Productivity and Costs News Release



Internet address:       http://www.bls.gov/lpc/         USDL 09-0481
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  information:          (202) 691-5606                  MATERIAL IS EMBARGOED
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                        PRODUCTIVITY AND COSTS
                    First Quarter 2009, 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 2009.  The seasonally 
adjusted annual rates of productivity growth in the first quarter were:



                1.1 percent in the business sector and
                0.8 percent in the nonfarm business sector.
         
         
        Productivity gains in both sectors were due to hours declining 
faster than output.  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:
        
        
                -3.4 percent in manufacturing,
                -10.0 percent in durable goods manufacturing, and
                -0.1 percent in nondurable goods manufacturing.
        
        
        Manufacturing sector productivity fell for the fourth consecutive 
quarter.  First quarter declines in output and hours in total 
manufacturing were the largest in these series, which begin with data 
for the second quarter of 1987; output dropped 22.4 percent and hours 
fell 19.7 percent (seasonally adjusted annual rates).  Output and hours 
in manufacturing, which includes about 11 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 2009 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                1.1       -7.8     -8.8         4.1     6.6       2.9
Nonfarm business        0.8       -8.2     -9.0         4.1     6.6       3.3
Manufacturing          -3.4      -22.4    -19.7        12.8    15.5      16.7
  Durable             -10.0      -31.0    -23.4        15.7    18.4      28.5
  Nondurable           -0.1      -13.1    -13.0         8.6    11.2       8.8
------------------------------------------------------------------------------  
                        Percent change from same quarter a year ago
                
Business                1.9       -4.0     -5.7         4.1     4.3       2.2
Nonfarm business        1.8       -4.1     -5.8         4.2     4.4       2.4
Manufacturing          -3.3      -14.0    -11.1         7.9     8.1      11.5
  Durable              -6.7      -18.7    -12.9         9.2     9.4      17.1
  Nondurable           -1.2       -9.1     -8.0         5.8     6.0       7.1
------------------------------------------------------------------------------

        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 1.1 percent in the first 
quarter of 2009, as output decreased 7.8 percent and hours of all 
persons at work in the sector--employees, proprietors, and unpaid 
family workers--fell 8.8 percent (seasonally adjusted annual rates).  
The decrease in hours was the largest since a decline of 12.1 percent 
in the first quarter of 1975.  When measured from the first quarter of 
2008 to the first quarter of 2009, output per hour increased 1.9 
percent (tables A and 1).  This growth rate is lower than the 2.5 
percent average annual rate from 2000 to 2007.

        Hourly compensation increased 4.1 percent during the first quarter 
of 2009.  Hourly compensation includes wage and salary accruals, 
supplements, employer contributions to employee benefit plans, and 
taxes.  Real hourly compensation, which takes into account changes in 
consumer prices, increased 6.6 percent in the first quarter of 2009. 

        Unit labor costs in the business sector rose 2.9 percent in the 
first quarter of 2009.  Growth in unit labor costs is roughly equal to 
the change in hourly compensation minus the change in output per hour.  
Compared to the same quarter a year ago, unit labor costs increased 2.2 
percent, more than the 1.4 percent average annual growth that occurred 
from 2000 to 2007.  The implicit price deflator for the business 
sector, which reflects changes in both unit labor costs and unit 
nonlabor payments, grew at a 2.4 percent rate in the first quarter.


Nonfarm Business

        Productivity in the nonfarm business sector increased 0.8 percent 
in the first quarter of 2009, as output declined 8.2 percent and hours 
of all persons dropped 9.0 percent (seasonally adjusted annual rates).  
The decrease in hours, 9.0 percent, was the largest since the first 
quarter of 1975, when hours fell 12.0 percent.  Over the last four 
quarters, productivity in the nonfarm business sector grew 1.8 percent 
(tables A and 2).  This was lower than the 2.5 percent average rate of 
growth from 2000 to 2007.   

        Hourly compensation in the nonfarm business sector grew at a 4.1 
percent annual rate in the first quarter of 2009.  Real hourly 
compensation increased 6.6 percent--due to a 2.3 percent decline in 
consumer prices (seasonally adjusted annual rates).

        Unit labor costs grew 3.3 percent in the first quarter of 2009 and 
the implicit price deflator for nonfarm business increased 2.9 percent.  
Over the last four quarters, unit labor costs rose 2.4 percent, greater 
than the 1.4 percent average annual growth rate from 2000 to 2007.


Manufacturing

        Productivity decreased 3.4 percent in the manufacturing sector 
during the first quarter of 2009, as output dropped 22.4 percent and 
hours fell 19.7 percent (seasonally adjusted annual rates).  These were 
the largest-ever declines in the output and hours series, which begin 
with data for the second quarter of 1987.  Over the last four quarters 
total manufacturing productivity decreased 3.3 percent.  By contrast, 
output per hour increased at a 3.7 percent average annual rate during 
the 2000-2007 period.

        In the durable goods manufacturing subsector, output plummeted at 
a 31.0 percent annual rate while hours dropped 23.4 percent, yielding a 
productivity decline of 10.0 percent.  In the nondurable goods 
producing industries productivity edged down 0.1 percent as a 13.1 
percent decline in output was offset by a 13.0 percent decline in hours 
worked.

        The hourly compensation of all manufacturing workers increased 
12.8 percent during the first quarter of 2009 and real hourly 
compensation rose 15.5 percent (seasonally adjusted annual rates).  
Unit labor costs increased 16.7 percent in the first quarter of 2009, 
the largest increase in this series since the first quarter of 2000 
when this measure increased at the same 16.7 percent rate.  From the 
first quarter of 2008 to the first quarter of 2009, unit labor costs 
rose 11.5 percent.  This was a considerable increase compared to the 
average annual rate of growth of 0.3 percent from 2000 to 2007.

