USDL 06-776 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EDT, THURSDAY, MAY 4, 2006. Internet http://www.bls.gov/lpc/ address: Historical, technical information: (202) 691-5606 dprweb@bls.gov Current data: (202) 691-5200 blsdata_staff@bls.gov Media contact: (202) 691-5902 This release was reissued on the afternoon of Tuesday, May 9, to correct information on first quarter 2006 hourly compensation, real hourly compensation, and unit labor costs in manufacturing, durable goods manufacturing, and nondurable goods manufacturing. The data were based on erroneous, unpublished industry tabulations of employee compensation given to BLS by the Bureau of Economic Analysis, U.S. Dept. of Commerce. PRODUCTIVITY AND COSTS First Quarter 2006, 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 2006. The seasonally adjusted annual rates of productivity change in the first quarter were: 3.4 percent in the business sector and 3.2 percent in the nonfarm business sector. Productivity in the business sector grew faster in the first quarter of 2006 than in the fourth quarter of 2005, when it increased 0.2 percent (as revised). In the nonfarm business sector, productivity had declined by 0.3 percent in the fourth quarter of 2005. In both sectors, output and hours worked grew faster in the first quarter of 2006 than they had in the fourth quarter of 2005. In manufacturing, productivity changes in the first quarter were: 4.2 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 4.4 percent in nondurable goods manufacturing. Productivity growth in manufacturing in the first quarter of 2006 reflected a 5.8-percent increase in output and a 1.6-percent increase in hours worked in the sector. Output and hours in manufacturing, which includes about 13 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. The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. --------------------------------------------------------------------------- Table A. Productivity and costs: Preliminary first-quarter 2006 measures (Seasonally adjusted annual rates) --------------------------------------------------------------------------- Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs --------------------------------------------------------------------------- Percent change from preceding quarter Business 3.4 5.8 2.3 5.8 3.6 2.3 Nonfarm business 3.2 5.8 2.5 5.7 3.6 2.5 Manufacturing 4.2 5.8 1.6 2.4 0.3 -1.7 Durable 3.8 4.7 0.9 3.3 1.2 -0.5 Nondurable 4.4 7.3 2.7 1.0 -1.1 -3.3 --------------------------------------------------------------------------- Percent change from same quarter a year ago Business 2.4 4.1 1.6 3.8 0.1 1.4 Nonfarm business 2.4 4.1 1.7 3.8 0.1 1.4 Manufacturing 4.1 4.7 0.6 3.2 -0.4 -0.9 Durable 6.0 7.3 1.1 3.1 -0.5 -2.7 Nondurable 1.8 1.5 -0.3 3.3 -0.4 1.4 --------------------------------------------------------------------------- Business Productivity in the business sector rose 3.4 percent in the first quarter of 2006, as output grew 5.8 percent and hours of all persons at work in the sector increased 2.3 percent (seasonally adjusted annual rates). Revised data for the fourth quarter of 2005 show that output per hour increased 0.2 percent, reflecting a 1.8-percent rise in output and a 1.6- percent increase in hours at work. (See table 1.) Hourly compensation increased 5.8 percent during the first quarter of 2006. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Hourly compensation had risen 3.0 percent in the previous quarter. Real hourly compensation, which takes into account changes in consumer prices, increased 3.6 percent in the first quarter of 2006, after declining 0.3 percent in the fourth quarter of 2005. Unit labor costs rose 2.3 percent in the first quarter of 2006, 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, rose 2.7 percent in the first quarter. In the previous quarter, the implicit price deflator for business sector output increased 3.5 percent. Nonfarm business Productivity rose 3.2 percent in the nonfarm business sector in first- quarter 2006 as output grew 5.8 percent and hours of all persons increased by 2.5 percent (seasonally adjusted annual rates). In the fourth quarter of 2005, productivity had declined 0.3 percent, reflecting increases in output and hours of 1.5 percent and 1.8 percent, respectively. (See table 2.) Hourly compensation increased 5.7 percent in the first quarter of 2006, more rapidly than in the fourth quarter, when it grew 2.7 percent. When the rise in consumer prices was taken into account, real hourly compensation rose 