Internet address: http://stats.bls.gov/lprhome.htm USDL 98-193 Historical, TRANSMISSION OF THIS technical information: (202) 606-5606 MATERIAL IS EMBARGOED Current data: (202) 606-7828 UNTIL 10:00 A.M. EDT Media contact: (202) 606-5902 THURSDAY, MAY 7, 1998. PRODUCTIVITY AND COSTS First Quarter 1998 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the first quarter of 1998. The seasonally-adjusted annual rates of productivity change in the first quarter were: 0.8 percent in the business sector and 0.2 percent in the nonfarm business sector. These small productivity gains resulted from strong growth in both output and hours of all persons. Output grew at a 5.3 percent annual rate in both sectors. Hours at work increased 4.4 percent in the business sector and 5.0 percent in the nonfarm business sector. First-quarter measures are summarized in table A and appear in detail in tables 1 through 5. In manufacturing, productivity changes in the first quarter were: 0.5 percent in manufacturing, 0.4 percent in durable goods manufacturing, and 0.6 percent in nondurable goods manufacturing. Productivity growth in manufacturing in the first quarter of 1998 reflected a slower rate of increase in both output (1.8 percent) and hours of all persons (1.3 percent), at seasonally-adjusted annual rates, than in the fourth quarter of 1997. 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 The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. ------------------------------------------------------------------------ Table A. Productivity and costs: Preliminary first-quarter 1998 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 0.8 5.3 4.4 4.2 3.7 3.4 Nonfarm business 0.2 5.3 5.0 4.1 3.5 3.8 Manufacturing 0.5 1.8 1.3 2.8 2.3 2.3 Durable 0.4 2.3 1.9 1.7 1.2 1.3 Nondurable 0.6 1.1 0.4 4.5 4.0 3.9 Percent change from same quarter a year ago Business 2.0 4.4 2.3 4.3 2.8 2.2 Nonfarm business 1.9 4.4 2.5 4.1 2.6 2.2 Manufacturing 4.1 5.2 1.1 3.7 2.2 -0.3 Durable 6.0 7.7 1.6 3.4 1.9 -2.5 Nondurable 1.9 2.3 0.3 4.2 2.7 2.2 ----------------------------------------------------------------------- Business From the fourth quarter of 1997 to the first quarter of 1998, business sector productivity increased at a 0.8 percent annual rate. Output and hours advanced 5.3 percent and 4.4 percent, respectively. During the fourth quarter of 1997, output had increased 4.8 percent, and hours of all persons engaged in the sector increased 3.2 percent (seasonally-adjusted annual rates); productivity rose 1.6 percent (table 1). Hourly compensation increased 4.2 percent during the first quarter of 1998. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Unit labor costs, which reflect changes in hourly compensation and productivity, increased at a 3.4 percent rate during the first quarter. This increase in unit labor costs was less than the 3.9 percent rise in the fourth quarter. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.7 percent annual rate in the first quarter. The first-quarter increase in real hourly compensation was the largest recorded since a 5.0 percent rise was posted in the first quarter of 1992. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, rose just 0.3 percent in the first quarter. In the fourth quarter of 1997, the price of business output increased at an annual rate of 0.9 percent. Nonfarm business Productivity edged up 0.2 percent in the nonfarm business sector in the first quarter, as output increased 5.3 percent and hours of all persons went up 5.0 percent. During the fourth quarter of 1997, productivity had risen 1.4 percent in this sector, reflecting gains of 4.9 percent in output and 3.5 percent in hours (table 2). The first-quarter increase in productivity was the smallest since the third quarter of 1996, when output per hour declined 0.7 percent. Hourly compensation increased at a 4.1 percent annual rate in the first quarter. When the rise in the CPI-U was taken into account, real hourly compensation rose 3.5 percent in the first quarter of 1998; it had increased 3.1 percent in the fourth quarter of 1997. Increases in both quarters were larger than at any time since the first quarter of 1992, when real hourly compensation rose 4.8 percent. Unit labor costs rose 3.8 percent in the first quarter, the same as in the previous quarter. The implicit price deflator for nonfarm business output rose 0.7 percent in the first quarter, compared with a 1.0 percent rise one quarter earlier. Manufacturing Productivity increased at a 0.5 percent seasonally-adjusted annual rate in manufacturing in the first quarter of 1998, as output rose 1.8 percent and hours of all persons increased 1.3 percent. This was the slowest growth in manufacturing output per hour since it fell during the second and third quarters of 1993. In contrast, productivity increased at a rate of 4.3 percent in the fourth quarter of 1997, output grew 8.2 percent, and hours grew 3.8 percent (table 3). The durable and nondurable subsectors of manufacturing had similar growth rates in productivity in the first quarter, 0.4 and 0.6 percent, respectively. In durable goods manufacturing, output growth slowed to a 2.3 percent annual rate in the first quarter from 10.3 percent one quarter earlier. Hours worked in durable goods industries rose 1.9 percent in the first quarter of 1998. Nondurable goods manufacturing output rose 1.1 percent in the first quarter, and hours edged up 0.4 percent (tables 4 and 5). Hourly compensation of all manufacturing workers rose 2.8 percent during the first quarter after increasing at a rate of 6.1 percent per year in the fourth quarter of 1997. Real hourly compensation in the manufacturing sector rose 2.3 percent in the first quarter of 1998; it had posted a 4.0 percent gain during the previous quarter. Unit labor costs in manufacturing grew 2.3 percent in the first quarter of 1998, as unit labor costs of durable goods producers rose 1.3 percent, and those of nondurable goods producers grew at a 3.9 percent annual rate. Unit labor costs in total manufacturing recorded their largest increase since the third quarter of 1993, when they rose 3.6 percent. Fourth-quarter and annual measures for nonfinancial corporations Fourth-quarter and annual 1997 measures of productivity and costs also were announced today for the nonfinancial corporate sector (tables B, C, and 6). Output per all-employee hour rose 0.6 percent from the third to the fourth quarter of 1997 as output increased 4.9 percent and employee hours rose 4.3 percent. In the third quarter, productivity had increased 6.3 percent as output jumped 7.8 percent and all-employee hours rose 1.5 percent (seasonally adjusted annual rates). The sector includes all corporations doing business in the United States, except those classified as depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. --------------------------------------------------------------------------- Table B. Nonfinancial corporations: Fourth-quarter 1997 productivity and cost measures (Seasonally adjusted annual rates) --------------------------------------------------------------------------- Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price Period tivity Output Hours sation sation costs profits deflator --------------------------------------------------------------------------- Percent change from preceding quarter 1997 IV 0.6 4.9 4.3 4.7 2.6 4.1 -11.0 0.4 Percent change from same quarter a year ago 1997 IV 2.7 5.9 3.1 4.0 2.1 1.3 2.2 0.8 --------------------------------------------------------------------------- Hourly compensation increased 4.7 percent in the fourth quarter, and real hourly compensation rose 2.6 percent. Unit labor costs increased 4.1 percent in the fourth quarter, the largest increase since the first quarter of 1995 when they rose 5.6 percent. In the third quarter of 1997, unit labor costs had declined 1.9 percent. Total unit costs rose 2.4 during the fourth quarter after having dropped 1.9 percent during the third quarter. In the fourth quarter, unit profits fell 11.0 percent. Unit profits had risen 14.3 percent during the third quarter of 1997. The implicit price deflator for nonfinancial corporate output edged up 0.4 percent in the fourth quarter. Productivity grew 2.6 percent in nonfinancial corporations in calendar year 1997. In 1996, productivity had grown 3.1 percent. Output grew faster in 1997, 5.7 percent, than it had one year earlier, when it grew 4.5 percent. Hours of employees in nonfinancial corporations grew 2.9 percent during 1997, compared with 1.4 percent one year earlier. ---------------------------------------------------------------------- Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1988-1997 ---------------------------------------------------------------------- Measure 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Productivity 1.7 -1.4 0.7 1.5 2.6 1.2 2.1 0.8 3.1 2.6 Output 5.3 1.6 1.0 -1.3 3.0 3.4 6.3 3.7 4.5 5.7 Hours 3.5 3.0 0.3 -2.8 0.4 2.2 4.1 2.9 1.4 2.9 Hourly compensation 4.0 2.5 5.2 4.6 4.6 2.1 1.8 2.3 3.5 3.8 Real hourly -0.2 -2.2 -0.2 0.3 1.5 -0.9 -0.8 -0.5 0.6 1.5 compensation Unit labor costs 2.3 3.9 4.4 3.0 2.0 0.9 -0.3 1.5 0.4 1.1 Unit nonlabor costs 2.5 7.3 3.0 3.9 -2.9 -0.6 0.3 -0.2 -1.2 -1.7 Total unit cost 2.3 4.8 4.0 3.2 0.7 0.5 -0.2 1.1 0.0 0.4 Unit profits 8.1 -7.4 -1.5 -0.8 6.5 13.3 18.7 4.7 10.0 3.5 Implicit price 2.9 3.5 3.5 2.9 1.2 1.7 1.8 1.5 1.2 0.8 deflator ---------------------------------------------------------------------- The 1997 increase in hourly compensation was 3.8 percent, about the same as the 3.5 percent increase in 1996. Real hourly compensation rose 1.5 percent in 1997. It had increased 0.6 percent in 1996, after having fallen in the three previous years. Total unit costs rose 0.4 percent in 1997, reflecting an increase of 1.1 percent in unit labor costs and a 1.7 percent drop in unit nonlabor costs. Unit profits for the year rose 3.5 percent; in 1996, they had posted a 10.0 percent gain. REVISED MEASURES Current and previous measures for the fourth quarter of 1997 for the business, nonfarm business, and manufacturing sectors are compared in table D. Some of the quarterly movements differ slightly from those reported on March 10, based on information then available. --------------------------------------------------------------------- Table D. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate --------------------------------------------------------------------- Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs --------------------------------------------------------------------- Fourth quarter 1997 Business: Previous 1.8 5.0 3.2 5.5 3.4 3.7 Current 1.6 4.8 3.2 5.6 3.4 3.9 Nonfarm business: Previous 1.6 5.1 3.5 5.2 3.1 3.5 Current 1.4 4.9 3.5 5.2 3.1 3.8 Manufacturing: Previous 4.3 8.2 3.8 6.1 3.9 1.8 Current 4.3 8.2 3.8 6.1 4.0 1.8 --------------------------------------------------------------------- Bureau of Labor Statistics measures of output for the manufacturing sectors have been revised back to 1949. These revisions reflect revised price deflators estimated by the Bureau of Economic Analysis of the U.S. Department of Commerce. The revisions also reflect revised shipments data from the Bureau of the Census of the Commerce Department for the years 1988 to 1992. Appendix tables 1 to 3 show the annual indexes of productivity and costs for the total, durable, and nondurable manufacturing sectors, respectively, for the years 1949-1997. The measures of manufacturing output used in the production of quarterly labor productivity and costs measures presented in this release are consistent with annual manufacturing output data released May 6, 1998, in "Multifactor Productivity Trends, 1995 and 1996" (USDL 98-187). Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Thursday, June 4, 1998. First-quarter measures for nonfinancial corporations and revised 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 1996 I 102.0 111.4 109.2 109.3 98.9 107.2 110.5 108.4 II 102.8 113.2 110.1 110.8 99.3 107.8 111.0 108.9 III 102.6 113.5 110.6 111.8 99.6 108.9 110.7 109.6 IV 103.1 115.0 111.5 112.7 99.6 109.3 111.3 110.0 ANNUAL 102.6 113.3 110.4 111.1 99.3 108.3 110.9 109.2 1997 I 103.5 116.6 112.7 113.8 100.1 110.0 111.6 110.6 II 104.1 117.8 113.1 114.7 100.5 110.2 112.4 111.0 III 105.0 118.8 113.1 115.9 101.1 110.4 112.9 111.3 IV r105.4 r120.2 114.0 117.5 101.9 r111.5 r111.6 111.5 ANNUAL 104.5 r118.3 113.3 115.4 100.9 110.5 r112.1 111.1 1998 I 105.6 121.7 115.3 118.7 102.8 112.4 110.2 111.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1996 I 3.1 2.8 -0.3 3.7 0.6 0.7 5.1 2.3 II 3.1 6.6 3.4 5.5 1.7 2.3 1.8 2.1 III -0.7 0.9 1.6 3.6 1.2 4.4 -1.1 2.4 IV 2.0 5.4 3.3 3.4 0.0 1.4 2.2 1.7 ANNUAL 2.0 3.5 1.4 3.9 0.9 1.8 2.0 1.9 1997 I 1.6 5.9 4.2 4.1 1.9 2.5 1.2 2.0 II 2.2 3.9 1.6 3.1 1.8 0.9 2.7 1.5 III 3.5 3.6 0.1 4.2 2.2 0.7 1.8 1.1 IV r1.6 r4.8 3.2 r5.6 3.4 r3.9 r-4.3 0.9 ANNUAL r1.8 4.5 2.6 3.9 1.6 2.0 r1.1 1.7 1998 I 0.8 5.3 4.4 4.2 3.7 3.4 -4.9 0.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1996 I 1.9 2.5 0.6 3.5 0.7 1.5 2.0 1.7 II 2.5 4.2 1.7 4.0 1.1 1.5 2.4 1.8 III 2.0 3.3 1.3 4.2 1.2 2.1 1.8 2.0 IV 1.8 3.9 2.0 4.0 0.9 2.2 2.0 2.1 ANNUAL 2.0 3.5 1.4 3.9 0.9 1.8 2.0 1.9 1997 I 1.5 4.7 3.1 4.1 1.2 2.6 1.0 2.0 II 1.3 4.0 2.7 3.6 1.2 2.3 1.2 1.9 III 2.3 4.7 2.3 3.7 1.5 1.3 2.0 1.6 IV r2.2 r4.5 2.3 r4.3 2.3 r2.0 r0.3 1.4 ANNUAL r1.8 4.5 2.6 3.9 1.6 2.0 r1.1 1.7 1998 I 2.0 4.4 2.3 4.3 2.8 2.2 -1.2 1.0 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 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 1996 I 102.1 111.7 109.4 109.1 98.7 106.9 111.0 108.4 II 102.8 113.5 110.4 110.5 99.1 107.5 111.3 108.8 III 102.6 113.8 110.9 111.4 99.3 108.6 110.9 109.4 IV 103.1 115.3 111.9 112.3 99.3 109.0 111.4 109.8 ANNUAL 102.6 113.6 110.7 110.8 99.1 108.0 111.2 109.1 1997 I 103.4 116.9 113.1 113.5 99.8 109.8 111.7 110.5 II 104.0 118.0 113.5 114.4 100.2 110.0 112.4 110.9 III 104.9 119.1 113.5 115.5 100.7 110.1 113.2 111.2 IV 105.3 r120.5 114.5 117.0 101.4 r111.1 