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Economic News Release
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Productivity and Costs News Release



Transmission of material in this release is embargoed until        USDL 15-2124    
8:30 a.m. (EST) Thursday, November 5, 2015

Technical information: (202) 691-5606     dprweb@bls.gov  www.bls.gov/lpc
Media contact:         (202) 691-5902     PressOffice@bls.gov




                           PRODUCTIVITY AND COSTS
                      Third Quarter 2015, Preliminary
                        
                        
                        
Nonfarm business sector labor productivity increased at a 1.6-percent annual 
rate during the third quarter of 2015, the U.S. Bureau of Labor Statistics 
reported today, as output increased 1.2 percent and hours worked decreased 
0.5 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) The decline in hours worked was the first decline in 
this series since a 4.8-percent decline in the third quarter of 2009. From 
the third quarter of 2014 to the third quarter of 2015, productivity 
increased 0.4 percent, reflecting increases in output and hours worked of 
2.3 percent and 1.9 percent, respectively. (See table A.) 

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

Unit labor costs in the nonfarm business sector increased 1.4 percent in the 
third quarter of 2015, reflecting a 3.0-percent increase in hourly 
compensation and a 1.6-percent increase in productivity. Unit labor costs 
increased 2.0 percent over the last four quarters. (See tables A and 2.) 

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

Nonfarm business sector hours worked declined 0.5 percent in the third 
quarter of 2015, reflecting a decline of 0.9 percent in average weekly hours 
worked that was partially offset by an increase of 0.5 percent in 
employment. The increase in employment--which includes employees, 
proprietors, and unpaid family workers--was the smallest since a 0.3-percent 
increase in the third quarter of 2010. Over the last four quarters, hours 
worked increased 1.9 percent, employment increased 2.2 percent, and average 
weekly hours worked declined 0.4 percent. 

Manufacturing sector labor productivity increased 4.9 percent in the third 
quarter of 2015--the largest gain since a 6.1-percent increase in the third 
quarter of 2011--as output increased 2.7 percent and hours worked decreased 
2.1 percent. Productivity increased 7.3 percent in the durable goods 
manufacturing sector--also the largest gain since the third quarter of 2011, 
when this series increased 8.7 percent. Productivity increased 1.3 percent 
in the nondurable goods sector. (See tables A, 3, 4, and 5.) Over the last 
four quarters, manufacturing productivity increased 1.5 percent, as output 
increased 1.8 percent and hours increased 0.4 percent. Unit labor costs in 
manufacturing increased 0.9 percent in the third quarter of 2015 and 
increased 0.5 percent from the same quarter a year ago. (See tables A and 3.)

The concepts, sources, and methods used for the manufacturing output series 
differ from those used in the business and nonfarm business output series; 
these output measures are not directly comparable. See the Technical Notes 
for a more detailed explanation. 

Revised measures        

Revised and previous measures for the second quarter of 2015 are shown in 
tables B and C, covering the following major sectors: nonfarm business, 
business, manufacturing, and nonfinancial corporations.

In the second quarter of 2015, nonfarm business sector productivity 
increased 3.5 percent, rather than 3.3 percent as reported on September 2. 
The revised figure reflects a 0.4 percentage point upward revision to output 
which was larger than a 0.1 percentage point upward revision to hours 
worked. Unit labor costs decreased 1.8 percent during the second quarter--
rather than decreasing 1.4 percent as previously reported--due to both a 
0.2 percentage point upward revision to productivity and a 0.1 percentage 
point downward revision to hourly compensation. In the manufacturing sector, 
productivity growth was revised down to 2.1 percent from a previous estimate 
of 2.3 percent, reflecting a small downward revision to output and a small 
upward revision to hours. Unit labor costs decreased 2.0 percent rather than 
2.2 percent.

Second-quarter 2015 measures of productivity and costs were revised for the 
nonfinancial corporate sector. Productivity decreased 0.5 percent rather 
than 0.6 percent as reported on September 2. Unit labor costs increased 2.6 
percent rather than increasing 2.8 percent as previously reported. (See 
table C.)