3.6 percent in the first quarter, in contrast to a 0.6-percent decline in the fourth quarter of 2005. Unit labor costs grew 2.5 percent in the first quarter of 2006, following a 3.0-percent rise one quarter earlier. The implicit price deflator for nonfarm business output rose 2.8 percent in the first quarter of 2006 and 3.6 percent in the fourth quarter of 2005. Manufacturing Productivity increased 4.2 percent in manufacturing in the first quarter of 2006, as output increased 5.8 percent and hours of all persons rose 1.6 percent (seasonally adjusted annual rates). Manufacturing hours had also increased in the fourth quarter of 2005, 4.6 percent, after six consecutive quarterly declines (See table 3.) The 3.8-percent increase in durable goods manufacturing in the first quarter was the smallest since a 3.7 percent rise in the fourth quarter of 2003, and reflected growth in output and hours of 4.7 percent and 0.9 percent, respectively. Productivity grew faster in nondurable goods manufacturing than in durable goods industries in the first quarter, 4.4 percent, as output jumped 7.3 percent and hours of all persons increased 2.7 percent. The hourly compensation of all manufacturing workers increased 2.4 percent during the first quarter of 2006, and real hourly compensation rose 0.3 percent (seasonally adjusted annual rates). The 2.4-percent hourly compensation increase reflected a 3.3-percent gain in durable goods hourly compensation and a 1.0 percent rise in compensation per hour in nondurable goods industries. This was the smallest increase in nondurable manufacturing hourly compensation since the first quarter of 2004, when it rose 0.8 percent. Because the productivity of manufacturing workers rose more rapidly than their hourly compensation, unit labor costs decreased in the first quarter, by 1.7 percent. Unit labor costs in manufacturing have fallen in three of the last four quarters. Unit labor costs declined 0.5 percent in durable goods manufacturing in the first quarter of 2006, less than in the nondurable goods subsector, where these costs fell 3.3 percent. Fourth-quarter and annual measures for nonfinancial corporations Fourth-quarter and annual 2005 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 4.6 percent from the third to the fourth quarter of 2005, as output grew 7.3 percent and employee hours increased 2.5 percent. The nonfinancial corporate sector includes all corporations doing business in the United States, except those classified as depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. --------------------------------------------------------------------------- Table B. Nonfinancial corporations: Fourth-quarter 2005 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 2005 IV 4.6 7.3 2.5 2.5 -0.8 -2.0 47.1 1.7 --------------------------------------------------------------------------- Percent change from same quarter a year ago 2005 IV 4.0 5.7 1.6 3.9 0.2 -0.1 20.0 1.8 --------------------------------------------------------------------------- Hourly compensation in this sector increased 2.5 percent in the fourth quarter, but when consumer prices are taken into account, real hourly compensation fell 0.8 percent. Unit labor costs fell 2.0 percent in the fourth quarter of 2005. Unit profits grew 47.1 percent in the fourth quarter of 2005 after falling 8.8 percent in the previous quarter. The implicit price deflator for nonfinancial corporate output grew 1.7 percent during the fourth quarter of 2005 after rising 2.1 percent in the third quarter. In calendar year 2005, productivity in the nonfinancial corporate sector grew 5.0 percent--the largest annual increase in the history of the series, which begins in 1959. Output per hour had increased 4.0 percent in 2004, 4.3 percent in 2003, and 3.9 percent in 2002. When the annual average for 2005 is compared to that for 2001, productivity growth in nonfinancial corporations averaged 4.3 percent per year. Nonfinancial corporate output grew 6.5 percent in 2005, compared to 5.5-percent growth in 2004. Employee hours increased 1.4 percent in each of the last two years. (See table C.) ----------------------------------------------------------------------------- Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1996-2005 ----------------------------------------------------------------------------- Measure 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ----------------------------------------------------------------------------- Productivity 3.7 2.6 3.2 3.4 3.6 1.6 3.9 4.3 4.0 5.0 Output 5.5 