9       0.3
------------------------------------------------------------------------------
                     Percent change from same quarter a year ago

2007 IV  1.8       2.1     0.3     3.4     -0.6      1.6     -2.1       1.0
------------------------------------------------------------------------------

   Hourly compensation increased 3.5 percent in the fourth quarter of 2007, 
leading to an increase of 2.6 percent in unit labor costs.  When consumer 
prices are taken into account, real hourly compensation fell 1.4 percent.  
Unit profits fell 16.9 percent in the fourth quarter of 2007 and 10.2 percent 
in the previous quarter.  The implicit price deflator increased 0.3 percent 
during the fourth quarter of 2007 after falling 1.6 percent in the third 
quarter.

   When the annual average for 2007 was compared with that for 2006, labor 
productivity increased 1.4 percent in the nonfinancial corporate sector.  In 
the previous six years, 2000 through 2006, output per hour increased an 
average of 2.6 percent per year.  Output increased 2.1 percent in 2007, down 
from 3.0 percent in 2006, and hours rose 0.7 percent, compared with 2.2 
percent during the previous year.  (See table C.)


------------------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity and 
related measures, 1998-2007
------------------------------------------------------------------------------
Measure           1998  1999  2000  2001  2002  2003  2004  2005  2006  2007
------------------------------------------------------------------------------

Productivity      3.4   3.7   3.9    1.8   4.0   3.8   3.7   1.4   0.7   1.4  

Output            5.7   6.0   5.2   -0.9   0.9   2.2   5.1   3.1   3.0   2.1  

Hours             2.2   2.3   1.3   -2.7  -3.0  -1.5   1.3   1.7   2.2   0.7  

Hourly 
compensation      5.9   4.9   7.1    4.2   3.6   4.1   3.0   3.8   3.5   4.7  

Real hourly
compensation      4.5   2.8   3.6    1.4   1.9   1.8   0.3   0.4   0.2   1.8  

Unit labor
costs             2.4   1.2   3.1    2.4  -0.4   0.3  -0.7   2.4   2.8   3.2  

Unit nonlabor
costs            -0.2   0.9   3.8    8.1  -1.6   0.2  -1.6   2.7   1.4   1.1  

Total unit
costs             1.7   1.1   3.3    3.9  -0.7   0.3  -0.9   2.4   2.4   2.6  

Unit profits    -11.2  -5.8 -15.8  -24.3   19.2 12.1  31.8   6.6   5.5  -5.7  

Implicit price
deflator          0.0   0.3   1.2    1.3    0.6  1.2   2.0   2.9   2.8   1.6  
------------------------------------------------------------------------------

   Hourly compensation grew 4.7 percent in 2007, and real hourly 
compensation increased 1.8 percent.  The increase in hourly compensation was 
the largest in the series since 2000, when it had increased 7.1 percent.  
Total unit costs in 2007 rose 2.6 percent, reflecting a 3.2 percent increase 
in unit labor costs and a 1.1 percent increase in unit nonlabor costs.  Unit 
profits fell 5.7 percent in 2007.  This was the first decline since 2001, 
when the series fell 24.3 percent.  The implicit price deflator, which 
reflects both the unit costs and unit profits measures, rose 1.6 percent in 
2007.


Revised measures

   With this release, hours for all sectors were revised back to 2000 to 
incorporate updated information on seasonal trends in Current Population 
Survey data on hours worked.  Employment was revised historically to exclude 
secondary jobs of self employed and unpaid family workers in any month when 
they did not report hours worked in those jobs.  Also employment of 
manufacturing proprietors is now calculated using the number of persons 
employed; previously it was the number of persons at work.

   Output data for the manufacturing sectors also were revised.  Annual 
output indexes are constructed by BLS using data from the Bureau of the 
Census and the Bureau of Economic Analysis (BEA), both the U.S. Department of 
Commerce, together with information on price changes, primarily from the 
Bureau of Labor Statistics.  These revisions begin with data for 1987 and 
incorporate revised information on intermediate inputs. (See USDL 08-0857, 
“Multifactor Productivity Trends in Manufacturing for 2006,” May 1, 2008 
(http://www.bls.gov/news.release/pdf/prod3.pdf).  Quarterly changes in 
manufacturing output and related measures also now reflect revised Indexes of 
Industrial Production, published by the Board of Governors of the Federal 
Reserve System on March 28, 2008.  Appendix tables 1-3 display quarterly and 
annual data for manufacturing, durable manufacturing, and nondurable 
manufacturing beginning in 2003.  Quarterly historical data are available on 
the BLS website.  Annual historical data for total manufacturing and its 
subsectors are presented in appendix tables 4-6.

   A revised seasonally adjusted Consumer Price Index Research Series, 
prepared by the BLS Office of Prices and Living Conditions for the period 
1978 to 2007, has been incorporated into our consumer price series.  As a 
result, measures of real hourly compensation for all sectors were revised 
back to 1984.  Complete quarterly and annual series are available on the BLS 
website.

  Previous and revised measures for the fourth quarter and annual average 
of 2007 in the business, nonfarm business, and manufacturing sectors are 
compared in table D.  In the business and nonfarm business sectors, 
productivity was revised down slightly in the fourth quarter, primarily due 
to downward revisions to output.  Unit labor costs in these sectors were 
revised up from the increases reported March 5.


