USDL 05-1513 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 8:30 A.M. EDT TUESDAY, AUG. 9, 2005 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 Second Quarter 2005 The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data--as measured by output per hour of all persons--for the second quarter of 2005. The preliminary seasonally adjusted annual rates of productivity change in the second quarter were: 1.2 percent in the business sector and 2.2 percent in the nonfarm business sector. Productivity growth in the business sector reflected increases of 4.2 percent in output and 3.0 percent in hours. Output per hour increased more in the nonfarm business sector because output grew more, 4.4 percent, and hours rose less, 2.1 percent, than in the business sector. In manufacturing, the preliminary productivity changes in the second quarter were: 4.1 percent in manufacturing, 3.8 percent in durable goods manufacturing, and 5.0 percent in nondurable goods manufacturing. Manufacturing productivity grew 4.1 percent in the second quarter as output increased 1.2 percent and hours declined 2.8 percent (seasonally adjusted annual rates). 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. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5. The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production independently prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources. ----------------------------------------------------------------------------- Data in this release reflect the regular multi-year revisions to the national income and product accounts released by the Bureau of Economic Analysis of the U.S. Department of Commerce on July 29. See Revised Measures. ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Table A. Productivity and costs: Preliminary second-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 1.2 4.2 3.0 2.5 -1.6 1.4 Nonfarm business 2.2 4.4 2.1 3.5 -0.6 1.3 Manufacturing 4.1 1.2 -2.8 6.6 2.3 2.3 Durable 3.8 1.9 -1.8 6.3 2.0 2.4 Nondurable 5.0 0.1 -4.6 6.9 2.6 1.8 ----------------------------------------------------------------------------- Percent change from same quarter a year ago Business 2.1 4.2 2.0 6.6 3.6 4.3 Nonfarm business 2.3 4.3 2.0 6.7 3.6 4.3 Manufacturing 4.7 3.4 -1.3 8.6 5.6 3.7 Durable 5.4 4.8 -0.5 8.5 5.4 3.0 Nondurable 4.2 1.5 -2.6 8.7 5.6 4.3 ----------------------------------------------------------------------------- Business From the first quarter to the second quarter of 2005, business sector output per hour increased at a 1.2-percent annual rate. Output increased 4.2 percent and hours of all persons engaged in the sector increased 3.0 percent (seasonally adjusted annual rates). As revised, labor productivity grew 2.9 percent in the first quarter of 2005, as output and hours increased 4.4 percent and 1.4 percent, respectively (table 1). Hourly compensation increased 2.5 percent in the second quarter, less than the 6.2 percent gain in the first quarter of 2005 (seasonally adjusted annual rates). This measure of compensation includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, declined 1.6 percent during the second quarter of 2005, after rising 3.7 percent during the first quarter. Unit labor costs, which reflect changes in both hourly compensation and productivity, increased 1.4 percent during the second quarter of 2005 after rising 3.2 percent in the previous quarter. The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, increased 2.3 percent in the second quarter and 2.7 percent in the first quarter of 2005. Nonfarm Business Productivity increased 2.2 percent in the nonfarm business sector during the second quarter of 2005, as output increased 4.4 percent and hours of all persons rose 2.1 percent (seasonally adjusted annual rates). Output per hour grew at a 3.2 percent annual rate in the first quarter of 2005, as output increased 4.3 percent and hours increased 1.1 percent (table 2). Hourly compensation in the nonfarm business sector increased 3.5 percent in the second quarter of 2005, less than the 6.9-percent rise one quarter earlier. When the rise in consumer prices is taken into account, real hourly compensation fell 0.6 percent in the second quarter of 2005 after increasing 4.5 percent in the first quarter. Unit labor costs increased 1.3 percent in the second quarter of 2005, after rising 3.6 percent during the first quarter. The implicit price deflator for nonfarm business