6.5 5.7 6.0 5.2 -0.9 0.9 2.8 5.5 6.5 Hours 1.8 3.8 2.4 2.6 1.6 -2.5 -2.9 -1.4 1.4 1.4 Hourly compensation 3.0 3.0 5.7 4.6 6.8 4.0 3.4 4.0 4.1 5.6 Real hourly compensation 0.3 0.9 4.3 2.4 3.3 1.2 1.8 1.6 1.3 2.1 Unit labor costs -0.7 0.4 2.4 1.2 3.1 2.4 -0.4 -0.3 0.0 0.5 Unit nonlabor costs -1.3 -0.2 -0.2 0.9 3.8 8.1 -1.6 0.0 -0.5 -2.3 Total unit costs -0.8 0.2 1.7 1.1 3.3 3.9 -0.7 -0.2 -0.1 -0.2 Unit profits 9.6 2.9 -11.2 -5.8 -15.8 -24.3 19.2 18.9 18.1 14.7 Implicit price deflator 0.4 0.6 0.0 0.3 1.2 1.3 0.6 1.3 1.6 1.4 ----------------------------------------------------------------------------- Hourly compensation grew 5.6 percent in 2005, and real hourly compensation increased 2.1 percent. These were the largest increases in both of these series since 2000, when compensation per hour increased 6.8 percent and real hourly compensation grew 3.3 percent. Total unit costs declined 0.2 percent, reflecting a 0.5-percent rise in unit labor costs and a 2.3-percent drop in unit nonlabor costs. The rise in unit labor costs was the first since 2001, when these costs increased 2.4 percent. Unit profits rose 14.7 percent in 2005. The implicit price deflator, which reflects both the unit costs and unit profits measures, rose 1.4 percent in 2005. Revised measures Current and previous measures for the fourth quarter and annual average of 2005 in the business, nonfarm business, and manufacturing sectors are compared in table D. Some of the quarterly movements differ from those reported on March 7. In the business and nonfarm business sectors, productivity was revised up slightly, as hours were revised down. Small downward revisions to fourth-quarter hourly compensation and incorporation of updated information on consumer prices led to larger declines in real hourly compensation than reported March 7. The upward revisions to productivity and downward revisions to hourly compensation resulted in smaller increases in unit labor costs in the business and nonfarm business sectors than previously reported. Fourth-quarter productivity growth in the manufacturing sector was not changed from the previous estimate due to offsetting upward revisions to output and hours. A downward revision to compensation, combined with the upward revision to hours, produced a smaller increase in hourly compensation, and a larger decrease in real hourly compensation, than reported March 7. The downward revision to hourly compensation led to a larger decline in unit labor costs than previously reported. --------------------------------------------------------------------------- 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 2005 Business: Previous 0.0 1.8 1.7 3.1 -0.1 3.1 Revised 0.2 1.8 1.6 3.0 -0.3 2.8 Nonfarm business: Previous -0.5 1.5 2.0 2.8 -0.4 3.3 Revised -0.3 1.5 1.8 2.7 -0.6 3.0 Manufacturing: Previous 4.7 9.3 4.4 1.8 -1.4 -2.8 Revised 4.7 9.4 4.6 1.2 -2.0 -3.3 --------------------------------------------------------------------------- Annual average 2005 Business: Previous 2.7 4.0 1.3 5.4 2.0 2.7 Revised 2.6 4.0 1.4 5.3 1.9 2.6 Nonfarm business: Previous 2.9 4.2 1.3 5.5 2.1 2.6 Revised 2.7 4.2 1.4 5.4 2.0 2.5 Manufacturing: Previous 5.0 3.9 -1.1 7.0 3.5 1.9 Revised 5.0 3.9 -1.1 7.0 3.5 1.9 --------------------------------------------------------------------------- All of the 2005 annual average annual productivity and cost measures reported for the business and nonfarm business sectors and for manufacturing are similar to those reported in March. The Consumer Price Index Research Series has been updated and new seasonal factors applied to it. Real hourly compensation measures are revised beginning with 2001. See appendix tables 1-6. Next release date The next release of Productivity and Costs is scheduled for 8:30 AM EDT, Thursday, June 1, 2006. 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 em ployment 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 enter prises 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 BEA. 