Internet address: http://stats.bls.gov/lprhome.htm Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 98-50 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 10:00 A.M. EST TUESDAY, FEBRUARY 10, 1998. PRODUCTIVITY AND COSTS Preliminary Fourth-Quarter Measures and Annual Averages, 1997 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 1997. In the fourth quarter, productivity advanced 2.2 percent in the business sector as output grew 5.5 percent and hours worked rose less--3.2 percent (seasonally adjusted annual rates). In the nonfarm business sector, productivity rose 2.0 percent as output increased 5.5 percent and hours grew 3.5 percent. Fourth Annual averages quarter 1996-1997 Business sector 2.2 1.9 Nonfarm business sector 2.0 1.7 For the year 1997, the increases in productivity were about the same as those posted in 1996 (as revised) in both the business and nonfarm business sectors. Fourth-quarter productivity and related measures are summarized in table A and annual data in table B. Detailed information is presented in tables 1 through 5. In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 1996-1997 Manufacturing sector 4.2 4.4 Durable goods manufacturing 6.6 5.7 Nondurable goods manufacturing 1.2 3.2 Manufacturing productivity grew at a 4.2 percent annual rate in the fourth quarter, much more slowly than it had in the previous quarter, when it grew 8.0 percent (as revised). On an annual basis, manufacturing productivity increased 4.4 percent in 1997--the largest increase since 1986, when it grew 4.5 percent. (Output and hours in manufacturing, which includes about 18 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors.) --------------------------------------------------------------------------- Table A. Productivity and costs: Preliminary fourth-quarter 1997 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 2.2 5.5 3.2 5.4 3.2 3.1 Nonfarm business 2.0 5.5 3.5 5.1 2.9 3.0 Manufacturing 4.2 8.3 4.0 5.7 3.6 1.5 Durable 6.6 10.5 3.7 7.1 4.9 0.4 Nondurable 1.2 5.6 4.4 3.6 1.5 2.4 --------------------------------------------------------------------------- Percent change from same quarter a year ago Business 2.4 4.7 2.3 4.2 2.3 1.8 Nonfarm business 2.2 4.7 2.4 4.1 2.1 1.8 Manufacturing 4.8 6.4 1.5 4.0 2.1 -0.7 Durable 7.0 9.6 2.4 4.1 2.1 -2.7 Nondurable 2.5 2.7 0.2 3.8 1.9 1.3 --------------------------------------------------------------------------- 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. THIRD-TO-FOURTH QUARTER CHANGES, 1997 Business Productivity in the business sector grew 2.2 percent in the fourth quarter of 1997, reflecting an increase of 5.5 percent in output combined with a 3.2 percent rise in the hours of all persons engaged in the sector. The productivity increase was smaller than that posted in the previous quarter. In the third quarter of 1997, productivity rose 3.5 percent (as revised), as output grew 3.6 percent and hours 0.1 percent (seasonally adjusted annual rates). Hourly compensation increased at a 5.4 percent annual rate in the fourth quarter of 1997, greater than the 4.2 percent growth during the third quarter. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Unit labor costs, which reflect changes in both hourly compensation and productivity, increased at a 3.1 percent annual rate during the fourth quarter. During the third quarter of 1997, unit labor costs rose 0.7 percent. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.2 percent annual rate for persons in the business sector. This measure rose 2.1 percent during the third quarter. The fourth-quarter increase was the largest increase in real hourly compensation in the business sector since a 5.0-percent rise in the first quarter of 1992. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased at an annual rate of 1.1 percent in both the third and fourth quarters of 1997. Nonfarm business In the nonfarm business sector, productivity increased 2.0 percent in the fourth quarter, as output rose 5.5 percent and hours of all persons-- employees, proprietors, and unpaid family workers--rose 3.5 percent (seasonally adjusted annual rates). As in the larger business sector, productivity growth in the fourth quarter was slower than that recorded in the previous quarter. During the third quarter of 1997, nonfarm productivity rose 3.6 percent as output increased 3.7 percent and hours edged up 0.1 percent (table 2). The 3.6-percent increase in labor productivity in the third quarter was the largest since the fourth quarter of 1992, when it rose 5.8 percent. Hourly compensation in the nonfarm business sector rose 5.1 percent in the fourth quarter, and real hourly compensation increased 2.9 percent when the increase in the CPI-U was taken into account. During the third quarter, hourly compensation had increased by 3.8 percent, and real hourly compensation had risen 1.8 percent. Unit labor costs increased 3.0 percent in the fourth quarter, compared with a 0.2 percent rise in the previous quarter. The implicit price deflator for nonfarm business output rose 1.2 percent in both the third and fourth quarters of 1997. Manufacturing Manufacturing productivity grew at a 4.2 percent seasonally adjusted annual rate in the fourth quarter of 1997, down from the 8.0 percent increase posted in the third quarter (table 3). Output rose 8.3 percent in the fourth quarter, and hours of all persons rose 4.0 percent. In the third quarter, output had risen 6.1 percent, and hours had fallen 1.7 percent. In durable goods manufacturing, productivity rose 6.6 percent in the fourth quarter as output rose 10.5 percent and hours of all persons increased 3.7 percent. In the previous quarter, durable goods producers experienced an 11.0 percent advance in productivity. Among nondurable goods manufacturers, productivity rose 1.2 percent in the fourth quarter as output and hours both increased, 5.6 and 4.4 percent, respectively. In the third quarter, productivity in nondurable goods manufacturing increased 4.8 percent (tables 4 and 5). The average hourly compensation of manufacturing workers increased 5.7 percent in the fourth quarter, up from the 3.4 percent increase posted in the previous quarter. When the increase in consumer prices was taken into account, real hourly compensation in the fourth quarter rose 3.6 percent, compared with the 1.4 percent rise in the third quarter. In durable goods manufacturing, hourly compensation rose 7.1 percent in the fourth quarter, and real hourly compensation increased 4.9 percent. Fourth-quarter increases in both hourly compensation and real hourly compensation were smaller in nondurable goods manufacturing; hourly compensation rose 3.6 percent, and real hourly compensation increased 1.5 percent. Since the fourth-quarter increase in manufacturing hourly compensation outpaced the increase in labor productivity, unit labor costs for the manufacturing sector rose--1.5 percent. Unit labor costs in manufacturing had fallen 4.2 percent in the third quarter. In durable goods manufacturing, unit labor costs rose 0.4 percent in the fourth quarter of 1997. In the last 17 quarters, unit labor costs in durable goods rose in only one other quarter (the first quarter of 1997, by 0.6 percent). In nondurable goods manufacturing, unit labor costs rose 2.4 percent in the fourth quarter, compared with a 0.2-percent rise one quarter earlier. ANNUAL AVERAGE CHANGES, 1996-1997 Business Business productivity increased 1.9 percent when the annual average for 1997 is compared with the annual average for 1996 (table B). The 1997 increase was about the same as the 2.0-percent rise posted in the previous year. Business sector output rose 4.5 percent in 1997 and hours of all persons engaged in the sector rose 2.6 percent. The output increase was the largest since 1984, when it rose 8.5 percent. In 1996, business sector output increased 3.5 percent and hours increased 1.4 percent. ---------------------------------------------------------------------------- Table B. Annual changes in productivity and related measures, 1988-1997 ---------------------------------------------------------------------------- Measure 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ---------------------------------------------------------------------------- Business: Productivity 0.6 0.8 0.7 0.7 3.4 0.2 0.4 0.0 2.0 1.9 Output 3.8 3.4 0.8 -1.7 3.2 2.7 4.1 2.3 3.5 4.5 Hours 3.2 2.5 0.1 -2.3 -0.2 2.6 3.7 2.4 1.4 2.6 Hourly compensation 4.6 2.8 5.7 4.8 5.2 2.6 1.6 2.5 3.9 3.9 Real hourly compensation 0.5 -1.9 0.3 0.6 2.1 -0.4 -0.9 -0.3 0.9 1.6 Unit labor costs 4.0 1.9 5.0 4.1 1.7 2.4 1.2 2.6 1.8 2.0 ---------------------------------------------------------------------------- Nonfarm Business: Productivity 0.7 0.6 0.5 0.7 3.2 0.1 0.4 0.2 1.9 1.7 Output 4.1 3.2 0.7 -1.8 3.0 3.0 3.9 2.6 3.5 4.5 Hours 3.3 2.6 0.2 -2.5 -0.2 2.8 3.5 2.4 1.6 2.7 Hourly compensation 4.4 2.7 5.5 4.9 5.2 2.3 1.7 2.5 3.8 3.8 Real hourly compensation 0.3 -2.0 0.1 0.7 2.1 -0.7 -0.8 -0.3 0.8 1.5 Unit labor costs 3.6 2.1 5.0 4.2 1.9 2.2 1.4 2.4 1.9 2.1 ---------------------------------------------------------------------------- Manufacturing: Productivity 1.5 1.3 1.8 2.2 3.8 2.2 2.5 3.2 3.7 4.4 Output 4.3 1.7 -0.4 -1.9 3.2 3.6 4.9 3.5 3.2 5.6 Hours 2.8 0.3 -2.2 -4.1 -0.6 1.4 2.4 0.3 -0.5 1.1 Hourly compensation 3.9 3.3 4.8 5.2 4.5 2.9 2.6 2.9 3.2 3.5 Real hourly compensation -0.2 -1.5 -0.5 1.0 1.4 -0.1 0.0 0.1 0.2 1.2 Unit labor costs 2.4 2.0 2.9 2.9 0.7 0.7 0.1 -0.3 -0.5 -0.9 ---------------------------------------------------------------------------- Hourly compensation in the business sector rose 3.9 percent in both 1996 and 1997. Real hourly compensation grew faster in 1997, 1.6 percent, than in 1996, when it grew 0.9 percent. Unit labor costs rose 2.0 percent in 1997, slightly more than the 1.8 percent increase in the previous year. The implicit price deflator rose 1.7 percent in 1997 and 1.9 percent in 1996. Nonfarm business Productivity increased 1.7 percent in the nonfarm business sector during 1997, as output rose 4.5 percent and hours of all persons increased 2.7 per cent. The increase in labor productivity in 1996, 1.9 percent, occurred as output and hours rose 3.5 and 1.6 percent, respectively. In both 1996 and 1997, hourly compensation rose 3.8 percent. Real hourly compensation, however, increased 1.5 percent in 1997 and 0.8 percent one year earlier. Unit labor costs in the nonfarm business sector grew 2.1 percent in 1997, slightly more than the 1.9-percent increase in 1996. The implicit price deflator for nonfarm business rose 1.7 percent in both 1997 and 1996. Manufacturing Manufacturing productivity grew 4.4 percent in 1997, as output rose 5.6 percent and hours of all persons increased 1.1 percent (table B) . During 1996, total manufacturing productivity had risen 3.7 percent as output grew 3.2 percent and hours dropped 0.5 percent. In durable goods manufacturing, productivity increased 5.7 percent in 1997 as output rose 8.0 percent and hours of all persons rose 2.2 percent. A smaller increase in labor productivity in nondurable goods manufacturing, 3.2 percent, was the result of a 2.9 percent rise in output coupled with a small drop, 0.3 percent, in hours of all persons. Hourly compensation of manufacturing workers increased 3.5 percent in 1997, slightly more than the 3.2 percent increase in the previous year. Taking into account the rise in the CPI-U, real hourly compensation in manufacturing rose 1.2 percent in 1997 and 0.2 percent one year earlier. Gains in hourly compensation during 1997 in nondurable goods manufacturing, 3.9 percent, were higher than those posted in durable goods manufacturing, 3.1 percent. Unit labor costs in manufacturing fell 0.9 percent in 1997. This was the third consecutive year in which manufacturing unit labor costs fell, dropping 0.5 percent in 1996 and 0.3 percent in 1995. Unit labor costs in durable goods manufacturing have declined every year since 1991, when they rose 3.4 percent. In 1997, these costs dropped 2.5 percent. In contrast, unit labor costs in nondurable goods have increased every year since 1963, when they fell 0.6 percent. In 1997, these costs rose 0.7 percent. Revised Measures Current and previous measures for the third quarter of 1997 for the business, nonfarm business, and manufacturing sectors are compared in table C. Productivity growth is lower, and unit labor costs correspondingly higher, than the figures published on Dec. 4, based on the information then available. For all three sectors, output trends were revised downward and hours trends were revised upward. ----------------------------------------------------------------------- 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 1997 Business: Previous 4.0 3.8 -0.2 4.3 2.3 0.3 Current 3.5 3.6 0.1 4.2 2.1 0.7 Nonfarm business: Previous 4.1 4.0 -0.1 3.9 1.9 -0.2 Current 3.6 3.7 0.1 3.8 1.8 0.2 Manufacturing: Previous 9.3 7.2 -1.9 3.4 1.4 -5.4 Current 8.0 6.1 -1.7 3.4 1.4 -4.2 ----------------------------------------------------------------------- Productivity and cost measures were revised to reflect the results of the 1996 Hours at Work Survey, which are now available (http://stats.bls.gov/pdf/mprhws96.pdf). This survey is used to adjust the number of hours for which private nonfarm employees are paid, as reported in the BLS Current Establishment Survey, to hours at the workplace. For 1996, these new results show that hours of all persons increased less than had originally been reported. In the nonfarm business sector, hours of all persons grew 1.6 percent in 1996 rather than 2.2 percent, as previously reported. All of the increase in the ratio of hours at work to hours paid occurred outside of the manufacturing sector, where the decrease in the hours of all persons remained 0.5 percent for the calendar year. In manufacturing, rates of growth in productivity were revised upward in 1996 due to revisions in the output measures. Unit labor costs have been revised downward by comparable amounts. (See tables 3-5 and appendix tables 1-3.) The quarterly measures of productivity, output, and unit labor costs for manufacturing were revised back to 1992, and the 1996 annual measures were revised due to the incorporation of revised indexes of industrial production. These indexes, published by the Board of Governors of the Federal Reserve System, were changed to incorporate additional and revised source data and updated information on seasonal trends. (See Federal Reserve Statistical Release G.17, "Industrial production and capacity utilization: a revision," Dec. 9, 1997.) Revised measures: Nonfinancial Corporations Third-quarter gains in productivity for nonfinancial corporations also were lower than those reported on Dec. 4, based on preliminary data. Most of the change in labor productivity is due to an upward revision in the rate of growth in employee hours (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 1997 Previous 6.7 7.9 1.1 4.5 2.4 -2.1 14.1 0.1 Current 6.3 7.8 1.5 4.3 2.2 -1.9 14.3 0.2 --------------------------------------------------------------------------- Next release date The next release of Productivity and Costs is scheduled for 10:00 A.M. EST, Tuesday, March 10, 1998. Revised fourth-quarter measures and annual measures for business, nonfarm business, and manufacturing will be released at that time. TECHNICAL NOTES Labor Hours: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly paid hours of production and non- supervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work using the BLS Hours at Work survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Com- merce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 76 percent of the value of GDP in 1992. Nonfarm business, which also excludes farming, accounted for about 75 percent of GDP in 1992. Annual manufacturing indexes 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 2-digit SIC industries: Primary metal industries; fabricated metal products; non- electrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, and leather and leather products. Nonfinancial corporate output is an annual-weighted index constructed by excluding from GDP the following outputs: General government; nonprofit institutions; employees of private households; the rental value of owner-oc- cupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 52 percent of the value of GDP in 1992. 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. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. 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 1995 I r100.1 108.7 r108.6 r105.7 r98.2 r105.5 108.3 106.5 II r100.3 108.7 108.3 r106.5 r98.2 106.1 108.4 107.0 III 100.6 109.8 109.2 107.3 98.4 106.7 108.8 107.4 IV r101.2 110.7 r109.3 r108.3 r98.8 107.0 r109.1 107.8 ANNUAL 100.5 109.5 108.9 106.9 98.4 106.3 108.7 107.2 1996 I r102.0 111.4 r109.2 r109.3 r98.9 r107.2 r110.5 108.4 II r102.8 113.2 r110.1 r110.8 r99.4 r107.8 r111.0 108.9 III r102.6 113.5 r110.6 r111.8 r99.6 r108.9 r110.7 109.6 IV r103.1 115.0 r111.5 r112.7 r99.6 r109.3 r111.3 110.0 ANNUAL r102.6 113.3 r110.4 r111.1 r99.3 r108.3 r110.9 109.2 1997 I r103.5 116.6 r112.7 r113.8 r100.0 r110.0 r111.6 110.6 II r104.1 117.8 r113.1 r114.7 r100.5 r110.2 r112.4 111.0 III r105.0 r118.8 r113.1 r115.9 r101.1 r110.4 r112.9 111.3 IV 105.6 120.4 114.0 