------------------------------------------------------------------------------
Table D. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------

                                    Fourth quarter 2007
Business:                  
  Previous               1.0       0.2     -0.7       3.6      -1.3       2.7
  Revised                0.9       0.1     -0.7       3.7      -1.3       2.8
  
Nonfarm business:                            
  Previous               1.9       0.3     -1.6       4.6      -0.5       2.6
  Revised                1.8       0.2     -1.6       4.6      -0.4       2.8
  
Manufacturing:                         
  Previous               2.3      -1.7     -3.9       4.4      -0.6       2.1
  Revised                4.2      -0.4     -4.4       4.3      -0.6       0.2
  
                                    Annual average 2007
Business:                  
  Previous               1.9       2.3      0.4       5.0       2.3       3.1
  Revised                1.9       2.3      0.4       5.0       2.1       3.1
  
Nonfarm business:                   
  Previous               1.8       2.3      0.5       4.9       2.3       3.1
  Revised                1.8       2.3      0.5       4.9       2.1       3.1
  
Manufacturing:                
  Previous               3.7       2.0     -1.7       5.4       2.7       1.6
  Revised                3.4       1.6     -1.7       5.4       2.5       1.9
------------------------------------------------------------------------------


   Fourth quarter productivity growth in the manufacturing sector was 
higher than reported March 5.  Hours fell more than reported in March, and 
had the largest decline since the third quarter of 2003.  The upward revision 
to productivity resulted in a downward revision to unit labor costs.  
        
   The 2007 annual average measures of real hourly compensation for the 
business, nonfarm business, and manufacturing sectors were revised downward 
due to a revision in the Consumer Price Index Research series.  The 2007 
annual averages in the manufacturing sector showed a downward revision in 
output, which led to a downward revision in productivity and an upward 
revision in unit labor costs. 


                              Next release date

   The next release of Productivity and Costs is scheduled for 8:30 AM EDT, 
Wednesday, June 4, 2008.  First quarter measures for nonfinancial 
corporations and revised first quarter measures for business, nonfarm 
business, and manufacturing will be released at that time.




			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 an annual-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 also 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 
manufac-turing; fabricated metal product manufacturing; machinery 
manufacturing; computer and elec-tronic product manufacturing; electrical 
equipment and appliance manufacturing; transportation equipment 
manufacturing; furniture and related product manufacturing; and miscellaneous 
manu-facturing. Nondurables include: food manufacturing; beverage and tobacco 
product manufac-turing; 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 an annual-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    r136.3      163.2    r119.7    r168.3      r120.8     r123.4      r133.0      127.0
          II    r136.7      164.2    r120.1    r168.1      r119.6     r123.0      r136.6      128.0
         III    r136.1      164.4    r120.8    r168.7      r118.9     r123.9      r136.7      128.7
          IV    r136.5      165.5    r121.2    r173.5      r122.7     r127.1      r132.0      128.9

      ANNUAL    r136.4      164.3    r120.5    r169.6      r120.5     r124.4      r134.6      128.2

2007       I    r136.8      165.6    r121.0    r176.1      r123.5     r128.7      r132.8      130.2
          II    r138.1      167.3    r121.2    r177.1      r122.8     r128.3      r135.4      130.9
         III    r140.3      169.7    r120.9    r178.7      r123.1     r127.4      r137.1      131.0
          IV    r140.6     r169.7    r120.7    r180.4      r122.7     r128.3      r137.3     r131.7

      ANNUAL    r139.0     r168.1    r121.0    r178.1      r123.0     r128.2      r135.7     r131.0

2008       I     141.3      169.8     120.2     182.2       122.6      129.0       137.9      132.3
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I      r2.4        5.5      r3.0       7.1        r5.2       r4.6        r0.0        2.8
          II      r1.0        2.5       1.5      -0.5       r-3.9       -1.5        11.3        3.3
         III     r-1.7        0.6       2.3       1.5       r-2.4       r3.2        r0.4        2.1
          IV      r1.2        2.6      r1.4     r11.9       r13.6      r10.6      r-12.9        0.8

      ANNUAL       1.0        3.1       2.1       4.0         0.7        2.9         2.9        2.9

2007       I      r0.9        0.2     r-0.8      r6.2        r2.5       r5.2        r2.3        4.1
          II       3.8        4.4       0.5      r2.4       r-2.1      r-1.4        r8.2        2.2
         III      r6.4        5.7     r-0.7       3.7        r0.9      r-2.6        r5.2        0.3
          IV      r0.9       r0.1      -0.7      r3.7        -1.3       r2.8        r0.6       r1.9

      ANNUAL       1.9        2.3       0.4       5.0        r2.1        3.1        r0.8        2.2

2008       I       1.9        0.2      -1.6       4.2        -0.1        2.2         1.7        2.0
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.5        3.8       2.3       4.2         0.5        2.7         3.8        3.1
          II       1.8        3.6       1.8       4.0         0.0       r2.1        r5.2        3.3
         III       0.2        2.4       2.2       2.8       r-0.5        2.6         3.5        3.0
          IV      r0.7        2.8      r2.1       4.9         2.9        4.1       r-0.7        2.2

      ANNUAL       1.0        3.1       2.1       4.0         0.7        2.9         2.9        2.9

2007       I      r0.4        1.5       1.1      r4.7        r2.2        4.3        -0.1        2.6
          II       1.0        1.9       0.9       5.4        r2.7        4.3       r-0.8        2.3
         III       3.1        3.2       0.1       6.0        r3.5        2.8        r0.3        1.8
          IV       3.0        2.6      -0.4       4.0        r0.0       r0.9        r4.0       r2.1

      ANNUAL       1.9        2.3       0.4       5.0        r2.1        3.1        r0.8        2.2

2008       I       3.2        2.6      -0.6       3.5        -0.7        0.2         3.9        1.6
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 7, 2008
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    r135.2      163.4    r120.8    r167.0      r119.9     r123.5      r134.9      127.7
          II    r135.7      164.4    r121.2    r167.0      r118.8     r123.1      r138.8      128.9
         III    r135.1      164.7    r121.9    r167.6      r118.1     r124.0      r138.6      129.4
          IV    r135.6      165.7    r122.2    r172.5      r122.0     r127.2      r133.4      129.5