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 manufac turing; 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 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 manu facturing; 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 2004 I 131.7 152.6 115.9 154.4 118.5 117.2 123.2 119.4 II 132.9 154.1 116.0 155.8 r118.4 117.3 126.1 120.5 III 133.4 155.8 116.8 158.3 r119.6 118.6 124.3 120.7 IV 134.3 157.2 117.1 162.5 r121.8 121.0 122.2 121.5 ANNUAL 133.1 154.9 116.4 157.8 119.6 118.5 123.9 120.6 2005 I 135.4 158.9 117.3 164.5 r122.5 121.4 123.7 122.3 II 135.8 160.4 118.1 164.7 r121.5 121.2 126.2 123.1 III 137.5 162.3 118.1 167.1 r121.7 121.6 128.3 124.1 IV r137.5 r163.1 r118.6 r168.3 r121.6 r122.4 r129.8 r125.1 ANNUAL r136.6 r161.2 r118.0 r166.1 r121.8 r121.7 r127.0 r123.7 2006 I 138.7 165.4 119.2 170.7 122.7 123.1 130.9 126.0 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2004 I 3.7 4.9 1.2 4.2 r0.5 0.5 9.1 3.7 II 3.7 4.0 0.3 3.9 r-0.2 0.2 9.8 3.8 III 1.6 4.4 2.8 6.4 r4.2 4.8 -5.5 0.7 IV 2.7 3.6 0.9 11.2 7.4 8.3 -6.5 2.4 ANNUAL 3.5 4.8 1.3 4.7 2.0 1.2 4.4 2.4 2005 I 3.4 4.4 0.9 4.8 2.4 1.3 5.1 2.7 II 1.1 4.0 2.8 0.5 r-3.2 -0.6 8.3 2.6 III 4.9 4.8 -0.1 6.0 r0.5 1.1 6.7 3.2 IV r0.2 1.8 r1.6 r3.0 r-0.3 r2.8 r4.7 r3.5 ANNUAL r2.6 4.0 r1.4 r5.3 r1.9 r2.6 r2.5 2.6 2006 I 3.4 5.8 2.3 5.8 3.6 2.3 3.4 2.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2004 I 4.9 5.5 0.6 4.5 2.6 -0.4 5.7 1.9 II 3.9 5.3 1.4 3.7 r0.9 -0.2 7.5 2.7 III 2.2 4.0 1.7 4.2 r1.4 1.9 3.3 2.4 IV 2.9 4.2 1.3 6.4 2.9 3.4 1.4 2.6 ANNUAL 3.5 4.8 1.3 4.7 2.0 1.2 4.4 2.4 2005 I 2.8 4.1 1.2 6.5 3.4 3.6 0.5 2.4 II 2.2 4.1 1.9 5.7 r2.6 3.4 0.1 2.1 III 3.0 4.2 1.1 5.6 1.7 2.5 3.2 2.7 IV 2.4 3.7 1.3 3.6 r-0.2 r1.1 r6.2 3.0 ANNUAL r2.6 4.0 r1.4 r5.3 r1.9 r2.6 r2.5 2.6 2006 I 2.4 4.1 1.6 3.8 0.1 1.4 5.8 3.0 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 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 2004 I 130.8 152.8 116.8 153.4 117.7 117.3 123.6 119.6 II 132.3 154.5 116.8 154.9 r117.7 117.1 126.4 120.6 III 132.8 156.3 117.6 157.3 r118.9 118.4 125.4 121.0 IV 133.5 157.7 118.2 161.1 r120.7 120.7 123.6 121.8 ANNUAL 132.4 155.3 117.3 156.7 118.8 r118.4 124.8 120.7 2005 I 134.7 159.4 118.3 163.3 r121.7 121.2 125.1 122.7 II 135.5 161.2 118.9 163.8 r120.9 120.9 127.9 123.5 III 136.9 163.0 119.1 166.0 r120.9 121.3 130.1 124.5 IV r136.8 r163.6 r119.6 r167.2 r120.8 r122.2 r131.6 r125.6 ANNUAL r136.0 r161.8 r119.0 r165.1 r121.1 r121.4 r128.7 r124.1 2006 I 137.9 165.9 120.3 169.5 121.8 122.9 132.7 126.5 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2004 I 2.4 4.2 1.7 3.4 r-0.2 1.0 7.9 3.6 II 4.5 4.6 0.1 4.0 r0.0 -0.5 9.5 3.2 III 1.7 4.6 2.9 6.2 r4.0 4.5 -3.2 1.5 IV 2.0 3.9 1.9 10.0 r6.3 7.9 -5.7 2.6 ANNUAL 3.4 4.8 1.3 4.6 1.8 1.1 3.9 2.1 2005 I 3.8 4.3 0.5 5.6 3.2 1.8 5.1 3.0 II 2.4 4.4 2.0 1.3 r-2.4 -1.0 9.0 2.7 III 4.2 4.7 0.4 5.5 r0.0 1.2 7.3 3.5 IV r-0.3 1.5 r1.8 r2.7 r-0.6 r3.0 r4.5 r3.6 ANNUAL r2.7 4.2 r1.4 r5.4 r2.0 r2.5 r3.2 2.8 2006 I 3.2 5.8 2.5 5.7 3.6 2.5 3.4 2.8 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2004 I 4.7 5.5 0.8 4.3 2.5 -0.3 4.5 1.5 II 4.2 5.5 1.2 3.8 r1.0 -0.4 6.5 2.1 III 2.3 4.0 1.7 4.1 r1.3 1.8 3.0 2.3 IV 2.6 4.3 1.7 5.9 r2.5 3.2 1.9 2.7 ANNUAL 3.4 4.8 1.3 4.6 1.8 1.1 3.9 2.1 2005 I 3.0 4.4 1.4 6.4 r3.3 3.4 1.2 2.6 II 2.4 4.3 1.8 5.8 2.7 3.2 1.1 2.4 III 3.1 4.3 1.2 5.6 1.7 2.4 3.8 2.9 IV 2.5 3.7 1.2 3.8 r0.0 r1.2 r6.5 r3.2 ANNUAL r2.7 4.2 r1.4 r5.4 r2.0 r2.5 r3.2 2.8 2006 I 2.4 4.1 1.7 3.8 0.1 1.4 6.0 3.1 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Table 3, corrected. 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 2004 I 159.0 135.7 85.4 159.2 122.1 100.1 II 162.2 137.9 85.0 161.2 r122.5 99.4 III 164.0 139.3 84.9 165.0 r124.7 100.6 IV 166.7 140.8 84.4 169.9 r127.3 101.9 ANNUAL 163.0 138.4 84.9 163.8 124.1 100.5 2005 I 168.7 142.2 84.3 172.8 r128.7 102.4 II 170.3 142.7 83.8 174.3 r128.7 102.4 III 171.8 143.6 83.6 176.7 r128.7 102.8 IV r173.8 r146.9 r84.5 r177.3 r128.0 r102.0 ANNUAL r171.2 r143.8 r84.0 r175.3 r128.5 r102.4 2006 I 175.6 149.0 84.8 c178.3 c128.1 c101.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2004 I 3.6 5.9 2.2 -9.6 r-12.7 -12.7 II 8.3 6.6 -1.6 5.1 r1.1 -3.0 III 4.6 4.1 -0.4 10.0 r7.6 5.1 IV 6.7 4.3 -2.3 12.3 8.5 5.2 ANNUAL 5.5 5.0 -0.5 2.3 -0.4 -3.1 2005 I 4.8 4.2 -0.5 6.9 4.5 2.0 II 3.9 1.2 -2.5 3.6 r-0.1 -0.2 III 3.7 2.6 -1.0 5.6 r0.1 1.8 IV 4.7 r9.4 r4.6 r1.2 r-2.0 r-3.3 ANNUAL 5.0 3.9 -1.1 7.0 3.5 1.9 2006 I 4.2 5.8 1.6 c2.4 c0.3 c-1.7 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2004 I 5.2 3.4 -1.8 1.6 -0.2 -3.4 II 6.3 5.7 -0.6 1.3 -1.5 -4.7 III 4.8 5.7 0.9 2.2 -0.5 -2.5 IV 5.8 5.2 -0.6 4.1 r0.8 -1.6 ANNUAL 5.5 5.0 -0.5 2.3 -0.4 -3.1 2005 I 6.1 4.8 -1.2 8.6 5.4 2.3 II 5.0 3.4 -1.5 8.2 5.1 3.0 III 4.8 3.1 -1.6 7.1 3.2 2.2 IV r4.2 4.3 r0.1 r4.3 r0.6 r0.1 ANNUAL 5.0 3.9 -1.1 7.0 3.5 1.9 2006 I 4.1 4.7 0.6 c3.2 c-0.4 c-0.9 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised, c=corrected Source: Bureau of Labor Statistics Table 4, corrected. 