r112.1 111.5 ANNUAL 104.3 r118.6 113.7 115.0 100.6 r110.3 r112.3 111.0 1998 I 105.3 122.1 115.9 118.1 102.3 112.2 110.7 111.7 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1996 I 2.8 2.6 -0.3 3.9 0.7 1.0 4.6 2.3 II 2.9 6.8 3.8 5.1 1.3 2.2 0.9 1.7 III -0.7 1.0 1.7 3.3 0.8 4.0 -1.4 2.0 IV 1.9 5.4 3.5 3.4 0.0 1.5 2.0 1.7 ANNUAL 1.9 3.5 1.6 3.8 0.8 1.9 1.4 1.7 1997 I 1.1 5.6 4.5 4.3 2.0 3.1 1.1 2.4 II 2.3 3.8 1.5 3.2 1.8 0.9 2.3 1.4 III 3.6 3.7 0.1 3.8 1.8 0.2 2.9 1.2 IV r1.4 r4.9 3.5 5.2 3.1 r3.8 r-3.9 1.0 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.1 1.7 1998 I 0.2 5.3 5.0 4.1 3.5 3.8 -4.7 0.7 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1996 I 1.8 2.6 0.7 3.5 0.6 1.6 1.3 1.5 II 2.3 4.2 1.8 3.9 1.0 1.6 1.5 1.6 III 1.8 3.3 1.5 4.0 1.0 2.1 1.0 1.7 IV 1.7 3.9 2.2 3.9 0.7 2.2 1.5 1.9 ANNUAL 1.9 3.5 1.6 3.8 0.8 1.9 1.4 1.7 1997 I 1.3 4.7 3.4 4.0 1.1 2.7 0.6 1.9 II 1.1 4.0 2.8 3.5 1.2 2.4 1.0 1.9 III 2.2 4.7 2.4 3.7 1.4 1.4 2.1 1.7 IV 2.1 r4.5 2.4 4.1 2.2 r2.0 r0.6 1.5 ANNUAL 1.7 4.5 2.7 3.8 1.5 2.1 1.1 1.7 1998 I 1.9 4.4 2.5 4.1 2.6 2.2 -0.9 1.1 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 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 1996 I r112.7 r115.8 102.7 110.8 100.2 r98.3 II r114.1 r118.3 103.7 112.0 100.4 r98.2 III r115.8 r119.9 103.6 112.9 100.6 r97.5 IV r116.9 r121.2 103.7 113.5 100.3 r97.1 ANNUAL r114.7 r118.8 103.6 112.1 100.3 r97.8 1997 I r117.8 r123.0 104.4 114.7 100.8 r97.3 II r118.9 r124.5 104.7 115.4 101.1 r97.1 III r121.2 r126.4 104.3 116.4 101.5 r96.0 IV r122.5 r128.9 105.2 118.1 102.5 r96.5 ANNUAL r120.0 r125.7 104.7 116.1 101.5 r96.7 1998 I 122.6 129.4 105.6 119.0 103.1 97.0 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1996 I r5.5 r2.6 -2.7 2.4 -0.7 r-2.9 II r5.0 r9.0 3.8 4.7 0.9 r-0.4 III r5.9 r5.4 -0.4 3.1 0.7 r-2.6 IV r3.9 r4.5 0.6 1.9 -1.4 r-1.9 ANNUAL r4.7 r4.2 -0.5 3.2 0.2 r-1.4 1997 I 3.3 6.2 2.8 4.4 2.2 1.0 II 3.8 4.9 1.1 2.6 1.3 -1.1 III 8.0 6.1 -1.7 3.4 1.5 -4.2 IV 4.3 8.2 3.8 6.1 r4.0 1.8 ANNUAL r4.6 r5.8 1.1 3.5 1.2 r-1.1 1998 I 0.5 1.8 1.3 2.8 2.3 2.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1996 I r4.7 r2.2 -2.4 3.3 0.5 r-1.3 II r4.6 r4.3 -0.3 3.5 0.7 r-1.0 III r4.8 r4.7 0.0 3.4 0.4 r-1.4 IV r5.1 r5.4 0.3 3.0 -0.1 r-1.9 ANNUAL r4.7 r4.2 -0.5 3.2 0.2 r-1.4 1997 I r4.5 r6.3 1.7 3.5 0.6 r-1.0 II r4.2 r5.3 1.0 3.0 0.7 r-1.1 III 4.7 r5.4 0.7 3.1 0.9 r-1.6 IV 4.8 6.3 1.4 4.1 2.2 r-0.6 ANNUAL r4.6 r5.8 1.1 3.5 1.2 r-1.1 1998 I 4.1 5.2 1.1 3.7 2.2 -0.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 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 1996 I r119.9 r126.8 105.7 109.7 99.2 r91.5 II r122.1 r131.1 107.3 111.0 99.5 r90.9 III r124.2 r133.2 107.3 111.7 99.5 r89.9 IV r125.3 r134.6 107.5 111.8 98.8 r89.3 ANNUAL r122.7 r131.4 107.1 110.9 99.1 r90.4 1997 I r126.5 r137.7 108.8 113.1 99.4 r89.4 II r128.5 r140.4 109.3 113.7 99.6 r88.5 III r131.9 r143.8 109.1 114.4 99.7 r86.7 IV r134.0 r147.4 110.0 116.5 101.0 r86.9 ANNUAL r130.1 r142.3 109.4 114.3 99.9 r87.9 1998 I 134.1 148.3 110.5 117.0 101.3 87.2 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1996 I r8.1 r5.9 -2.1 1.4 -1.7 r-6.2 II r7.5 r14.2 6.2 4.7 0.9 r-2.6 III r6.9 r6.8 -0.1 2.6 0.2 r-4.0 IV r3.5 r4.3 0.7 0.5 -2.8 r-2.9 ANNUAL r6.3 r7.1 0.8 2.4 -0.5 r-3.7 1997 I 4.1 9.4 5.1 4.8 2.5 0.6 II 6.2 8.1 1.8 2.1 0.7 -3.9 III 11.0 10.2 -0.8 2.4 0.4 -7.8 IV r6.7 r10.3 3.4 r7.6 r5.4 r0.9 ANNUAL r6.0 r8.3 2.2 3.1 0.8 r-2.8 1998 I 0.4 2.3 1.9 1.7 1.2 1.