output grew 2.3 percent in the second quarter, following a 3.0-percent increase in the previous quarter. Manufacturing Productivity increased 4.1 percent in manufacturing, as output grew 1.2 percent and hours of all persons declined 2.8 percent (seasonally adjusted annual rates). Output increased less than in any quarter since the second quarter of 2003, when it fell 3.4 percent. In the first quarter of 2005, productivity rose 4.2 percent, reflecting a 3.5-percent increase in output and a decline of 0.7 percent in hours. In durable goods, productivity rose 3.8 percent in the second quarter as output grew 1.9 percent and hours of all persons fell 1.8 percent. In nondurable goods, second-quarter productivity increased by 5.0 percent as output edged up 0.1 percent and hours fell 4.6 percent (tables 3, 4, and 5). Hours worked in nondurable goods industries have fallen in 24 consecutive quarters, beginning with the third quarter of 1999. Hourly compensation of all manufacturing workers rose 6.6 percent during the second quarter, reflecting growth of 6.3 percent in durable goods industries and 6.9 percent in the nondurable manufacturing sector. When the increase in consumer prices is taken into account, the real hourly compensation of all manufacturing workers rose 2.3 percent in the second quarter, after increasing 4.7 percent one quarter earlier. Unit labor costs in manufacturing rose 2.3 percent in the second quarter of 2005, reflecting increases of 2.4 percent in durable goods industries and 1.8 percent in nondurable goods industries. Revised Measures Revised and previous measures for the first quarter of 2005 for the business, nonfarm business, and manufacturing sectors are compared in table B. In business and nonfarm business, output and productivity were revised upward from the numbers reported on June 2, while hours movements were unchanged. In the manufacturing sector, productivity was revised downward-- output was not revised and hours decreased less than previously reported. In all three sectors, hourly compensation increases were revised up for the first quarter of 2005. In the nonfarm business and manufacturing sectors, unit labor costs grew faster than reported June 2. ----------------------------------------------------------------------------- Table B. Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates ----------------------------------------------------------------------------- Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------------- First quarter 2005 Business: Previous 2.6 4.0 1.4 6.0 3.5 3.3 Revised 2.9 4.4 1.4 6.2 3.7 3.2 Nonfarm business: Previous 2.9 4.0 1.1 6.3 3.9 3.3 Revised 3.2 4.3 1.1 6.9 4.5 3.6 Manufacturing: Previous 4.4 3.5 -0.9 6.2 3.8 1.7 Revised 4.2 3.5 -0.7 7.1 4.7 2.8 ----------------------------------------------------------------------------- Table C presents previous and revised productivity and related measures for major sectors for the years 2002, 2003, and 2004. Output data for the business and nonfarm business sectors, and the compensation series for all sectors, incorporate revisions to national income and product accounts data released by the Bureau of Economic Analysis, U.S. Department of Commerce, on July 29. These revisions affected productivity and costs data beginning with the first quarter of 2002, and revised quarterly data appear in tables 1 through 5 and appendix tables 1 through 5. Output and productivity growth in the business and nonfarm business sectors were revised downward in each year from 2002 to 2004. For 2002, upward revisions to hourly compensation in these sectors combined with productivity revisions to produce smaller decreases in unit labor costs than shown in the June 2 release. Unit labor costs do not decline in 2003 after revision. For 2004, these costs increased more in the business and nonfarm business sectors than reported previously because productivity was revised down by more than hourly compensation. ----------------------------------------------------------------------------- Table C. Previous and revised productivity and related measures Annual percent changes ----------------------------------------------------------------------------- Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ----------------------------------------------------------------------------- Annual average 2004 Business: Previous 3.9 5.1 1.2 4.9 2.2 1.0 Revised 3.4 4.8 1.3 4.6 1.9 1.2 Nonfarm