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 2004 I 185.9 165.9 89.2 155.6 119.4 83.7 II 189.7 168.7 89.0 158.1 r120.1 83.4 III 192.1 171.6 89.3 162.0 r122.4 84.3 IV 195.9 174.1 88.9 166.2 r124.5 84.8 ANNUAL 190.9 170.1 89.1 160.5 121.6 84.1 2005 I 199.1 177.0 88.9 169.0 r125.9 84.9 II 201.1 178.1 88.6 169.9 r125.4 84.5 III 204.3 181.2 88.7 172.3 r125.5 84.4 IV r209.2 r187.7 r89.7 r172.9 r124.9 r82.6 ANNUAL r203.4 r181.0 r89.0 r171.0 r125.4 r84.1 2006 I 211.1 189.8 89.9 c174.3 c125.2 c82.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2004 I 4.1 8.5 4.2 -14.8 r-17.7 -18.1 II 8.4 7.0 -1.2 6.6 r2.5 -1.6 III 5.3 6.9 1.5 10.1 r7.8 4.6 IV 8.2 6.1 -1.9 10.9 r7.1 2.5 ANNUAL 6.7 7.3 0.6 1.2 -1.5 -5.2 2005 I 6.7 6.8 0.1 6.9 4.4 0.2 II 4.0 2.6 -1.4 2.3 r-1.4 -1.7 III 6.5 7.0 0.4 5.8 r0.3 -0.7 IV r9.9 r15.2 r4.8 r1.2 r-2.1 r-7.9 ANNUAL 6.6 6.4 r-0.1 6.6 r3.1 0.0 2006 I 3.8 4.7 0.9 c3.3 c1.2 c-0.5 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2004 I 7.0 5.9 -1.0 0.4 -1.4 -6.1 II 7.8 8.2 0.4 0.3 -2.4 -6.9 III 5.4 8.0 2.5 1.2 -1.5 -3.9 IV 6.5 7.1 0.6 2.6 -0.7 -3.6 ANNUAL 6.7 7.3 0.6 1.2 -1.5 -5.2 2005 I 7.1 6.7 -0.4 8.6 r5.4 1.4 II 6.0 5.6 -0.4 7.5 4.4 1.4 III 6.3 5.6 -0.7 6.4 2.5 0.1 IV 6.8 7.8 r1.0 r4.0 r0.3 r-2.6 ANNUAL 6.6 6.4 r-0.1 6.6 r3.1 0.0 2006 I 6.0 7.3 1.1 c3.1 c-0.5 c-2.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised, c=corrected Source: Bureau of Labor Statistics Table 5, corrected. 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 2004 I 133.3 106.1 79.6 164.1 125.9 123.1 II 136.1 107.7 79.1 165.1 r125.4 121.3 III 137.6 107.8 78.4 168.7 r127.5 122.6 IV 139.3 108.4 77.8 174.7 r130.9 125.5 ANNUAL 136.6 107.5 78.7 168.1 127.4 123.1 2005 I 140.2 108.6 77.5 177.7 r132.4 126.7 II 141.7 108.5 76.6 180.3 r133.1 127.3 III 141.9 107.7 75.9 182.5 r132.9 128.6 IV r141.2 r108.3 r76.7 r183.0 r132.2 r129.6 ANNUAL r141.3 r108.3 r76.7 r180.9 r132.6 r128.0 2006 I 142.8 110.3 77.2 c183.5 c131.9 c128.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2004 I 3.7 2.6 -1.1 0.8 r-2.7 -2.8 II 8.5 6.0 -2.3 2.4 r-1.6 -5.7 III 4.5 0.7 -3.6 9.1 r6.8 4.4 IV 5.0 2.0 -2.8 15.1 r11.2 9.6 ANNUAL 4.6 2.2 -2.4 4.2 1.5 -0.4 2005 I 2.7 0.9 -1.7 6.9 4.5 4.1 II 4.2 -0.4 -4.4 6.0 r2.2 1.7 III 0.7 -2.8 -3.5 5.0 r-0.5 4.2 IV r-1.9 r2.3 r4.2 r1.2 r-2.0 r3.2 ANNUAL 3.4 r0.8 -2.6 7.6 4.1 4.0 2006 I 4.4 7.3 2.7 c1.0 c-1.1 c-3.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2004 I 3.5 0.3 -3.1 3.8 1.9 0.3 II 4.9 2.6 -2.2 2.8 0.0 -1.9 III 4.8 3.0 -1.7 3.6 0.9 -1.1 IV 5.4 2.8 -2.5 6.7 r3.3 1.2 ANNUAL 4.6 2.2 -2.4 4.2 1.5 -0.4 2005 I 5.2 2.4 -2.6 8.3 5.1 3.0 II 4.1 0.8 -3.2 9.2 6.1 4.9 III 3.1 -0.1 -3.1 8.2 4.2 4.9 IV 1.4 r0.0 r-1.4 r4.8 r1.0 r3.3 ANNUAL 3.4 r0.8 -2.6 7.6 4.1 4.0 2006 I 1.8 1.5 -0.3 c3.3 c-0.4 c1.4 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised, c=corrected 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 2003 I 130.5 152.4 116.7 144.6 113.0 110.8 111.4 111.0 107.7 110.7 II 132.9 154.5 116.2 147.1 r114.9 110.7 110.4 110.6 113.6 110.9 III 135.2 157.1 116.2 148.9 r115.6 110.1 110.8 110.3 119.8 111.1 IV 136.1 158.9 116.8 149.8 r116.0 110.1 110.7 110.2 124.6 111.5 ANNUAL 133.7 155.7 116.5 147.6 114.9 110.4 110.8 110.5 116.5 111.0 2004 I 136.4 160.3 117.6 150.3 115.4 110.2 111.2 110.5 130.0 112.2 II 137.3 161.7 117.7 151.8 r115.4 110.6 111.2 110.7 138.3 113.2 III 139.8 165.4 118.3 154.2 r116.5 110.2 110.0 110.2 139.4 112.8 IV 142.7 169.4 118.7 158.0 r118.4 110.7 108.5 110.1 142.7 113.1 ANNUAL 139.1 164.2 118.1 153.6 116.4 110.4 110.2 110.4 137.7 112.8 2005 I 143.7 170.8 118.9 160.3 r119.4 111.6 107.9 110.6 145.2 113.7 II 145.3 173.8 119.6 160.8 r118.7 110.6 107.0 109.7 159.1 114.1 III 146.8 175.9 119.9 163.2 r118.9 111.2 109.2 110.7 155.5 114.7 IV 148.4 179.1 120.6 164.2 118.6 110.6 106.9 109.6 171.2 115.1 ANNUAL 146.1 174.9 119.7 162.1 118.9 111.0 107.7 110.1 157.9 114.4 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 1.4 -1.6 -2.9 4.1 r0.2 2.6 6.5 3.7 -11.8 2.2 II 7.4 5.6 -1.7 6.9 r6.7 -0.5 -3.2 -1.2 23.6 0.8 III 7.3 7.1 -0.2 5.1 r2.6 -2.1 1.2 -1.2 23.7 0.9 IV 2.5 4.7 2.1 2.4 r1.3 -0.1 -0.4 -0.2 17.0 1.4 ANNUAL 4.3 2.8 -1.4 4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 2004 I 0.8 3.6 2.7 1.4 r-2.1 0.6 2.0 0.9 18.4 2.6 II 2.9 3.5 0.6 4.1 r0.1 1.2 0.2 0.9 28.0 3.5 III 7.4 9.6 2.0 6.2 r4.0 -1.1 -4.4 -2.0 3.3 -1.4 IV 8.5 10.1 1.5 10.4 r6.7 1.8 -5.3 -0.1 9.8 0.9 ANNUAL 4.0 5.5 1.4 4.1 1.3 0.0 -0.5 -0.1 18.1 1.6 2005 I 2.8 3.3 0.4 6.0 3.6 3.1 -2.5 1.6 7.1 2.2 II 4.6 7.1 2.4 1.1 r-2.6 -3.4 -3.1 -3.3 44.3 1.4 III 4.1 5.1 1.0 6.3 r0.7 2.1 8.2 3.7 -8.8 2.1 IV 4.6 7.3 2.5 2.5 -0.8 -2.0 -8.0 -3.6 47.1 1.7 ANNUAL 5.0 6.5 1.4 