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1996 I r6.0 r4.8 -1.1 2.4 -0.3 r-3.3 II r6.7 r8.0 1.3 2.9 0.0 r-3.6 III r6.7 r8.0 1.2 2.7 -0.3 r-3.8 IV r6.5 r7.7 1.1 2.3 -0.8 r-3.9 ANNUAL r6.3 r7.1 0.8 2.4 -0.5 r-3.7 1997 I r5.5 r8.6 2.9 3.1 0.2 r-2.2 II r5.2 r7.1 1.9 2.5 0.1 r-2.6 III r6.2 r8.0 1.7 2.4 0.2 r-3.6 IV r7.0 r9.5 2.4 4.2 2.2 -2.6 ANNUAL r6.0 r8.3 2.2 3.1 0.8 r-2.8 1998 I 6.0 7.7 1.6 3.4 1.9 -2.5 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 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 1996 I r105.8 r104.5 98.8 111.8 101.1 r105.7 II r106.5 r105.3 98.9 112.9 101.2 r106.1 III r107.7 r106.3 98.6 114.1 101.6 r105.9 IV r108.9 r107.5 98.7 115.3 101.9 r105.9 ANNUAL r107.1 r105.9 98.9 113.4 101.4 r105.9 1997 I r109.7 r108.2 98.6 116.2 102.2 r106.0 II r110.0 r108.5 98.6 117.2 102.7 r106.6 III r111.3 r108.9 97.8 118.7 103.4 r106.6 IV r111.6 r110.3 98.8 119.8 103.9 r107.3 ANNUAL r110.6 r109.0 98.5 117.9 103.0 r106.6 1998 I 111.8 110.6 98.9 121.1 104.9 108.3 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1996 I 2.5 -1.2 -3.6 4.0 0.8 1.4 II 2.6 3.1 0.4 4.1 0.4 1.5 III 4.8 3.8 -0.9 4.0 1.5 -0.7 IV 4.3 4.6 0.3 4.3 1.0 0.1 ANNUAL 2.8 r0.6 -2.2 4.1 1.1 1.3 1997 I 3.0 2.5 -0.5 3.3 1.1 0.3 II 1.1 1.2 0.1 3.4 2.0 2.3 III 4.8 1.5 -3.1 5.0 3.0 0.2 IV r1.2 r5.5 4.2 r3.8 1.7 r2.6 ANNUAL 3.2 2.9 -0.3 4.0 1.6 0.7 1998 I 0.6 1.1 0.4 4.5 4.0 3.9 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1996 I r3.2 r-1.0 -4.1 4.5 1.6 r1.2 II r2.4 r-0.1 -2.5 4.3 1.4 1.9 III 2.7 0.8 -1.8 4.2 1.2 1.5 IV 3.5 2.5 -1.0 4.1 0.9 0.5 ANNUAL 2.8 r0.6 -2.2 4.1 1.1 1.3 1997 I 3.7 3.5 -0.2 3.9 1.0 0.3 II 3.3 3.0 -0.3 3.8 1.4 0.5 III 3.3 2.4 -0.8 4.0 1.8 0.7 IV r2.5 r2.6 0.1 3.9 2.0 1.3 ANNUAL 3.2 2.9 -0.3 4.0 1.6 0.7 1998 I 1.9 2.3 0.3 4.2 2.7 2.2 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 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 102.9 112.3 109.2 105.1 97.7 102.2 99.8 101.6 135.2 104.6 II 103.4 112.9 109.2 105.9 97.6 102.4 100.1 101.8 134.9 104.8 III 104.7 114.9 109.7 106.6 97.8 101.9 99.0 101.1 145.5 105.1 IV 105.4 115.9 110.0 107.5 98.0 102.0 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 106.0 116.5 109.9 108.3 98.0 102.1 99.2 101.4 152.5 106.0 II 107.1 118.7 110.8 109.7 98.3 102.4 98.4 101.4 154.7 106.2 III 107.8 120.0 111.3 110.7 98.6 102.7 98.1 101.5 156.0 106.4 IV 108.3 121.5 112.1 111.5 98.6 102.9 97.4 101.5 156.4 106.5 ANNUAL 107.3 119.2 111.0 110.1 98.4 102.6 98.3 101.4 154.9 106.3 1997 I 108.8 123.3 113.3 112.6 99.0 103.5 97.0 101.8 157.9 106.9 II 109.4 124.7 114.0 113.5 99.4 103.7 97.1 102.0 159.1 107.2 III 111.1 127.1 114.4 114.7 100.0 103.2 96.6 101.5 164.5 107.2 IV 111.3 128.6 115.6 116.0 100.6 104.3 95.9 102.1 159.8 107.3 ANNUAL 110.2 125.9 114.3 114.2 99.9 103.7 96.6 101.9 160.3 107.2 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1995 I -3.3 0.0 3.4 2.1 -0.5 5.6 2.8 4.9 -18.1 1.8 II 2.0 2.0 0.0 3.0 -0.3 1.0 1.0 1.0 -0.8 0.8 III 5.2 7.2 1.9 2.9 0.7 -2.2 -4.2 -2.7 35.4 1.3 IV 2.8 3.8 1.0 3.3 0.8 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 2.4 2.0 -0.3 3.1 -0.1 0.7 0.6 0.7 15.0 2.4 II 4.1 7.6 3.4 5.1 1.4 1.1 -3.1 0.0 5.8 0.7 III 2.7 4.3 1.6 3.8 1.4 1.1 -1.4 0.5 3.5 0.9 IV 2.1 5.2 3.1 3.0 -0.3 0.9 -2.8 0.0 1.0 0.1 ANNUAL 3.1 4.5 1.4 3.5 0.6 0.4 -1.2 0.0 10.0 1.2 1997 I 1.7 6.1 4.3 4.0 1.8 2.3 -1.8 1.3 3.8 1.6 II 2.4 4.7 2.3 3.2 1.8 0.8 0.5 0.7 3.2 1.1 III 6.3 7.8 1.5 4.3 2.3 -1.9 -1.9 -1.9 14.3 0.2 IV 0.6 4.9 4.3 4.7 2.6 4.1 -2.9 2.4 -11.0 0.4 ANNUAL 2.6 5.7 2.9 3.8 1.5 1.1 -1.7 0.4 3.5 0.8 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1995 