business: Previous 4.0 5.3 1.2 4.8 2.1 0.8 Revised 3.4 4.8 1.4 4.5 1.8 1.1 Manufacturing: Previous 5.3 4.8 -0.4 4.7 2.0 -0.5 Revised 5.3 4.8 -0.4 2.2 -0.5 -2.9 Annual average 2003 Business: Previous 4.4 3.8 -0.5 4.0 1.7 -0.3 Revised 3.9 3.4 -0.5 3.9 1.6 0.0 Nonfarm business: Previous 4.3 3.8 -0.5 4.0 1.7 -0.3 Revised 3.8 3.3 -0.5 4.0 1.6 0.2 Manufacturing: Previous 5.2 0.0 -4.9 8.7 6.2 3.3 Revised 5.2 0.0 -4.9 8.3 5.9 3.0 Annual average 2002 Business: Previous 4.3 1.8 -2.4 3.1 1.5 -1.1 Revised 4.0 1.5 -2.4 3.4 1.8 -0.5 Nonfarm business: Previous 4.3 1.8 -2.5 3.2 1.6 -1.1 Revised 4.0 1.5 -2.5 3.5 1.9 -0.5 Manufacturing: Previous 7.5 -0.1 -7.1 6.6 5.0 -0.8 Revised 7.5 -0.1 -7.1 7.3 5.6 -0.3 ----------------------------------------------------------------------------- In the manufacturing sector, there were revisions only to hourly compensation and, therefore, to real hourly compensation and unit labor costs. Hourly compensation growth was higher in 2002, and lower in 2003 and 2004, than previously reported. Manufacturing unit labor costs declined 0.3 percent in 2002, rose 3.0 percent in 2003, and fell 2.9 percent in 2004. Revised Measures: Nonfinancial Corporations Productivity and cost measures for the first quarter of 2005 for nonfinancial corporations also were revised to incorporate more recent information than was available in the June 2 release (table D). Increases in productivity and output were revised up, to 3.6 percent and 4.1 percent, respectively, as the first quarter increase in employee hours remained at 0.5 percent (seasonally adjusted annual rates). Hourly compensation was revised up by less than productivity, so the increase in unit labor costs was revised down, from 4.1 percent to 3.5 percent. Unit profits rose 6.2 percent, rather than falling 6.1 percent as reported June 2. For the year 2004, output per hour and hourly compensation were both revised down. Hourly compensation was revised down by more, resulting in a smaller increase in unit labor costs than previously reported. ----------------------------------------------------------------------------- Table D. Nonfinancial corporations: Previous and revised productivity and cost measures 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 ------------------------------------------------------------------------------ First quarter 2005 Previous... 2.7 3.2 0.5 6.8 4.4 4.1 -6.1 2.4 Revised.... 3.6 4.1 0.5 7.3 4.8 3.5 6.2 2.2 Annual average 2004 Previous... 4.2 5.6 1.4 4.8 2.1 0.6 19.8 1.8 Revised.... 3.9 5.3 1.4 4.0 1.3 0.2 18.3 1.7 Annual average 2003 Previous... 4.1 2.8 -1.3 4.0 1.7 -0.1 20.1 1.4 Revised.... 4.1 2.7 -1.4 3.9 1.6 -0.2 19.0 1.4 Annual average 2002 Previous... 3.9 1.0 -2.8 3.0 1.4 -0.8 16.0 0.6 Revised.... 3.8 0.9 -2.8 3.4 1.8 -0.4 19.2 0.6 ------------------------------------------------------------------------------ Next release date The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, Wednesday, Sept. 7, 2005. Revised second-quarter measures for business, nonfarm business, and manufacturing will be released at that time, along with preliminary measures for nonfinancial corporations. ------------------------------------------------------------------------------ The index numbers and rates of change reported by BLS for productivity and costs in its news release and on its Internet site are rounded to one decimal place, based upon unrounded data using many decimal places. This rounding protocol has been practiced in order to facilitate ease of use and interpretation of the published data. This has meant, however, that if data users calculated rates of change using the published rounded index figures, their results could differ from the published rates of change, simply due to differences in rounding. In order to make the data directly used in the calculations more readily available to the public and to ensure greater transparency of its calculating methods, BLS, beginning with the December 6, 2005 publication of the quarterly Productivity and Costs news release, will modify its productivity program practices. It will post on its web site productivity index numbers rounded to three decimal places, and, in addition, will calculate all published rates of change from those indexes. The change in calculation method may cause published productivity growth rates to change slightly--likely by no more than a tenth--from the rates that would have been calculated using the current method. The convention of publishing in the news release index values rounded to one decimal place will continue. ------------------------------------------------------------------------------ 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 estab- lishments. 