5.6 2.1 0.5 -2.3 -0.2 14.7 1.4 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 3.6 2.1 -1.5 3.2 r0.4 -0.4 -1.5 -0.7 25.5 1.2 II 3.9 2.1 -1.8 3.7 r1.5 -0.3 -0.2 -0.3 20.2 1.3 III 4.8 3.2 -1.5 4.3 r2.0 -0.5 0.7 -0.2 19.5 1.4 IV 4.6 3.9 -0.7 4.6 2.7 0.0 0.9 0.2 12.1 1.3 ANNUAL 4.3 2.8 -1.4 4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 2004 I 4.5 5.2 0.7 3.9 2.1 -0.5 -0.1 -0.4 20.7 1.4 II 3.4 4.7 1.3 3.3 0.4 -0.1 0.7 0.1 21.7 2.1 III 3.4 5.3 1.8 3.5 0.8 0.1 -0.7 -0.1 16.3 1.5 IV 4.8 6.6 1.7 5.5 r2.1 0.6 -1.9 -0.1 14.5 1.4 ANNUAL 4.0 5.5 1.4 4.1 1.3 0.0 -0.5 -0.1 18.1 1.6 2005 I 5.4 6.5 1.1 6.7 r3.5 1.2 -3.0 0.1 11.7 1.3 II 5.8 7.5 1.6 5.9 r2.8 0.1 -3.8 -1.0 15.1 0.8 III 5.0 6.4 1.3 5.9 2.0 0.9 -0.8 0.4 11.5 1.7 IV 4.0 5.7 1.6 3.9 0.2 -0.1 -1.5 -0.5 20.0 1.8 ANNUAL 5.0 6.5 1.4 5.6 2.1 0.5 -2.3 -0.2 14.7 1.4 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 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 -1.4 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 fourth quarter of 2005. 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 1978-2005 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 from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, and business current transfer payments. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits before tax with inventory valuation and capital consumption adjustments. Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 117.0 141.1 120.6 138.7 112.9 118.6 106.5 114.1 II 118.5 141.4 119.3 139.7 r112.9 117.8 110.0 114.9 III 119.0 140.3 117.9 140.4 r113.2 118.0 110.5 115.2 IV 120.8 141.0 116.6 141.4 r114.1 117.0 113.1 115.6 ANNUAL 118.8 141.0 118.6 140.0 113.3 117.8 110.0 114.9 2002 I 122.5 141.9 115.8 143.3 r115.2 117.0 113.2 115.6 II 123.1 142.6 115.9 145.0 r115.7 117.8 112.7 115.9 III 124.4 143.8 115.6 145.6 115.6 117.0 114.8 116.2 IV 124.5 144.0 115.7 145.7 r114.9 117.1 116.1 116.7 ANNUAL 123.6 143.1 115.7 144.9 115.4 117.2 114.2 116.1 2003 I 125.6 144.6 115.2 147.8 115.5 117.7 116.5 117.2 II 127.9 146.4 114.4 150.3 r117.4 117.5 117.2 117.4 III 130.5 149.8 114.8 151.9 r117.9 116.4 120.4 117.9 IV 130.5 150.8 115.5 152.8 r118.3 117.1 120.5 118.3 ANNUAL 128.6 147.9 115.0 150.7 117.3 117.1 118.7 117.7 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I -0.7 -1.1 -0.5 6.8 2.9 7.5 -5.7 2.7 II 5.4 0.8 -4.4 2.8 r0.0 -2.5 13.8 3.0 III 1.6 -3.1 -4.6 2.1 r1.0 0.5 1.8 1.0 IV 6.3 1.8 -4.3 2.8 r3.2 -3.3 10.0 1.3 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.6 2.0 2002 I 5.6 2.6 -2.8 5.7 r4.2 0.1 0.3 0.2 II 1.9 2.1 0.2 4.7 r1.6 2.7 -1.9 1.0 III 4.5 3.6 -0.9 1.8 r-0.5 -2.6 7.8 1.0 IV 0.0 0.5 0.4 0.2 r-2.1 0.1 4.5 1.7 ANNUAL 4.0 1.5 -2.4 3.5 1.9 -0.5 3.8 1.0 2003 I 3.7 1.7 -1.9 5.8 r1.8 2.0 1.5 1.8 II 7.5 4.9 -2.5 7.1 r6.9 -0.4 2.5 0.6 III 8.4 9.9 1.3 4.3 r1.7 -3.8 11.2 1.6 IV 0.0 2.6 2.5 2.4 r1.3 2.4 0.5 1.6 ANNUAL 4.1 3.4 -0.7 4.0 1.7 -0.1 3.9 1.4 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 2.6 1.8 -0.7 4.8 1.3 2.1 1.1 1.8 II 2.0 0.2 -1.7 5.0 r1.7 3.0 0.4 2.1 III 2.7 -0.4 -2.9 3.6 0.9 0.9 3.9 2.0 IV 3.1 -0.4 -3.4 3.6 1.8 0.5 4.7 2.0 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.6 2.0 2002 I 4.7 0.5 -4.0 3.3 2.1 -1.3 6.3 1.3 II 3.8 0.8 -2.9 3.8 2.5 0.0 2.5 0.9 III 4.6 2.5 -2.0 3.7 2.1 -0.8 3.9 0.9 IV 3.0 2.2 -0.8 3.0 0.8 0.1 2.6 1.0 ANNUAL 4.0 1.5 -2.4 3.5 1.9 -0.5 3.8 1.0 2003 I 2.5 2.0 -0.6 3.1 0.2 0.5 2.9 1.4 II 3.9 2.6 -1.2 3.7 1.5 -0.2 4.0 1.3 III 4.9 4.2 -0.7 4.3 r2.0 -0.6 4.8 1.4 IV 4.9 4.7 -0.2 4.9 2.9 0.0 3.8 1.4 ANNUAL 4.1 3.4 -0.7 4.0 1.7 -0.1 3.9 1.4 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 116.4 141.4 121.5 138.0 112.3 118.5 108.0 114.6 II 118.0 141.9 120.2 138.8 r112.1 117.6 111.7 115.4 III 118.5 140.8 118.8 139.5 r112.4 117.7 112.1 115.6 IV 120.3 141.2 117.4 140.6 r113.4 116.8 114.7 116.0 ANNUAL 118.3 141.3 119.5 139.2 112.6 117.6 111.6 115.4 2002 I 122.3 142.5 116.5 142.7 r114.7 116.6 115.0 116.0 II 122.6 143.0 116.6 144.2 r115.1 117.6 114.8 116.6 III 123.8 144.1 116.4 144.8 114.9 117.0 116.7 116.9 IV 123.8 144.1 116.4 144.9 r114.4 117.1 117.8 117.3 ANNUAL 123.1 143.4 116.5 144.2 114.8 117.1 116.1 116.7 2003 I 125.0 144.8 115.9 147.0 114.9 117.6 118.3 117.9 II 126.9 146.5 115.4 149.2 r116.6 117.6 118.7 118.0 III 129.9 150.2 115.6 151.1 r117.3 116.3 121.7 118.3 IV 130.1 151.2 116.3 152.1 r117.8 117.0 121.3 118.6 ANNUAL r128.0 148.2 r115.8 r149.9 116.6 117.1 120.0 118.2 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I -0.6 -1.1 -0.6 6.7 2.8 7.3 -5.7 2.5 II 5.6 1.2 -4.1 2.3 r-0.5 -3.1 14.4 2.7 III 1.7 -2.9 -4.5 2.1 r1.0 0.4 1.3 0.7 IV 6.2 1.2 -4.7 3.1 r3.5 -2.9 9.8 1.5 ANNUAL 2.4 0.4 -2.0 3.9 1.1 1.4 2.6 1.9 2002 I 6.8 3.5 -3.1 6.1 r4.7 -0.7 1.1 0.0 II 0.9 1.4 0.5 4.4 r1.4 3.5 -0.7 2.0 III 4.0 3.1 -0.8 1.7 r-0.6 -2.2 6.6 0.9 IV 0.1 0.1 0.1 0.3 r-2.0 0.3 3.8 1.6 ANNUAL 4.1 1.5 -2.5 3.6 2.0 -0.5 4.0 1.1 2003 I 3.8 2.0 -1.7 5.9 r1.9 2.0 1.8 1.9 II 6.3 4.7 -1.5 6.2 r6.0 -0.1 1.4 0.4 III 9.8 10.4 0.6 5.0 r2.5 -4.3 10.6 1.0 IV 0.5 2.8 2.2 2.8 r1.7 2.2 -1.5 0.8 ANNUAL 3.9 3.3 -0.6 4.0 1.6 0.0 3.4 1.