   
Fourth quarter and annual measures for nonfinancial corporations
 
        Fourth quarter and annual 2008 measures of productivity and costs 
were announced for the nonfinancial corporate sector (tables B, C, and 
6).  Output per employee hour fell 3.9 percent for the fourth quarter 
of 2008 as output and hours fell 10.5 percent and 6.9 percent, 
respectively.  The productivity decline was the largest since the first 
quarter of 1993 when output per hour fell 5.0 percent.

                                                                
------------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth quarter 2008 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
                    
2008 IV   -3.9    -10.5   -6.9      5.4    15.0      9.6    -28.8        5.0
------------------------------------------------------------------------------
                    Percent change from same quarter a year ago
        
2008 IV    2.5     -1.1   -3.5      4.3     2.7      1.7     -7.9        1.3
------------------------------------------------------------------------------


        Hourly compensation increased 5.4 percent in the fourth quarter of 
2008.  Real hourly compensation rose steeply, 15.0 percent, when the 
8.4 percent decrease in consumer prices was taken into account.  Unit 
labor costs increased 9.6 percent and unit profits fell 28.8 percent in 
the fourth quarter of 2008.  Productivity for nonfinancial corporations 
increased 2.5 percent from the same quarter a year ago, slightly lower 
than the 2.7 percent annual growth rate from 2000 to 2007.  


------------------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity and 
related measures, 1999-2008
------------------------------------------------------------------------------
Measure     1999   2000   2001   2002   2003   2004   2005   2006   2007  2008
------------------------------------------------------------------------------
Produc-
tivity      3.7     3.9    1.8    4.0    3.8    3.7   2.7    1.8    0.7    2.8

Output      6.0     5.2   -0.9    0.9    2.2    5.1   4.5    4.1    1.4    1.3

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

Hourly 
compen-
sation      4.9     7.1    4.2    3.6    4.1    3.0   3.6    3.6    4.1    3.9
        
Real        
hourly 
compen-
sation      2.8     3.6    1.4    1.9    1.8    0.3   0.3    0.3    1.2    0.1

Unit        
labor 
costs       1.2     3.1    2.4   -0.4    0.3   -0.7   0.9    1.8    3.4    1.1

Unit        
nonlabor
costs       0.9     3.8    8.1   -1.6    0.2   -1.6   3.2    1.7    3.2    2.6

Total       
unit 
costs       1.1     3.3    3.9   -0.7    0.3   -0.9   1.5    1.8    3.3    1.5

Unit       
profits    -5.8   -15.8  -24.3   19.2   12.1   31.8  12.5   12.6   -8.8  -10.4

Implicit    
price 
deflator    0.3     1.2    1.3    0.6    1.2    2.0   2.8    3.1    1.7    0.0
------------------------------------------------------------------------------


Revised measures


        Output data for the manufacturing sectors were revised to reflect 
revised Indexes of Industrial Production, published by the Board of 
Governors of the Federal Reserve System on March 27, 2009.  Appendix 
tables 1-3 display quarterly and annual data for manufacturing, durable 
manufacturing, and nondurable manufacturing beginning in 2004.  
Quarterly and annual historical data are available on the BLS website. 

        A revised seasonally adjusted Consumer Price Index Research 
Series, prepared by the BLS Office of Prices and Living Conditions for 
the period 1978 to 2008, has been incorporated into the consumer price 
series.  As a result, measures of real hourly compensation for all 
sectors were revised back to 2004.  Complete quarterly and annual 
series are available on the BLS website.

        Previous and revised measures for the fourth quarter and annual 
average of 2008 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, 
due to downward revisions to output.  Unit labor costs in these sectors 
grew at the same rate reported March 5.  The 2008 annual average 
measures for the business and nonfarm business sectors were not 
revised.

                                                
------------------------------------------------------------------------------
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 2008
        
Business:                                               
  Previous              -0.4      -8.4     -8.0       5.0       15.6       5.4
  Revised               -0.5      -8.5     -8.0       4.9       14.4       5.4
Nonfarm business:                                               
  Previous              -0.4      -8.7     -8.3       5.3       15.9       5.7
  Revised               -0.6      -8.8     -8.3       5.2       14.8       5.7
Manufacturing:                                          
  Previous              -4.0     -17.7    -14.2      10.1       21.2      14.7
  Revised               -4.2     -18.0    -14.4      10.1       20.2      15.0
 
                                     Annual average 2008
                                
Business:                                               
  Previous               2.7       0.8     -1.9       3.6       -0.2       0.9
  Revised                2.7       0.8     -1.9       3.6       -0.2       0.9
Nonfarm business:                                               
  Previous               2.8       0.8     -1.9       3.7       -0.1       0.9
  Revised                2.8       0.8     -1.9       3.7       -0.1       0.9
Manufacturing:                                          
  Previous               1.5      -2.5     -3.9       4.0        0.2       2.5
  Revised                0.9      -3.0     -3.9       4.0        0.2       3.1
------------------------------------------------------------------------------ 
  
  
        Manufacturing productivity growth was revised down for the fourth 
quarter as output was revised down by more than hours.  Hourly 
compensation was not revised, but the downward revision in 
manufacturing productivity led to a slight upward revision to unit 
labor costs.  For the year 2008, a downward revision to manufacturing 
output caused productivity to be revised down and unit labor costs to 
be revised up; hours and compensation were not revised.