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 years prior to 2001. 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 enterprises are derived from the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce. Output: Business sector output is 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 ex- clusions 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 manufacturing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; and miscellaneous manufacturing. Nondurables include: food manufac- turing; beverage and tobacco product manufacturing; 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 manufacturing; 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. 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 r125.6 r144.6 115.2 r147.8 r115.5 r117.7 r116.4 r117.2 II r127.9 r146.4 114.5 r150.3 r117.3 r117.5 r117.2 r117.4 III r130.5 r149.8 114.8 r152.0 r118.0 r116.4 r120.3 r117.9 IV r130.6 r150.8 115.5 r152.8 r118.4 r117.0 r120.5 r118.3 ANNUAL r128.6 r147.9 115.0 r150.7 r117.3 r117.2 r118.6 r117.7 2004 I r131.7 r152.6 115.9 r154.4 r118.5 r117.3 r123.0 r119.4 II r132.8 r154.1 r116.1 r155.7 r118.2 r117.2 r126.1 r120.5 III r133.3 r155.8 r116.9 r158.2 r119.6 r118.7 r124.2 r120.7 IV r134.3 r157.2 r117.1 162.5 121.8 r121.0 r122.3 r121.5 ANNUAL r133.0 r154.9 r116.5 r157.7 r119.5 r118.6 r123.9 r120.6 2005 I r135.3 r158.9 r117.5 164.9 122.9 r121.9 r122.9 r122.3 II 135.7 160.5 118.3 166.0 122.4 122.3 124.1 123.0 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I r2.8 r1.7 r-1.1 r5.5 1.3 r2.6 r0.5 r1.8 II r7.6 r4.9 -2.6 r7.0 r6.5 r-0.6 r2.8 r0.6 III r8.4 r9.9 1.3 r4.5 r2.3 r-3.6 r10.7 r1.5 IV r0.3 r2.6 r2.3 r2.3 r1.4 r2.1 r0.9 r1.6 ANNUAL r3.9 r3.4 -0.5 r3.9 r1.6 r0.0 r3.7 r1.4 2004 I r3.4 r4.9 r1.5 r4.2 r0.3 r0.8 r8.6 r3.7 II 3.4 r4.0 r0.6 r3.3 r-1.0 r-0.1 r10.3 r3.8 III r1.4 r4.4 r3.0 r6.5 r4.8 r5.0 r-5.8 r0.7 IV r3.1 r3.6 0.5 r11.3 r7.5 r7.9 r-6.0 2.4 ANNUAL r3.4 r4.8 r1.3 r4.6 r1.9 r1.2 r4.4 r2.4 2005 I r2.9 r4.4 1.4 r6.2 r3.7 r3.2 r2.0 r2.7 II 1.2 4.2 3.0 2.5 -1.6 1.4 3.9 2.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r2.4 r2.0 -0.4 r3.0 r0.1 r0.6 r2.7 1.4 II r3.8 r2.6 -1.1 3.6 1.4 r-0.2 r3.9 1.3 III r4.7 r4.2 -0.5 r4.3 r2.0 r-0.4 r4.6 r1.4 IV r4.7 r4.7 0.0 r4.8 r2.9 r0.1 r3.7 r1.4 ANNUAL r3.9 r3.4 -0.5 r3.9 r1.6 r0.0 r3.7 r1.4 2004 I r4.9 r5.5 r0.6 4.5 2.6 r-0.4 r5.7 r1.9 II r3.8 r5.3 r1.4 r3.6 r0.8 r-0.2 r7.6 r2.7 III r2.1 r4.0 r1.8 r4.1 r1.4 r1.9 r3.3 r2.4 IV r2.8 r4.2 r1.4 6.3 2.8 r3.4 r1.5 r2.6 ANNUAL r3.4 r4.8 r1.3 r4.6 r1.9 r1.2 r4.4 r2.4 2005 I r2.7 r4.1 1.3 r6.8 r3.7 r4.0 r-0.1 2.4 II 2.1 4.2 2.0 6.6 3.6 4.3 -1.6 2.0 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 r124.9 r144.8 r115.9 r147.0 r114.9 r117.7 r118.2 r117.9 II r126.9 r146.5 115.4 r149.3 r116.5 r117.6 r118.7 r118.0 III r129.9 r150.2 115.6 r151.2 r117.4 r116.4 r121.6 r118.3 IV r130.1 r151.2 116.2 r152.2 r117.9 r116.9 r121.3 r118.6 ANNUAL r128.0 r148.2 115.8 r149.9 r116.7 r117.1 r120.0 r118.2 2004 I r130.8 r152.8 r116.8 r153.5 r117.8 r117.3 r123.5 r119.6 II r132.2 r154.5 r116.8 r154.9 r117.6 r117.1 r126.5 r120.6 III r132.7 r156.3 r117.8 r157.2 r118.8 r118.5 r125.3 r121.0 IV r133.5 r157.7 r118.2 r161.0 r120.7 r120.7 r123.7 r121.8 ANNUAL r132.3 r155.3 r117.4 r156.7 r118.7 r118.4 r124.7 r120.7 2005 I r134.5 r159.4 r118.5 r163.8 122.0 r121.7 r124.3 r122.7 II 135.3 161.1 119.1 165.2 121.8 122.1 125.5 123.4 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I r3.1 r2.0 r-1.1 r5.8 r1.5 r2.6 r0.8 1.9 II r6.6 r4.7 -1.8 r6.2 r5.8 r-0.3 r1.7 r0.4 III r9.6 r10.4 r0.8 r5.1 r2.9 r-4.1 r10.2 r1.0 IV r0.8 r2.8 r2.0 r2.7 r1.8 r2.0 r-1.1 r0.8 ANNUAL r3.8 r3.3 -0.5 4.0 r1.6 r0.2 r3.2 r1.3 2004 I r2.1 r4.2 r2.0 r3.5 r-0.5 r1.3 r7.4 r3.6 II r4.5 r4.6 0.1 r3.7 r-0.7 r-0.8 r10.0 r3.2 III r1.3 r4.6 r3.3 r6.1 r4.4 r4.7 r-3.6 r1.5 IV r2.5 r3.9 1.4 10.2 6.4 r7.6 r-5.1 r2.6 ANNUAL r3.4 r4.8 r1.4 r4.5 r1.8 r1.1 r3.9 r2.1 2005 I r3.2 r4.3 1.1 r6.9 r4.5 r3.6 r2.1 r3.0 II 2.2 4.4 2.1 3.5 -0.6 1.3 4.0 2.3 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r2.0 r1.7 r-0.4 r3.0 r0.1 r1.0 r2.7 r1.6 II r3.5 r2.5 -0.9 r3.5 r1.3 r0.1 r3.2 1.2 III r4.8 r4.2 -0.5 r4.4 r2.1 r-0.4 r4.1 r1.2 IV r5.0 r4.9 r0.0 r5.0 r3.0 r0.0 r2.8 r1.0 