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 2.4 1.9 -0.5 4.5 1.0 2.0 1.3 1.8 II 1.9 0.4 -1.6 4.8 r1.4 2.8 0.6 2.0 III 2.6 -0.2 -2.7 3.3 r0.7 0.7 4.0 1.8 IV 3.2 -0.4 -3.5 3.5 1.7 0.3 4.7 1.9 ANNUAL 2.4 0.4 -2.0 3.9 1.1 1.4 2.6 1.9 2002 I 5.1 0.7 -4.1 3.4 r2.1 -1.6 6.5 1.2 II 3.9 0.8 -3.0 3.9 r2.6 0.1 2.8 1.0 III 4.4 2.3 -2.0 3.8 2.2 -0.6 4.1 1.1 IV 2.9 2.0 -0.8 3.1 r0.8 0.2 2.7 1.1 ANNUAL 4.1 1.5 -2.5 3.6 2.0 -0.5 4.0 1.1 2003 I 2.2 1.7 -0.5 3.1 r0.2 0.9 2.8 1.6 II 3.5 2.5 -1.0 3.5 1.3 0.0 3.4 1.2 III 4.9 4.2 -0.7 4.3 2.1 -0.6 4.3 1.2 IV 5.0 4.9 -0.1 5.0 3.0 -0.1 3.0 1.0 ANNUAL 3.9 3.3 -0.6 4.0 1.6 0.0 3.4 1.3 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 3. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 135.2 135.5 100.3 138.1 112.4 102.1 II 136.3 133.6 98.0 137.4 r111.0 100.8 III 137.0 131.3 95.8 137.0 r110.4 100.0 IV 140.0 129.5 92.5 139.0 r112.1 99.3 ANNUAL 137.1 132.5 96.6 137.9 111.5 100.6 2002 I 143.3 130.1 90.8 144.6 r116.2 100.9 II 145.5 131.6 90.4 147.6 r117.8 101.4 III 147.4 132.0 89.5 149.1 118.3 101.1 IV 148.5 131.2 88.4 150.2 r118.5 101.2 ANNUAL 146.2 131.2 89.8 147.8 117.7 101.1 2003 I 151.1 131.3 86.9 156.6 122.4 103.7 II 152.6 130.5 85.5 159.1 r124.3 104.3 III 156.5 131.8 84.2 161.5 r125.4 103.2 IV 157.6 133.8 84.9 163.2 r126.4 103.6 ANNUAL 154.4 131.8 85.4 160.1 124.6 103.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I -0.7 -7.2 -6.6 4.1 0.2 4.8 II 3.4 -5.7 -8.7 -2.1 r-4.8 -5.3 III 2.0 -6.8 -8.6 -1.0 r-2.0 -2.9 IV 9.2 -5.3 -13.3 5.9 r6.3 -3.0 ANNUAL 2.0 -4.7 -6.5 2.3 -0.5 0.3 2002 I 9.7 2.1 -6.9 17.1 15.4 6.7 II 6.4 4.6 -1.7 8.6 r5.4 2.1 III 5.4 1.3 -3.9 4.1 r1.8 -1.2 IV 2.9 -2.4 -5.2 3.1 r0.7 0.2 ANNUAL 6.6 -0.9 -7.1 7.3 5.6 0.6 2003 I 7.1 0.3 -6.4 18.1 r13.7 10.2 II 4.1 -2.5 -6.3 6.7 r6.5 2.5 III 10.6 3.9 -6.0 6.1 r3.6 -4.0 IV 2.8 6.4 3.5 4.2 r3.0 1.3 ANNUAL 5.6 0.5 -4.9 8.3 5.9 2.5 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 1.6 -2.2 -3.7 3.7 0.2 2.0 II 1.5 -4.5 -5.9 3.6 r0.3 2.1 III 2.1 -5.7 -7.7 0.8 -1.8 -1.3 IV 3.4 -6.3 -9.3 1.7 r-0.2 -1.7 ANNUAL 2.0 -4.7 -6.5 2.3 -0.5 0.3 2002 I 6.0 -4.0 -9.4 4.7 r3.4 -1.2 II 6.8 -1.5 -7.7 7.5 6.1 0.7 III 7.6 0.6 -6.6 8.8 7.1 1.1 IV 6.0 1.3 -4.4 8.1 5.7 1.9 ANNUAL 6.6 -0.9 -7.1 7.3 5.6 0.6 2003 I 5.4 0.9 -4.3 8.3 5.3 2.7 II 4.9 -0.8 -5.4 7.8 5.5 2.8 III 6.1 -0.2 -6.0 8.4 6.0 2.1 IV 6.1 2.0 -3.9 8.6 6.6 2.4 ANNUAL 5.6 0.5 -4.9 8.3 5.9 2.5 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 151.3 161.2 106.6 136.3 110.9 90.1 II 152.5 158.3 103.9 135.8 r109.8 89.1 III 153.5 154.5 100.7 135.5 r109.2 88.3 IV 156.4 151.1 96.6 137.9 r111.3 88.2 ANNUAL 153.3 156.3 101.9 136.4 110.3 88.9 2002 I 161.1 152.5 94.7 141.9 r114.1 88.1 II 164.4 155.2 94.4 145.0 r115.7 88.2 III 167.6 156.5 93.4 146.0 115.9 87.1 IV 170.6 156.3 91.7 147.3 r116.2 86.4 ANNUAL 165.9 155.1 93.5 145.0 115.5 87.4 2003 I 173.8 156.6 90.1 155.0 121.1 89.2 II 175.9 155.9 88.6 157.6 r123.1 89.6 III 182.4 158.9 87.1 160.1 r124.3 87.8 IV 184.0 162.6 88.3 161.9 r125.4 88.0 ANNUAL 179.0 158.5 88.5 158.6 123.4 88.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I -1.7 -9.0 -7.4 2.5 -1.3 4.2 II 3.2 -6.9 -9.8 -1.3 r-4.1 -4.4 III 2.6 -9.3 -11.6 -0.8 r-1.9 -3.4 IV 7.9 -8.5 -15.2 7.2 r7.6 -0.7 ANNUAL 1.3 -5.9 -7.2 1.6 -1.2 0.2 2002 I 12.5 3.6 -7.9 12.1 10.5 -0.4 II 8.4 7.2 -1.1 9.0 r5.8 0.5 III 8.1 3.5 -4.2 2.9 r0.7 -4.8 IV 7.2 -0.5 -7.2 3.7 r1.3 -3.3 ANNUAL 8.2 -0.8 -8.3 6.4 4.7 -1.7 2003 I 7.8 0.7 -6.6 22.4 r17.9 13.6 II 5.0 -1.8 -6.5 6.9 r6.7 1.8 III 15.4 8.0 -6.5 6.4 r3.9 -7.8 IV 3.7 9.5 5.6 4.8 r3.6 1.0 ANNUAL 7.9 2.2 -5.3 9.4 6.9 1.4 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 0.8 -2.5 -3.3 2.2 -1.2 1.3 II 0.7 -5.4 -6.1 3.0 r-0.3 2.2 III 1.4 -7.3 -8.6 -0.1 -2.7 -1.5 IV 3.0 -8.4 -11.1 1.8 0.0 -1.1 ANNUAL 1.3 -5.9 -7.2 1.6 -1.2 0.2 2002 I 6.5 -5.4 -11.2 4.1 2.9 -2.2 II 7.8 -2.0 -9.1 6.7 5.4 -1.0 III 9.2 1.3 -7.3 7.7 6.1 -1.4 IV 9.0 3.4 -5.1 6.8 4.5 -2.0 ANNUAL 8.2 -0.8 -8.3 6.4 4.7 -1.7 2003 I 7.9 2.7 -4.8 9.2 r6.2 1.3 II 7.0 0.5 -6.1 8.7 6.4 1.6 III 8.8 1.5 -6.7 9.6 r7.2 0.7 IV 7.9 4.0 -3.6 9.9 7.9 1.9 ANNUAL 7.9 2.2 -5.3 9.4 6.9 1.4 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 119.7 108.7 90.8 139.2 113.3 116.3 II 120.5 107.5 89.2 138.0 r111.6 114.5 III 120.5 106.7 88.5 137.9 r111.2 114.5 IV 123.5 106.5 86.2 139.3 r112.4 112.8 ANNUAL 121.0 107.3 88.7 138.6 112.1 114.6 2002 I 125.6 106.8 85.1 148.1 r119.1 117.9 II 127.1 107.4 84.5 150.9 r120.4 118.7 III 127.9 107.1 83.8 153.3 121.6 119.8 IV 126.9 105.9 83.4 154.2 r121.7 121.5 ANNUAL 126.9 106.8 84.2 151.6 120.7 119.5 2003 I 128.9 105.8 82.1 158.1 123.5 122.7 II 129.8 104.9 80.9 160.5 r125.4 123.7 III 131.3 104.7 79.8 162.8 r126.4 124.0 IV 132.1 105.4 79.8 163.8 r126.8 124.0 ANNUAL 130.5 105.2 80.6 161.3 125.5 123.