USDL 06-159 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EST, THURSDAY, FEBRUARY 2, 2006 Internet address: http://www.bls.gov/lpc/ Historical, technical information: (202) 691-5606 Current data: (202) 691-5200 Media contact: (202) 691-5902 PRODUCTIVITY AND COSTS Preliminary Fourth Quarter and Annual Averages for 2005 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 fourth quarter and for the full year 2005. The seasonally adjusted annual rates of productivity change in the fourth quarter and the annual average changes were: Fourth Annual averages quarter 2004-2005 Business sector -0.2 2.6 Nonfarm business sector -0.6 2.7 In the fourth quarter, productivity declined 0.2 percent in the business sector and 0.6 percent in the nonfarm business sector. In both sectors, the fourth-quarter productivity decline was the first since the first quarter of 2001. When the annual averages for 2005 were compared with annual averages for 2004, productivity rose 2.6 percent in the business sector and 2.7 percent in nonfarm businesses. In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 2004-2005 Manufacturing sector 3.9 4.8 Durable goods manufacturing 8.2 6.6 Nondurable goods manufacturing -1.0 2.9 Manufacturing productivity grew 3.9 percent in the fourth quarter. On an annual average basis, output per hour in the manufacturing sector posted a 4.8-percent increase in 2005. 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. Fourth-quarter productivity and related measures are summarized in table A, and annual average data in table B. Detailed information is presented in tables 1 through 5. -------------------------------------------------------------------------- Table A. Productivity and costs: Preliminary fourth-quarter 2005 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 -0.2 1.0 1.2 3.2 0.0 3.4 Nonfarm business -0.6 0.9 1.5 2.8 -0.4 3.5 Manufacturing 3.9 8.4 4.4 1.9 -1.3 -1.9 Durable 8.2 13.7 5.1 1.2 -1.9 -6.4 Nondurable -1.0 2.1 3.2 2.9 -0.3 4.0 -------------------------------------------------------------------------- Percent change from same quarter a year ago Business 2.2 3.5 1.3 3.1 -0.6 0.9 Nonfarm business 2.3 3.6 1.2 3.3 -0.4 1.0 Manufacturing 4.1 4.1 0.0 4.1 0.4 0.0 Durable 6.6 7.4 0.8 3.6 -0.1 -2.8 Nondurable 1.3 -0.1 -1.4 4.8 1.1 3.4 -------------------------------------------------------------------------- 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 (page 8). THIRD-TO-FOURTH QUARTER CHANGES, 2005 Business Productivity in the business sector decreased by 0.2 percent in the fourth quarter of 2005, reflecting increases of 1.0 percent in output and 1.2 percent in hours of all persons (seasonally adjusted annual rates). Output per hour had increased 5.2 percent in the third quarter of 2005, as output increased 4.8 percent and hours decreased 0.4 percent. The fourth-quarter decline in business sector productivity was the first since the first quarter of 2001, when it fell 0.5 percent. Hourly compensation grew 3.2 percent in the fourth quarter of 2005, down from a 4.6-percent increase one quarter earlier. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, was unchanged in the fourth quarter of 2005, after declining 0.5 percent in the third quarter and 4.0 percent in the second quarter. Unit labor costs, which relate hourly compensation to output per hour, increased 3.4 percent in the fourth quarter. Business sector unit labor costs had declined in the two previous quarters; 0.6 percent in the third quarter and 0.9 percent in the second quarter. Nonfarm business In the nonfarm business sector, productivity decreased 0.6 percent in the fourth quarter of 2005, as output grew 0.9 percent and hours of all persons grew 1.5 percent (seasonally adjusted annual rates). Productivity had increased 4.5 percent in the third quarter of 2005, reflecting a 4.7- percent rise in output and a 0.1-percent rise in hours of all persons (table 2). The fourth-quarter 0.6-percent decrease in productivity was the first since the first quarter of 2001 (-0.4 percent), and the largest since the third quarter of 2000 (-0.9 percent). Hourly compensation in the nonfarm business sector rose 2.8 percent in the fourth quarter of 2005, following a 4.1-percent increase in the third quarter. When changes in consumer prices were taken into account, real hourly compensation declined 0.4 percent during the fourth quarter of 2005. This was the third consecutive decrease in this measure--real compensation per hour declined 1.0 percent in the third quarter and 3.1 percent in the second quarter of 2005. Unit labor costs increased 3.5 percent in the fourth quarter of 2005, after falling 0.5 percent in the third quarter and 1.2 percent in the second quarter. The