Complete annual and quarterly data series can be found on the Productivity 
and Costs home page: www.bls.gov/lpc/#data. 
______________  







The revised Productivity and Costs news release for third quarter 2015 is 
scheduled to be released on Wednesday, December 2, 2015 at 8:30 a.m. (EST).






=====================================================================================================
Table A. Preliminary third-quarter 2015 measures: percent change from previous quarter at annual rate
(Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                        Durable         Nondurable
                          Business         Business      Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------
Labor productivity       1.6      0.4     2.0     0.5     4.9     1.5     7.3     2.0     1.3     0.4
Output                   1.2      2.3     1.5     2.4     2.7     1.8     3.5     1.5     1.8     2.2
Hours worked            -0.5      1.9    -0.5     1.9    -2.1     0.4    -3.6    -0.5     0.5     1.8
Hourly compensation      3.0      2.4     3.1     2.4     5.9     1.9     5.8     1.7     6.2     2.5
Real hourly 
 compensation            1.4      2.2     1.5     2.2     4.2     1.8     4.2     1.6     4.5     2.3
Unit labor costs         1.4      2.0     1.1     1.9     0.9     0.5    -1.4    -0.2     4.8     2.1
======================================================================================================
Table B. Revised and previous measures: second quarter 2015

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2015
Labor
 productivity    3.5     3.3      3.7      3.5      2.1      2.3      2.6      2.8      1.2      1.2
Output           5.1     4.7      5.0      4.6      1.2      1.3      1.2      1.2      1.3      1.4
Hours worked     1.5     1.4      1.2      1.1     -0.8     -0.9     -1.4     -1.6      0.1      0.2
Hourly 
 compensation    1.7     1.8      2.0      2.1      0.0      0.1     -0.3     -0.1      0.7      0.5
Real hourly
 compensation   -1.2    -1.1     -0.9     -0.8     -2.9     -2.8     -3.1     -3.0     -2.3     -2.4
Unit labor 
 costs          -1.8    -1.4     -1.6     -1.3     -2.0     -2.2     -2.8     -2.9     -0.5     -0.7
======================================================================================================
Table C. Nonfinancial corporations: revised and previous second-quarter 2015 productivity and cost
measures
                                                          Real 
               Labor                         Hourly       hourly       Unit                   Implicit
               produc-             Hours     compen-      compen-      labor      Unit        price
               tivity    Output    worked    sation       sation       costs      profits     deflator
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, second quarter 2015
                                
Q to Q Revised  -0.5       0.0      0.4        2.1        -0.8          2.6        8.0           2.4
Q to Q Previous -0.6      -0.2      0.3        2.2        -0.7          2.8        5.6           2.3
====================================================================================================== 











			    TECHNICAL NOTES
				

Labor Hours

Hours data for the labor productivity and cost measures include hours 
worked for all persons working in the sector—wage and salary workers, the 
self-employed and unpaid family workers. The primary source of hours and 
employment data is the BLS Current Employment Statistics (CES) program, 
which provides monthly survey data on the number of jobs held by wage and 
salary workers in nonfarm establishments, counting a person who is 
employed by two or more establishments at each place of employment. 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) for 2001 forward and data from the BLS Hours at Work survey, 
conducted for this purpose, 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 to estimate hours worked for farm labor, 
nonfarm proprietors, and nonfarm unpaid family workers. Using CPS 
information on employment and hours worked at primary jobs and all other 
jobs, separately, the BLS productivity measures assign all hours worked 
to the correct industrial sector. Hours 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.

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 76 percent of the value of GDP in 2014. Nonfarm business, which 
excludes farming, accounted for about 75 percent of GDP in 2014.

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 indexes 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. 

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 49 percent of the value of GDP in 2014.
     