                                Next release date


The next release of Productivity and Costs is scheduled for 8:30 AM 
EDT, Thursday, June 4, 2009.  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 sectorówage and salary workers, the 
self-employed and unpaid family workers.  The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  
Weekly paid hours are adjusted to hours at work using data from the National 
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this 
purpose, was used for earlier years.  The Office of Productivity and 
Technology estimates average weekly hours at work for nonproduction and 
supervisory workers using information from the Current Population Survey 
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input for government 
enterprises are derived from the CPS, the CES, and the National Income and 
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of 
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is a chain-type, current-weighted index 
constructed after excluding from gross domestic product (GDP) the following 
outputs: general government, nonprofit institutions, and private households 
(including owner-occupied housing). Corresponding exclusions also are made in 
labor inputs. Business output accounted for about 78 percent of the value of 
GDP in 2000. Nonfarm business, which excludes farming, accounted for about 77 
percent of GDP in 2000.
      Annual indexes for manufacturing and its durable and nondurable goods 
components are constructed by deflating current-dollar industry value of 
production data from the U.S. Bureau of the Census with deflators from the 
BLS.  These deflators are based on data from the BLS producer price program 
and other sources.  The industry shipments are aggregated using annual 
weights, and intrasector transactions are removed.  Quarterly manufacturing 
output measures are based on the index of industrial production prepared 
monthly by the Board of Governors of the Federal Reserve System, adjusted to 
be consistent with annual indexes of manufacturing sector output prepared by 
BLS.  Durables include the following 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery 
manufacturing; computer and electronic product manufacturing; electrical 
equipment and appliance manufacturing; transportation equipment 
manufacturing; furniture and related product manufacturing; and miscellaneous 
manufacturing. Nondurables include: food manufacturing; beverage and tobacco 
product manufacturing; textile mills; textile product mills; apparel 
manufacturing; leather and allied product manufacturing; paper manufacturing; 
printing and related support activities; petroleum and coal products 
manufacturing; chemical manufacturing; and plastics and rubber products 
manufacturing.
      Nonfinancial corporate output is a chain-type, current-weighted index 
calculated on the basis of the costs incurred and the incomes earned from 
production.  The output measure excludes the following outputs from GDP: 
general government; nonprofit institutions; private households; 
unincorporated business; and those corporations classified as offices of bank 
holding companies, offices of other holding companies, or offices in the 
finance and insurance sector. Nonfinancial corporations accounted for about 
54 percent of the value of GDP in 2000.
      
Productivity: These productivity measures describe the relationship between 
real output and the labor time involved in its production. They show the 
changes from period to period in the amount of goods and services produced 
per hour. Although these measures relate output to hours at work of all 
persons engaged in a sector, they do not measure the specific contribution of 
labor, capital, or any other factor of production. Rather, they reflect the 
joint effects of many influences, including changes in technology; capital 
investment; level of output; utilization of capacity, energy, and materials; 
the organization of production; managerial skill; and the characteristics and 
effort of the work force.

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

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



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

2007       I     135.7      164.5     121.3     174.3      r122.1      128.5       134.3      130.7
          II     137.5      166.8     121.3     175.4      r121.6      127.5       137.5      131.2
         III     140.0      169.0     120.8     177.4      r122.3      126.7       139.8      131.6
          IV     139.6      168.8     120.9     178.9      r121.6      128.2       139.0      132.2

      ANNUAL     138.2      167.3     121.1     176.5       121.9      127.7       137.7      131.4

2008       I     140.4      169.1     120.4     180.5      r121.3      128.6       140.2      132.9
          II     142.0      170.2     119.9     181.3      r120.6      127.7       142.4      133.2
         III     142.8      169.4     118.6     183.9      r120.4      128.8       144.3      134.6
          IV    r142.6     r165.7    r116.2    r186.1      r124.6     r130.5      r141.4     r134.6

      ANNUAL    r141.9     r168.6    r118.8    r182.9      r121.6     r128.9      r142.1     r133.8

2009       I     143.0      162.4     113.6     187.9       126.6      131.4       142.0      135.4
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I      -0.7       -0.7       0.0       4.0        r0.2        4.7         3.0        4.0
          II       5.7        5.6       0.0       2.4       r-1.7       -3.1         9.9        1.7
         III       7.3        5.5      -1.7       4.6        r2.2       -2.5         7.0        1.1
          IV      -1.1       -0.6       0.5       3.7       r-2.0        4.8        -2.3        2.0

      ANNUAL       1.6        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       2.2        0.7      -1.5       3.5       r-1.1        1.2         3.2        2.0
          II       4.7        2.6      -1.9       1.9       r-2.4       -2.6         6.4        0.9
         III       2.3       -1.8      -4.0       5.7       r-0.4        3.3         5.6        4.2
          IV     r-0.5      r-8.5      -8.0      r4.9       r14.4        5.4       r-7.8       r0.0

      ANNUAL       2.7        0.8      -1.9       3.6        -0.2        0.9         3.2        1.8

2009       I       1.1       -7.8      -8.8       4.1         6.6        2.9         1.6        2.4
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I      -0.2        1.0       1.2       3.9         1.5        4.1         0.6        2.7
          II       0.7        1.7       1.0       4.3         1.6        3.6         0.9        2.5
         III       2.9        3.0       0.1       4.9        r2.6        1.9         2.6        2.2
          IV       2.7        2.4      -0.3       3.7        -0.3        0.9         4.3        2.2

      ANNUAL       1.6        2.0       0.5       4.2         1.3        2.6         2.1        2.4

2008       I       3.5        2.8      -0.7       3.5       r-0.7        0.0         4.4        1.7
          II       3.2        2.0      -1.2       3.4        -0.8        0.2         3.5        1.5
         III       2.0        0.2      -1.7       3.7        -1.5        1.6         3.2        2.3
          IV      r2.1       -1.8      -3.9       4.0        r2.4        1.8        r1.7       r1.8