      ANNUAL    r135.4      164.5    r121.5    r168.5      r119.7     r124.5      r136.4      128.9

2007       I    r136.1      165.9    r121.9    r175.2      r122.8     r128.8      r133.8      130.6
          II    r137.0      167.6    r122.4    r175.8      r121.9     r128.4      r136.4      131.3
         III    r139.0      169.9    r122.3    r177.2      r122.0     r127.5      r137.9      131.3
          IV    r139.6     r170.0    r121.8     179.2      r121.9     r128.4      r137.8     r131.9

      ANNUAL    r137.9     r168.4    r122.1    r176.9      r122.2     r128.3      r136.5     r131.3

2008       I     140.4      170.2     121.2     181.2       121.9      129.1       138.5      132.6
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2006       I      r2.2        5.7      r3.4       6.9        r4.9       r4.5        r0.6        3.0
          II       1.3        2.4       1.1       0.0       r-3.5       -1.3        12.1        3.7
         III     r-1.6        0.8      r2.4       1.5       r-2.5       r3.1       r-0.5        1.6
          IV      r1.4        2.6      r1.1      12.3       r14.0      r10.7      r-14.2        0.3

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I      r1.3        0.3     r-0.9       6.4        r2.7       r5.0        r1.3        3.6
          II      r2.7        4.2      r1.5       1.3       r-3.2       -1.3        r7.9        2.1
         III      r6.0        5.6     r-0.4      r3.3         0.6      r-2.5        r4.5        0.1
          IV      r1.8       r0.2      -1.6       4.6       r-0.4       r2.8       r-0.3       r1.6

      ANNUAL       1.8        2.3       0.5       4.9        r2.1        3.1        r0.0        1.9

2008       I       2.2        0.4      -1.8       4.4         0.1        2.2         2.2        2.2
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2006       I       1.4        3.8       2.4       4.2        r0.4        2.8         4.1        3.3
          II       1.6        3.6       2.0       3.8       r-0.1        2.2         5.7        3.5
         III       0.1        2.4       2.3       2.7        -0.6        2.6         3.6        3.0
          IV      r0.8        2.8      r2.0       5.0         3.0       r4.2       r-1.0        2.2

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.6        1.5       0.9       4.9        r2.4        4.3        -0.8        2.3
          II      r1.0        2.0       1.0       5.3        r2.5        4.3       r-1.7        1.9
         III      r2.8        3.2       0.3       5.8        r3.3        2.8        -0.5        1.5
          IV       2.9        2.6     r-0.4       3.9       r-0.1        0.9        r3.3       r1.8

      ANNUAL       1.8        2.3       0.5       4.9        r2.1        3.1        r0.0        1.9

2008       I       3.2        2.6      -0.6       3.4        -0.7        0.2         3.5        1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 7 2008
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           r172.6       r147.2        r85.3       r172.4         r123.8         r99.9
          II           r172.7       r147.4        r85.4       r170.5         r121.3         r98.7
         III           r174.5       r148.0        r84.8       r171.6         r120.9         r98.4
          IV           r175.4       r147.4        r84.0       r177.4         r125.5        r101.1

      ANNUAL           r173.8       r147.5        r84.9       r173.0         r122.8         r99.5

2007       I           r177.0       r147.8        r83.5       r181.7         r127.4        r102.7
          II           r178.7       r149.6        r83.7       r181.6         r125.9        r101.6
         III           r180.6       r151.2        r83.7       r181.9         r125.2        r100.7
          IV           r182.5       r151.0        r82.8       r183.8         r125.0        r100.7

      ANNUAL           r179.7       r149.9        r83.4       r182.3         r125.9        r101.4

2008       I            184.3        150.9         81.9        186.8          125.7         101.4
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I            r-0.6         r1.8         r2.4          9.1           r7.1          r9.7
          II             r0.2         r0.6         r0.4         -4.4          r-7.7         r-4.6
         III             r4.3         r1.6        r-2.5          2.7          r-1.3         r-1.5
          IV             r2.2        r-1.7        r-3.8         14.1          r15.8         r11.6

      ANNUAL             r1.1         r1.8         r0.8          2.8           -0.5          r1.7

2007       I             r3.6         r1.2        r-2.3         10.3           r6.4          r6.4
          II             r3.8         r4.9          1.0         -0.4          r-4.8         r-4.1
         III             r4.5         r4.3         -0.2          0.7           -2.0         r-3.6
          IV             r4.2        r-0.4        r-4.4         r4.3           -0.6          r0.2

      ANNUAL             r3.4         r1.6         -1.7          5.4           r2.5          r1.9

2008       I              4.1         -0.3         -4.2          6.7            2.3           2.5
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I             r1.5         r2.4         r0.9          3.8            0.0          r2.2
          II             r0.4         r2.1         r1.7          1.5           -2.4          r1.1
         III             r0.9         r2.3         r1.4          0.7           -2.6         r-0.2
          IV             r1.5         r0.6        r-0.9          5.1            3.1          r3.6

      ANNUAL             r1.1         r1.8         r0.8          2.8           -0.5          r1.7

2007       I             r2.6         r0.4         -2.1          5.4           r2.9          r2.8
          II             r3.5         r1.5         -1.9          6.5           r3.7          r2.9
         III             r3.5         r2.1         -1.3          6.0           r3.6          r2.4
          IV             r4.0         r2.5        r-1.5          3.7          r-0.3         r-0.4

      ANNUAL             r3.4         r1.6         -1.7          5.4           r2.5          r1.9