Labor Productivity

The measure describes the relationship between real output and the labor 
time involved in its production. Measures of labor productivity growth 
show the changes from period to period in the amount of goods and 
services produced per hour worked. 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

The measure includes accrued wages and salaries, supplements, employer 
contributions to employee benefit plans, and taxes. 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

These measures describe the relationship between compensation per hour 
and labor 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 
percent changes from the previous quarter presented at a compound annual 
rate, as percent changes from the corresponding quarter of the previous 
year, and as index number series where 2009=100. 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. A complete historical series of these 
index numbers are available at the BLS web site, 
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).

For a more detailed explanation of methodology see "Technical Information 
About the Major Sector Productivity and Costs Methods" at 
www.bls.gov/lpc/lpcmethods.pdf.
      
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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 III       2.0         1.5       -0.5        3.1        1.5        1.1        0.5        0.8  
     II        3.7 r       5.0 r      1.2 r      2.0 r     -0.9 r     -1.6 r      7.6 r      2.2  
     I        -1.3         0.6        1.9        1.3        4.4        2.6       -3.7       -0.1  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -2.4         2.6        5.2        3.0        3.9        5.6       -8.2       -0.6  
     III       2.5         5.5        2.9        2.5        1.3        0.0        2.9        1.2  
     II        2.9         5.7        2.7       -0.9       -3.2       -3.7       10.6        2.3  
     I        -3.6        -1.7        2.0        5.9        3.7        9.9       -8.5        1.5  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        3.4         5.1        1.7        2.1        0.7       -1.2        4.4        1.2  
     III       1.3         3.9        2.5        0.5       -1.8       -0.9        5.3        1.7  
     II        0.6         1.6        1.0        6.3        6.5        5.7       -5.6        0.6  
     I         1.2         2.5        1.3       -8.6       -9.9       -9.7       18.8        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 III       0.5         2.4        1.9        2.4        2.2        1.9       -1.1        0.6  
     II        0.6         3.4 r      2.8        2.2        2.1 r      1.6 r     -0.5 r      0.7  
     I         0.4         3.6        3.2        1.5        1.5        1.1        0.2        0.7  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -0.2         3.0        3.2        2.6        1.4        2.8       -1.1        1.1  
     III       1.3         3.6        2.3        2.4        0.6        1.1        2.1        1.5  
     II        1.0         3.2        2.2        1.9       -0.2        0.9        2.7        1.7  
     I         0.4         2.2        1.8        3.7        2.2        3.3       -1.3        1.3  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        1.6         3.3        1.6       -0.1       -1.3       -1.7        5.4        1.3  
     III       0.3         2.0        1.7        2.0        0.5        1.7        0.9        1.3  
     II       -0.3         1.2        1.5        2.0        0.6        2.3        0.4        1.5  
     I         0.1         1.4        1.3        1.1       -0.6        1.0        3.1        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 III     106.4       117.6      110.6      113.8      102.6      107.0      112.6      109.3  
     II      105.8 r     117.2 r    110.7 r    112.9 r    102.3 r    106.7 r    112.4 r    109.1 r
     I       104.9       115.8      110.4      112.4      102.5      107.1      110.4      108.5  

2014 ANNUAL  105.2       113.9      108.3      111.1      100.7      105.6      112.2      108.4  

2014 IV      105.2       115.6      109.9      112.0      101.4      106.5      111.4      108.5  
     III     105.9       114.8      108.5      111.2      100.4      105.0      113.9      108.7  
     II      105.2       113.3      107.7      110.5      100.1      105.0      113.1      108.4  
     I       104.5       111.8      107.0      110.7      100.9      106.0      110.2      107.8  