      ANNUAL       2.7        0.8      -1.9       3.6        -0.2        0.9         3.2        1.8

2009       I       1.9       -4.0      -5.7       4.1         4.3        2.2         1.3        1.9
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 7, 2009
r=revised                                                              Source: Bureau of Labor Statistics





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

2007       I     134.7      164.7     122.2     173.4      r121.5      128.7       135.1      131.1
          II     136.3      167.0     122.5     174.0      r120.6      127.6       138.3      131.5
         III     138.7      169.2     122.0     175.8      r121.2      126.8       140.5      131.8
          IV     138.5      168.9     122.0     177.8      r120.8      128.4       139.7      132.5

      ANNUAL     137.0      167.5     122.2     175.2       121.0      127.9       138.4      131.7

2008       I     139.4      169.3     121.5     179.4      r120.6      128.7       141.0      133.2
          II     141.0      170.5     120.9     180.2      r119.8      127.8       143.3      133.5
         III     141.7      169.7     119.7     182.7      r119.7      128.9       145.6      135.0
          IV    r141.5     r165.8    r117.1    r185.0      r123.9     r130.7      r143.0     r135.2

      ANNUAL    r140.9     r168.8    r119.8    r181.8      r120.9     r129.0      r143.2     r134.2

2009       I     141.8      162.3     114.4     186.9       125.9      131.8       143.8      136.2
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2007       I      -0.6       -0.9      -0.2       4.2        r0.3        4.8         1.2        3.4
          II       4.8        5.8       0.9       1.3       r-2.8       -3.3         9.7        1.5
         III       7.0        5.5      -1.5       4.4        r2.0       -2.5         6.4        0.9
          IV      -0.5       -0.7      -0.2       4.4       r-1.2        5.0        -2.3        2.1

      ANNUAL       1.4        2.0       0.5       4.1         1.3        2.7         1.2        2.1

2008       I       2.6        0.9      -1.7       3.7       r-0.8        1.1         3.8        2.1
          II       4.7        2.8      -1.7       1.7       r-2.7       -2.8         6.9        0.9
         III       2.2       -1.9      -3.9       5.7       r-0.4        3.5         6.4        4.7
          IV     r-0.6      r-8.8      -8.3      r5.2       r14.8        5.7       r-6.8       r0.6

      ANNUAL       2.8        0.8      -1.9       3.7        -0.1        0.9         3.5        1.9

2009       I       0.8       -8.2      -9.0       4.1         6.6        3.3         2.2        2.9
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2007       I      -0.1        0.9       1.0       4.1         1.7        4.2        -0.3        2.5
          II       0.5        1.6       1.1       4.2         1.5        3.6        -0.2        2.1
         III       2.6        2.9       0.3       4.7         2.3        2.0         1.5        1.8
          IV       2.6        2.4      -0.3       3.6        -0.4        0.9         3.6        2.0

      ANNUAL       1.4        2.0       0.5       4.1         1.3        2.7         1.2        2.1

2008       I       3.5        2.8      -0.6       3.5        -0.7        0.0         4.3        1.6
          II       3.4        2.1      -1.3       3.6        -0.7        0.1         3.6        1.5
         III       2.2        0.3      -1.9       3.9        -1.3        1.6         3.6        2.4
          IV       2.2       -1.8      -4.0       4.1         2.5        1.8        r2.4       r2.1

      ANNUAL       2.8        0.8      -1.9       3.7        -0.1        0.9         3.5        1.9

2009       I       1.8       -4.1      -5.8       4.2         4.4        2.4         2.0        2.2
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       May 7, 2009
r=revised                                                              Source: Bureau of Labor Statistics



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

2007       I           r176.9       r148.0         83.7        176.6         r123.7         r99.8
          II           r178.2       r149.3         83.8        176.3         r122.3         r99.0
         III           r180.1       r150.3         83.4        177.0         r122.0         r98.2
          IV           r181.6       r150.4         82.8        179.6         r122.1         r98.9

      ANNUAL           r179.2       r149.5         83.4        177.4          122.5         r99.0

2008       I           r182.8       r149.9         82.0        181.1         r121.7         r99.1
          II           r181.6       r148.0         81.5        182.7         r121.5        r100.6
         III           r180.3       r144.4         80.1        185.1         r121.2        r102.7
          IV           r178.3       r137.4        r77.0       r189.6         r126.9        r106.3

      ANNUAL           r180.8       r144.9        r80.2       r184.5         r122.7        r102.1

2009       I            176.8        129.0         72.9        195.4          131.6         110.5
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I             r3.7         r1.8         -1.9          5.0           r1.1          r1.2
          II             r3.0         r3.4          0.4         -0.5          r-4.5         r-3.4
         III             r4.4         r2.7         -1.6          1.4          r-1.0         r-2.9
          IV             r3.3         r0.3         -2.9          6.1           r0.3          r2.7

      ANNUAL             r3.2         r1.3         -1.8          3.6            0.7          r0.4

2008       I             r2.6        r-1.2         -3.7          3.4          r-1.1          r0.8
          II            r-2.5        r-5.2         -2.7          3.5          r-0.9          r6.2
         III            r-2.9        r-9.3         -6.5          5.4          r-0.7          r8.6
          IV            r-4.2       r-18.0       r-14.4         10.1          r20.2         r15.0

      ANNUAL             r0.9        r-3.0         -3.9          4.0            0.2          r3.1

2009       I             -3.4        -22.4        -19.7         12.8           15.5          16.7
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I              2.5          0.4         -2.0          3.5            1.0           0.9
          II             r3.3         r1.3         -2.0          4.1            1.4          r0.8
         III             r3.3         r1.6         -1.6          3.8            1.5          r0.5
          IV             r3.6         r2.0         -1.5          2.9           -1.0         r-0.6

      ANNUAL             r3.2         r1.3         -1.8          3.6            0.7          r0.4