implicit price deflator for nonfarm business output increased 3.2 percent in the fourth quarter, after increasing 3.5 percent one quarter earlier. Manufacturing Manufacturing productivity grew 3.9 percent (seasonally adjusted annual rate) in the fourth quarter of 2005 as output increased 8.4 percent and hours increased 4.4 percent (table 3). The output increase was the largest since the fourth quarter of 1997 (9.3 percent) and the hours increase was the first since the first quarter of 2004, when hours increased 2.4 percent. In the third quarter, manufacturing productivity had increased 3.7 percent, reflecting a 2.6-percent rise in output and a 1.0-percent decline in hours. In durable goods manufacturing, productivity rose 8.2 percent in the fourth quarter as output grew 13.7 percent and hours increased 5.1 percent (table 4). Among nondurable goods manufacturers, productivity decreased 1.0 percent in the fourth quarter as output rose 2.1 percent and hours at work increased 3.2 percent (table 5). Average hourly compensation of manufacturing workers increased 1.9 percent in the fourth quarter of 2005, reflecting increases in hourly compensation of 1.2 percent in durable goods manufacturing and 2.9 percent in nondurable goods manufacturing. When the increase in consumer prices was taken into account, real hourly compensation in total manufacturing fell 1.3 percent. Unit labor costs for the manufacturing sector fell 1.9 percent in fourth- quarter 2005. In durable goods manufacturing, unit labor costs fell 6.4 percent, and in nondurable goods manufacturing unit labor costs increased 4.0 percent. ANNUAL AVERAGE CHANGES, 2004-2005 Business Business sector productivity increased 2.6 percent when the annual average for 2005 was compared with the annual average for 2004 (table B). Output increased 4.0 percent and hours of all persons engaged in the sector rose 1.3 percent. The 2.6-percent increase followed a 2002-2004 period with above-average annual productivity growth of 3.8 percent, and is more in-line with the productivity trend from 1995 to 2001, 2.7 percent. ------------------------------------------------------------------------------- Table B. Annual average changes in productivity and related measures, 1996-2005 ------------------------------------------------------------------------------- Measure 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------- Business: Productivity 3.0 1.9 2.8 3.0 2.8 2.5 4.0 3.9 3.4 2.6 Output 4.6 5.3 4.8 5.1 3.9 0.3 1.5 3.4 4.8 4.0 Hours 1.6 3.3 2.0 2.1 1.1 -2.2 -2.4 -0.5 1.3 1.3 Hourly compensation 3.5 3.2 6.1 4.8 7.0 4.2 3.4 3.9 4.6 5.1 Real hourly compensation 0.8 1.1 4.6 2.7 3.5 1.4 1.8 1.6 1.9 1.7 Unit labor costs 0.5 1.3 3.2 1.8 4.0 1.6 -0.5 0.0 1.2 2.5 ------------------------------------------------------------------------------- Nonfarm Business: Productivity 2.7 1.6 2.8 2.8 2.7 2.5 4.0 3.8 3.4 2.7 Output 4.5 5.2 5.0 5.2 3.8 0.4 1.5 3.3 4.8 4.1 Hours 1.8 3.5 2.1 2.3 1.1 -2.0 -2.5 -0.5 1.4 1.4 Hourly compensation 3.4 3.1 6.0 4.6 7.0 4.0 3.5 4.0 4.5 5.2 Real hourly compensation 0.7 0.9 4.5 2.5 3.6 1.1 1.9 1.6 1.8 1.8 Unit labor costs 0.7 1.4 3.1 1.8 4.2 1.4 -0.5 0.2 1.1 2.4 ------------------------------------------------------------------------------- Manufacturing: Productivity 3.6 3.6 4.9 3.6 4.8 2.0 6.6 5.6 5.4 4.8 Output 3.2 5.5 4.6 3.0 3.1 -4.7 -0.9 0.5 5.0 3.8 Hours -0.4 1.8 -0.3 -0.6 -1.6 -6.5 -7.1 -4.9 -0.4 -0.9 Hourly compensation 1.9 2.6 5.8 3.9 9.2 2.3 7.3 8.3 2.2 6.6 Real hourly compensation -0.8 0.5 4.3 1.8 5.6 -0.5 5.6 5.8 -0.5 3.2 Unit labor costs -1.6 -0.9 0.9 0.3 4.2 0.3 0.6 2.5 -3.1 1.7 ------------------------------------------------------------------------------- Hourly compensation in the business sector increased 5.1 percent in 2005, following a 4.6-percent increase in 2004. Real hourly compensation increased 1.7 percent; 2005 was the fifth consecutive year with a real hourly compensation increase of less than 2.0 percent. Unit labor costs in the business sector rose 2.5 percent in 2005, more than in any year since 2000, when this measure grew 4.0 percent. The implicit price deflator for the business sector rose 2.6 percent in 2005 and 2.4 percent in 2004. Nonfarm business Productivity increased 2.7 percent in the nonfarm business sector in 2005, reflecting increases of 4.1 percent in output and 1.4 percent in hours. Like the more comprehensive business sector, nonfarm productivity from 2001 to 2004 had grown at an above-average rate-- 3.7 percent. Productivity had been growing at an annual rate of 2.5 percent from 1995 to 2001. In 2005, hourly compensation increased 5.2 percent, following a 4.5- percent rise in 2004. When the increase in consumer prices was taken into account, real