2013 ANNUAL  104.6       110.6      105.7      108.3       99.7      103.6      111.5      106.9  

2013 IV      105.4       112.2      106.5      109.2      100.0      103.6      112.7      107.4  
     III     104.6       110.9      106.0      108.6       99.9      103.9      111.5      107.1  
     II      104.2       109.8      105.4      108.5      100.3      104.1      110.1      106.6  
     I       104.1       109.4      105.1      106.8       98.7      102.7      111.7      106.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2015
r=revised                                                        Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 III       1.6         1.2       -0.5        3.0        1.4        1.4        0.1        0.8  
     II        3.5 r       5.1 r      1.5 r      1.7 r     -1.2 r     -1.8 r      8.0 r      2.3 r
     I        -1.1         0.5        1.6        1.5        4.6        2.6       -2.2        0.5  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV       -2.2         2.6        4.9        3.4        4.2        5.7       -8.1       -0.5  
     III       3.1         5.5        2.3        3.2        2.0        0.1        4.1        1.8  
     II        2.8         5.4        2.5       -0.8       -3.1       -3.5        9.5        1.9  
     I        -3.5        -1.2        2.3        5.5        3.4        9.3       -8.4        1.3  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        3.5         5.2        1.7        2.3        0.9       -1.2        5.7        1.7  
     III       1.4         3.5        2.1        0.9       -1.4       -0.5        5.8        2.2  
     II        0.1         1.1        1.1        6.3        6.5        6.2       -5.0        1.2  
     I        -0.1         1.7        1.8       -9.2      -10.5       -9.1       16.8        1.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 III       0.4         2.3        1.9        2.4        2.2        2.0       -0.7        0.8  
     II        0.8 r       3.4 r      2.6        2.4 r      2.4        1.6 r      0.3 r      1.0  
     I         0.6         3.5        2.8        1.8        1.9        1.2        0.6        0.9  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV        0.0         3.0        3.0        2.8        1.6        2.8       -1.0        1.1  
     III       1.4         3.7        2.2        2.5        0.7        1.1        2.5        1.7  
     II        1.0         3.2        2.2        1.9       -0.1        0.9        2.9        1.8  
     I         0.3         2.1        1.8        3.7        2.3        3.4       -0.7        1.6  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        1.2         2.9        1.7       -0.1       -1.3       -1.3        5.5        1.6  
     III      -0.2         1.6        1.9        1.9        0.3        2.1        0.5        1.4  
     II       -0.8         1.0        1.8        1.7        0.3        2.5       -0.1        1.4  
     I        -0.2         1.4        1.6        0.8       -0.9        1.0        2.5        1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 III     106.4       117.6      110.5      113.9      102.7      107.1      112.1      109.2  
     II      105.9 r     117.2 r    110.7 r    113.1 r    102.4 r    106.8 r    112.1 r    109.0 r
     I       105.0       115.8      110.2      112.6      102.7      107.2      109.9      108.3  

2014 ANNUAL  105.2       114.0      108.4      111.1      100.7      105.7      111.1      107.9  

2014 IV      105.3       115.6      109.8      112.2      101.6      106.5      110.5      108.2  
     III     105.9       114.9      108.5      111.3      100.5      105.1      112.9      108.3  
     II      105.1       113.4      107.9      110.4      100.0      105.0      111.8      107.8  
     I       104.4       111.9      107.2      110.6      100.8      106.0      109.3      107.4  

2013 ANNUAL  104.4       110.6      105.9      108.2       99.6      103.6      110.1      106.3  

2013 IV      105.3       112.2      106.6      109.1      100.0      103.7      111.7      107.0  
     III     104.4       110.8      106.2      108.5       99.8      104.0      110.2      106.5  
     II      104.0       109.9      105.6      108.3      100.1      104.1      108.6      106.0  
     I       104.0       109.6      105.3      106.6       98.6      102.5      110.0      105.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2015
r=revised                                                        Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 III           4.9            2.7           -2.1            5.9            4.2            0.9  
     II            2.1 r          1.2 r         -0.8 r          0.0 r         -2.9 r         -2.0 r
     I            -0.6           -0.5            0.1           -2.2            0.8           -1.6  