2008       I              4.1          2.1         -2.0          2.8           -1.3          -1.3
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2008
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           r198.8       r179.6        r90.3       r168.1         r120.7         r84.6
          II           r198.9       r180.5        r90.7       r166.1         r118.2         r83.5
         III           r201.7       r181.1        r89.8       r167.3         r117.9         r82.9
          IV           r202.4       r180.1        r89.0       r173.6         r122.8         r85.8

      ANNUAL           r200.4       r180.3        r90.0       r168.7         r119.8         r84.2

2007       I           r204.4       r180.3        r88.2       r177.6         r124.5         r86.9
          II           r207.9       r183.9        r88.4       r177.5         r123.0         r85.4
         III           r210.9       r186.9        r88.6       r177.5         r122.2         r84.2
          IV           r214.3       r187.0        r87.3       r179.8         r122.3         r83.9

      ANNUAL           r209.4       r184.5        r88.1       r178.1         r123.0         r85.1

2008       I            215.6        186.8         86.7        182.7          123.0          84.8
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I            r-1.8         r0.4         r2.3         11.6           r9.6         r13.7
          II             r0.3         r2.1         r1.8         -4.7          r-8.0         r-5.0
         III             r5.7         r1.2        r-4.3          2.9          r-1.1         r-2.7
          IV             r1.4        r-2.1        r-3.4        r16.0          r17.8         r14.5

      ANNUAL             r2.2         r3.3         r1.1          3.4            0.1          r1.2

2007       I             r3.9         r0.4        r-3.4          9.6           r5.7          r5.4
          II             r7.1         r8.2          1.0        r-0.3           -4.7         r-6.9
         III             r6.0         r6.8          0.8          0.1           -2.6         r-5.6
          IV             r6.6         r0.3        r-6.0         r5.4           r0.4         r-1.2

      ANNUAL             r4.5         r2.3        r-2.0         r5.6           r2.7          r1.1

2008       I              2.3         -0.5         -2.8          6.6            2.2           4.1
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I             r3.2         r4.8         r1.6          4.2           r0.4          r1.0
          II             r2.0         r4.6          2.5          2.1           -1.8          r0.1
         III             r2.2         r3.6         r1.4          1.1          r-2.2         r-1.1
          IV             r1.4         r0.4        r-1.0          6.2            4.1          r4.7

      ANNUAL             r2.2         r3.3         r1.1          3.4            0.1          r1.2

2007       I             r2.8         r0.4        r-2.4          5.7           r3.2          r2.8
          II             r4.5         r1.8        r-2.5          6.9           r4.1          r2.3
         III             r4.6         r3.2        r-1.3          6.1           r3.7          r1.5
          IV             r5.9         r3.9        r-1.9         r3.6           -0.4         r-2.2

      ANNUAL             r4.5         r2.3        r-2.0         r5.6           r2.7          r1.1

2008       I              5.5          3.6         -1.8          2.9           -1.2          -2.5
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2008
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           r148.0       r115.0        r77.7        178.3         r128.0        r120.4
          II           r148.4       r114.8        r77.3       r176.4         r125.6        r118.8
         III           r149.0       r115.4        r77.4       r177.6         r125.1        r119.2
          IV           r150.3       r115.1        r76.6       r181.9         r128.7        r121.1

      ANNUAL           r148.9       r115.1        r77.2       r178.6         r126.8        r119.9

2007       I           r151.2       r115.6        r76.5       r187.1         r131.2        r123.7
          II           r151.4       r116.0        r76.6       r186.9         r129.6        r123.5
         III           r152.7       r116.4        r76.3       r187.8         r129.3        r123.0
          IV           r152.9       r116.1        r75.9       r189.0         r128.5        r123.6

      ANNUAL           r152.0       r116.0        r76.3       r187.7         r129.7        r123.5

2008       I            155.4        116.1         74.7        192.0          129.2         123.5
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2006       I             r1.0         r3.6          2.6          4.4           r2.5          r3.4
          II             r1.1        r-0.9         -1.9         -4.2          r-7.5         r-5.2
         III             r1.5         r2.2         r0.6          2.7          r-1.3          r1.1
          IV             r3.5        r-1.1        r-4.4         10.2          r11.9          r6.5

      ANNUAL             r0.2         r0.3          0.1          1.5           -1.7          r1.3

2007       I             r2.5         r2.0         -0.5         11.9           r8.0          r9.2
          II             r0.4         r1.3         r0.9         -0.4           -4.8         r-0.8
         III             r3.5         r1.6         -1.9          1.7           -1.0         r-1.7
          IV             r0.5        r-1.2        r-1.7         r2.6          r-2.2          r2.2

      ANNUAL             r2.1          0.9         -1.2          5.1           r2.2          r3.0

2008       I              7.0         -0.1         -6.6          6.5            2.1          -0.4
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2006       I             r0.2        r-0.1        r-0.3          2.8           -0.9          r2.7
          II            r-0.7        r-0.6          0.1          0.1           -3.7          r0.8
         III            r-0.4         r1.0         r1.4          0.0          r-3.2          r0.4
          IV             r1.8         r0.9        r-0.8          3.1            1.1          r1.4

      ANNUAL             r0.2         r0.3          0.1          1.5           -1.7          r1.3

2007       I             r2.1         r0.5         -1.6         r4.9           r2.5          r2.7
          II             r2.0         r1.1         -0.9          6.0           r3.2          r3.9
         III             r2.5         r0.9        r-1.5          5.7           r3.3          r3.2
          IV             r1.7         r0.9        r-0.8         r3.9          r-0.1          r2.1

      ANNUAL             r2.1          0.9         -1.2          5.1           r2.2          r3.0

2008       I              2.8          0.4         -2.3          2.6           -1.5          -0.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2008
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