hourly compensation rose 1.8 percent in both 2005 and 2004. Unit labor costs in the nonfarm business sector increased 2.4 percent in 2005--more than in any year since 2000, when unit labor costs increased 4.2 percent. The implicit price deflator for nonfarm business rose 2.8 percent in 2005 and 2.1 percent in 2004. Manufacturing In manufacturing, labor productivity rose 4.8 percent in 2005, as output grew 3.8 percent and hours of all persons declined 0.9 percent (table B). Productivity increased 5.4 percent in 2004, reflecting a 5.0-percent output increase and a 0.4-percent decline in hours. There was a 6.6-percent increase in durable goods manufacturing productivity in 2005, as output increased 6.3 percent and hours edged down 0.2 percent. Output per hour increased 2.9 percent in nondurable goods manufacturing, as output rose 0.7 percent and hours fell 2.1 percent. Hourly compensation of manufacturing workers increased 6.6 percent in 2005, more than the 2.2-percent growth rate in 2004, but lower than the 8.3- percent increase in 2003 and the 7.3-percent increase in 2002. In 2005, hourly compensation rose 6.4 percent in durable goods manufacturing and 7.0 percent in nondurable good manufacturing. Taking into account the rise in consumer prices, real hourly compensation in manufacturing rose 3.2 percent in 2005 and fell 0.5 percent one year earlier. Unit labor costs in manufacturing rose 1.7 percent in 2005, after decreasing 3.1 percent in calendar year 2004; unit labor costs increased 2.5 percent in 2003. Unit labor costs in durable goods manufacturing fell slightly in 2005, 0.2 percent, compared with a 4.0-percent rise in unit labor costs in nondurable goods manufacturing. Revised Measures Current and previous measures for the third quarter of 2005 for the business, nonfarm business, and manufacturing sectors are compared in table C. In the business and nonfarm business sectors, productivity and output growth in the third quarter were lower than reported on Dec. 6, and hours worked remained the same. In both of these sectors, hourly compensation also grew more than reported in December. Hourly compensation was revised up and productivity was revised down, both contributing to a decline in unit labor costs in the third quarter that was less than previously reported. --------------------------------------------------------------------- Table C. 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 --------------------------------------------------------------------- Third quarter 2005 Business: Previous 5.4 5.0 -0.4 4.2 -0.8 -1.1 Revised 5.2 4.8 -0.4 4.6 -0.5 -0.6 Nonfarm business: Previous 4.7 4.8 0.1 3.7 -1.4 -1.0 Revised 4.5 4.7 0.1 4.1 -1.0 -0.5 Manufacturing: Previous 3.4 2.4 -1.0 3.1 -1.9 -0.3 Revised 3.7 2.6 -1.0 3.7 -1.3 0.1 --------------------------------------------------------------------- In the manufacturing sector, output and productivity were revised up in the third quarter, and hours of all persons were unchanged. Growth in hourly compensation was revised up more than productivity, and unit labor costs edged up slightly (0.1 percent) rather than declining by 0.3 percent. Manufacturing sector productivity and costs measures reflect revised source data. Annual indexes of real output for manufacturing and its durable and nondurable goods components were revised by BLS due to incorporation of revised current-dollar industry value of production data from the U.S. Bureau of the Census. Incorporating the revised data impacted both quarterly and annual measures of output, productivity, and unit labor costs back to 1987. The largest revisions begin in 2001, and appendix tables 1-3 display quarterly and annual data for manufacturing, durable manufacturing, and nondurable manufacturing beginning in 2000. Annual historical data for total manufacturing and its subsectors are presented in appendix tables 4-6. Full quarterly and annual historical series are available on the BLS website. Revised measures: Nonfinancial Corporations Revised third-quarter productivity and output measures for nonfinancial corporations also were announced today. In the third quarter of 2005, increases in productivity, output, and hours were virtually the same as reported on Dec. 6. Hourly compensation was revised up, resulting in a larger increase in unit labor costs than previously reported (table D). ----------------------------------------------------------------------------- Table D. Nonfinancial corporations: Previous and revised productivity and cost measures, quarterly percent changes at seasonally adjusted annual rates ----------------------------------------------------------------------------- Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price