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV           -0.4            4.0            4.4            4.3            5.1            4.7  
     III           2.9            4.4            1.4            2.7            1.5           -0.2  
     II            2.8            6.3            3.4           -1.8           -4.2           -4.4  
     I             2.0            1.0           -1.0            8.7            6.5            6.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV           -0.5            3.4            3.9           -0.3           -1.6            0.2  
     III          -0.9            0.6            1.5            1.0           -1.3            1.9  
     II            2.5            0.1           -2.3            4.1            4.3            1.6  
     I             1.1            3.5            2.3           -5.4           -6.7           -6.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 III           1.5            1.8            0.4            1.9            1.8            0.5  
     II            1.0            2.3            1.2            1.2            1.1            0.2  
     I             1.2            3.5            2.3            0.7            0.8           -0.4  

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV            1.8            3.9            2.0            3.4            2.2            1.5  
     III           1.8            3.7            1.9            2.2            0.5            0.4  
     II            0.8            2.8            2.0            1.8           -0.2            1.0  
     I             0.8            1.3            0.5            3.3            1.9            2.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV            0.5            1.9            1.3           -0.2           -1.4           -0.7  
     III           1.1            1.5            0.4            0.9           -0.6           -0.2  
     II            1.0            1.2            0.2            0.4           -0.9           -0.6  
     I             0.1            1.2            1.2           -0.3           -2.0           -0.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 III         122.5          131.5          107.4          109.9           99.1           89.7  
     II          121.0 r        130.6 r        108.0 r        108.4 r         98.1 r         89.5 r
     I           120.4 r        130.2 r        108.2          108.4           98.8           90.0 r

2014 ANNUAL      120.0          128.3          106.9          107.9           97.8           89.9  

2014 IV          120.6          130.4          108.2          109.0           98.6           90.4  
     III         120.7          129.1          107.0          107.8           97.4           89.3  
     II          119.8          127.8          106.6          107.1           97.0           89.4  
     I           119.0          125.8          105.7          107.6           98.1           90.4  

2013 ANNUAL      118.5          124.6          105.2          105.0           96.8           88.7  

2013 IV          118.4          125.5          106.0          105.4           96.5           89.0  
     III         118.6          124.5          105.0          105.4           96.9           88.9  
     II          118.8          124.3          104.6          105.2           97.3           88.5  
     I           118.1          124.2          105.2          104.1           96.2           88.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2015
r=revised                                                        Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 III           7.3            3.5           -3.6            5.8            4.2           -1.4  
     II            2.6 r          1.2           -1.4 r         -0.3 r         -3.1 r         -2.8 r
     I            -2.3           -2.4           -0.1           -3.4           -0.4           -1.1  

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            0.5            3.9            3.3            5.0            5.9            4.5  
     III           3.2            6.4            3.1            2.3            1.1           -0.9  
     II            3.0            8.7            5.5           -2.6           -5.0           -5.5  
     I             2.6            1.5           -1.1            8.6            6.4            5.8  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.7            5.5            4.8           -2.5           -3.8           -3.1  
     III          -0.3            1.4            1.7            1.7           -0.6            2.0  
     II            2.4           -0.3           -2.6            3.5            3.7            1.0  
     I            -0.5            3.4            3.9           -6.7           -8.0           -6.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 III           2.0            1.5           -0.5            1.7            1.6           -0.2  
     II            1.0            2.2            1.2            0.9            0.8           -0.1  
     I             1.1            4.0            2.9            0.3            0.3           -0.8  

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            2.3            5.1            2.7            3.2            2.0            0.9  
     III           2.4            5.5            3.0            1.3           -0.4           -1.0  
     II            1.5            4.2            2.7            1.2           -0.9           -0.3  
     I             1.3            2.0            0.7            2.7            1.3            1.4  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.6            2.5            1.9           -1.1           -2.3           -1.6  
     III           1.0            1.7            0.7            0.9           -0.6           -0.1  
     II            0.8            1.1            0.3           -0.1           -1.5           -0.9  
     I             0.6            2.1            1.5           -1.1           -2.8           -1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 III         127.0          140.0          110.3          108.1           97.5           85.2  
     II          124.8 r        138.9 r        111.3 r        106.6 r         96.5 r         85.5 r
     I           124.0 r        138.4 r        111.7          106.7           97.3           86.1 r