ANNUAL r3.8 r3.3 -0.5 4.0 r1.6 r0.2 r3.2 r1.3 2004 I r4.7 r5.5 0.7 4.4 2.5 r-0.3 r4.5 r1.5 II r4.2 r5.5 r1.2 r3.7 r0.9 r-0.4 r6.5 r2.1 III r2.2 r4.0 r1.9 r4.0 r1.2 r1.8 r3.0 r2.3 IV r2.6 r4.3 r1.7 r5.8 2.4 r3.2 r1.9 r2.7 ANNUAL r3.4 r4.8 r1.4 r4.5 r1.8 r1.1 r3.9 r2.1 2005 I r2.9 r4.4 r1.5 r6.7 r3.6 r3.7 r0.7 r2.6 II 2.3 4.3 2.0 6.7 3.6 4.3 -0.7 2.3 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 151.6 131.8 86.9 r156.5 r122.3 r103.2 II 152.9 130.7 85.5 r159.2 r124.3 r104.1 III 156.9 132.1 84.2 r161.5 r125.4 r102.9 IV 158.1 134.2 84.9 r163.2 r126.5 r103.2 ANNUAL 154.8 132.2 85.4 r160.1 r124.6 r103.4 2004 I 159.3 136.0 85.4 r159.1 r122.1 r99.9 II 162.2 138.0 85.1 r161.1 r122.3 r99.3 III 164.0 139.4 85.0 r164.9 r124.7 r100.6 IV 166.5 141.0 84.7 r169.3 r126.9 r101.7 ANNUAL 163.0 138.6 85.0 r163.6 r124.0 r100.4 2005 I r168.2 142.3 r84.6 r172.3 r128.4 r102.4 II 169.9 142.7 84.0 175.0 129.1 103.0 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 5.7 -0.9 -6.3 r17.9 r13.1 r11.5 II 3.3 -3.4 -6.5 r6.9 r6.5 r3.5 III 11.0 4.5 -5.9 r5.9 r3.7 r-4.5 IV 3.2 6.6 3.3 r4.3 r3.4 r1.1 ANNUAL 5.2 0.0 -4.9 r8.3 r5.9 r3.0 2004 I 3.0 5.4 2.4 r-9.7 r-13.1 r-12.4 II 7.6 5.9 -1.6 r5.1 r0.7 r-2.3 III 4.4 4.0 -0.3 r9.8 r8.0 r5.2 IV 6.3 4.9 -1.3 r11.2 r7.4 r4.6 ANNUAL 5.3 4.8 -0.4 r2.2 r-0.5 r-2.9 2005 I r4.2 3.5 r-0.7 r7.1 r4.7 r2.8 II 4.1 1.2 -2.8 6.6 2.3 2.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 5.0 0.6 -4.2 r8.2 r5.2 r3.1 II 4.4 -1.3 -5.4 r7.8 r5.5 r3.3 III 5.5 -0.8 -6.0 r8.4 r6.0 r2.7 IV 5.8 1.6 -3.9 r8.7 r6.6 r2.7 ANNUAL 5.2 0.0 -4.9 r8.3 r5.9 r3.0 2004 I 5.1 3.2 -1.8 r1.6 r-0.2 r-3.3 II 6.1 5.6 -0.5 r1.2 r-1.6 r-4.7 III 4.5 5.5 0.9 r2.1 r-0.6 r-2.3 IV 5.3 5.1 -0.2 r3.7 r0.3 r-1.5 ANNUAL 5.3 4.8 -0.4 r2.2 r-0.5 r-2.9 2005 I r5.6 4.6 -1.0 r8.3 r5.1 r2.5 II 4.7 3.4 -1.3 8.6 5.6 3.7 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 172.7 155.7 90.1 r154.9 r121.1 r89.7 II 174.3 154.3 88.6 r157.7 r123.1 r90.5 III 180.9 157.6 87.1 r160.1 r124.3 r88.5 IV 182.8 161.5 88.3 r161.9 r125.5 r88.6 ANNUAL 177.6 157.3 88.5 r158.6 r123.5 r89.3 2004 I 184.4 164.6 89.3 r155.5 r119.4 r84.3 II 187.8 167.1 88.9 r158.2 r120.1 r84.2 III 190.0 169.5 89.2 r162.1 r122.6 r85.3 IV 193.4 172.1 89.0 r166.0 r124.4 r85.8 ANNUAL 188.9 168.3 89.1 r160.4 r121.6 r84.9 2005 I r196.1 r174.3 r88.9 r169.1 r126.0 r86.2 II 198.0 175.2 88.5 171.6 126.6 86.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 5.1 -1.6 -6.4 r22.2 r17.2 r16.3 II 3.7 -3.4 -6.9 r7.3 r6.9 r3.4 III 16.0 8.7 -6.3 r6.2 r3.9 r-8.5 IV 4.2 10.1 5.7 r4.7 r3.8 r0.5 ANNUAL 6.9 1.3 -5.3 r9.3 r6.9 r2.3 2004 I 3.6 8.1 4.3 r-14.9 r-18.1 r-17.9 II 7.7 6.0 -1.5 r6.9 r2.5 r-0.7 III 4.6 6.0 1.3 r10.3 r8.5 r5.5 IV r7.5 6.3 r-1.1 r9.9 r6.1 r2.2 ANNUAL 6.4 7.0 0.6 r1.1 r-1.5 r-4.9 2005 I r5.7 r5.2 r-0.5 r7.7 r5.2 r1.9 II 3.8 1.9 -1.8 6.3 2.0 2.4 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 6.7 1.7 -4.7 r9.1 r6.0 2.2 II 5.9 -0.6 -6.1 r8.7 r6.4 r2.7 III 7.9 0.7 -6.7 r9.6 r7.3 r1.6 IV 7.2 3.3 -3.6 r9.9 r7.8 r2.5 ANNUAL 6.9 1.3 -5.3 r9.3 r6.9 r2.3 2004 I 6.8 5.8 -1.0 r0.4 r-1.4 r-6.0 II 7.8 8.3 0.4 r0.3 r-2.5 r-6.9 III 5.0 7.6 2.4 r1.3 r-1.4 r-3.6 IV 5.8 6.6 r0.7 r2.5 r-0.9 r-3.2 ANNUAL 6.4 7.0 0.6 r1.1 r-1.5 r-4.9 2005 I r6.4 r5.9 -0.5 r8.7 r5.6 r2.2 II 5.4 4.8 -0.5 8.5 5.4 3.0 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 130.2 106.9 82.1 r158.0 r123.5 r121.4 II 131.1 106.0 80.9 r160.5 r125.3 r122.4 III 132.6 105.9 79.8 r162.7 r126.3 r122.6 IV 133.6 106.5 79.7 r163.9 r127.0 r122.7 ANNUAL 131.8 106.3 80.6 r161.2 r125.5 r122.3 2004 I 134.5 107.1 79.6 r164.1 r125.9 r122.0 II 137.0 108.6 79.3 r164.7 r125.1 r120.3 III 138.6 109.0 78.7 r168.1 r127.1 r121.2 IV r140.2 109.8 78.3 r173.5 r130.1 r123.8 ANNUAL 137.6 108.6 r79.0 r167.6 r127.0 r121.8 2005 I 141.1 110.2 78.1 r176.1 r131.2 r124.8 II 142.8 110.3 77.2 179.1 132.1 125.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I 6.5 0.1 -6.0 r10.3 r5.9 r3.6 II 2.6 -3.5 -5.9 r6.3 r5.9 r3.6 III 4.9 -0.6 -5.2 r5.6 r3.4 r0.7 IV 2.8 2.4 -0.4 r3.0 r2.1 r0.2 ANNUAL 2.8 -1.5 -4.2 r6.4 r4.0 r3.5 2004 I 2.9 2.1 -0.8 r0.5 r-3.3 r-2.4 II 7.5 5.7 -1.7 r1.7 r-2.6 r-5.5 III 4.8 1.7 -3.0 r8.4 r6.6 r3.4 IV r4.6 2.9 r-1.7 r13.7 r9.7 r8.6 ANNUAL r4.3 2.2 -2.1 r3.9 r1.2 r-0.4 2005 I r2.5 r1.5 -1.1 r6.0 r3.6 r3.4 II 5.0 0.1 -4.6 6.9 2.6 1.