tivity Output Hours sation sation costs profits deflator ----------------------------------------------------------------------------- Third quarter 2005 Previous 3.2 4.0 0.8 4.5 -0.6 1.3 -2.9 1.7 Revised 3.2 4.1 0.8 4.9 -0.2 1.6 -7.9 2.1 ----------------------------------------------------------------------------- The measure of real output for the nonfinancial corporate sector has been revised by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. As a result, several measures for this sector were revised back to the first quarter of 2002. Recent quarterly and annual data for nonfinancial corporations are shown in table 6. Appendix table 7 provides data for 2002. Full quarterly and annual historical series are available on the BLS website. Next release date The next release of Productivity and Costs is scheduled for 8:30 A.M. EST, Tuesday, March 7, 2006. Revised fourth-quarter and annual average measures for business, nonfarm business, and manufacturing will be released at that time. TECHNICAL NOTES Labor Hours: Hours data for the labor productivity and cost measures include hours for all persons working in the sector-wage and salary workers, the self- employed and unpaid family workers. The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on the number of jobs held by wage and salary workers in nonfarm establishments. The CES also provides average weekly paid hours of production and nonsupervisory workers in these establishments. Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The Office of Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory workers using information from the Current Population Survey (CPS), the CES, and the NCS. Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family workers. Estimates of labor input for government 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 2003 I 125.6 144.6 115.2 147.8 115.5 117.7 116.4 117.2 II 127.9 146.4 114.5 150.3 117.3 117.5 117.2 117.4 III 130.5 149.8 114.8 152.0 118.0 116.4 120.3 117.9 IV 130.6 150.8 115.5 152.8 118.4 117.0 120.5 118.3 ANNUAL 128.6 147.9 115.0 150.7 117.3 117.2 118.6 117.7 2004 I 131.7 152.6 115.9 154.4 118.5 117.3 123.0 119.4 II 132.8 154.1 116.1 155.7 118.2 117.2 126.1 120.5 III 133.3 155.8 116.9 158.2 119.6 118.7 124.2 120.7 IV 134.3 157.2 117.1 162.5 121.8 121.0 122.3 121.5 ANNUAL 133.0 154.9 116.5 157.7 119.5 118.6 123.9 120.6 2005 I 135.3 158.9 117.5 164.4 122.5 121.5 123.6 122.3 II 135.5 160.4 118.4 164.3 121.2 121.2 126.2 123.1 III r137.3 r162.3 r118.3 r166.2 r121.1 r121.1 r129.1 r124.1 IV 137.2 162.8 118.6 167.5 121.1 122.1 130.0 125.0 ANNUAL 136.5 161.1 118.0 165.8 121.6 121.5 127.2 123.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 2.8 1.7 -1.1 5.5 1.3 2.6 0.5 1.8 II 7.6 4.9 -2.6 7.0 6.5 -0.6 2.8 0.6 III 8.4 9.9 1.3 4.5 2.3 -3.6 10.7 1.6 IV 0.3 2.6 2.3 2.3 1.4 2.1 0.9 1.6 ANNUAL 3.9 3.4 -0.5 3.9 1.6 0.0 3.7 1.4 2004 I 3.4 4.9 1.5 4.2 0.3 0.8 8.6 3.7 II 3.4 4.0 0.6 3.3 -1.0 -0.1 10.3 3.8 III 1.4 4.4 3.0 6.5 4.8 5.0 -5.9 0.7 IV 3.1 3.6 0.5 11.3 7.5 7.9 -6.0 2.4 ANNUAL 3.4 4.8 1.3 4.6 1.9 1.2 4.4 2.4 2005 I 2.9 4.4 1.4 4.7 2.3 1.7 4.4 2.7 II 0.8 4.0 3.1 -0.1 -4.0 -0.9 8.7 2.6 III r5.2 r4.8 -0.4 r4.6 r-0.5 r-0.6 r9.5 r3.2 IV -0.2 1.0 1.2 3.2 0.0 3.4 2.8 3.1 ANNUAL 2.6 4.0 1.3 5.1 1.7 2.5 2.7 2.6 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 2.4 2.0 -0.4 3.0 0.1 0.6 2.7 1.4 II 3.8 2.6 -1.1 3.6 1.4 -0.2 3.9 1.3 III 4.7 4.2 -0.5 4.3 2.0 -0.4 4.6 1.4 IV 4.7 4.7 0.0 4.8 2.9 0.1 3.7 1.4 ANNUAL 3.9 3.4 -0.5 3.9 1.6 0.0 3.7 1.4 2004 I 4.9 5.5 0.6 4.5 2.6 -0.4 5.7 1.9 II 3.8 5.3 1.4 3.6 0.8 -0.2 7.6 2.7 III 2.1 4.0 1.8 4.1 1.4 1.9 3.3 2.4 IV 2.8 4.2 1.4 6.3 2.8 3.4 1.5 2.6 ANNUAL 3.4 4.8 1.3 4.6 1.9 1.2 4.4 2.4 2005 I 2.7 4.1 1.3 6.4 3.3 3.6 0.5 2.4 II 2.1 4.1 2.0 5.5 2.5 3.4 0.1 2.1 III r3.0 4.2 1.1 r5.1 r1.2 r2.0 3.9 2.7 IV 2.2 3.5 1.3 3.1 -0.6 0.9 6.3 2.9 ANNUAL 2.6 4.0 1.3 5.1 1.7 2.5 2.7 2.6 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 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 2003 I 124.9 144.8 115.9 147.0 114.9 117.7 118.2 117.9 II 126.9 146.5 115.4 149.3 116.5 117.6 118.7 118.0 III 129.9 150.2 115.6 151.2 117.4 116.4 121.6 118.3 IV 130.1 151.2 116.2 152.2 117.9 116.9 121.3 118.6 ANNUAL 128.0 148.2 115.8 149.9 116.7 117.1 120.0 118.2 2004 I 130.8 152.8 116.8 153.5 117.8 117.3 123.5 119.6 II 132.2 154.5 116.8 154.9 117.6 117.1 126.5 120.6 III 132.7 156.3 117.8 157.2 118.8 118.5 125.3 121.0 IV 133.5 157.7 118.2 161.0 120.7 120.7 123.7 121.8 ANNUAL 132.3 155.3 117.4 156.7 118.7 118.4 124.7 120.7 2005 I 134.5 159.4 118.5 163.2 121.6 121.3 125.0 122.7 II 135.3 161.2 119.2 163.6 120.6 120.9 127.9 123.5 III r136.8 r163.0 r119.2 r165.2 r120.3 r120.8 r131.0 r124.5 IV 136.6 163.4 119.6 166.4 120.2 121.8 131.9 125.5 ANNUAL 