2005       I   r141.0   r165.4    r117.3   r158.0    r117.7    r112.1   r111.0   r111.8   r151.2   r115.3
          II   r141.9   r167.7    r118.2   r158.5    r117.2    r111.7   r111.0   r111.5   r160.8   r115.9
         III   r141.3   r167.9    r118.8   r160.8    r117.1    r113.8   r114.4   r113.9   r146.6   r116.9
          IV   r142.1   r170.0    r119.7   r161.8    r116.7    r113.9   r112.3   r113.5   r158.8   r117.5

      ANNUAL   r141.6   r167.7    r118.5   r159.8    r117.2    r112.9   r112.2   r112.7   r154.4   r116.4

2006       I   r142.8   r171.9     120.4    163.8    r117.6    r114.8   r112.3   r114.1   r164.0   r118.5
          II   r141.9   r171.5    r120.9   r163.9    r116.7    r115.5   r114.2   r115.2   r164.8   r119.6
         III   r142.7   r173.4    r121.5   r164.6    r116.0    r115.3   r114.0   r114.9   r172.8   r120.1
          IV   r143.0   r174.2    r121.8   r169.3    r119.8    r118.4   r114.7   r117.4   r150.4   r120.3

      ANNUAL   r142.6   r172.8    r121.1   r165.4    r117.5    r116.0   r113.8   r115.4   r162.9   r119.7

2007       I   r143.5   r174.6    r121.7   r171.4    r120.2    r119.5   r114.9   r118.2   r154.7   r121.5
          II   r144.2   r175.9    r121.9   r172.4    r119.5    r119.5   r115.0   r118.3   r158.5   r121.9
         III   r145.3   r177.5    r122.2   r173.6    r119.5    r119.5   r114.7   r118.2   r154.3   r121.4
          IV    145.6    177.8     122.2    175.1     119.1     120.3    115.5    119.0    147.3    121.5

      ANNUAL    144.6    176.4     122.0    173.1     119.6     119.7    115.0    118.4    153.7    121.6

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

2005       I     r0.4     r0.6       0.2      2.6      r0.8      r2.1     r6.5     r3.3     r9.5     r4.0
          II     r2.8     r5.9       3.0     r1.3     r-1.6     r-1.5     r0.0    r-1.1    r27.8     r2.0
         III     -1.6      0.4       2.1     r6.1     r-0.2       7.8    r12.6      9.1    -30.8      3.4
          IV     r2.1     r5.1       3.0     r2.5     r-1.4      r0.5    r-7.2    r-1.7    r37.5     r2.3

      ANNUAL     r1.4     r3.1       1.7      3.8       0.4      r2.4     r2.7     r2.4     r6.6     r2.9

2006       I     r2.0     r4.5      r2.4     r5.1      r3.2      r3.0    r-0.1     r2.2    r13.7     r3.5
          II    r-2.5    r-0.8       1.7      0.2     r-3.3      r2.8     r7.2     r3.9     r1.9     r3.7
         III     r2.4     r4.4       1.9      1.6     r-2.4     r-0.8    r-0.9    r-0.9    r20.9     r1.7
          IV     r0.9     r1.9      r1.1    r12.0     r13.8     r11.1     r2.7     r8.8   r-42.6     r0.8

      ANNUAL     r0.7     r3.0       2.2      3.5       0.2      r2.8     r1.4     r2.4     r5.5     r2.8

2007       I      1.2      0.9      -0.3      5.1      r1.4       3.8      0.5      2.9     11.8      3.9
          II      2.1      2.9       0.8      2.3     r-2.3       0.2      0.5      0.3     10.4      1.4
         III      2.9      3.7       0.7      2.8       0.1      -0.1     -1.2     -0.4    -10.2     -1.6
          IV      0.9      0.9       0.0      3.5      -1.4       2.6      2.9      2.7    -16.9      0.3

      ANNUAL      1.4      2.1       0.7      4.7       1.8       3.2      1.1      2.6     -5.7      1.6

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

2005       I     r2.5     r3.7       1.1      4.7       1.7      r2.1     r1.4     r1.9    r11.9     r3.0
          II     r2.1     r3.8       1.7      3.7      r0.8      r1.6     r1.6     r1.6    r10.4     r2.6
         III     r0.2     r1.9       1.7      3.8       0.0      r3.6     r5.0     r4.0    r-2.4     r3.2
          IV     r0.9     r3.0       2.1      3.1      -0.6      r2.2     r2.7     r2.3     r7.4     r2.9

      ANNUAL     r1.4     r3.1       1.7      3.8       0.4      r2.4     r2.7     r2.4     r6.6     r2.9

2006       I     r1.3     r4.0       2.6      3.7       0.0      r2.4     r1.1     r2.0     r8.4     r2.8
          II     r0.0     r2.3       2.3      3.4      -0.5      r3.5     r2.9     r3.3     r2.5     r3.2
         III     r1.0     r3.3       2.3      2.3      -1.0      r1.3    r-0.4     r0.9    r17.8     r2.8
          IV     r0.7     r2.5       1.8      4.6       2.6      r3.9     r2.2     r3.4    r-5.3     r2.4

      ANNUAL     r0.7     r3.0       2.2      3.5       0.2      r2.8     r1.4     r2.4     r5.5     r2.8

2007       I     r0.5     r1.6       1.1      4.6      r2.2      r4.1     r2.3     r3.6    r-5.7     r2.5
          II     r1.6     r2.5       0.9      5.2      r2.4      r3.5     r0.7     r2.7    r-3.8     r1.9
         III     r1.8     r2.3       0.6      5.5      r3.1      r3.7     r0.6     r2.8   r-10.7     r1.1
          IV      1.8      2.1       0.3      3.4      -0.6       1.6      0.7      1.4     -2.1      1.0

      ANNUAL      1.4      2.1       0.7      4.7       1.8       3.2      1.1      2.6     -5.7      1.6
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        May 7, 2008
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 first 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.