2008       I             r3.3         r1.3         -2.0          2.6          r-1.6         r-0.7
          II             r1.9        r-0.9         -2.7          3.6           -0.7          r1.6
         III             r0.1        r-3.9         -4.0          4.6           -0.6          r4.5
          IV            r-1.8        r-8.6        r-7.0          5.6            4.0          r7.5

      ANNUAL             r0.9        r-3.0         -3.9          4.0            0.2          r3.1

2009       I             -3.3        -14.0        -11.1          7.9            8.1          11.5
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2009
r=revised                                                       Source: Bureau of Labor Statistics




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

2007       I           r204.1       r180.4         88.4        172.7         r121.0         r84.6
          II           r206.9       r183.0         88.5        172.5         r119.6         r83.4
         III           r209.7       r185.0         88.2        173.0         r119.3         r82.5
          IV           r212.9       r185.7         87.2        175.7         r119.4         r82.5

      ANNUAL           r208.4       r183.5         88.1        173.5          119.8         r83.2

2008       I           r213.6       r185.3         86.8        176.5         r118.7         r82.7
          II           r211.1       r181.8         86.1        178.7         r118.9         r84.7
         III           r212.2       r178.1         83.9        181.7         r119.1         r85.6
          IV           r204.5       r165.2        r80.8       r186.0         r124.5         r90.9

      ANNUAL           r210.4       r177.6        r84.4       r180.6         r120.1         r85.9

2009       I            199.2        150.6         75.6        192.8          129.9          96.8
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I             r4.2         r1.2         -2.9          6.2           r2.3          r1.9
          II             r5.6         r6.0          0.4         -0.5          r-4.5         r-5.8
         III             r5.6         r4.4         -1.1          1.3          r-1.0         r-4.1
          IV             r6.3         r1.4         -4.5          6.3           r0.5          r0.0

      ANNUAL             r4.0         r1.8         -2.1          4.2            1.3          r0.2

2008       I             r1.2        r-0.9         -2.0          2.0          r-2.4          r0.8
          II            r-4.6        r-7.3         -2.9          5.1           r0.6         r10.1
         III             r2.2        r-7.9         -9.9          6.9           r0.7          r4.5
          IV           r-13.8       r-25.9       r-14.1         r9.6          r19.6         r27.2

      ANNUAL             r1.0        r-3.2         -4.2         r4.1            0.3          r3.1

2009       I            -10.0        -31.0        -23.4         15.7           18.4          28.5
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I             r2.6         r0.3         -2.3          4.2            1.7          r1.5
          II             r4.1         r1.4         -2.6          4.8            2.1          r0.7
         III             r4.0         r2.3         -1.6          4.6           r2.3          r0.6
          IV             r5.4         r3.2         -2.1          3.3           -0.7         r-2.0

      ANNUAL             r4.0         r1.8         -2.1          4.2            1.3          r0.2

2008       I             r4.6         r2.7         -1.8          2.2           -1.9         r-2.3
          II             r2.0        r-0.7         -2.6          3.6           -0.6          r1.6
         III             r1.2        r-3.7         -4.9          5.0           -0.2          r3.8
          IV            r-4.0       r-11.0        r-7.3         r5.9           r4.3         r10.2

      ANNUAL             r1.0        r-3.2         -4.2         r4.1            0.3          r3.1

2009       I             -6.7        -18.7        -12.9          9.2            9.4          17.1
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2009
r=revised                                                       Source: Bureau of Labor Statistics




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

2007       I           r151.3       r115.9         76.6        181.6         r127.2        r120.0
          II           r151.4       r116.0         76.7        181.3         r125.7        r119.8
         III           r152.6       r116.3         76.2        182.0         r125.5        r119.2
          IV           r152.3       r116.0         76.2        184.7         r125.6        r121.3

      ANNUAL           r151.9       r116.1         76.4        182.4          126.0        r120.1

2008       I           r154.3       r115.6         74.9        187.3         r125.9        r121.4
          II           r154.2       r114.8         74.4        187.6         r124.7        r121.6
         III           r150.1       r111.6         74.4        189.1         r123.9        r126.0
          IV           r152.5       r108.9        r71.4       r194.2         r130.0        r127.3

      ANNUAL           r152.8       r112.7        r73.8       r189.5         r126.0        r124.0

2009       I            152.5        105.1         69.0        198.2          133.5         130.0
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2007       I             r2.4         r2.4          0.0          2.8          r-1.0          r0.4
          II             r0.3         r0.7          0.4         -0.5          r-4.5         r-0.7
         III             r3.4         r0.8         -2.5          1.4          r-0.9         r-1.9
          IV            r-0.9        r-0.9          0.0          6.1           r0.3          r7.0

      ANNUAL              2.0          0.9         -1.1          2.4           -0.4           0.4

2008       I             r5.4        r-1.4         -6.5          5.8           r1.2          r0.4
          II            r-0.4        r-2.8         -2.5          0.5          r-3.8          r0.9
         III           r-10.2       r-10.6         -0.5          3.4          r-2.6         r15.1
          IV             r6.6        r-9.4       r-15.0        r11.0          r21.2          r4.1

      ANNUAL             r0.6        r-2.9         -3.4         r3.9            0.0          r3.3

2009       I             -0.1        -13.1        -13.0          8.6           11.2           8.8
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2007       I             r2.3         r0.7         -1.6          2.1           -0.3         r-0.1
          II             r2.1         r1.2         -0.9          2.8            0.1           0.7
         III              2.5          0.9         -1.6          2.3            0.0          -0.2
          IV             r1.3         r0.8         -0.5          2.4           -1.5          r1.1