135.9 161.7 119.0 164.8 120.8 121.2 128.9 124.1 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 3.1 2.0 -1.1 5.8 1.5 2.6 0.8 1.9 II 6.6 4.7 -1.8 6.2 5.8 -0.3 1.7 0.4 III 9.6 10.4 0.8 5.1 2.9 -4.1 10.2 1.0 IV 0.8 2.8 2.0 2.7 1.8 2.0 -1.1 0.8 ANNUAL 3.8 3.3 -0.5 4.0 1.6 0.2 3.2 1.3 2004 I 2.1 4.2 2.0 3.5 -0.5 1.3 7.4 3.6 II 4.5 4.6 0.1 3.7 -0.7 -0.8 10.0 3.2 III 1.3 4.6 3.3 6.1 4.4 4.8 -3.6 1.5 IV 2.5 3.9 1.4 10.2 6.4 7.6 -5.1 2.6 ANNUAL 3.4 4.8 1.4 4.5 1.8 1.1 3.9 2.1 2005 I 3.2 4.3 1.1 5.5 3.1 2.2 4.4 3.0 II 2.1 4.4 2.2 0.9 -3.1 -1.2 9.4 2.7 III r4.5 r4.7 0.1 r4.1 r-1.0 r-0.5 r10.1 r3.5 IV -0.6 0.9 1.5 2.8 -0.4 3.5 2.8 3.2 ANNUAL 2.7 4.1 1.4 5.2 1.8 2.4 3.4 2.8 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 2.0 1.7 -0.3 3.0 0.1 1.0 2.7 1.6 II 3.5 2.5 -0.9 3.5 1.3 0.1 3.2 1.2 III 4.8 4.2 -0.5 4.4 2.1 -0.4 4.1 1.2 IV 5.0 4.9 0.0 5.0 3.0 0.0 2.8 1.0 ANNUAL 3.8 3.3 -0.5 4.0 1.6 0.2 3.2 1.3 2004 I 4.7 5.5 0.7 4.4 2.5 -0.3 4.5 1.5 II 4.2 5.5 1.2 3.7 0.9 -0.4 6.5 2.1 III 2.2 4.0 1.9 4.0 1.2 1.8 3.0 2.3 IV 2.6 4.3 1.7 5.8 2.4 3.2 1.9 2.7 ANNUAL 3.4 4.8 1.4 4.5 1.8 1.1 3.9 2.1 2005 I 2.9 4.4 1.5 6.3 3.3 3.4 1.2 2.6 II 2.3 4.3 2.0 5.6 2.6 3.3 1.1 2.4 III 3.1 r4.3 1.2 r5.1 r1.3 r2.0 4.5 r2.9 IV 2.3 3.6 1.2 3.3 -0.4 1.0 6.6 3.1 ANNUAL 2.7 4.1 1.4 5.2 1.8 2.4 3.4 2.8 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2003 I r151.0 r131.3 86.9 156.5 122.3 r103.7 II r152.6 r130.5 85.5 159.2 124.3 r104.3 III r156.5 r131.8 84.2 161.5 125.4 r103.2 IV r157.6 r133.8 84.9 163.2 126.5 r103.6 ANNUAL r154.4 r131.8 85.4 160.1 124.6 r103.7 2004 I r158.9 r135.7 85.4 159.1 122.1 r100.1 II r162.1 r137.9 85.1 161.1 122.3 r99.4 III r163.9 r139.3 85.0 164.9 124.7 r100.6 IV r166.2 r140.8 84.7 169.3 126.9 r101.9 ANNUAL r162.8 r138.4 85.0 163.6 124.0 r100.5 2005 I r168.2 r142.2 84.6 172.2 128.3 r102.4 II r169.8 r142.7 84.0 173.8 128.2 r102.4 III r171.4 r143.6 r83.8 r175.4 r127.8 r102.4 IV 173.0 146.5 84.7 176.2 127.4 101.9 ANNUAL 170.6 143.8 84.3 174.4 127.9 102.3 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 7.0 0.3 -6.3 17.9 13.1 10.2 II 4.3 r-2.5 -6.5 6.9 6.5 2.5 III 10.4 3.9 -5.9 5.9 3.7 -4.0 IV 3.0 6.4 3.3 4.3 3.4 1.3 ANNUAL r5.6 r0.5 -4.9 8.3 5.8 r2.5 2004 I 3.4 5.9 2.4 -9.7 -13.1 -12.7 II 8.3 6.6 -1.6 5.1 0.7 -3.0 III 4.4 4.1 -0.3 9.8 8.0 5.1 IV 5.7 4.3 -1.3 11.2 7.4 5.2 ANNUAL 5.4 5.0 -0.4 2.2 -0.5 -3.1 2005 I 4.9 4.2 -0.7 7.1 4.6 2.1 II 4.0 1.2 -2.6 3.8 -0.4 -0.2 III r3.7 r2.6 -1.0 r3.7 r-1.3 r0.1 IV 3.9 8.4 4.4 1.9 -1.3 -1.9 ANNUAL 4.8 3.8 -0.9 6.6 3.2 1.7 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r5.3 r0.9 -4.2 8.2 5.2 r2.7 II r4.9 r-0.8 -5.4 7.8 5.5 r2.8 III r6.1 r-0.2 -6.0 8.4 6.0 r2.1 IV 6.1 2.0 -3.9 8.7 6.6 2.4 ANNUAL r5.6 r0.5 -4.9 8.3 5.8 r2.5 2004 I 5.2 3.4 -1.8 1.6 -0.2 -3.4 II 6.2 5.7 -0.5 1.2 -1.6 -4.7 III 4.7 5.7 0.9 2.1 -0.6 -2.5 IV 5.4 5.2 -0.2 3.7 0.3 -1.6 ANNUAL 5.4 5.0 -0.4 2.2 -0.5 -3.1 2005 I 5.8 4.8 -1.0 8.3 5.1 2.3 II 4.7 3.4 -1.2 7.9 4.8 3.0 III r4.6 r3.1 -1.4 r6.4 r2.5 r1.8 IV 4.1 4.1 0.0 4.1 0.4 0.0 ANNUAL 4.8 3.8 -0.9 6.6 3.2 1.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2003 I r173.7 r156.6 90.1 154.9 121.1 r89.2 II r176.0 r155.9 88.6 157.7 123.1 r89.6 III r182.4 r158.9 87.1 160.1 124.3 r87.8 IV r184.0 r162.6 88.3 161.9 125.5 r88.0 ANNUAL r179.0 r158.5 88.5 158.6 123.5 r88.6 2004 I r185.8 r165.9 89.3 155.5 119.4 r83.7 II r189.7 r168.7 88.9 158.2 120.1 r83.4 III r192.3 r171.6 89.2 162.1 122.6 r84.3 IV r195.7 r174.1 89.0 166.0 124.4 r84.8 ANNUAL r190.9 r170.1 89.1 160.4 121.6 r84.1 2005 I r199.2 r177.0 88.9 169.0 125.9 r84.9 II r201.3 r178.1 88.5 170.1 125.5 r84.5 III r204.5 r181.2 r88.6 r171.5 r124.9 r83.8 IV 208.6 187.0 89.7 172.0 124.3 82.4 ANNUAL 203.4 180.8 88.9 170.6 125.1 83.9 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 7.6 0.7 -6.4 22.2 17.2 13.6 II 5.4 -1.8 -6.9 7.3 6.9 1.8 III 15.2 8.0 -6.3 6.2 3.9 -7.8 IV 3.7 9.5 5.6 4.7 3.8 1.0 ANNUAL r7.9 r2.2 -5.3 9.3 6.9 r1.4 2004 I 4.0 8.5 4.3 -14.9 -18.1 -18.1 II 8.7 7.0 -1.5 6.9 2.4 -1.6 III 5.5 6.9 1.3 10.3 8.5 4.6 IV 7.3 6.1 -1.1 9.9 6.1 2.5 ANNUAL 6.6 7.3 0.6 1.1 -1.5 -5.2 2005 I 7.3 6.8 -0.5 7.5 5.1 0.2 II 4.3 2.6 -1.7 2.6 -1.5 -1.6 III r6.7 r7.0 0.3 r3.2 r-1.8 r-3.2 IV 8.2 13.7 5.1 1.2 -1.9 -6.4 ANNUAL 6.6 6.3 -0.2 6.4 2.9 -0.2 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r7.8 r2.7 -4.7 9.1 6.0 r1.3 II r7.0 r0.5 -6.1 8.7 6.4 r1.6 III 8.8 r1.5 -6.7 9.6 7.3 0.7 IV 7.9 4.0 -3.6 9.9 7.8 1.9 ANNUAL r7.9 r2.2 -5.3 9.3 6.9 r1.4 2004 I 7.0 5.9 -1.0 0.4 -1.4 -6.1 II 7.8 8.2 0.4 0.3 -2.5 -6.9 III 5.4 8.0 2.4 1.3 -1.4 -3.9 IV 6.3 7.1 0.7 2.5 -0.9 -3.6 ANNUAL 6.6 7.3 0.6 1.1 -1.5 -5.2 2005 I 7.2 6.7 -0.5 8.7 5.5 1.4 II 6.1 5.6 -0.5 7.5 4.5 1.4 III r6.4 5.6 -0.7 r5.8 r1.9 r-0.6 IV 6.6 7.4 0.8 3.6 -0.1 -2.8 ANNUAL 6.6 6.3 -0.2 6.4 2.9 -0.2 