  Appendix table 1.  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

 2003       I         r157.4       r137.3        r87.2       r154.5         r120.7         r98.2
           II         r159.3       r136.6        r85.7       r157.2         r123.0         r98.7
          III         r162.7       r137.3        r84.4       r159.5         r123.8         r98.0
           IV         r162.1       r138.2        r85.3       r161.7         r125.1         r99.8

       ANNUAL         r160.4       r137.3        r85.6       r158.2         r123.2         r98.7

 2004       I         r161.6       r138.3        r85.6       r156.8         r120.3         r97.0
           II         r162.9       r138.9        r85.3       r159.8         r121.6         r98.1
          III         r164.2       r139.9        r85.2       r163.6         r123.7         r99.7
           IV         r167.1       r141.8        r84.8       r165.7         r124.0         r99.2

       ANNUAL         r163.9       r139.7        r85.2       r161.5         r122.4         r98.5

 2005       I         r170.0       r143.7        r84.5       r166.2         r123.8         r97.7
           II         r172.0       r144.5        r84.0       r168.0         r124.3         r97.7
          III         r172.9       r144.7        r83.7       r170.4         r124.1         r98.6
           IV         r172.8       r146.5        r84.8       r168.7         r121.7         r97.6

       ANNUAL         r171.9       r144.8        r84.3       r168.3         r123.5         r97.9

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

 2003       I            8.8          2.1         -6.2         12.4           r8.0           3.3
           II           r4.9        r-2.1        r-6.7          7.2           r7.9          r2.2
          III           r8.9         r2.1         -6.3          5.8           r2.6         r-2.9
           IV          r-1.5         r2.9         r4.5          5.7           r4.2          r7.4

       ANNUAL            6.2          1.0         -4.9          7.0            4.7           0.8

 2004       I          r-1.3         r0.3         r1.6        -11.6          -14.6        r-10.5
           II           r3.3         r1.7         -1.5          7.9           r4.6          r4.4
          III           r3.2         r2.9        r-0.2          9.9           r6.8          r6.5
           IV           r7.4         r5.3        r-1.9          5.3           r1.0         r-1.9

       ANNUAL           r2.2         r1.7         -0.5         r2.1           -0.6          -0.2

 2005       I           r7.1         r5.7        r-1.4          1.1          r-0.7         r-5.7
           II           r4.7         r2.0        r-2.5          4.5           r1.6         r-0.2
          III           r2.2         r0.6         -1.5          5.8          r-0.4          r3.6
           IV          r-0.2         r5.3          5.5         -3.9          r-7.6         r-3.8

       ANNUAL           r4.9         r3.7        r-1.2          4.2            0.9         r-0.6

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

 2003       I           r7.0         r2.3         -4.4          7.0           r3.9          r0.0
           II            6.1         r0.3         -5.4          6.5           r4.4           0.4
          III           r6.5          0.2         -6.0         r6.9            4.5           0.3
           IV           r5.2         r1.2        r-3.8          7.7           r5.6          r2.4

       ANNUAL            6.2          1.0         -4.9          7.0            4.7           0.8

 2004       I           r2.6         r0.7         -1.8          1.5           -0.4          -1.2
           II           r2.3         r1.7         -0.5          1.6           -1.1         r-0.6
          III           r0.9         r1.9          1.0          2.6           -0.1          r1.7
           IV           r3.1         r2.5        r-0.5          2.5           -0.9         r-0.6

       ANNUAL           r2.2         r1.7         -0.5         r2.1           -0.6          -0.2

 2005       I           r5.2         r3.9        r-1.3          6.0            2.9          r0.7
           II           r5.6         r4.0         -1.5          5.1            2.2         r-0.4
          III           r5.3         r3.4         -1.8          4.2            0.4         r-1.1
           IV           r3.4         r3.4          0.0          1.8           -1.8         r-1.6

       ANNUAL           r4.9         r3.7        r-1.2          4.2            0.9         r-0.6

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2008
 r=revised                                                      Source: Bureau of Labor Statistics




Appendix table 2. 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

 2003       I         r179.2       r161.6        r90.2       r153.1         r119.6         r85.4
           II         r181.3       r160.6        r88.6       r155.7         r121.8         r85.9
          III         r186.5       r162.3        r87.0       r158.2         r122.8         r84.8
           IV         r185.7       r164.1        r88.4        160.3         r124.0         r86.4

       ANNUAL         r183.2       r162.2        r88.5       r156.8         r122.1         r85.6

 2004       I         r184.5       r164.6        r89.2       r152.3         r116.9         r82.6
           II         r185.0       r164.6        r89.0       r155.6         r118.5         r84.1
          III         r185.9       r166.1        r89.3       r159.7         r120.7         r85.9
           IV         r189.4       r168.5        r89.0       r161.2         r120.6         r85.1

       ANNUAL         r186.2       r165.9        r89.1       r157.2         r119.2         r84.4

 2005       I         r192.6       r171.4        r88.9       r161.3         r120.2         r83.7
           II         r195.0       r172.6        r88.5        162.7         r120.3         r83.4
          III         r197.3       r174.7        r88.5       r165.5         r120.6         r83.9
           IV         r199.7       r179.4        r89.8       r163.5         r118.0         r81.9

       ANNUAL         r196.2       r174.5        r89.0       r163.2         r119.7         r83.2

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

 2003       I           r7.8         r1.1         -6.1         17.0          r12.4          r8.6
           II           r4.7        r-2.6        r-7.0         r7.0           r7.7          r2.3
          III          r12.1         r4.4         -6.9          6.4           r3.2         r-5.1
           IV          r-1.9         r4.4         r6.4          5.6           r4.1          r7.6