      ANNUAL              2.0          0.9         -1.1          2.4           -0.4           0.4

2008       I             r2.0        r-0.2         -2.2          3.2          r-1.0          r1.1
          II             r1.9        r-1.1         -2.9          3.4           -0.8          r1.5
         III            r-1.7        r-4.0         -2.4          3.9          r-1.2          r5.7
          IV             r0.1        r-6.1        r-6.3         r5.1           r3.5          r5.0

      ANNUAL             r0.6        r-2.9         -3.4         r3.9            0.0          r3.3

2009       I             -1.2         -9.1         -8.0          5.8            6.0           7.1
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                May 7, 2009
r=revised                                                       Source: Bureau of Labor Statistics




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

2006       I    146.0    176.1     120.6    164.2    r117.8     112.5    113.0    112.6    182.6    118.8
          II    145.7    176.2     120.9    164.4    r117.0     112.8    114.6    113.3    183.4    119.5
         III    146.7    178.1     121.4    165.1    r116.5     112.5    114.5    113.1    193.4    120.3
          IV    145.6    177.3     121.8    167.8    r118.7     115.3    116.5    115.6    174.4    120.8

      ANNUAL    146.0    176.9     121.2    165.4     117.5     113.3    114.6    113.6    183.5    119.9

2007       I    145.4    177.2     121.9    170.0    r119.1     116.9    117.6    117.1    172.4    122.1
          II    146.7    179.1     122.0    171.1    r118.6     116.6    117.9    116.9    173.1    122.0
         III    147.8    180.2     121.9    172.8    r119.1     116.9    118.2    117.2    167.4    121.7
          IV    148.3    181.2     122.2    174.9    r118.9     117.9    119.3    118.3    156.4    121.7

      ANNUAL    147.1    179.4     122.0    172.2     118.9     117.1    118.3    117.4    167.3    121.9

2008       I    148.1    180.6     121.9    176.1    r118.4     118.9    119.4    119.0    150.8    121.8
          II    151.2    183.2     121.2    177.4    r118.0     117.3    119.8    118.0    147.8    120.6
         III    153.6    184.2     120.0    180.0    r117.9     117.3    121.3    118.3    156.7    121.8
          IV    152.0    179.2     117.9    182.4     122.1     120.0    124.7    121.3    144.0    123.3

      ANNUAL    151.2    181.8     120.2    178.9     119.0     118.3    121.3    119.1    149.9    121.9

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

2006       I      3.0      6.3       3.2      7.5      r5.4       4.3      0.1      3.1     12.8      4.4
          II     -0.7      0.4       1.1      0.5     r-2.6       1.2      5.7      2.4      1.8      2.3
         III      2.8      4.4       1.6      1.8     r-1.9      -0.9     -0.2     -0.7     23.7      2.4
          IV     -3.1     -1.9       1.2      6.7      r7.8      10.0      7.2      9.2    -34.0      2.0

      ANNUAL      1.8      4.1       2.2      3.6       0.3       1.8      1.7      1.8     12.6      3.1

2007       I     -0.6     -0.2       0.4      5.3      r1.4       5.9      3.8      5.4     -4.5      4.0
          II      3.8      4.2       0.4      2.6     r-1.5      -1.1      0.9     -0.6      1.7     -0.3
         III      3.0      2.7      -0.4      4.0      r1.6       0.9      1.2      1.0    -12.6     -0.8
          IV      1.2      2.1       0.9      5.0     r-0.8       3.7      3.7      3.7    -23.8      0.0

      ANNUAL      0.7      1.4       0.7      4.1       1.2       3.4      3.2      3.3     -8.8      1.7

2008       I     -0.4     -1.4      -0.9      2.7     r-1.7       3.2      0.3      2.4    -13.6      0.5
          II      8.5      6.0      -2.3      3.1     r-1.3      -5.0      1.2     -3.4     -7.7     -3.8
         III      6.4      2.3      -3.9      6.1     r-0.1      -0.3      5.4      1.2     26.5      3.8
          IV     -3.9    -10.5      -6.9      5.4      15.0       9.6     11.7     10.2    -28.8      5.0

      ANNUAL      2.8      1.3      -1.5      3.9       0.1       1.1      2.6      1.5    -10.4      0.0

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

2006       I      2.9      5.7       2.7      4.0       0.3       1.1      1.6      1.2     17.3      3.2
          II      1.2      3.6       2.3      3.6      -0.3       2.4      3.0      2.6     10.1      3.5
         III      2.6      4.8       2.2      2.7     r-0.7       0.1     -0.9     -0.2     27.3      3.0
          IV      0.5      2.2       1.8      4.1       2.1       3.6      3.1      3.5     -1.6      2.8

      ANNUAL      1.8      4.1       2.2      3.6       0.3       1.8      1.7      1.8     12.6      3.1

2007       I     -0.4      0.7       1.1      3.5       1.1       4.0      4.1      4.0     -5.6      2.7
          II      0.7      1.6       0.9      4.1       1.4       3.4      2.9      3.2     -5.6      2.0
         III      0.8      1.2       0.4      4.6      r2.3       3.8      3.2      3.7    -13.5      1.2
          IV      1.9      2.2       0.3      4.2       0.2       2.3      2.4      2.3    -10.3      0.7

      ANNUAL      0.7      1.4       0.7      4.1       1.2       3.4      3.2      3.3     -8.8      1.7

2008       I      1.9      1.9       0.0      3.6      -0.6       1.6      1.5      1.6    -12.5     -0.2
          II      3.0      2.3      -0.7      3.7     r-0.6       0.6      1.6      0.9    -14.6     -1.1
         III      3.9      2.2      -1.6      4.2      -1.0       0.3      2.6      1.0     -6.4      0.1
          IV      2.5     -1.1      -3.5      4.3       2.7       1.7      4.5      2.5     -7.9      1.3