117.4 101.9 111.2 112.2 111.6 ANNUAL 104.5 118.4 113.3 115.4 100.9 110.4 112.3 111.1 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r-2.3 0.8 r3.1 r2.4 r-0.4 4.8 -0.2 2.9 II 0.9 0.2 r-0.8 3.2 0.1 2.3 0.4 1.6 III r1.0 4.2 r3.1 r3.0 r0.9 r2.0 r1.3 1.7 IV r2.6 3.0 r0.4 r3.9 r1.4 1.2 r1.3 1.3 ANNUAL 0.0 2.3 2.4 2.5 -0.3 2.6 1.7 2.3 1996 I r3.1 2.8 r-0.3 r3.7 r0.4 r0.7 r5.1 2.3 II r3.1 6.6 r3.4 r5.5 r2.0 r2.3 r1.8 2.1 III r-0.7 0.9 r1.6 r3.6 r1.0 4.4 r-1.1 2.4 IV r2.0 5.4 r3.3 r3.4 r0.0 1.4 2.2 1.7 ANNUAL r2.0 3.5 r1.4 r3.9 r0.9 1.8 r2.0 1.9 1997 I r1.6 5.9 r4.2 r4.1 r1.7 2.5 r1.2 2.0 II r2.2 3.9 r1.6 r3.1 r2.0 0.9 2.7 1.5 III r3.5 r3.6 r0.1 r4.2 r2.1 r0.7 r1.8 1.1 IV 2.2 5.5 3.2 5.4 3.2 3.1 -2.4 1.1 ANNUAL 1.9 4.5 2.6 3.9 1.6 2.0 1.2 1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I r-0.6 3.3 r3.9 r1.5 r-1.3 2.2 3.2 2.6 II r-0.4 1.7 2.1 r2.4 r-0.6 2.8 r1.8 2.4 III 0.0 2.4 2.3 2.7 0.1 2.7 1.3 2.2 IV r0.6 2.0 r1.5 r3.1 r0.5 r2.6 r0.7 1.9 ANNUAL 0.0 2.3 2.4 2.5 -0.3 2.6 1.7 2.3 1996 I r1.9 2.5 r0.6 r3.5 r0.7 1.5 r2.0 1.7 II r2.5 4.2 r1.7 r4.0 r1.2 1.5 r2.4 1.8 III r2.0 3.3 r1.3 r4.2 r1.2 2.1 r1.8 2.0 IV r1.8 3.9 r2.0 r4.0 r0.8 r2.2 r2.0 2.1 ANNUAL r2.0 3.5 r1.4 r3.9 r0.9 1.8 r2.0 1.9 1997 I r1.5 4.7 r3.1 r4.1 r1.2 2.6 r1.0 2.0 II 1.3 4.0 2.7 r3.6 1.2 2.3 1.2 1.9 III r2.3 r4.7 r2.3 r3.7 r1.5 1.3 r2.0 1.6 IV 2.4 4.7 2.3 4.2 2.3 1.8 0.8 1.4 ANNUAL 1.9 4.5 2.6 3.9 1.6 2.0 1.2 1.7 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 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 1995 I 100.3 108.9 r108.6 r105.5 r98.1 r105.2 r109.6 106.8 II 100.5 108.9 108.4 r106.3 98.1 105.8 109.6 107.2 III 100.8 110.2 109.3 107.1 98.3 106.3 109.7 107.5 IV r101.4 111.0 r109.5 r108.1 r98.6 r106.7 109.8 107.8 ANNUAL 100.7 109.8 109.0 106.7 98.3 106.0 109.7 107.3 1996 I r102.1 111.7 r109.4 r109.1 r98.7 106.9 r111.0 108.4 II r102.8 113.5 r110.4 r110.5 r99.1 r107.5 r111.3 108.8 III r102.6 113.8 r110.9 r111.4 r99.3 r108.6 r110.9 109.4 IV r103.1 115.3 r111.9 r112.3 r99.3 r109.0 r111.4 109.8 ANNUAL r102.6 113.6 r110.7 r110.8 r99.1 r108.0 r111.2 109.1 1997 I r103.4 116.9 r113.1 r113.5 r99.7 r109.8 r111.7 110.5 II r104.0 118.0 r113.5 r114.4 r100.2 110.0 r112.4 110.9 III r104.9 r119.1 r113.5 r115.5 r100.7 r110.1 r113.2 111.2 IV 105.4 120.7 114.5 116.9 101.4 110.9 112.6 111.5 ANNUAL 104.4 118.7 113.7 115.0 100.5 110.2 112.5 111.0 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r-1.8 1.2 r3.1 r2.3 r-0.5 4.2 1.3 3.1 II 0.8 0.2 r-0.7 3.1 r0.0 2.3 r0.1 1.5 III r1.4 4.6 r3.1 r3.1 r1.0 r1.7 0.5 1.2 IV r2.2 3.0 r0.7 r3.7 r1.2 r1.4 r0.1 1.0 ANNUAL 0.2 2.6 2.4 2.5 -0.3 2.4 2.1 2.3 1996 I r2.8 2.6 r-0.3 r3.9 r0.6 r1.0 r4.6 2.3 II r2.9 6.8 r3.8 r5.1 r1.7 r2.2 r0.9 1.7 III r-0.7 1.0 r1.7 r3.3 r0.6 r4.0 r-1.4 2.0 IV r1.9 5.4 r3.5 r3.4 r0.0 1.5 2.0 1.7 ANNUAL r1.9 3.5 r1.6 r3.8 r0.8 r1.9 r1.4 1.7 1997 I r1.1 5.6 r4.5 r4.3 r1.9 3.1 r1.1 2.4 II r2.3 3.8 r1.5 r3.2 r2.1 0.9 2.3 1.4 III r3.6 r3.7 r0.1 r3.8 r1.8 r0.2 r2.9 1.2 IV 2.0 5.5 3.5 5.1 2.9 3.0 -1.9 1.2 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.2 1.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I r-0.3 3.5 r3.9 r1.6 r-1.2 2.0 4.3 2.8 II r-0.3 1.9 r2.2 r2.3 r-0.7 2.6 r2.5 2.6 III 0.4 2.7 2.3 2.8 r0.2 2.4 1.5 2.1 IV r0.6 2.2 r1.6 r3.1 r0.4 2.4 r0.5 1.7 ANNUAL 0.2 2.6 2.4 2.5 -0.3 2.4 2.1 2.3 1996 I r1.8 2.6 r0.7 r3.5 r0.7 r1.6 r1.3 1.5 II r2.3 4.2 r1.8 r3.9 r1.1 r1.6 r1.5 1.6 III r1.8 3.3 r1.5 r4.0 r1.0 2.1 r1.0 1.7 IV r1.7 3.9 r2.2 r3.9 r0.7 r2.2 r1.5 1.9 ANNUAL r1.9 3.5 r1.6 r3.8 r0.8 r1.9 r1.4 1.7 1997 I r1.3 4.7 r3.4 r4.0 r1.0 2.7 r0.6 1.9 II 1.1 4.0 2.8 3.5 1.1 2.4 1.0 1.9 III r2.2 4.7 r2.4 r3.7 r1.4 r1.4 r2.1 1.7 IV 2.2 4.7 2.4 4.1 2.1 1.8 1.1 1.5 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.2 1.7 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 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 1995 I r106.6 r112.2 105.2 107.2 99.6 r100.6 II r107.7 r112.0 104.0 108.2 99.8 100.5 III 108.8 r112.8 103.6 109.2 100.2 100.4 IV 109.2 113.0 103.4 110.1 100.4 100.8 ANNUAL 108.1 112.5 104.1 108.7 100.1 100.6 1996 I r110.4 r113.4 102.7 110.8 100.2 r100.3 II r111.6 r115.7 103.7 r112.0 100.5 r100.4 III r113.0 r117.0 103.6 112.9 100.6 r99.9 IV r114.0 r118.3 103.7 113.5 100.3 r99.5 ANNUAL r112.1 r116.1 r103.6 r112.1 100.3 r100.0 1997 I r114.9 r120.0 104.4 114.7 100.8 r99.8 II r116.0 r121.5 104.7 115.4 