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2003 I r128.8 r105.8 82.1 158.0 123.5 r122.7 II r129.7 r104.9 80.9 160.5 125.3 r123.7 III r131.2 r104.7 79.8 162.7 126.3 r124.0 IV r132.2 r105.4 79.7 163.9 127.0 r124.0 ANNUAL r130.5 r105.2 80.6 161.2 125.5 r123.6 2004 I r133.3 r106.1 79.6 164.1 125.9 r123.1 II r135.8 r107.7 79.3 164.7 125.1 r121.3 III r137.1 r107.8 78.7 168.1 127.1 r122.6 IV r138.4 r108.4 78.3 173.5 130.1 r125.4 ANNUAL r136.1 r107.5 79.0 167.6 127.0 r123.1 2005 I r139.0 r108.6 78.1 176.1 131.3 r126.7 II r140.4 r108.5 77.3 178.7 131.8 r127.2 III r140.5 r107.7 r76.7 r180.6 r131.5 r128.5 IV 140.2 108.3 77.3 181.9 131.5 129.7 ANNUAL 140.0 108.3 77.3 179.3 131.5 128.0 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 6.2 -0.2 -6.0 10.3 5.9 3.9 II 2.9 -3.2 -5.9 6.3 5.9 3.3 III 4.6 -0.8 -5.2 5.6 3.4 1.0 IV 3.0 2.6 -0.4 3.0 2.1 0.0 ANNUAL r2.9 r-1.5 -4.2 6.4 4.0 r3.4 2004 I 3.4 2.6 -0.8 0.5 -3.3 -2.8 II 7.8 6.0 -1.7 1.7 -2.6 -5.7 III 3.8 0.7 -3.0 8.4 6.6 4.4 IV 3.7 2.0 -1.6 13.7 9.7 9.6 ANNUAL 4.3 2.2 -2.1 3.9 1.2 -0.4 2005 I 2.0 0.9 -1.1 6.1 3.7 r4.0 II 4.0 -0.4 -4.3 5.8 1.6 1.7 III r0.3 r-2.8 r-3.2 r4.3 r-0.7 r4.0 IV -1.0 2.1 3.2 2.9 -0.3 4.0 ANNUAL 2.9 0.7 -2.1 7.0 3.5 4.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r2.6 r-0.9 -3.4 6.7 3.7 r4.0 II r2.1 r-2.3 -4.3 6.4 4.1 r4.2 III r2.7 r-2.2 -4.8 6.2 3.9 r3.4 IV 4.2 -0.4 -4.4 6.3 4.3 2.0 ANNUAL r2.9 r-1.5 -4.2 6.4 4.0 r3.4 2004 I 3.5 0.3 -3.1 3.8 2.0 0.3 II 4.7 2.6 -2.0 2.7 -0.2 -1.9 III 4.5 3.0 -1.5 3.3 0.6 -1.1 IV 4.7 2.8 -1.8 5.9 2.4 1.2 ANNUAL 4.3 2.2 -2.1 3.9 1.2 -0.4 2005 I 4.3 2.4 -1.8 7.4 4.3 2.9 II 3.4 0.8 -2.5 8.5 5.4 4.9 III 2.5 r-0.1 r-2.5 r7.4 r3.5 r4.8 IV 1.3 -0.1 -1.4 4.8 1.1 3.4 ANNUAL 2.9 0.7 -2.1 7.0 3.5 4.0 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1992=100 2003 I r130.5 r152.4 116.8 144.6 113.0 r110.8 r111.4 r111.0 r107.7 r110.7 II r132.8 r154.5 116.3 147.0 114.8 r110.7 r110.4 r110.6 r113.6 r110.9 III r135.2 r157.1 116.2 148.9 115.6 r110.1 r110.8 r110.3 r119.8 r111.1 IV r136.1 r158.9 116.8 149.8 116.0 r110.1 r110.7 r110.2 r124.6 r111.5 ANNUAL r133.7 r155.7 116.5 147.6 114.8 r110.4 r110.8 r110.5 r116.5 r111.0 2004 I r136.4 r160.3 117.5 150.3 115.4 r110.2 r111.2 r110.5 r130.0 r112.2 II r137.2 r161.7 117.8 151.7 115.2 r110.6 r111.2 r110.7 r138.3 r113.2 III r139.7 r165.4 118.4 154.0 116.5 r110.2 r110.0 r110.2 r139.4 r112.8 IV r142.7 r169.4 118.8 158.0 118.4 r110.7 r108.5 r110.1 r142.7 r113.1 ANNUAL r139.0 r164.2 118.1 153.5 116.4 r110.4 r110.2 r110.4 r137.7 r112.8 2005 I r143.6 r170.8 118.9 160.3 119.4 r111.6 r107.9 r110.6 r145.2 r113.7 II r145.2 r173.8 119.7 160.6 118.4 r110.6 r107.0 r109.7 r159.1 r114.1 III r146.3 r175.5 r120.0 r162.5 r118.4 r111.1 r109.4 r110.6 r155.8 r114.7 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I r1.3 r-1.6 -2.8 3.9 -0.3 r2.6 r6.5 r3.7 r-11.8 r2.2 II r7.4 r5.6 -1.7 6.9 6.4 r-0.5 r-3.2 r-1.2 r23.6 r0.8 III r7.4 r7.1 -0.3 5.2 2.9 r-2.1 r1.2 r-1.2 r23.7 r0.9 IV r2.5 r4.7 2.1 2.4 1.5 r-0.1 r-0.4 r-0.2 r17.0 r1.4 ANNUAL r4.2 r2.8 -1.4 3.9 1.6 r-0.3 r0.0 r-0.2 r18.9 r1.3 2004 I r0.9 r3.6 2.6 1.5 -2.3 r0.6 r2.0 r0.9 r18.4 r2.6 II r2.4 r3.5 1.0 3.7 -0.7 r1.2 r0.2 r0.9 r28.0 r3.5 III r7.5 r9.6 1.9 6.3 4.6 r-1.1 r-4.4 r-2.0 r3.3 r-1.4 IV r8.6 r10.1 1.3 10.6 6.8 r1.8 r-5.3 r-0.1 r9.8 r0.9 ANNUAL r4.0 r5.5 1.4 4.0 1.3 r0.0 r-0.5 r-0.1 r18.1 r1.6 2005 I r2.8 3.3 0.5 5.9 3.5 3.1 -2.5 1.6 7.1 2.2 II 4.3 7.1 2.6 0.8 -3.2 -3.4 -3.1 -3.3 44.3 1.4 III 3.2 r4.1 0.8 r4.9 r-0.2 r1.6 r9.3 r3.6 r-7.9 r2.1 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r3.6 r2.1 -1.5 3.2 0.3 r-0.4 r-1.5 r-0.7 r25.5 1.2 II r3.9 r2.1 -1.8 3.6 1.4 r-0.3 r-0.2 r-0.3 r20.2 r1.3 III r4.8 r3.2 -1.5 4.3 2.1 r-0.5 r0.7 r-0.2 r19.5 r1.4 IV r4.6 r3.9 -0.7 4.6 2.6 r0.0 r0.9 r0.2 r12.1 r1.3 ANNUAL r4.2 r2.8 -1.4 3.9 1.6 r-0.3 r0.0 r-0.2 r18.9 r1.3 2004 I r4.5 r5.2 0.7 4.0 2.1 r-0.5 r-0.1 r-0.4 r20.7 r1.4 II r3.3 r4.7 1.3 3.2 0.3 r-0.1 r0.7 r0.1 r21.7 r2.1 III r3.3 r5.3 1.9 3.5 0.7 r0.1 r-0.7 r-0.1 r16.3 r1.5 IV r4.8 r6.6 1.7 5.5 2.0 r0.6 r-1.9 r-0.1 r14.5 r1.4 ANNUAL r4.0 r5.5 1.4 4.0 1.3 r0.0 r-0.5 r-0.1 r18.1 r1.6 2005 I r5.3 r6.5 1.2 6.6 3.5 r1.2 r-3.0 r0.1 r11.7 r1.3 II r5.8 r7.5 1.6 5.9 2.8 0.1 r-3.8 r-1.0 15.1 0.8 III 4.7 r6.1 1.3 r5.5 r1.6 0.7 r-0.5 r0.4 r11.8 r1.7 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 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 third 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 1978-2004 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. 