      ANNUAL      2.8      1.3      -1.5      3.9       0.1       1.1      2.6      1.5    -10.4      0.0

----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        May 7, 2009
r=revised                                                               Source: Bureau of Labor Statistics



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

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.5 and +1.3 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the fourth 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 1978-2008 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. 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

 2004       I         r161.8       r138.5         85.6        156.8         r120.3         r96.9
           II         r163.0       r138.9         85.3        159.9          121.7         r98.1
          III         r164.2       r139.9         85.2        163.7         r123.8         r99.7
           IV         r167.1       r141.7         84.8        165.8         r124.0         r99.2

       ANNUAL          164.0        139.7         85.2        161.5          122.5          98.5

 2005       I         r170.0       r143.8         84.6        162.1         r120.6         r95.3
           II         r172.0       r144.5         84.0        164.1          121.4         r95.4
          III         r172.6       r144.5         83.7        166.4         r121.3         r96.4
           IV         r173.0       r146.6         84.7        165.4         r119.2         r95.6

       ANNUAL          171.9        144.8         84.3        164.5          120.7          95.7

 2006       I         r172.6       r147.4         85.4        170.7         r122.5         r98.9
           II         r172.5       r147.4         85.4        169.4         r120.6         r98.2
          III         r174.4       r147.9         84.8        170.4         r120.2         r97.7
           IV         r175.3       r147.4         84.1        174.4         r123.4         r99.5

       ANNUAL          173.7        147.5         84.9        171.2          121.6          98.6

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

 2004       I          r-1.0         r0.5          1.5        -11.6         r-14.6        r-10.7
           II           r3.0         r1.4         -1.6          8.0            4.8          r4.8
          III           r3.0         r2.7         -0.3         10.0           r7.1          r6.8
           IV           r7.2         r5.2         -1.8          5.2           r0.8          -1.9

       ANNUAL            2.3          1.7         -0.5          2.1           -0.6          -0.2

 2005       I           r7.3         r6.3         -1.0         -8.7         r-10.5        r-14.9
           II           r4.7         r1.9         -2.7          5.2           r2.6          r0.5
          III           r1.6         r0.0         -1.5          5.7          r-0.2          r4.1
           IV           r0.7         r5.8          5.1         -2.6          r-6.8         r-3.2

       ANNUAL            4.8          3.7         -1.1          1.8           -1.5          -2.8

 2006       I          r-0.9         r2.2          3.2         13.4          r11.2         r14.5
           II          r-0.1         r0.1          0.1         -2.9          r-5.9         r-2.8
          III           r4.4         r1.3         -3.0          2.3          r-1.4         r-2.0
           IV           r2.0        r-1.4         -3.3          9.8          r11.0          r7.6

       ANNUAL            1.0          1.8          0.8          4.1            0.8           3.0

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

 2004       I            2.7         r0.8         -1.9          1.5          r-0.4          -1.2
           II            2.3          1.7         -0.6          1.7           -1.1          -0.6
          III           r1.0         r2.0          1.0          2.7           r0.0          r1.6
           IV           r3.0         r2.4         -0.6          2.5          r-0.9         r-0.5

       ANNUAL            2.3          1.7         -0.5          2.1           -0.6          -0.2

 2005       I            5.1          3.9         -1.2          3.4           r0.3          -1.7
           II            5.5          4.0         -1.4          2.7           -0.2          -2.7
          III            5.2         r3.3         -1.8          1.7           -2.0         r-3.3
           IV            3.5         r3.5         -0.1         -0.3          r-3.9         r-3.7

       ANNUAL            4.8          3.7         -1.1          1.8           -1.5          -2.8

 2006       I           r1.5         r2.5          1.0          5.3            1.5           3.8
           II           r0.3         r2.0          1.7          3.2          r-0.6           2.9
          III            1.0          2.3          1.3          2.4           -1.0           1.4
           IV           r1.3         r0.5         -0.8          5.5            3.5           4.1

       ANNUAL            1.0          1.8          0.8          4.1            0.8           3.0

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2009
 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

 2004       I         r184.7       r164.8         89.2        152.3         r116.8         r82.4
           II         r185.1       r164.7         88.9        155.7          118.5         r84.1
          III         r185.9       r166.0         89.3        159.8         r120.8         r85.9
           IV         r189.3       r168.3         88.9        161.3         r120.6         r85.2

       ANNUAL          186.3        165.9         89.1        157.3          119.2          84.4

 2005       I         r192.6       r171.5         89.0        158.1         r117.7         r82.1
           II         r195.1       r172.7         88.5        159.6          118.1         r81.8
          III         r196.9       r174.4         88.6        162.2         r118.2         r82.3
           IV         r199.9       r179.5         89.8        160.8         r116.0         r80.5

       ANNUAL          196.2        174.5         89.0        160.2          117.5          81.7

 2006       I         r198.9       r179.9         90.4        165.8         r118.9         r83.3
           II         r198.8       r180.5         90.8        164.5         r117.1         r82.7
          III         r201.7       r180.9         89.7        165.4         r116.6         r82.0
           IV         r202.0       r179.9         89.0        170.1         r120.3         r84.2

       ANNUAL          200.4        180.3         90.0        166.4          118.2          83.1

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

 2004       I          r-2.3         r1.5          3.9        -18.6          -21.3        r-16.6
           II           r0.8        r-0.5         -1.3          9.2            5.9          r8.3
          III           r1.8         r3.3          1.5         10.9           r8.0          r9.0
           IV           r7.3         r5.6         -1.6          3.7          r-0.6         r-3.3

       ANNUAL            1.7          2.3          0.6          0.3           -2.4          -1.4

 2005       I           r7.3         r7.9          0.5         -7.6          r-9.4        r-13.9
           II           r5.3         r2.9         -2.2          3.9           r1.3          -1.3
          III           r3.8         r4.0          0.2          6.4           r0.5          r2.6
           IV           r6.2        r12.0          5.5         -3.2          r-7.4         r-8.9