101.1 r99.5 III r118.3 r123.3 r104.3 116.4 101.5 r98.4 IV 119.5 125.8 105.3 118.0 102.4 98.8 ANNUAL 117.1 122.6 104.7 116.0 101.4 99.1 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r3.3 r3.9 r0.5 r2.2 -0.6 r-1.1 II r4.3 r-0.4 -4.5 3.8 r0.6 r-0.5 III r4.2 r2.6 -1.5 3.9 1.7 r-0.3 IV r1.6 r0.8 -0.7 3.2 0.7 r1.6 ANNUAL 3.2 3.5 0.3 2.9 0.1 -0.3 1996 I r4.4 r1.5 -2.7 r2.4 r-0.9 r-1.9 II r4.2 r8.1 3.8 4.7 r1.2 r0.5 III r5.3 r4.9 r-0.4 r3.1 0.5 r-2.1 IV r3.6 r4.2 0.6 1.9 -1.4 r-1.6 ANNUAL r3.7 r3.2 -0.5 3.2 0.2 r-0.5 1997 I r3.3 r6.2 2.8 4.4 2.0 r1.0 II r3.8 r4.9 1.1 2.6 1.5 r-1.1 III r8.0 r6.1 r-1.7 3.4 1.4 r-4.2 IV 4.2 8.3 4.0 5.7 3.6 1.5 ANNUAL 4.4 5.6 1.1 3.5 1.2 -0.9 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I r2.7 r5.6 2.8 2.0 -0.9 r-0.7 II 2.7 r3.6 0.9 2.8 -0.2 0.1 III r3.5 r3.2 -0.3 3.1 0.5 r-0.4 IV 3.3 1.7 -1.6 r3.2 0.6 -0.1 ANNUAL 3.2 3.5 0.3 2.9 0.1 -0.3 1996 I r3.6 r1.1 -2.4 3.3 r0.5 r-0.3 II r3.6 r3.2 -0.3 r3.5 0.7 r0.0 III r3.8 r3.8 r0.0 3.4 0.4 r-0.5 IV r4.4 r4.7 0.3 r3.0 -0.1 r-1.3 ANNUAL r3.7 r3.2 -0.5 3.2 0.2 r-0.5 1997 I r4.1 r5.8 1.7 3.5 0.6 r-0.5 II r4.0 r5.0 1.0 3.0 0.6 r-0.9 III r4.7 r5.3 r0.7 3.1 0.9 r-1.5 IV 4.8 6.4 1.5 4.0 2.1 -0.7 ANNUAL 4.4 5.6 1.1 3.5 1.2 -0.9 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 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 1995 I r110.6 r118.2 106.9 107.1 99.5 r96.8 II r111.4 r118.1 106.0 107.9 99.5 r96.8 III 112.8 r119.6 106.0 108.8 99.8 96.4 IV 113.5 r120.6 r106.3 109.3 99.7 r96.3 ANNUAL 112.1 119.1 106.3 108.2 99.7 96.6 1996 I r115.2 r121.8 r105.7 r109.7 r99.2 r95.2 II r116.9 r125.4 r107.3 r111.0 r99.5 r94.9 III r118.6 r127.2 r107.3 r111.7 r99.5 r94.2 IV r119.5 r128.4 r107.5 r111.8 r98.8 r93.6 ANNUAL r117.4 r125.7 r107.1 r110.9 r99.1 r94.5 1997 I r120.7 r131.3 r108.8 r113.1 r99.4 r93.7 II r122.5 r133.9 r109.3 r113.7 r99.6 r92.8 III r125.8 r137.2 r109.1 r114.4 r99.7 r90.9 IV 127.8 140.7 110.1 116.3 100.9 91.0 ANNUAL 124.1 135.8 109.4 114.3 99.9 92.1 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r4.9 r5.7 r0.8 r2.4 -0.4 r-2.4 II r3.1 r-0.4 -3.4 3.0 -0.1 r-0.1 III r5.0 r5.0 r0.0 r3.3 1.2 r-1.6 IV r2.5 r3.5 r1.0 r2.0 r-0.4 r-0.5 ANNUAL 4.0 5.3 1.3 2.6 -0.2 -1.3 1996 I r6.2 r4.0 r-2.1 r1.4 r-1.8 r-4.4 II r6.0 r12.6 r6.2 r4.7 r1.3 r-1.2 III r5.9 r5.8 r-0.1 r2.6 r-0.1 r-3.1 IV r3.1 r3.8 0.7 0.5 r-2.8 r-2.5 ANNUAL r4.7 r5.5 r0.8 r2.4 r-0.5 r-2.2 1997 I r4.1 r9.4 r5.1 r4.8 2.3 r0.6 II r6.2 r8.1 1.8 r2.1 r1.0 r-3.9 III r11.0 r10.2 r-0.8 2.4 r0.3 r-7.8 IV 6.6 10.5 3.7 7.1 4.9 0.4 ANNUAL 5.7 8.0 2.2 3.1 0.8 -2.5 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I 4.1 r7.9 3.7 1.7 -1.1 r-2.2 II r3.5 5.4 1.9 2.5 r-0.5 -0.9 III 3.9 4.7 0.7 2.8 0.2 -1.1 IV 3.9 3.4 -0.4 2.7 0.1 -1.1 ANNUAL 4.0 5.3 1.3 2.6 -0.2 -1.3 1996 I r4.2 r3.0 r-1.1 r2.4 r-0.3 r-1.7 II r4.9 r6.2 r1.3 r2.9 r0.0 r-1.9 III r5.1 r6.4 r1.2 r2.7 r-0.3 r-2.3 IV r5.3 r6.5 1.1 r2.3 r-0.9 r-2.8 ANNUAL r4.7 r5.5 r0.8 r2.4 r-0.5 r-2.2 1997 I r4.8 r7.8 2.9 r3.1 0.2 r-1.6 II r4.8 r6.8 1.9 2.5 0.1 r-2.2 III r6.1 r7.9 1.7 2.4 0.2 r-3.4 IV 7.0 9.6 2.4 4.1 2.1 -2.7 ANNUAL 5.7 8.0 2.2 3.1 0.8 -2.5 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 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 1995 I r102.8 r105.8 103.0 107.0 99.5 104.1 II r104.2 105.6 101.4 108.3 99.9 r103.9 III r105.1 r105.6 100.5 109.5 100.4 r104.2 IV 105.3 105.0 99.7 110.7 r101.0 r105.2 ANNUAL 104.4 105.5 101.1 108.9 100.3 104.4 1996 I r105.9 r104.6 98.8 r111.8 101.1 r105.5 II r106.6 r105.4 r98.9 r112.9 r101.3 r105.9 III r107.9 r106.4 r98.6 r114.1 r101.6 r105.7 IV r109.0 r107.6 r98.7 r115.3 r101.9 r105.7 ANNUAL r107.2 r106.0 r98.9 r113.4 r101.4 r105.7 1997 I r109.8 r108.3 r98.6 r116.2 r102.1 r105.8 II r110.1 r108.6 r98.6 r117.2 r102.7 r106.4 III r111.4 r109.0 r97.8 r118.7 r103.4 r106.5 IV 111.8 110.5 98.9 119.7 103.8 107.1 ANNUAL 110.7 109.1 98.5 117.9 103.0 106.