       ANNUAL            7.1          1.4         -5.3          8.1           r5.8           0.9

 2004       I          r-2.4         r1.3         r3.8        -18.5         r-21.2        r-16.5
           II           r1.0         r0.0         -1.0         r8.9           r5.6          r7.8
          III           r2.0         r3.6          1.5         10.9           r7.8          r8.7
           IV           r7.6         r5.9        r-1.7          3.8          r-0.4         r-3.6

       ANNUAL            1.7          2.3         r0.7          0.2           -2.4          -1.4

 2005       I           r7.1         r7.1        r-0.1          0.3          r-1.4         r-6.3
           II           r5.1         r3.0        r-2.0          3.4           r0.5         r-1.6
          III           r4.8         r4.9          0.1         r7.1           r0.8          r2.3
           IV           r4.9        r11.2         r6.0         -4.7          r-8.4         r-9.1

       ANNUAL           r5.4         r5.2        r-0.2          3.8            0.5         r-1.4

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

 2003       I           r8.4         r3.1         -4.9          8.0           r4.9         r-0.4
           II           r6.9         r0.4         -6.1          7.4           r5.3          r0.5
          III           r7.7         r0.4         -6.7          8.2            5.8           0.4
           IV           r5.5         r1.8         -3.5          8.9           r6.8          r3.2

       ANNUAL            7.1          1.4         -5.3          8.1           r5.8           0.9

 2004       I           r2.9         r1.8         -1.1         -0.5           -2.3          -3.4
           II           r2.0         r2.5          0.5         -0.1           -2.8         r-2.1
          III          r-0.3         r2.3          2.7          1.0           -1.7          r1.3
           IV           r2.0         r2.7         r0.7          0.5           -2.8         r-1.4

       ANNUAL            1.7          2.3         r0.7          0.2           -2.4          -1.4

 2005       I           r4.4         r4.1        r-0.3          5.9            2.8          r1.4
           II           r5.4         r4.9        r-0.6          4.5            1.6         r-0.9
          III           r6.1         r5.2         -0.9          3.6           -0.1         r-2.4
           IV           r5.5         r6.5          1.0          1.5           -2.2         r-3.8

       ANNUAL           r5.4         r5.2        r-0.2          3.8            0.5         r-1.4

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2008
 r=revised                                                      Source: Bureau of Labor Statistics





Appendix table 3. 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

 2003       I         r134.8       r111.5        r82.8       r155.8         r121.7        r115.6
           II         r136.4       r111.0        r81.4       r158.6         r124.1        r116.3
          III         r138.0       r110.9        r80.3       r160.5         r124.6        r116.3
           IV         r137.9       r111.2        r80.6       r162.7         r125.8        r117.9

       ANNUAL         r136.7       r111.1        r81.3       r159.4         r124.1        r116.5

 2004       I         r138.4       r111.0        r80.2       r163.7         r125.5        r118.3
           II         r140.7       r112.1        r79.7       r166.1         r126.4        r118.1
          III         r142.6       r112.7        r79.1       r169.1         r127.8        r118.6
           IV         r145.1       r114.0        r78.6        172.5         r129.0        r118.9

       ANNUAL         r141.7       r112.4        r79.4       r167.8         r127.2        r118.5

 2005       I         r147.8       r115.1        r77.9       r173.4         r129.2        r117.3
           II         r149.5       r115.4        r77.2       r176.2         r130.3        r117.9
          III         r149.6       r114.3        r76.4       r177.6         r129.3        r118.6
           IV         r147.7       r114.0        r77.2       r176.4         r127.2        r119.4

       ANNUAL         r148.7       r114.7        r77.2        175.9          129.0        r118.3

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

 2003       I           r9.7         r3.0         -6.2         r4.1           r0.1         r-5.1
           II           r4.9        r-1.7         -6.2          7.5           r8.2          r2.5
          III           r4.8        r-0.7         -5.2          4.8           r1.6          r0.0
           IV           -0.2          1.2         r1.4          5.5           r4.0          r5.7

       ANNUAL            4.8          0.4         -4.2          5.1            2.8           0.3

 2004       I            1.4        r-0.8        r-2.1          2.5          r-0.9          r1.1
           II           r6.7         r4.1         -2.4          6.0           r2.8         r-0.6
          III           r5.6         r2.3        r-3.1         r7.6           r4.6          r1.9
           IV           r7.2         r4.7        r-2.3         r8.2           r3.8          r0.9

       ANNUAL            3.6          1.2        r-2.3          5.3           r2.5          r1.7

 2005       I           r7.8         r4.0        r-3.6          2.2           r0.4         r-5.2
           II           r4.6         r0.9         -3.5          6.6           r3.6          r1.9
          III           r0.4        r-3.9         -4.3          3.1          r-3.0          r2.6
           IV          r-5.1        r-0.8          4.5         -2.5          r-6.3          r2.7

       ANNUAL           r4.9         r2.0         -2.8          4.8            1.4         r-0.1

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

 2003       I            5.0          1.3         -3.6          5.2           r2.2           0.2
           II            4.6          0.1        r-4.3          5.2           r3.1           0.5
          III            4.6         -0.3         -4.7          4.6            2.3           0.0
           IV            4.8         r0.4         -4.1          5.5           r3.4          r0.7

       ANNUAL            4.8          0.4         -4.2          5.1            2.8           0.3

 2004       I            2.7        r-0.5         -3.1          5.1            3.2           2.3
           II           r3.1         r0.9         -2.1          4.7           r1.9          r1.5
          III           r3.3         r1.7         -1.6          5.4            2.6          r2.0
           IV           r5.2         r2.6        r-2.5          6.1            2.6          r0.8

       ANNUAL            3.6          1.2        r-2.3          5.3           r2.5          r1.7