       ANNUAL            5.3          5.2         -0.1          1.9           -1.4          -3.3

 2006       I          r-1.9         r1.0          3.0         12.9          r10.7         r15.1
           II          r-0.2         r1.3          1.5         -3.0          r-6.0         r-2.8
          III           r5.9         r0.9         -4.7          2.1          r-1.7         r-3.6
           IV           r0.7        r-2.3         -2.9         12.0          r13.2         r11.3

       ANNUAL            2.1          3.3          1.1          3.9            0.6           1.7

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

 2004       I           r3.0         r1.9         -1.1         -0.5           -2.3          -3.4
           II            2.1          2.5          0.4          0.0           -2.7          -2.1
          III          r-0.2         r2.4          2.6          1.0          r-1.6          r1.2
           IV           r1.8         r2.5          0.6          0.6           -2.7         r-1.2

       ANNUAL            1.7          2.3          0.6          0.3           -2.4          -1.4

 2005       I            4.3         r4.0         -0.2          3.8           r0.7         r-0.4
           II            5.4          4.9         -0.5          2.5           -0.4          -2.7
          III           r5.9         r5.1         -0.8          1.5           -2.2         r-4.2
           IV           r5.6         r6.6          1.0         -0.3           -3.9         r-5.6

       ANNUAL            5.3          5.2         -0.1          1.9           -1.4          -3.3

 2006       I           r3.3         r4.9          1.6          4.8            1.1          r1.5
           II           r1.9         r4.5          2.6          3.0           -0.8           1.1
          III           r2.4         r3.7          1.3          2.0           -1.4          -0.4
           IV           r1.1         r0.2         -0.8          5.8            3.7          r4.7

       ANNUAL            2.1          3.3          1.1          3.9            0.6           1.7

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2009
 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

 2004       I         r138.6       r111.0         80.1        163.8         r125.6        r118.2
           II         r140.7       r112.1         79.7        166.1          126.4        r118.1
          III         r142.6       r112.7         79.0        169.2         r128.0        r118.7
           IV         r145.1       r114.0         78.6        172.5         r129.1        r118.9

       ANNUAL          141.7        112.4         79.4        167.9          127.3         118.5

 2005       I         r147.9       r115.2         77.9        167.6         r124.7        r113.3
           II         r149.4       r115.4         77.2        170.6          126.2        r114.2
          III         r149.6       r114.2         76.4        172.3         r125.6        r115.2
           IV         r147.8       r114.0         77.2        171.8         r123.9        r116.3

       ANNUAL          148.6        114.7         77.2        170.6          125.1         114.8

 2006       I         r147.9       r115.1         77.8        177.7         r127.5        r120.2
           II         r148.3       r114.7         77.4        176.5         r125.6        r119.0
          III         r148.9       r115.3         77.4        177.9         r125.4        r119.4
           IV         r150.3       r115.2         76.6        180.3         r127.5        r119.9

       ANNUAL          148.9        115.1         77.3        178.1          126.5         119.6

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

 2004       I           r2.0        r-0.4         -2.4          2.8           -0.7          r0.7
           II           r6.2         r3.8         -2.3          5.8           r2.7         r-0.4
          III           r5.5         r2.1         -3.3          7.8           r5.0          r2.2
           IV           r7.2         r4.9         -2.1          8.0           r3.5          r0.8

       ANNUAL            3.6          1.2         -2.4          5.4            2.6           1.7

 2005       I           r7.9         r4.3         -3.3        -11.0         r-12.8        r-17.6
           II           r4.3         r0.6         -3.5          7.5           r4.8          r3.1
          III           r0.4        r-4.1         -4.5          4.1          r-1.8          r3.7
           IV          r-4.7        r-0.6          4.3         -1.3          r-5.5          r3.6

       ANNUAL            4.9          2.0         -2.8          1.6           -1.7          -3.1

 2006       I           r0.4         r3.8          3.4         14.6          r12.4         r14.1
           II           r1.0        r-1.2         -2.3         -2.8          r-5.8         r-3.8
          III           r1.7         r1.9          0.1          3.1          r-0.6          r1.4
           IV           r3.9        r-0.3         -4.0          5.6           r6.7          r1.7

       ANNUAL            0.1          0.3          0.2          4.4            1.1           4.3

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

 2004       I            2.8         -0.5         -3.2          5.1            3.2           2.3
           II           r3.1          0.9         -2.1          4.7            1.9           1.5
          III            3.4         r1.6         -1.7          5.5            2.7           2.0
           IV            5.2          2.6         -2.5          6.1            2.6           0.8

       ANNUAL            3.6          1.2         -2.4          5.4            2.6           1.7

 2005       I            6.7          3.8         -2.8          2.3          r-0.7          -4.1
           II            6.2          3.0         -3.1          2.7           -0.2          -3.3
          III            4.9          1.4         -3.4          1.8          r-1.8          -2.9
           IV           r1.9          0.0         -1.8         -0.4           -4.0          -2.2

       ANNUAL            4.9          2.0         -2.8          1.6           -1.7          -3.1

 2006       I           r0.0         -0.1         -0.2          6.1            2.3           6.0
           II          r-0.8         -0.6          0.2          3.4           -0.5           4.2
          III           -0.4         r0.9          1.4          3.2           -0.2           3.6
           IV           r1.8         r1.0         -0.7          5.0            2.9          r3.1

       ANNUAL            0.1          0.3          0.2          4.4            1.1           4.3

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               May 7, 2009
 r=revised                                                      Source: Bureau of Labor Statistics




Last Modified Date: May 07, 2009