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r1.1 r1.3 0.1 1.7 r-1.1 r0.6 II r5.6 r-0.8 r-6.1 r4.8 1.6 r-0.8 III r3.4 r-0.3 r-3.6 r4.5 2.3 r1.0 IV r0.8 r-2.3 r-3.1 r4.7 r2.2 r3.8 ANNUAL 2.3 1.2 -1.1 3.2 0.4 0.9 1996 I r2.5 r-1.2 r-3.6 r4.0 r0.6 r1.4 II r2.6 r3.1 r0.4 r4.1 r0.7 r1.5 III r4.8 r3.8 -0.9 r4.0 r1.3 r-0.7 IV r4.3 r4.6 r0.3 4.3 r1.0 r0.1 ANNUAL r2.8 r0.5 r-2.2 r4.1 r1.1 r1.3 1997 I r3.0 r2.5 r-0.5 r3.3 1.0 r0.3 II r1.1 r1.2 r0.1 3.4 2.3 r2.3 III r4.8 r1.5 r-3.1 5.0 2.9 r0.2 IV 1.2 5.6 4.4 3.6 1.5 2.4 ANNUAL 3.2 2.9 -0.3 3.9 1.6 0.7 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I r1.3 r3.0 1.6 2.1 -0.7 r0.8 II r1.9 1.3 -0.5 3.0 0.0 1.2 III r3.0 r1.1 -1.8 3.4 0.7 r0.4 IV 2.7 -0.5 r-3.2 3.9 1.2 1.1 ANNUAL 2.3 1.2 -1.1 3.2 0.4 0.9 1996 I r3.1 r-1.1 r-4.1 r4.5 r1.7 r1.4 II r2.3 r-0.2 r-2.5 r4.3 r1.4 r1.9 III r2.7 r0.8 r-1.8 r4.2 r1.2 r1.5 IV r3.5 r2.5 r-1.0 r4.1 r0.9 r0.5 ANNUAL r2.8 r0.5 r-2.2 r4.1 r1.1 r1.3 1997 I r3.7 r3.5 r-0.2 3.9 r1.0 r0.3 II r3.3 r3.0 -0.3 3.8 1.4 r0.5 III 3.3 2.4 r-0.8 4.0 1.8 0.7 IV 2.5 2.7 0.2 3.8 1.9 1.3 ANNUAL 3.2 2.9 -0.3 3.9 1.6 0.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: 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 1995 I r102.9 112.3 r109.2 r105.1 r97.7 102.2 99.8 101.6 135.2 104.6 II r103.4 112.9 r109.2 r105.9 r97.6 102.4 100.1 101.8 134.9 104.8 III 104.7 114.9 109.7 106.6 97.8 101.9 99.0 101.1 145.5 105.1 IV r105.4 115.9 r110.0 r107.5 r98.0 102.0 99.1 101.2 147.3 105.4 ANNUAL 104.1 114.0 109.5 106.3 97.9 102.1 99.5 101.4 140.8 105.0 1996 I r106.0 116.5 r109.9 r108.3 r98.0 102.1 99.2 101.4 152.5 106.0 II r107.1 118.7 r110.8 r109.7 r98.4 102.4 98.4 101.4 154.7 106.2 III r107.8 120.0 r111.3 r110.7 r98.6 102.7 98.1 101.5 156.0 106.4 IV r108.3 121.5 r112.1 r111.5 r98.6 102.9 97.4 101.5 156.4 106.5 ANNUAL r107.3 119.2 r111.0 r110.1 r98.4 102.6 98.3 101.4 154.9 106.3 1997 I r108.8 123.3 r113.3 r112.6 r98.9 103.5 97.0 101.8 157.9 106.9 II r109.4 124.7 r114.0 r113.5 r99.5 103.7 97.1 102.0 159.1 107.2 III r111.1 127.1 r114.4 r114.7 r100.0 103.2 r96.6 101.5 r164.5 107.2 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I r-3.3 0.0 r3.4 r2.1 r-0.6 5.6 2.8 4.9 -18.1 1.8 II r2.0 2.0 r0.0 3.0 -0.1 1.0 1.0 1.0 -0.8 0.8 III r5.2 7.2 r1.9 r2.9 r0.7 -2.2 -4.2 -2.7 35.4 1.3 IV r2.8 3.8 r1.0 r3.3 r0.8 0.4 0.4 0.4 4.9 1.0 ANNUAL 0.8 3.7 2.9 2.3 -0.5 1.5 -0.2 1.1 4.7 1.5 1996 I r2.4 2.0 r-0.3 r3.1 r-0.2 0.7 0.6 0.7 15.0 2.4 II r4.1 7.6 r3.4 r5.1 r1.7 1.1 -3.1 0.0 5.8 0.7 III r2.7 4.3 r1.6 r3.8 r1.1 1.1 -1.4 0.5 3.5 0.9 IV r2.1 5.2 r3.1 r3.0 r-0.3 0.9 -2.8 0.0 1.0 0.1 ANNUAL r3.1 4.5 r1.4 r3.5 r0.6 0.4 -1.2 0.0 10.0 1.2 1997 I r1.7 6.1 r4.3 r4.0 r1.6 2.3 -1.8 1.3 3.8 1.6 II r2.4 4.7 r2.3 r3.2 r2.1 0.8 0.5 0.7 3.2 1.1 III r6.3 r7.8 r1.5 r4.3 r2.2 r-1.9 r-1.9 r-1.9 r14.3 r0.2 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I r-0.7 3.9 r4.7 r1.4 r-1.4 2.2 -1.7 1.2 6.6 1.8 II r0.3 3.5 r3.1 r2.1 r-0.9 1.8 1.3 1.7 1.9 1.7 III 1.5 4.3 2.7 2.5 -0.1 1.0 -0.5 0.6 6.7 1.3 IV r1.6 3.2 r1.6 r2.8 r0.2 1.2 0.0 0.9 3.6 1.2 ANNUAL 0.8 3.7 2.9 2.3 -0.5 1.5 -0.2 1.1 4.7 1.5 1996 I r3.1 3.7 r0.6 r3.1 r0.3 0.0 -0.6 -0.2 12.8 1.4 II r3.6 5.1 r1.5 r3.6 r0.7 0.0 -1.6 -0.4 14.6 1.3 III r3.0 4.4 r1.4 r3.8 r0.8 0.8 -0.9 0.4 7.2 1.2 IV r2.8 4.8 r1.9 r3.8 r0.6 1.0 -1.7 0.3 6.2 1.0 ANNUAL r3.1 4.5 r1.4 r3.5 r0.6 0.4 -1.2 0.0 10.0 1.2 1997 I r2.6 5.8 r3.1 r4.0 r1.0 1.3 -2.3 0.4 3.5 0.8 II 2.2 5.1 2.8 3.5 1.1 1.3 -1.4 0.6 2.9 0.9 III r3.1 r5.9 r2.8 r3.6 r1.4 0.5 r-1.5 0.0 r5.5 0.7 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 r=revised Source: Bureau of Labor Statistics Appendix table 1. 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 1992 I 98.9 98.4 99.5 98.6 99.7 99.7 II 99.7 99.8 100.2 99.7 100.0 100.0 III 100.3 100.3 100.0 100.6 100.2 100.3 IV 101.0 101.5 100.4 101.0 99.7 100.0 ANNUAL 100.0 100.0 100.0 100.0 100.0 100.0 1993 I 101.9 102.8 100.8 101.4 99.4 99.5 II 101.9 103.2 101.2 102.5 99.7 100.5 III 101.9 103.5 101.5 103.3 100.1 101.4 IV 102.8 104.9 102.1 104.3 100.2 101.5 ANNUAL 102.2 103.6 101.4 102.9 99.9 100.7 1994 I 103.8 106.2 102.4 105.1 100.5 101.3 II 104.9 108.1 103.1 105.3 100.0 100.4 III 105.1 109.3 104.0 105.9 99.8 100.8 IV 105.7 111.1 105.1 106.6 99.8 100.9 ANNUAL 104.7 108.7 103.8 105.6 100.0 100.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 4.0 1.4 -2.5 4.5 1.8 0.6 II 3.4 5.9 2.5 4.5 1.3 1.1 III 2.5 1.8 -0.7 3.6 0.5 1.1 IV 2.9 4.8 1.8 1.7 -1.8 -1.2 ANNUAL 3.8 3.2 -0.6 4.5 1.4 0.7 1993 I 3.6 5.3 1.6 1.8 -1.2 -1.8 II 0.1 1.6 1.5 4.1 1.1 4.0 III 0.0 1.2 1.2 3.5 1.6 3.5 IV 3.3 5.5 2.2 3.6 0.4 0.4 ANNUAL 2.2 3.6 1.4 2.9 -0.1 0.7 1994 I 4.0 5.2 1.2 3.4 1.3 -0.6 II 4.3 7.4 3.0 0.5 -1.9 -3.7 III 1.0 4.4 3.3 2.6 -1.1 1.5 IV 2.3 6.7 4.4 2.7 0.1 0.4 ANNUAL 2.5 4.9 2.4 2.6 0.0 0.