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I 2.6 -0.9 -3.4 r6.7 r3.7 r4.0 II 2.2 -2.2 -4.3 r6.4 r4.1 r4.1 III 2.3 -2.6 -4.8 r6.2 r3.9 r3.9 IV 4.2 -0.4 -4.4 r6.3 r4.3 r2.0 ANNUAL 2.8 -1.5 -4.2 r6.4 r4.0 r3.5 2004 I 3.3 0.1 -3.1 r3.8 r2.0 r0.5 II 4.5 2.4 -2.0 r2.7 r-0.2 r-1.8 III 4.5 3.0 -1.5 r3.3 r0.6 r-1.1 IV 5.0 3.1 -1.8 r5.9 r2.4 r0.9 ANNUAL r4.3 2.2 -2.1 r3.9 r1.2 r-0.4 2005 I 4.9 2.9 r-1.8 r7.3 r4.2 r2.4 II 4.2 1.5 -2.6 8.7 5.6 4.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 2003 I r130.4 r152.3 116.8 r144.6 r113.0 r110.9 r111.4 r111.0 r107.8 r110.7 II 132.7 r154.3 116.3 r147.0 r114.8 r110.8 r110.5 r110.7 r113.7 111.0 III r135.1 r156.9 r116.2 r148.9 r115.6 r110.2 r110.9 r110.4 r119.9 r111.3 IV r135.9 r158.7 r116.8 149.8 r116.0 r110.2 r110.8 110.4 r124.8 111.7 ANNUAL r133.5 r155.6 r116.5 r147.6 r114.8 r110.5 r110.9 r110.6 r116.7 111.2 2004 I r136.1 r160.0 r117.5 r150.3 r115.4 r110.4 r111.4 r110.7 r130.2 r112.4 II r136.9 r161.3 r117.8 r151.7 r115.2 r110.8 r111.5 r111.0 r138.6 r113.4 III r139.4 r165.0 118.4 r154.0 r116.5 r110.5 r110.3 r110.5 r139.7 r113.1 IV r142.3 r169.0 118.8 r158.0 r118.4 r111.0 r108.8 r110.5 r143.1 r113.4 ANNUAL r138.7 r163.8 r118.1 r153.5 r116.4 r110.7 r110.5 r110.6 r138.0 113.1 2005 I r143.5 r170.7 118.9 r160.8 r119.8 r112.0 r107.9 r110.9 r145.3 r114.0 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2003 I r1.1 r-1.8 r-2.8 r3.9 r-0.3 r2.9 r6.7 r3.9 r-11.6 r2.4 II r7.3 r5.5 r-1.7 r6.9 r6.4 r-0.4 r-3.1 r-1.1 r23.8 r0.9 III r7.3 r6.9 -0.3 r5.2 r2.9 -1.9 r1.3 r-1.1 r23.9 r1.0 IV r2.4 r4.5 r2.1 r2.4 r1.5 r0.0 r-0.3 r-0.1 r17.2 r1.5 ANNUAL 4.1 r2.7 r-1.4 r3.9 r1.6 r-0.2 r0.1 -0.1 r19.0 1.4 2004 I r0.8 3.4 r2.6 r1.5 r-2.3 r0.7 r2.1 r1.1 r18.6 r2.7 II r2.3 r3.3 r1.0 r3.7 r-0.7 r1.3 r0.3 r1.1 r28.2 r3.7 III r7.4 r9.4 1.9 r6.3 r4.6 r-1.0 r-4.2 r-1.9 r3.4 r-1.3 IV r8.5 r9.9 1.3 r10.6 r6.8 r1.9 r-5.2 r0.0 r10.0 r1.1 ANNUAL r3.9 r5.3 1.4 r4.0 r1.3 r0.2 r-0.4 r0.0 r18.3 r1.7 2005 I r3.6 r4.1 0.5 r7.3 r4.8 r3.5 r-3.3 r1.7 r6.2 r2.2 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2003 I r3.5 r2.0 r-1.5 r3.2 r0.3 r-0.3 r-1.4 r-0.6 r25.6 1.2 II r3.8 r2.0 r-1.8 r3.6 r1.4 r-0.1 -0.1 r-0.1 r20.4 1.4 III r4.6 r3.1 r-1.5 r4.3 r2.1 r-0.3 r0.8 r0.0 r19.6 r1.6 IV r4.5 r3.7 -0.7 r4.6 r2.6 r0.1 r1.1 r0.4 r12.3 r1.5 ANNUAL 4.1 r2.7 r-1.4 r3.9 r1.6 r-0.2 r0.1 -0.1 r19.0 1.4 2004 I r4.4 r5.1 r0.7 r4.0 r2.1 r-0.4 r0.0 r-0.3 r20.8 1.5 II r3.2 r4.6 1.3 r3.2 r0.3 r0.0 r0.8 r0.2 r21.9 r2.2 III 3.2 r5.2 r1.9 r3.5 r0.7 r0.3 r-0.6 r0.0 r16.5 r1.6 IV r4.7 r6.5 1.7 r5.5 r2.0 r0.7 r-1.8 r0.1 r14.7 r1.5 ANNUAL r3.9 r5.3 1.4 r4.0 r1.3 r0.2 r-0.4 r0.0 r18.3 r1.7 2005 I r5.4 r6.7 1.2 r6.9 r3.8 r1.4 r-3.1 r0.2 r11.6 r1.4 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 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 first 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. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I 114.2 138.6 121.4 132.5 111.5 116.0 105.4 112.1 II 116.4 141.1 121.2 133.1 111.1 114.4 109.6 112.6 III 116.1 140.8 121.3 135.6 112.2 116.8 106.4 112.9 IV 117.3 141.5 120.6 136.5 112.2 116.4 108.2 113.3 ANNUAL 116.1 140.5 121.0 134.5 111.9 115.9 107.4 112.7 2001 I 117.2 141.1 120.4 138.8 113.0 118.5 106.7 114.1 II 118.8 141.4 119.1 139.9 113.0 117.8 110.1 114.9 III 119.2 140.3 117.7 140.5 113.3 117.9 110.6 115.2 IV 121.1 141.0 116.4 141.5 114.2 116.9 113.4 115.6 ANNUAL 119.0 141.0 118.4 140.2 113.4 r117.7 110.2 114.9 2002 I r122.7 r141.9 115.7 r143.5 r115.4 r116.9 r113.3 r115.6 II r123.2 r142.6 115.7 r145.0 r115.7 r117.7 r112.9 115.9 III r124.6 r143.8 115.4 r145.7 r115.7 r116.9 r115.0 r116.2 IV r124.7 r144.0 115.5 r145.8 r115.1 r116.9 r116.3 r116.7 ANNUAL r123.8 r143.1 115.6 r145.0 r115.4 r117.1 r114.4 r116.1 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I -1.8 0.3 2.2 14.1 9.9 16.2 -16.0 3.4 II 7.9 7.5 -0.4 1.8 -1.3 -5.6 16.6 1.8 III -1.0 -0.8 0.2 7.8 4.0 8.9 -11.0 1.3 IV 4.4 2.0 r-2.2 2.8 -0.1 -1.5 6.8 1.4 ANNUAL 2.8 3.9 1.1 7.0 3.5 4.0 -1.9 1.8 2001 I -0.5 -1.1 -0.6 6.9 3.0 7.4 -5.6 2.7 II 5.5 0.8 -4.4 3.0 -0.2 -2.4 13.5 3.0 III 1.4 -3.1 -4.4 2.0 1.1 0.6 1.8 1.0 IV 6.6 1.8 -4.5 2.8 3.4 -3.6 10.4 1.3 ANNUAL 2.5 0.3 -2.2 4.2 1.4 1.6 2.6 2.0 2002 I r5.3 r2.6 -2.5 r5.6 r4.1 r0.3 r-0.1 r0.2 II 1.8 2.1 0.3 r4.4 r1.1 r2.6 r-1.7 r1.0 III r4.8 r3.6 -1.1 r2.0 r-0.1 r-2.6 r7.7 r1.0 IV r0.1 r0.5 r0.3 r0.1 r-1.9 r0.0 r4.7 r1.7 ANNUAL r4.0 r1.5 -2.4 r3.4 r1.8 r-0.5 r3.8 r1.0 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 2.0 4.5 2.4 6.5 3.2 4.4 -3.2 1.6 II 3.8 5.4 1.5 6.7 3.3 2.8 0.3 1.9 III 2.9 3.8 0.9 7.8 4.2 4.8 -3.1 1.9 IV 2.3 2.2 -0.1 6.5 3.0 4.1 -1.7 2.0 ANNUAL 2.8 