2014 ANNUAL      123.9          136.5          110.2          106.5           96.5           86.0  

2014 IV          124.7          139.3          111.7          107.6           97.4           86.3  
     III         124.5          138.0          110.8          106.3           96.0           85.4  
     II          123.6          135.9          110.0          105.7           95.8           85.6  
     I           122.6          133.1          108.5          106.4           97.0           86.8  

2013 ANNUAL      121.6          131.0          107.8          104.3           96.1           85.8  

2013 IV          121.9          132.6          108.8          104.2           95.5           85.5  
     III         121.7          130.8          107.5          104.9           96.4           86.2  
     II          121.8          130.4          107.1          104.5           96.6           85.8  
     I           121.0          130.4          107.8          103.6           95.7           85.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2015
r=revised                                                        Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2015 III           1.3            1.8            0.5            6.2            4.5            4.8  
     II            1.2            1.3 r          0.1 r          0.7 r         -2.3 r         -0.5 r
     I             1.3 r          1.7            0.4            0.2            3.2           -1.1  

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV           -2.1            4.1            6.3            3.1            3.9            5.3  
     III           3.6            2.1           -1.4            3.2            2.1           -0.4  
     II            3.7            3.7            0.0           -0.6           -3.0           -4.2  
     I             1.4            0.4           -0.9            8.8            6.6            7.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV           -1.4            1.0            2.4            4.0            2.5            5.4  
     III          -1.6           -0.4            1.2           -0.3           -2.6            1.3  
     II            2.1            0.3           -1.8            5.3            5.5            3.1  
     I             3.6            3.3           -0.3           -3.2           -4.6           -6.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 III           0.4            2.2            1.8            2.5            2.3            2.1  
     II            1.0            2.3            1.3            1.8 r          1.7            0.8 r
     I             1.6            2.9            1.3            1.5            1.5           -0.2 r

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV            1.6            2.6            0.9            3.6            2.4            1.9  
     III           1.8            1.8            0.0            3.8            2.0            1.9  
     II            0.5            1.2            0.7            2.9            0.8            2.4  
     I             0.1            0.4            0.2            4.4            2.9            4.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV            0.7            1.1            0.4            1.4            0.1            0.7  
     III           1.3            1.2           -0.1            0.9           -0.6           -0.4  
     II            1.5            1.5            0.0            1.5            0.1            0.0  
     I             0.2            0.8            0.6            1.2           -0.5            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 III         113.7          116.8          102.7          112.7          101.6           99.1  
     II          113.3 r        116.3 r        102.6 r        111.0 r        100.5 r         98.0 r
     I           113.0 r        115.9 r        102.6          110.8          101.1           98.1 r

2014 ANNUAL      112.3          114.0          101.5          109.8           99.5           97.7  

2014 IV          112.6          115.4          102.5          110.8          100.3           98.4  
     III         113.2          114.3          100.9          109.9           99.3           97.1  
     II          112.2          113.6          101.3          109.1           98.8           97.2  
     I           111.2          112.6          101.3          109.2           99.6           98.3  