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 4.1 2.8 -1.2 4.9 1.9 0.7 II 4.1 3.9 -0.2 4.7 1.5 0.5 III 3.0 2.5 -0.5 4.2 1.1 1.2 IV 3.2 3.5 0.3 3.6 0.4 0.4 ANNUAL 3.8 3.2 -0.6 4.5 1.4 0.7 1993 I 3.1 4.4 1.3 2.9 -0.3 -0.2 II 2.3 3.3 1.1 2.8 -0.3 0.5 III 1.6 3.2 1.5 2.7 -0.1 1.1 IV 1.7 3.4 1.6 3.2 0.5 1.5 ANNUAL 2.2 3.6 1.4 2.9 -0.1 0.7 1994 I 1.8 3.4 1.5 3.6 1.1 1.8 II 2.9 4.8 1.9 2.7 0.3 -0.1 III 3.1 5.6 2.4 2.5 -0.3 -0.6 IV 2.9 5.9 3.0 2.3 -0.4 -0.6 ANNUAL 2.5 4.9 2.4 2.6 0.0 0.1 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 Source: Bureau of Labor Statistics Appendix table 2. 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 1992 I 98.1 97.8 99.7 98.6 99.7 100.5 II 99.9 100.0 100.1 99.7 100.0 99.9 III 100.4 100.3 99.9 100.6 100.2 100.2 IV 101.5 101.9 100.4 100.9 99.6 99.4 ANNUAL 100.0 100.0 100.0 100.0 100.0 100.0 1993 I 102.8 103.6 100.8 101.5 99.5 98.8 II 103.3 104.4 101.0 102.7 99.9 99.4 III 102.7 104.5 101.7 103.5 100.3 100.8 IV 104.9 107.5 102.5 104.6 100.5 99.8 ANNUAL 103.5 105.0 101.5 103.1 100.1 99.7 1994 I 106.3 109.6 103.1 105.2 100.6 99.0 II 107.7 112.0 104.0 105.3 100.0 97.7 III 108.6 114.2 105.2 105.8 99.6 97.5 IV 109.3 116.6 106.7 106.4 99.6 97.4 ANNUAL 107.8 113.1 105.0 105.5 99.9 97.9 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 5.1 2.1 -2.9 4.9 2.1 -0.2 II 7.4 9.0 1.5 4.5 1.4 -2.6 III 2.1 1.3 -0.8 3.7 0.6 1.5 IV 4.6 6.6 1.9 1.2 -2.3 -3.2 ANNUAL 5.9 4.3 -1.4 4.8 1.7 -1.0 1993 I 5.1 6.9 1.7 2.5 -0.5 -2.5 II 2.1 2.9 0.8 4.8 1.8 2.6 III -2.3 0.5 2.9 3.3 1.4 5.7 IV 8.6 11.9 3.1 4.1 0.8 -4.1 ANNUAL 3.5 5.0 1.5 3.1 0.1 -0.3 1994 I 5.5 8.1 2.4 2.5 0.4 -2.9 II 5.5 9.2 3.5 0.0 -2.3 -5.1 III 3.2 8.0 4.7 2.1 -1.6 -1.1 IV 2.7 8.6 5.8 2.5 0.0 -0.2 ANNUAL 4.2 7.7 3.4 2.3 -0.3 -1.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 5.9 3.7 -2.1 5.2 2.3 -0.6 II 7.0 5.4 -1.5 5.1 2.0 -1.8 III 5.0 3.6 -1.4 4.4 1.3 -0.6 IV 4.8 4.7 -0.1 3.6 0.4 -1.2 ANNUAL 5.9 4.3 -1.4 4.8 1.7 -1.0 1993 I 4.8 5.9 1.1 3.0 -0.2 -1.7 II 3.5 4.4 0.9 3.0 -0.1 -0.4 III 2.3 4.2 1.8 2.9 0.1 0.6 IV 3.3 5.5 2.1 3.7 0.9 0.3 ANNUAL 3.5 5.0 1.5 3.1 0.1 -0.3 1994 I 3.4 5.8 2.3 3.7 1.1 0.2 II 4.2 7.3 3.0 2.5 0.1 -1.7 III 5.7 9.3 3.4 2.2 -0.7 -3.3 IV 4.2 8.5 4.1 1.8 -0.9 -2.4 ANNUAL 4.2 7.7 3.4 2.3 -0.3 -1.8 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 Source: Bureau of Labor Statistics Appendix table 3. 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 1992 I 99.6 98.9 99.3 98.5 99.6 98.9 II 99.5 99.7 100.2 99.7 100.0 100.2 III 100.3 100.3 100.1 100.5 100.1 100.3 IV 100.5 101.1 100.5 101.2 99.9 100.6 ANNUAL 100.0 100.0 100.0 100.0 100.0 100.0 1993 I 101.0 101.8 100.9 101.3 99.3 100.4 II 100.4 101.8 101.5 102.1 99.4 101.8 III 101.1 102.4 101.2 103.0 99.7 101.8 IV 100.7 102.1 101.5 103.7 99.6 103.0 ANNUAL 100.8 102.1 101.2 102.6 99.6 101.7 1994 I 101.4 102.8 101.4 104.8 100.2 103.3 II 102.3 104.2 101.9 105.1 99.9 102.7 III 102.0 104.4 102.3 105.9 99.7 103.8 IV 102.5 105.5 102.9 106.6 99.7 104.0 ANNUAL 102.0 104.2 102.2 105.5 99.9 103.5 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1992 I 3.4 1.4 -1.9 4.1 1.3 0.6 II -0.6 3.2 3.8 4.6 1.5 5.2 III 3.1 2.6 -0.5 3.6 0.5 0.5 IV 1.2 2.9 1.7 2.5 -1.0 1.3 ANNUAL 1.7 2.3 0.6 4.3 1.2 2.5 1993 I 1.7 3.1 1.5 0.6 -2.3 -1.0 II -2.3 0.0 2.4 3.2 0.3 5.7 III 3.2 2.2 -0.9 3.4 1.5 0.2 IV -1.9 -1.1 0.9 2.6 -0.6 4.6 ANNUAL 0.8 2.1 1.2 2.6 -0.4 1.7 1994 I 3.1 2.6 -0.4 4.5 2.5 1.4 II 3.4 5.7 2.2 1.1 -1.3 -2.3 III -1.0 0.5 1.6 3.1 -0.6 4.2 IV 1.9 4.4 2.5 2.6 0.1 0.7 ANNUAL 1.2 2.1 1.0 2.9 0.3 1.7 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1992 I 2.2 2.2 -0.1 4.5 1.6 2.2 II 1.2 2.8 1.6 4.3 1.2 3.0 III 1.2 1.9 0.7 4.1 1.0 2.9 IV 1.8 2.5 0.8 3.7 0.6 1.9 ANNUAL 1.7 2.3 0.6 4.3 1.2 2.5 1993 I 1.3 3.0 1.6 2.8 -0.3 1.5 II 0.9 2.2 1.3 2.5 -0.6 1.6 III 0.9 2.1 1.2 2.4 -0.4 1.5 IV 0.1 1.1 0.9 2.5 -0.3 2.3 ANNUAL 0.8 2.1 1.2 2.6 -0.4 1.7 1994 I 0.5 0.9 0.5 3.4 0.9 3.0 II 1.9 2.3 0.4 2.9 0.5 1.0 III 0.9 1.9 1.1 2.8 0.0 2.0 IV 1.8 3.3 1.5 2.8 0.1 1.0 ANNUAL 1.2 2.1 1.0 2.9 0.3 1.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. February 10, 1998 Source: Bureau of Labor Statistics 3 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 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. 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) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (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 capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.