3.9 1.1 7.0 3.5 4.0 -1.9 1.8 2001 I 2.6 1.8 -0.8 4.8 1.3 2.1 1.2 1.8 II 2.1 0.2 -1.8 5.1 1.6 3.0 0.5 2.1 III 2.7 -0.4 -2.9 3.6 0.9 0.9 3.9 2.0 IV 3.2 -0.4 -3.5 3.6 1.8 0.4 4.8 2.0 ANNUAL 2.5 0.3 -2.2 4.2 1.4 1.6 2.6 2.0 2002 I r4.7 r0.5 -4.0 r3.3 r2.1 r-1.3 r6.3 r1.3 II r3.7 r0.8 -2.8 r3.7 r2.4 r0.0 r2.5 0.9 III r4.6 r2.5 -2.0 r3.7 r2.1 r-0.8 r4.0 r0.9 IV r3.0 r2.2 -0.8 r3.0 r0.8 r0.1 r2.6 r1.0 ANNUAL r4.0 r1.5 -2.4 r3.4 r1.8 r-0.5 r3.8 r1.0 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I 113.9 138.8 121.9 132.1 111.2 116.0 106.8 112.6 II 115.9 141.4 122.0 132.5 110.6 114.3 111.1 113.1 III 115.6 141.1 122.0 135.0 111.7 116.8 108.0 113.5 IV r116.7 141.8 121.5 135.8 111.6 116.3 109.8 113.9 ANNUAL 115.6 140.8 121.8 134.0 111.4 115.9 108.9 113.3 2001 I 116.6 141.4 121.3 138.0 112.3 118.4 108.2 114.6 II 118.2 141.9 120.0 138.9 112.2 117.5 111.9 115.4 III 118.7 140.8 118.7 139.5 112.5 117.6 112.2 115.6 IV 120.5 141.2 117.2 140.6 113.5 116.7 115.0 116.0 ANNUAL 118.5 141.3 119.3 139.3 112.6 117.5 111.8 115.4 2002 I r122.5 r142.5 116.3 r142.7 r114.8 r116.5 r115.2 116.0 II r122.7 r143.0 116.5 r144.2 r115.0 r117.5 r115.0 r116.6 III r123.9 r144.1 116.3 r144.8 r114.9 r116.9 r116.9 r116.9 IV r124.0 r144.1 r116.2 r145.0 r114.5 r116.9 r118.0 r117.3 ANNUAL r123.3 r143.4 116.3 r144.2 r114.8 r117.0 r116.3 r116.7 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I -2.0 -0.1 1.9 14.5 10.3 16.9 -17.2 3.3 II r7.2 7.5 0.2 1.1 -2.0 -5.8 17.0 1.8 III -0.9 -0.8 0.0 8.0 4.1 8.9 -10.9 1.4 IV 4.0 2.2 -1.7 2.3 -0.6 -1.6 6.9 1.3 ANNUAL 2.7 3.8 1.1 7.0 3.6 4.2 -2.0 1.9 2001 I -0.4 -1.1 -0.7 r6.8 2.8 7.2 -5.5 2.6 II r5.6 1.2 -4.2 2.5 -0.6 -3.0 14.1 2.7 III r1.5 -2.9 -4.3 1.8 1.0 0.4 1.3 0.7 IV 6.5 1.2 -5.0 3.2 3.8 -3.1 10.2 1.5 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.4 2.7 1.9 2002 I r6.5 r3.5 -2.8 r6.1 r4.5 r-0.4 r0.7 r0.0 II r0.8 r1.4 0.6 r4.2 r0.9 r3.4 r-0.5 r2.0 III r4.1 r3.1 -0.9 r1.8 r-0.3 r-2.2 r6.5 r0.9 IV r0.2 r0.1 0.0 r0.4 r-1.6 r0.2 r3.9 r1.6 ANNUAL r4.0 r1.5 -2.5 r3.5 r1.9 r-0.5 r4.0 r1.1 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 2.0 4.4 2.3 6.8 3.5 4.7 -2.9 1.9 II 3.7 5.3 1.5 6.8 3.4 2.9 0.3 2.0 III 2.8 3.6 0.8 7.9 4.3 5.0 -3.2 2.0 IV 2.0 2.1 0.1 6.3 2.8 4.2 -2.0 2.0 ANNUAL 2.7 3.8 1.1 7.0 3.6 4.2 -2.0 1.9 2001 I 2.4 1.9 -0.5 4.5 1.0 2.0 1.3 1.8 II 2.0 0.4 -1.7 4.9 1.4 2.8 0.7 2.0 III 2.6 -0.2 -2.7 3.3 0.6 0.7 3.9 1.8 IV 3.2 -0.4 -3.6 3.6 1.7 0.3 4.7 1.9 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.4 2.7 1.9 2002 I r5.0 r0.7 -4.1 r3.4 r2.2 r-1.5 r6.4 1.2 II r3.8 r0.8 -2.9 r3.8 r2.5 r0.0 r2.8 r1.0 III r4.4 r2.3 -2.0 r3.8 r2.2 r-0.6 r4.1 r1.1 IV r2.9 r2.0 -0.8 r3.1 r0.9 r0.2 r2.6 r1.1 ANNUAL r4.0 r1.5 -2.5 r3.5 r1.9 r-0.5 r4.0 r1.1 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 3. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I 132.6 138.1 104.1 133.2 112.1 100.5 II 134.4 140.0 104.1 132.5 110.7 98.6 III 134.0 139.0 103.8 135.9 112.4 101.4 IV 134.9 137.5 102.0 136.7 112.3 101.4 ANNUAL 134.1 138.6 103.4 134.7 112.0 100.5 2001 I 134.6 134.9 100.2 138.1 112.4 102.7 II 135.8 133.1 98.0 137.3 110.9 101.1 III 137.0 131.3 95.8 137.0 110.4 100.0 IV 140.6 130.0 92.5 139.0 112.2 98.8 ANNUAL 136.9 132.3 96.6 137.8 111.5 100.7 2002 I 144.4 131.1 90.8 r144.7 r116.3 r100.2 II 146.5 132.4 90.4 r147.6 r117.7 r100.8 III 148.7 133.2 89.6 r149.0 r118.3 r100.2 IV 149.5 132.1 88.4 r150.2 r118.6 r100.5 ANNUAL 147.3 132.2 89.8 r147.9 r117.7 r100.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I 5.6 3.7 -1.9 21.8 17.3 15.3 II 5.6 5.6 0.0 -2.1 -5.1 -7.3 III -1.4 -2.8 -1.4 10.6 6.6 12.1 IV 2.8 -4.1 -6.7 2.4 -0.4 -0.3 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 2001 I -0.9 -7.6 -6.7 4.3 0.4 5.2 II 3.8 -5.0 -8.5 -2.4 -5.4 -5.9 III 3.5 -5.5 -8.6 -0.9 -1.7 -4.2 IV 11.1 -3.7 -13.3 5.9 6.5 -4.6 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 2002 I 11.2 3.2 -7.2 r17.4 r15.7 r5.5 II 5.8 4.1 -1.6 r8.4 5.0 r2.5 III 6.3 2.4 -3.7 r4.0 r1.8 r-2.2 IV 2.2 -3.2 -5.3 r3.2 r1.1 r1.0 ANNUAL 7.5 -0.1 -7.1 r7.3 r5.6 r-0.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 4.7 3.8 -0.8 9.8 6.4 4.9 II 5.6 4.6 -0.9 8.5 5.1 2.8 III 5.1 3.3 -1.7 10.0 6.4 4.7 IV 3.1 0.5 -2.5 7.8 4.2 4.6 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 2001 I 1.5 -2.3 -3.7 3.7 0.3 2.2 II 1.0 -4.9 -5.9 3.6 0.2 2.5 III 2.3 -5.5 -7.6 0.8 -1.8 -1.4 IV 4.3 -5.5 -9.3 1.7 -0.1 -2.5 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 2002 I 7.3 -2.8 -9.4 r4.7 r3.5 r-2.4 II 7.8 -0.5 -7.8 r7.5 r6.2 r-0.3 III 8.6 1.5 -6.6 r8.8 r7.1 r0.2 IV 6.3 1.6 -4.5 r8.1 r5.7 r1.7 ANNUAL 7.5 -0.1 -7.1 r7.3 r5.6 r-0.