I -0.7 3.9 4.7 1.4 -1.4 2.2 -1.7 1.2 6.6 1.8 II 0.3 3.5 3.1 2.1 -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 1.6 3.2 1.6 2.8 0.2 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 3.1 3.7 0.6 3.1 0.3 0.0 -0.6 -0.2 12.8 1.4 II 3.6 5.1 1.5 3.6 0.7 0.0 -1.6 -0.4 14.6 1.3 III 3.0 4.4 1.4 3.8 0.9 0.8 -0.9 0.4 7.2 1.2 IV 2.8 4.8 1.9 3.8 0.6 1.0 -1.7 0.3 6.2 1.0 ANNUAL 3.1 4.5 1.4 3.5 0.6 0.4 -1.2 0.0 10.0 1.2 1997 I 2.6 5.8 3.1 4.0 1.0 1.3 -2.3 0.4 3.5 0.8 II 2.2 5.1 2.8 3.5 1.2 1.3 -1.4 0.6 2.9 0.9 III 3.1 5.9 2.8 3.6 1.4 0.5 -1.5 0.0 5.5 0.7 IV 2.7 5.9 3.1 4.0 2.1 1.3 -1.5 0.6 2.2 0.8 ANNUAL 2.6 5.7 2.9 3.8 1.5 1.1 -1.7 0.4 3.5 0.8 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 1998 r=revised Source: Bureau of Labor Statistics Appendix table 1. 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 ----------------------------------------------------------------------------------------------- 1949 33.2 26.3 79.2 8.3 48.8 24.9 1950 33.8 28.9 85.6 8.7 50.6 25.8 1951 33.4 30.8 92.2 9.6 51.7 28.6 1952 34.7 32.4 93.4 10.2 54.0 29.4 1953 35.8 35.2 98.2 10.8 56.6 30.1 1954 36.7 32.9 89.7 11.3 58.7 30.7 1955 38.3 36.3 94.7 11.7 61.2 30.5 1956 38.1 36.6 96.1 12.4 64.2 32.7 1957 38.9 36.8 94.6 13.2 65.8 33.9 1958 39.4 34.2 86.7 13.8 67.0 35.0 1959 40.2 37.2 92.6 14.3 69.0 35.6 1960 40.9 37.7 92.2 14.9 70.6 36.5 1961 42.2 37.9 89.8 15.3 72.0 36.4 1962 43.3 40.5 93.5 15.9 74.0 36.8 1963 45.1 42.6 94.5 16.4 75.2 36.4 1964 47.0 45.4 96.5 17.1 77.3 36.4 1965 48.0 49.0 102.1 17.5 77.7 36.4 1966 48.5 52.8 108.7 18.2 79.0 37.6 1967 50.5 54.6 108.1 19.2 80.8 38.1 1968 52.3 57.3 109.7 20.7 83.4 39.6 1969 53.0 58.8 111.0 22.2 85.0 41.9 1970 54.7 57.1 104.5 23.8 86.1 43.5 1971 58.3 58.6 100.6 25.3 87.5 43.4 1972 60.5 63.6 105.2 26.6 89.2 44.0 1973 62.1 68.7 110.5 28.6 90.5 46.1 1974 62.8 67.9 108.1 31.8 90.5 50.6 1975 64.7 63.0 97.3 35.6 93.0 55.1 1976 67.3 68.7 102.0 38.6 95.2 57.4 1977 69.7 74.0 106.2 42.0 97.2 60.3 1978 70.5 78.0 110.7 45.4 97.6 64.4 1979 70.1 79.1 112.8 49.8 96.2 71.1 1980 70.4 75.8 107.6 55.8 94.9 79.2 1981 71.4 76.4 107.1 61.3 94.6 85.9 1982 75.2 73.7 98.0 67.2 97.7 89.4 1983 77.9 77.1 99.0 69.0 97.2 88.7 1984 80.2 84.5 105.4 71.4 96.4 89.0 1985 83.2 87.1 104.7 75.3 98.1 90.5 1986 86.9 89.6 103.1 78.6 100.6 90.5 1987 89.2 92.7 103.9 80.8 99.8 90.6 1988 90.7 96.9 106.8 84.0 99.6 92.6 1989 90.8 97.4 107.2 86.8 98.2 95.5 1990 93.0 97.5 104.9 91.0 97.6 97.8 1991 94.9 95.4 100.6 95.7 98.6 100.9 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 102.0 103.4 101.4 102.9 99.9 100.9 1994 105.2 109.1 103.8 105.6 100.0 100.4 1995 109.6 114.1 104.1 108.7 100.1 99.2 1996 114.7 118.8 103.6 112.1 100.3 97.8 1997 120.0 125.7 104.7 116.1 101.5 96.7 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 1998 Source: Bureau of Labor Statistics Appendix table 2. 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 ----------------------------------------------------------------------------------------------- 1949 31.5 22.7 72.1 8.1 47.8 25.7 1950 33.4 26.8 80.4 8.5 49.7 25.6 1951 32.0 29.0 90.7 9.5 51.0 29.6 1952 33.5 31.2 93.0 10.2 53.8 30.3 1953 35.4 35.5 100.1 10.7 56.3 30.2 1954 35.4 31.4 88.5 11.2 58.5 31.6 1955 37.4 35.3 94.6 11.7 61.3 31.4 1956 35.7 34.5 96.8 12.5 64.2 34.9 1957 36.2 34.5 95.5 13.2 65.9 36.5 1958 35.8 30.2 84.4 13.9 67.7 38.9 1959 36.9 33.8 91.6 14.4 69.6 39.2 1960 37.0 33.8 91.4 15.0 71.2 40.6 1961 38.0 33.4 87.9 15.5 72.5 40.6 1962 39.6 36.8 92.8 16.1 74.7 40.6 1963 41.7 39.4 94.5 16.5 75.8 39.6 1964 43.4 42.2 