2013 ANNUAL      111.2          112.3          101.0          105.9           97.5           95.3  

2013 IV          110.8          112.5          101.5          107.0           98.0           96.5  
     III         111.2          112.2          100.9          105.9           97.4           95.3  
     II          111.6          112.3          100.6          106.0           98.0           95.0  
     I           111.0          112.2          101.1          104.7           96.7           94.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   November 5, 2015
r=revised                                                        Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2015 II       -0.5 r     0.0 r    0.4 r     2.1 r    -0.8 r     2.6 r   -1.0 r    1.5 r    8.0 r    2.4 r
     I        -2.1      -0.3      1.8       0.5       3.6       2.6      3.2      2.8    -19.3     -0.8  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        3.4       7.4      3.9       1.5       2.3      -1.8     -6.4     -3.3     -6.5     -3.8  
     III       2.4       5.2      2.7       1.6       0.4      -0.8     -1.1     -0.9     17.2      1.6  
     II        1.7       6.2      4.4      -1.7      -4.1      -3.3     -3.4     -3.4     27.4      0.5  
     I        -1.7       0.2      2.0       8.4       6.2      10.3     -0.8      6.5    -22.0      1.9  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV       -0.2       2.3      2.4       0.9      -0.5       1.1      0.8      1.0      0.9      1.0  
     III      -2.0       0.5      2.6      -0.3      -2.6       1.7      1.2      1.6     -7.5      0.2  
     II        4.8       6.0      1.1       4.4       4.6      -0.5     -4.0     -1.6      6.9     -0.4  
     I        -0.5       2.8      3.3      -4.2      -5.6      -3.7      1.8     -1.9     14.6      0.3  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2015 II        0.8       3.0      2.2       1.4       1.4       0.6 r   -1.3 r    0.0 r   -1.2 r   -0.2  
     I         1.3       4.6      3.2       0.5       0.5      -0.9     -2.0     -1.2      3.0     -0.6  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        1.4       4.7      3.3       2.4       1.1       0.9     -2.9     -0.3      2.1      0.0  
     III       0.5       3.4      2.9       2.2       0.4       1.7     -1.1      0.8      4.1      1.3  
     II       -0.6       2.3      2.9       1.7      -0.3       2.3     -0.6      1.4     -1.9      0.9  
     I         0.2       2.2      2.0       3.3       1.9       3.1     -0.7      1.8     -6.1      0.7  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV        0.5       2.9      2.4       0.1      -1.1      -0.4     -0.1     -0.3      3.4      0.3  
     III       2.0       4.2      2.2       1.8       0.3      -0.2     -1.2     -0.5      4.3      0.2  
     II        1.2       3.1      1.9       1.9       0.5       0.7     -0.4      0.3      4.8      1.0  
     I         0.1       1.9      1.8       1.3      -0.4       1.1      0.9      1.0      5.2      1.6  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2015 II      108.7 r   122.4 r  112.6 r   111.7 r   101.2 r   102.8 r   95.7 r  100.4 r  146.0 r  105.2 r
     I       108.8     122.4    112.4     111.2     101.4     102.1     95.9    100.0    143.2    104.6  

2014 ANNUAL  108.3     119.6    110.5     110.6     100.2     102.1     96.6    100.3    148.0    105.3  

2014 IV      109.4     122.5    111.9     111.0     100.5     101.5     95.1     99.4    151.1    104.8  
     III     108.5     120.3    110.9     110.6      99.9     101.9     96.7    100.2    153.7    105.8  
     II      107.9     118.8    110.1     110.2      99.8     102.1     97.0    100.4    147.7    105.4  
     I       107.4     117.0    108.9     110.7     100.9     103.0     97.8    101.3    139.0    105.2  

2013 ANNUAL  107.9     116.0    107.5     108.0      99.5     100.1     98.0     99.4    148.5    104.6  

2013 IV      107.9     117.0    108.4     108.5      99.4     100.5     98.0     99.7    148.0    104.7  
     III     107.9     116.3    107.7     108.2      99.5     100.2     97.8     99.4    147.6    104.5  
     II      108.5     116.1    107.1     108.3     100.1      99.8     97.5     99.1    150.5    104.4  
     I       107.2     114.5    106.8     107.1      99.0      99.9     98.5     99.5    148.0    104.5  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         November 5, 2015
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. Hours and 
compensation 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 
–1.6 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 second quarter of 2015.

			      Table Footnotes
      
(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 1978-2014 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 indexes to three decimal 
places.

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

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

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


Last Modified Date: November 05, 2015