 2005       I           r6.8         r3.8         -2.9          6.0            2.9         r-0.8
           II           r6.3         r3.0        r-3.1          6.1            3.1         r-0.2
          III           r5.0         r1.4         -3.4          5.0            1.2          r0.0
           IV           r1.8         r0.0        r-1.8          2.3           -1.4          r0.4

       ANNUAL           r4.9         r2.0         -2.8          4.8            1.4         r-0.1

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2008
 r=revised                                                      Source: Bureau of Labor Statistics



Appendix table 4.  Manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r89.1        r92.4       r103.8         81.3           r98.0        r91.3
       1988            r90.9        r97.2       r106.9         84.1            97.8        r92.5
       1989            r91.9        r98.8       r107.6         86.6            96.6        r94.3

       1990            r93.9        r98.5       r104.9        r90.5           r96.1        r96.4
       1991            r96.3        r96.8       r100.5         95.6            98.0        r99.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r102.6       r103.9       r101.3       r102.0           r99.6        r99.5
       1994           r106.2       r110.1       r103.7       r105.3          r100.6        r99.2

       1995           r111.0       r115.9       r104.4        107.3           100.1        r96.7
       1996           r115.0       r119.8       r104.2        109.3            99.4        r95.1
       1997           r121.3       r128.7       r106.0       r112.2           r99.8        r92.5
       1998           r127.9       r135.3        105.8       r118.7          r104.2        r92.8
       1999           r133.7       r140.4       r105.1       r123.5          r106.1        r92.4

       2000           r139.1       r144.2       r103.7       r134.7          r112.0        r96.9
       2001           r141.2       r136.9        r96.9       r137.8          r111.5        r97.6
       2002           r151.0       r136.0        r90.1       r147.8          r117.7        r97.9
       2003           r160.4       r137.3        r85.6       r158.2          r123.2        r98.7
       2004           r163.9       r139.7        r85.2       r161.5          r122.4        r98.5

       2005           r171.9       r144.8        r84.3       r168.3          r123.5        r97.9
       2006           r173.8       r147.5        r84.9       r173.0          r122.8        r99.5
       2007           r179.7       r149.9        r83.4       r182.3          r125.9       r101.4
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 7, 2008
 r=revised                                                   Source: Bureau of Labor Statistics





Appendix table 5. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r88.5        r94.2       r106.5        r81.3           r98.0        r91.8
       1988            r90.4       r100.0       r110.6         83.6            97.3        r92.5
       1989            r91.1       r101.1       r110.9        r85.9           r95.8        r94.3

       1990            r92.9        r99.8       r107.4        r89.5           r95.0        r96.3
       1991            r94.6        r96.0       r101.4        r94.9           r97.3       r100.3
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r103.9       r105.4       r101.4       r101.9           r99.4        r98.0
       1994           r109.1       r114.2       r104.7       r105.5          r100.8        r96.7

       1995           r115.9       r123.3       r106.3       r106.7           r99.6        r92.0
       1996           r122.1       r131.0       r107.3       r108.1           r98.2        r88.5
       1997           r130.5       r144.1       r110.4       r110.6           r98.4        r84.7
       1998           r140.6       r156.1       r111.0       r117.1          r102.7        r83.3
       1999           r150.7       r166.5       r110.5       r122.5          r105.2        r81.3

       2000           r158.1       r173.6       r109.8       r134.3          r111.6        r84.9
       2001           r159.0       r162.1       r101.9       r136.4          r110.3        r85.8
       2002           r171.0       r159.9        r93.5       r145.0          r115.4        r84.8
       2003           r183.2       r162.2        r88.5       r156.8          r122.1        r85.6
       2004           r186.2       r165.9        r89.1       r157.2          r119.2        r84.4

       2005           r196.2       r174.5        r89.0       r163.2          r119.7        r83.2
       2006           r200.4       r180.3        r90.0       r168.7          r119.8        r84.2
       2007           r209.4       r184.5        r88.1       r178.1          r123.0        r85.1
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 7, 2008
 r=revised                                                   Source: Bureau of Labor Statistics





Appendix table 6. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r91.4         91.1        r99.7        r80.8           r97.4        r88.4
       1988            r93.2         94.5       r101.4        r84.2           r98.0        r90.3
       1989            r94.0         96.4       r102.5        r87.1           r97.2        r92.7

       1990            r96.0         97.1       r101.1         91.7            97.4        r95.6
       1991            r98.3        r97.4        r99.1        r96.5           r99.0        r98.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r101.2       r102.4       r101.2       r102.2           r99.8       r101.1
       1994           r103.5        105.7       r102.1       r104.7           100.1       r101.2

       1995           r106.2       r107.7       r101.5       r107.8          r100.6       r101.5
       1996           r108.4        107.8        r99.4       r110.8          r100.7       r102.2
       1997           r112.8        112.2        r99.5       r114.1          r101.5       r101.1
       1998           r115.8        113.4        r97.9       r120.3          r105.6       r103.9
       1999           r116.9        113.3        r96.9       r123.6          r106.2       r105.7

       2000           r120.7        114.1        r94.5       r133.2          r110.8       r110.4
       2001           r123.4        110.4        r89.4       r138.6          r112.1       r112.3
       2002           r130.5       r110.7        r84.8       r151.6          r120.7       r116.1
       2003           r136.7       r111.1        r81.3       r159.4          r124.1       r116.5
       2004           r141.7       r112.4        r79.4       r167.8          r127.2       r118.5

       2005           r148.7       r114.7        r77.2        175.9           129.0       r118.3
       2006           r148.9       r115.1        r77.2       r178.6          r126.8       r119.9
       2007           r152.0       r116.0        r76.3       r187.7          r129.7       r123.5
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            May 7, 2008
 r=revised                                                   Source: Bureau of Labor Statistics



Last Modified Date: May 07, 2008