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I -0.1 -5.2 -5.2 7.9 3.9 7.9 II 2.9 -4.1 -6.8 -3.4 r-6.0 -6.1 III -0.1 -3.3 -3.2 -0.3 r-1.4 -0.2 IV 10.4 -0.6 -10.0 4.1 r4.5 -5.7 ANNUAL 2.3 -3.2 -5.4 4.0 1.2 1.7 2002 I 6.9 1.3 -5.3 27.6 r25.9 19.4 II 4.9 2.1 -2.7 7.7 r4.5 2.6 III 2.5 -1.0 -3.4 6.5 r4.2 3.9 IV -3.0 -4.6 -1.7 2.5 r0.1 5.6 ANNUAL 4.8 -0.5 -5.1 9.4 7.6 4.3 2003 I 6.2 -0.2 -6.0 10.3 r6.2 3.9 II 2.9 -3.2 -6.0 6.4 r6.2 3.3 III 4.7 -0.8 -5.3 5.7 r3.2 1.0 IV 2.5 2.6 0.1 2.5 r1.4 -0.1 ANNUAL 2.9 -1.5 -4.2 6.4 4.0 3.4 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 2.3 -2.2 -4.4 6.7 3.2 4.2 II 2.0 -3.5 -5.4 5.1 r1.7 3.0 III 2.5 -3.6 -5.9 3.1 0.5 0.6 IV 3.2 -3.3 -6.3 2.0 0.2 -1.2 ANNUAL 2.3 -3.2 -5.4 4.0 1.2 1.7 2002 I 4.9 -1.7 -6.3 6.4 5.1 1.4 II 5.5 -0.1 -5.3 9.3 r7.9 3.6 III 6.2 0.4 -5.4 11.1 9.4 4.7 IV 2.8 -0.6 -3.3 10.7 r8.2 7.7 ANNUAL 4.8 -0.5 -5.1 9.4 7.6 4.3 2003 I 2.6 -0.9 -3.5 6.7 3.7 4.0 II 2.1 -2.3 -4.3 6.4 4.1 4.2 III 2.7 -2.2 -4.8 6.2 3.9 3.4 IV 4.1 -0.4 -4.3 6.2 4.2 2.0 ANNUAL 2.9 -1.5 -4.2 6.4 4.0 3.4 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 6. Nonfinancial corporate sector: Revised productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1992=100 2001 I 122.5 151.9 124.0 135.4 110.2 110.5 109.2 110.2 87.4 108.1 II 123.4 151.1 122.4 136.7 r110.5 110.8 111.6 111.0 86.9 108.9 III 123.6 149.4 120.8 137.8 r111.1 111.5 114.1 112.2 79.0 109.2 IV 124.4 148.2 119.2 139.2 r112.3 111.9 115.7 113.0 75.5 109.6 ANNUAL 123.5 150.2 121.6 137.3 111.0 111.2 112.6 111.6 82.2 108.9 2002 I 125.9 149.3 118.5 140.1 r112.6 111.2 113.0 111.7 85.8 109.4 II 127.9 151.3 118.4 141.9 r113.2 111.0 110.7 110.9 94.5 109.4 III 129.1 152.2 117.9 142.7 113.3 110.6 110.0 110.5 100.3 109.5 IV 130.1 153.0 117.6 143.2 r113.0 110.1 109.6 110.0 111.2 110.1 ANNUAL 128.2 151.5 118.1 142.0 113.0 110.7 110.8 110.7 98.0 109.6 2003 I 130.5 152.4 116.7 144.6 113.0 110.8 111.4 111.0 107.7 110.7 II 132.9 154.5 116.2 147.1 r114.9 110.7 110.4 110.6 113.6 110.9 III 135.2 157.1 116.2 148.9 r115.6 110.1 110.8 110.3 119.8 111.1 IV 136.1 158.9 116.8 149.8 r116.0 110.1 110.7 110.2 124.6 111.5 ANNUAL 133.7 155.7 116.5 147.6 114.9 110.4 110.8 110.5 116.5 111.0 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2001 I 1.3 -1.1 -2.4 3.3 -0.5 1.9 10.5 4.1 -34.1 0.6 II 2.8 -2.2 -4.8 3.7 r0.9 0.9 9.2 3.1 -2.5 2.7 III 0.8 -4.4 -5.1 3.4 r2.3 2.6 8.9 4.3 -31.8 1.3 IV 2.5 -3.0 -5.4 4.2 r4.6 1.6 5.9 2.8 -16.3 1.4 ANNUAL 1.6 -0.9 -2.5 4.0 1.2 2.4 8.1 3.9 -24.3 1.3 2002 I 5.1 2.9 -2.1 2.4 r1.0 -2.6 -9.0 -4.4 66.8 -0.8 II 6.2 5.6 -0.6 5.2 r2.1 -0.9 -7.9 -2.9 46.9 0.1 III 3.8 2.3 -1.4 2.5 r0.2 -1.2 -2.4 -1.6 27.0 0.5 IV 3.2 2.0 -1.1 1.2 r-1.1 -1.9 -1.6 -1.8 50.9 1.9 ANNUAL 3.9 0.9 -2.9 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 2003 I 1.4 -1.6 -2.9 4.1 r0.2 2.6 6.5 3.7 -11.8 2.2 II 7.4 5.6 -1.7 6.9 r6.7 -0.5 -3.2 -1.2 23.6 0.8 III 7.3 7.1 -0.2 5.1 r2.6 -2.1 1.2 -1.2 23.7 0.9 IV 2.5 4.7 2.1 2.4 r1.3 -0.1 -0.4 -0.2 17.0 1.4 ANNUAL 4.3 2.8 -1.4 4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2001 I 1.7 1.1 -0.6 4.4 1.0 2.6 7.2 3.8 -23.7 1.2 II 1.9 0.0 -1.9 4.8 r1.4 2.8 7.8 4.1 -25.0 1.3 III 1.4 -2.0 -3.3 3.7 1.0 2.3 8.8 4.0 -26.5 1.3 IV 1.8 -2.7 -4.4 3.7 1.8 1.8 8.6 3.6 -22.2 1.5 ANNUAL 1.6 -0.9 -2.5 4.0 1.2 2.4 8.1 3.9 -24.3 1.3 2002 I 2.8 -1.7 -4.4 3.4 2.2 0.6 3.5 1.4 -1.9 1.2 II 3.6 0.2 -3.3 3.8 2.5 0.2 -0.8 -0.1 8.7 0.5 III 4.4 1.9 -2.4 3.6 2.0 -0.8 -3.5 -1.5 27.0 0.3 IV 4.6 3.2 -1.3 2.8 0.6 -1.7 -5.3 -2.7 47.2 0.4 ANNUAL 3.9 0.9 -2.9 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 2003 I 3.6 2.1 -1.5 3.2 r0.4 -0.4 -1.5 -0.7 25.5 1.2 II 3.9 2.1 -1.8 3.7 r1.5 -0.3 -0.2 -0.3 20.2 1.3 III 4.8 3.2 -1.5 4.3 r2.0 -0.5 0.7 -0.2 19.5 1.4 IV 4.6 3.9 -0.7 4.6 2.7 0.0 0.9 0.2 12.1 1.3 ANNUAL 4.3 2.8 -1.4 4.0 1.6 -0.3 0.0 -0.2 18.9 1.3 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 4, 2006 r=revised Source: Bureau of Labor Statistics