97.2 17.2 77.8 39.6 1965 45.2 47.1 104.3 17.5 78.0 38.7 1966 46.0 52.1 113.3 18.3 79.1 39.7 1967 47.6 53.5 112.5 19.2 80.7 40.4 1968 49.3 56.2 114.1 20.7 83.4 42.0 1969 49.8 57.7 115.8 22.2 84.9 44.6 1970 50.6 54.0 106.7 23.9 86.3 47.1 1971 54.5 55.2 101.2 25.5 88.2 46.7 1972 57.5 61.6 107.1 26.8 89.9 46.6 1973 60.1 69.3 115.4 28.7 90.7 47.8 1974 59.9 67.9 113.4 31.8 90.5 53.1 1975 60.8 60.7 99.8 35.9 93.7 59.1 1976 63.3 66.1 104.4 39.0 96.2 61.6 1977 65.3 72.0 110.2 42.4 98.1 64.9 1978 66.1 77.2 116.7 45.5 97.9 68.8 1979 66.1 79.5 120.3 49.9 96.4 75.5 1980 65.9 74.6 113.2 56.1 95.6 85.2 1981 66.8 75.1 112.4 61.7 95.3 92.5 1982 69.3 69.8 100.7 67.8 98.5 97.8 1983 73.5 74.4 101.3 69.3 97.6 94.3 1984 77.5 85.5 110.4 71.3 96.2 92.0 1985 80.1 88.4 110.3 74.9 97.7 93.6 1986 84.3 90.6 107.5 78.7 100.7 93.3 1987 87.1 93.4 107.2 81.0 100.1 93.0 1988 89.3 99.3 111.2 83.7 99.3 93.8 1989 89.8 99.8 111.1 86.5 97.9 96.3 1990 92.0 98.8 107.4 90.5 97.2 98.5 1991 93.5 94.9 101.4 95.5 98.3 102.1 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 104.6 106.1 101.5 103.1 100.1 98.6 1994 109.5 114.9 105.0 105.5 99.9 96.3 1995 115.4 122.7 106.3 108.2 99.7 93.8 1996 122.7 131.4 107.1 110.9 99.1 90.4 1997 130.1 142.3 109.4 114.3 99.9 87.9 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 1998 Source: Bureau of Labor Statistics Appendix table 3. 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 ----------------------------------------------------------------------------------------------- 1949 33.8 30.0 88.6 8.6 50.9 25.5 1950 34.1 31.5 92.5 9.0 52.5 26.5 1951 35.0 32.9 94.1 9.8 52.8 27.9 1952 36.0 33.8 93.9 10.3 54.4 28.5 1953 36.7 35.1 95.6 10.8 56.7 29.4 1954 38.2 34.9 91.3 11.3 59.2 29.7 1955 39.8 37.7 94.8 11.7 61.1 29.3 1956 41.3 39.3 95.1 12.4 64.0 30.0 1957 42.5 39.6 93.2 13.1 65.5 30.9 1958 43.8 39.3 89.9 13.7 66.3 31.2 1959 45.0 42.3 93.9 14.1 68.1 31.4 1960 46.2 43.1 93.3 14.7 69.9 31.9 1961 47.5 43.9 92.4 15.2 71.5 32.0 1962 48.3 45.6 94.4 15.7 73.1 32.5 1963 50.1 47.4 94.5 16.2 74.4 32.4 1964 52.2 49.9 95.6 16.9 76.5 32.4 1965 52.5 52.1 99.2 17.3 77.0 32.9 1966 53.1 54.5 102.7 18.0 78.1 34.0 1967 55.5 56.8 102.3 19.1 80.2 34.4 1968 57.6 59.8 103.9 20.5 82.7 35.6 1969 58.9 61.7 104.7 22.0 84.2 37.4 1970 61.3 62.2 101.5 23.6 85.4 38.6 1971 64.0 63.9 99.9 24.9 86.3 38.9 1972 66.1 67.8 102.6 26.1 87.8 39.6 1973 67.0 69.7 104.0 28.2 89.1 42.1 1974 68.8 69.4 100.9 31.5 89.5 45.7 1975 70.9 66.6 94.0 35.0 91.2 49.3 1976 73.5 72.6 98.7 37.8 93.1 51.4 1977 76.9 77.6 101.0 41.0 94.9 53.3 1978 78.2 80.2 102.6 44.5 95.8 57.0 1979 77.6 79.9 102.9 48.8 94.4 62.9 1980 77.8 78.0 100.2 54.4 92.7 69.9 1981 78.7 78.7 99.9 59.7 92.2 75.9 1982 82.7 78.1 94.4 65.8 95.7 79.6 1983 83.8 80.4 96.0 68.2 96.1 81.5 1984 85.0 84.1 98.9 70.8 95.7 83.3 1985 88.4 85.9 97.2 74.8 97.6 84.7 1986 90.9 88.5 97.4 77.8 99.6 85.5 1987 92.7 92.2 99.5 79.9 98.7 86.2 1988 93.5 94.5 101.0 83.7 99.2 89.5 1989 92.9 94.7 102.0 86.5 97.9 93.2 1990 94.6 96.0 101.5 91.1 97.8 96.3 1991 96.1 95.5 99.4 95.9 98.8 99.8 1992 100.0 100.0 100.0 100.0 100.0 100.0 1993 99.7 100.9 101.2 102.6 99.6 102.9 1994 101.3 103.5 102.2 105.5 99.9 104.2 1995 104.2 105.3 101.1 108.9 100.3 104.6 1996 107.1 105.9 98.9 113.4 101.4 105.9 1997 110.6 109.0 98.5 117.9 103.0 106.6 ----------------------------------------------------------------------------------------------- See footnotes following Table 6. May 7, 1998 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 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.