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 2000 I r133.1 r138.6 104.1 133.2 112.1 r100.1 II r134.3 r139.9 104.1 132.5 110.7 r98.7 III r134.1 r139.2 103.8 135.9 112.4 r101.3 IV r135.4 r138.1 102.0 136.7 112.3 r101.0 ANNUAL r134.4 r138.9 103.4 134.7 112.0 r100.3 2001 I r135.2 r135.5 100.2 138.1 112.4 r102.1 II r136.3 r133.6 98.0 137.3 110.9 r100.8 III r137.0 r131.3 95.8 137.0 110.4 r100.0 IV r140.0 r129.5 92.5 139.0 112.2 r99.3 ANNUAL r137.1 r132.5 96.6 137.8 111.5 r100.6 2002 I r143.4 r130.1 90.8 144.7 116.3 r100.9 II r145.5 r131.6 90.4 147.6 117.7 r101.4 III r147.4 r132.0 89.6 149.0 118.3 r101.1 IV r148.5 r131.2 88.4 150.2 118.6 r101.2 ANNUAL r146.2 r131.2 89.8 147.9 117.7 r101.1 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I r6.5 r4.5 -1.9 21.8 17.3 14.3 II r3.8 3.8 0.0 -2.1 -5.1 -5.6 III r-0.6 r-2.0 -1.4 10.6 6.6 r11.3 IV r4.0 r-3.0 -6.7 2.4 -0.4 r-1.5 ANNUAL r4.8 r3.1 -1.6 9.2 5.6 4.2 2001 I r-0.5 r-7.2 -6.7 4.3 0.4 r4.8 II r3.1 r-5.7 -8.5 -2.4 -5.4 r-5.3 III r2.0 r-6.8 -8.6 -0.9 -1.7 r-2.9 IV r9.2 r-5.3 -13.3 5.9 6.5 r-3.0 ANNUAL r2.0 r-4.7 -6.5 2.3 -0.5 r0.3 2002 I r10.0 r2.1 -7.2 17.4 15.7 r6.7 II r6.2 r4.6 -1.5 8.4 5.0 r2.1 III r5.2 r1.3 -3.8 4.0 1.8 r-1.2 IV r3.0 r-2.4 -5.3 3.2 1.1 r0.2 ANNUAL r6.6 r-0.9 -7.1 7.3 5.6 r0.6 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 4.8 4.0 -0.8 9.8 6.4 4.8 II 5.3 4.3 -0.9 8.5 5.1 3.1 III 5.1 3.3 -1.7 10.0 6.4 4.7 IV r3.4 r0.8 -2.5 7.8 4.2 r4.3 ANNUAL r4.8 r3.1 -1.6 9.2 5.6 4.2 2001 I r1.6 r-2.2 -3.7 3.7 0.3 r2.0 II r1.5 r-4.5 -5.9 3.6 0.2 r2.1 III r2.1 r-5.7 -7.6 0.8 -1.8 r-1.3 IV r3.4 r-6.3 -9.3 1.7 -0.1 r-1.7 ANNUAL r2.0 r-4.7 -6.5 2.3 -0.5 r0.3 2002 I r6.0 r-4.0 -9.4 4.7 3.5 r-1.2 II r6.8 r-1.5 -7.8 7.5 6.2 r0.7 III r7.6 r0.6 -6.6 8.8 7.1 r1.1 IV r6.1 r1.3 -4.5 8.1 5.7 r1.9 ANNUAL r6.6 r-0.9 -7.1 7.3 5.6 r0.6 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 2. Durable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I r150.0 r165.3 110.2 133.4 112.3 r88.9 II r151.3 r167.5 110.7 131.9 110.1 r87.1 III r151.3 r166.8 110.2 135.7 112.3 r89.7 IV r151.9 r165.0 108.6 135.4 111.3 r89.2 ANNUAL r151.3 r166.2 109.8 134.2 111.6 r88.7 2001 I r151.3 r161.2 106.5 136.4 111.0 r90.1 II r152.4 r158.3 103.9 135.8 109.7 r89.1 III r153.5 r154.5 100.7 135.6 109.3 r88.3 IV r156.4 r151.1 96.6 137.9 111.3 r88.2 ANNUAL r153.4 r156.3 101.9 136.4 110.3 r88.9 2002 I r161.2 r152.5 94.6 142.0 114.2 r88.1 II r164.4 r155.2 94.3 145.0 115.7 r88.2 III r167.6 r156.5 93.4 146.0 115.9 r87.1 IV r170.6 r156.3 91.7 147.4 116.4 r86.4 ANNUAL r165.9 r155.1 93.5 145.1 115.5 r87.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I r10.9 r9.0 -1.7 25.0 20.3 r12.7 II r3.5 r5.2 1.6 -4.5 -7.5 r-7.8 III r0.0 r-1.6 -1.6 12.1 8.1 r12.1 IV r1.5 r-4.2 -5.6 -0.7 -3.5 r-2.2 ANNUAL r5.4 r4.7 -0.7 9.7 6.1 r4.1 2001 I r-1.5 r-9.0 -7.6 2.7 -1.1 r4.2 II 2.9 r-6.9 -9.4 -1.7 -4.7 -4.5 III r2.9 r-9.3 -11.8 -0.6 -1.4 r-3.4 IV r7.8 r-8.5 -15.2 7.1 7.7 r-0.7 ANNUAL r1.3 -5.9 -7.2 1.6 -1.2 0.2 2002 I r12.8 r3.6 -8.1 12.4 10.7 r-0.4 II r8.3 r7.2 -1.0 8.9 5.4 r0.5 III r7.9 r3.5 -4.0 2.8 0.7 r-4.8 IV r7.3 r-0.5 -7.2 3.7 1.6 r-3.3 ANNUAL r8.2 r-0.8 -8.3 6.4 4.7 r-1.7 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I r6.0 r6.2 0.2 11.2 7.7 r4.9 II 5.6 r6.2 0.6 8.9 5.5 r3.1 III r5.7 r4.4 -1.2 10.9 7.2 r4.9 IV r3.9 r2.0 -1.8 7.4 3.8 r3.3 ANNUAL r5.4 r4.7 -0.7 9.7 6.1 r4.1 2001 I r0.9 r-2.5 -3.4 2.2 -1.1 r1.3 II r0.7 r-5.4 -6.1 3.0 -0.4 r2.2 III r1.4 -7.3 -8.7 -0.1 -2.7 -1.5 IV r3.0 r-8.4 -11.1 1.8 0.0 r-1.1 ANNUAL r1.3 -5.9 -7.2 1.6 -1.2 0.2 2002 I r6.5 r-5.4 -11.2 4.1 2.9 r-2.2 II r7.9 r-2.0 -9.2 6.8 5.5 r-1.0 III r9.2 r1.3 -7.2 7.7 6.1 r-1.4 IV r9.0 r3.4 -5.1 6.9 4.5 r-2.0 ANNUAL r8.2 r-0.8 -8.3 6.4 4.7 r-1.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 3. Nondurable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I r116.9 r111.1 95.0 130.5 109.8 r111.6 II r118.2 r111.5 94.4 131.4 109.7 r111.2 III r117.6 r110.6 94.1 133.7 110.7 r113.8 IV r119.7 r110.2 92.0 136.6 112.2 r114.1 ANNUAL r118.3 r110.9 93.7 133.2 110.8 r112.7 2001 I r119.7 r108.7 90.8 139.2 113.3 r116.3 II r120.5 r107.5 89.2 138.0 111.5 r114.5 III r120.4 r106.7 88.6 137.8 111.1 r114.5 IV r123.4 r106.5 86.3 139.3 112.4 r112.8 ANNUAL r121.0 r107.3 88.7 138.6 112.1 r114.6 2002 I r125.6 r106.8 85.0 148.1 119.1 r117.9 II r127.0 r107.4 84.5 150.8 120.3 r118.7 III r127.8 r107.1 83.8 153.1 121.5 r119.8 IV r126.9 r105.9 83.4 154.2 121.7 r121.5 ANNUAL r126.8 r106.8 84.2 151.5 120.6 r119.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I r0.5 r-1.7 -2.2 15.4 11.1 r14.8 II r4.3 r1.4 -2.8 2.7 -0.4 r-1.5 III r-2.0 -3.0 -1.0 7.4 3.5 9.6 IV r7.4 r-1.7 -8.5 8.9 5.9 r1.4 ANNUAL r3.9 r0.6 -3.2 7.8 4.3 r3.8 2001 I r-0.1 r-5.2 -5.1 7.8 3.8 r7.9 II r2.9 r-4.1 -6.8 -3.4 -6.3 r-6.1 III r-0.4 r-3.3 -2.9 -0.6 -1.4 r-0.2 IV r10.6 r-0.6 -10.1 4.3 4.9 r-5.7 ANNUAL r2.3 r-3.2 -5.3 4.0 1.2 r1.7 2002 I r7.2 r1.3 -5.5 28.0 26.2 r19.4 II r4.7 r2.1 -2.4 7.4 4.0 r2.6 III r2.3 r-1.0 -3.2 6.3 4.1 r3.9 IV r-2.7 r-4.6 -2.0 2.8 0.7 r5.6 ANNUAL r4.8 r-0.5 -5.1 9.4 7.6 r4.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I r3.4 r0.8 -2.5 6.7 3.4 r3.2 II r5.0 r1.3 -3.5 7.3 3.9 r2.2 III r4.1 r1.4 -2.6 8.2 4.6 r3.9 IV r2.5 r-1.3 -3.7 8.5 4.9 r5.9 ANNUAL r3.9 r0.6 -3.2 7.8 4.3 r3.8 2001 I r2.3 r-2.2 -4.4 6.7 3.2 r4.2 II r2.0 r-3.5 -5.4 5.1 1.6 r3.0 III r2.4 r-3.6 -5.9 3.1 0.4 r0.6 IV r3.1 r-3.3 -6.3 1.9 0.1 r-1.2 ANNUAL r2.3 r-3.2 -5.3 4.0 1.2 r1.7 2002 I r5.0 r-1.7 -6.4 6.4 5.1 r1.4 II r5.4 r-0.1 -5.3 9.3 7.9 r3.6 III r6.1 r0.4 -5.4 11.1 9.4 r4.7 IV r2.8 r-0.6 -3.3 10.7 8.3 r7.7 ANNUAL r4.8 r-0.5 -5.1 9.4 7.6 r4.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 4. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 r88.3 r91.6 103.8 81.3 98.0 r92.1 1988 r90.0 r96.2 107.0 84.1 97.8 r93.5 1989 r90.3 r97.2 107.6 86.6 96.6 r95.9 1990 r92.9 r97.6 105.0 90.5 96.1 r97.4 1991 r95.4 r96.0 100.5 95.6 98.0 r100.1 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 r102.7 r104.1 101.4 102.0 99.5 r99.4 1994 r106.1 r110.1 103.8 105.3 100.6 r99.2 1995 r110.0 r115.0 104.6 107.3 100.1 r97.6 1996 r113.9 r118.7 104.2 109.3 99.3 r96.0 1997 r118.0 r125.2 106.0 112.2 99.8 r95.1 1998 r123.8 r130.9 105.7 118.8 104.2 r95.9 1999 r128.3 r134.8 105.1 123.4 106.0 r96.2 2000 r134.4 r138.9 103.4 134.7 112.0 r100.3 2001 r137.1 r132.5 96.6 137.8 111.5 r100.6 2002 r146.2 r131.2 89.8 147.9 117.7 r101.1 2003 r154.4 r131.8 85.4 160.1 124.6 r103.7 2004 r162.8 r138.4 85.0 163.6 124.0 r100.5 2005 r170.6 r143.8 r84.3 r174.4 r127.9 r102.3 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 5. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 r89.3 r95.1 106.5 81.3 97.9 r91.0 1988 r91.3 r101.0 110.6 83.6 97.2 r91.6 1989 r91.2 r101.2 111.0 85.9 95.8 r94.2 1990 r93.2 r100.1 107.4 89.5 95.0 r96.0 1991 r94.6 r95.9 101.4 94.9 97.3 r100.3 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 r104.5 r106.0 101.4 101.9 99.4 r97.5 1994 r109.6 r114.8 104.7 105.4 100.7 r96.2 1995 r115.2 r122.8 106.6 106.7 99.5 r92.7 1996 r120.7 r129.5 107.3 108.1 98.2 r89.5 1997 r126.2 r139.5 110.5 110.6 98.4 r87.6 1998 r135.6 r150.4 111.0 117.1 102.7 r86.4 1999 r143.6 r158.7 110.6 122.4 105.2 r85.3 2000 r151.3 r166.2 109.8 134.2 111.6 r88.7 2001 r153.4 r156.3 101.9 136.4 110.3 r88.9 2002 r165.9 r155.1 93.5 145.1 115.5 r87.4 2003 r179.0 r158.5 88.5 158.6 123.5 r88.6 2004 r190.9 r170.1 89.1 160.4 121.6 r84.1 2005 r203.4 r180.8 r88.9 r170.6 r125.1 r83.9 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 6. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, Indexes 1992=100 Real Output per Hours Compensa- compensa- Unit hour of of all tion per tion per labor Year all persons Output persons hour (1) hour (2) costs ----------------------------------------------------------------------------------------------- 1987 r90.2 r89.9 99.7 80.8 97.4 r89.5 1988 r91.8 r93.1 101.5 84.2 98.0 r91.8 1989 r92.1 r94.6 102.7 87.1 97.2 r94.6 1990 r94.7 r96.0 101.4 91.7 97.4 r96.9 1991 r97.4 r96.6 99.2 96.5 98.9 r99.1 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 r100.4 r101.8 101.4 102.3 99.8 r101.8 1994 r102.2 r104.5 102.3 104.7 100.1 r102.5 1995 r104.6 r106.2 101.6 107.8 100.6 r103.0 1996 r107.1 r106.5 99.5 110.8 100.7 r103.5 1997 r110.6 r110.0 99.4 114.1 101.5 r103.1 1998 r112.9 r110.5 97.9 120.3 105.5 r106.6 1999 r113.8 r110.2 96.9 123.6 106.2 r108.6 2000 r118.3 r110.9 93.7 133.2 110.8 r112.7 2001 r121.0 r107.3 88.7 138.6 112.1 r114.6 2002 r126.8 r106.8 84.2 151.5 120.6 r119.5 2003 r130.5 r105.2 80.6 161.2 125.5 r123.6 2004 r136.1 r107.5 79.0 167.6 127.0 r123.1 2005 r140.0 r108.3 r77.3 r179.3 r131.5 r128.0 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics Appendix table 7. 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 2002 I r126.0 r149.3 118.5 140.1 112.7 r111.2 r113.0 r111.7 r85.8 r109.4 II r127.8 r151.3 118.4 141.8 113.1 r111.0 r110.7 r110.9 r94.5 r109.4 III r129.1 r152.2 117.9 142.7 113.3 r110.6 r110.0 r110.5 r100.3 r109.5 IV r130.1 r153.0 117.6 143.2 113.1 r110.1 r109.6 r110.0 r111.2 r110.1 ANNUAL r128.2 r151.5 118.1 142.0 113.0 r110.7 r110.8 r110.7 r98.0 r109.6 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2002 I r5.0 2.9 -2.0 2.3 0.8 -2.6 -9.0 -4.4 r66.8 -0.8 II 6.1 5.6 -0.5 5.1 1.7 r-0.9 -7.9 -2.9 46.9 0.1 III 3.9 2.3 -1.5 2.6 0.5 -1.2 -2.4 r-1.6 27.0 0.5 IV 3.2 2.0 -1.2 1.3 -0.7 r-1.9 r-1.6 r-1.8 r50.9 r1.9 ANNUAL 3.8 0.9 -2.8 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2002 I 2.8 -1.7 -4.4 3.4 2.2 0.6 3.5 1.4 -1.9 r1.2 II 3.5 0.2 -3.2 3.7 2.4 r0.2 r-0.8 -0.1 8.7 0.5 III 4.4 1.9 -2.4 3.5 1.9 -0.8 -3.5 r-1.5 27.0 0.3 IV 4.5 3.2 -1.3 2.8 0.6 -1.7 r-5.3 r-2.7 47.2 0.4 ANNUAL 3.8 0.9 -2.8 3.4 1.8 -0.4 -1.6 -0.7 19.2 0.6 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 2, 2006 r=revised Source: Bureau of Labor Statistics