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I 149.6 164.9 110.2 133.4 112.3 89.2 II 151.4 167.5 110.7 131.9 110.1 87.1 III 151.0 166.4 110.2 135.7 112.3 89.9 IV 151.0 164.1 108.6 135.4 111.3 89.7 ANNUAL 150.9 165.7 109.8 134.2 111.6 89.0 2001 I 150.3 160.1 106.5 136.4 111.0 90.7 II 151.7 157.6 103.9 135.8 109.6 89.5 III 153.4 154.4 100.7 135.6 109.3 88.4 IV 156.8 151.5 96.6 137.9 111.3 87.9 ANNUAL 153.0 155.9 101.9 136.4 110.3 89.2 2002 I 161.8 153.1 94.6 r142.0 r114.2 r87.8 II 164.6 155.3 94.3 r145.0 r115.7 r88.1 III 167.7 156.6 93.4 r146.0 r115.9 r87.1 IV 170.6 156.3 91.6 r147.4 r116.4 r86.4 ANNUAL 166.1 155.3 93.5 r145.1 r115.5 r87.3 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I 9.8 7.9 -1.7 25.0 20.3 13.9 II 4.9 6.6 1.6 -4.5 -7.5 -9.0 III -1.1 -2.6 -1.6 12.1 8.1 13.3 IV 0.2 -5.4 -5.6 -0.7 -3.5 -0.9 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 2001 I -2.0 -9.5 -7.6 2.7 -1.1 4.8 II 3.7 -6.1 -9.4 -1.7 -4.7 -5.2 III 4.6 -7.7 -11.8 -0.6 -1.4 -5.0 IV 9.2 -7.3 -15.2 7.1 7.7 -2.0 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 2002 I 13.3 4.1 -8.1 r12.4 r10.7 r-0.9 II 7.1 6.0 -1.0 r8.9 r5.4 r1.7 III 7.7 3.3 -4.0 r2.8 r0.7 r-4.6 IV 7.1 -0.7 -7.2 r3.7 r1.6 r-3.1 ANNUAL 8.6 -0.4 -8.3 r6.4 r4.7 r-2.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 5.9 6.0 0.2 11.2 7.7 5.0 II 5.9 6.5 0.6 8.9 5.5 2.8 III 5.6 4.4 -1.2 10.9 7.2 4.9 IV 3.4 1.5 -1.8 7.4 3.8 3.9 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 2001 I 0.5 -2.9 -3.4 2.2 -1.1 1.7 II 0.2 -5.9 -6.1 3.0 -0.4 2.8 III 1.6 -7.2 -8.7 -0.1 -2.7 -1.7 IV 3.8 -7.7 -11.1 1.8 0.0 -1.9 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 2002 I 7.7 -4.4 -11.2 r4.1 r2.9 r-3.3 II 8.5 -1.5 -9.2 r6.8 r5.5 r-1.6 III 9.3 1.4 -7.2 r7.7 r6.1 r-1.5 IV 8.8 3.2 -5.1 r6.9 r4.5 r-1.7 ANNUAL 8.6 -0.4 -8.3 r6.4 r4.7 r-2.1 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2000 I 116.7 110.9 95.0 130.5 109.8 111.8 II 118.7 112.0 94.4 131.4 109.7 110.7 III 118.0 111.1 94.1 133.7 110.7 113.3 IV 119.9 110.4 92.0 136.6 112.2 113.9 ANNUAL 118.5 111.1 93.7 133.2 110.8 112.4 2001 I 119.9 108.9 90.8 139.2 113.3 116.1 II 120.8 107.8 89.2 138.0 111.5 114.3 III 120.9 107.1 88.6 137.8 111.1 114.0 IV 124.4 107.3 86.3 139.3 112.4 111.9 ANNUAL 121.5 107.8 88.7 138.6 112.1 114.1 2002 I 126.9 107.9 85.0 r148.1 r119.1 r116.7 II 128.3 108.4 84.5 r150.8 r120.3 r117.6 III 129.7 108.7 83.8 r153.1 r121.5 r118.1 IV 128.2 106.9 83.4 r154.2 r121.7 r120.3 ANNUAL 128.2 108.0 84.2 r151.5 r120.6 r118.2 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I -0.1 -2.3 -2.2 15.4 11.1 15.5 II 6.8 3.9 -2.8 2.7 -0.4 -3.8 III -2.3 -3.2 -1.0 7.4 3.5 9.8 IV 6.6 -2.5 -8.5 8.9 5.9 2.2 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 2001 I -0.2 -5.3 -5.1 7.8 3.8 8.0 II 3.2 -3.8 -6.8 -3.4 -6.3 -6.3 III 0.3 -2.6 -2.9 -0.6 -1.4 -0.9 IV 12.2 0.8 -10.1 4.3 4.9 -7.1 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 2002 I 8.2 2.2 -5.5 r28.0 r26.2 r18.3 II 4.4 1.8 -2.4 7.4 4.0 2.9 III 4.5 1.1 -3.2 r6.3 r4.1 r1.8 IV -4.5 -6.4 -2.0 r2.8 r0.7 r7.6 ANNUAL 5.6 0.2 -5.1 r9.4 r7.6 r3.6 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 3.4 0.8 -2.5 6.7 3.4 3.2 II 5.3 1.7 -3.5 7.3 3.9 1.8 III 4.2 1.5 -2.6 8.2 4.6 3.8 IV 2.7 -1.1 -3.7 8.5 4.9 5.7 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 2001 I 2.7 -1.9 -4.4 6.7 3.2 3.9 II 1.8 -3.7 -5.4 5.1 1.6 3.2 III 2.4 -3.6 -5.9 3.1 0.4 0.6 IV 3.8 -2.7 -6.3 1.9 0.1 -1.8 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 2002 I 5.9 -0.9 -6.4 r6.4 r5.1 r0.5 II 6.2 0.6 -5.3 r9.3 r7.9 r2.9 III 7.3 1.5 -5.4 r11.1 r9.4 r3.6 IV 3.0 -0.4 -3.3 r10.7 r8.3 7.4 ANNUAL 5.6 0.2 -5.1 r9.4 r7.6 r3.6 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics Appendix table 6. Nonfinancial corporations: 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 2000 I 120.5 150.3 124.7 129.7 109.2 107.7 101.9 106.1 114.6 106.9 II r121.1 151.1 r124.8 130.5 r108.9 107.7 103.5 106.6 115.9 107.4 III r121.9 152.4 r125.0 132.9 110.0 109.0 104.8 107.9 107.4 107.8 IV 122.2 152.3 124.7 134.4 110.4 110.0 106.5 109.1 97.0 108.0 ANNUAL 121.5 151.5 124.7 132.0 109.7 108.6 104.2 107.4 108.7 107.5 2001 I 122.6 151.9 123.9 135.5 110.3 110.5 109.2 110.2 87.4 108.1 II 123.5 151.1 r122.4 136.8 110.5 110.8 111.6 111.0 86.9 108.9 III 123.7 149.4 120.8 137.9 r111.1 111.5 114.1 112.2 79.0 109.2 IV r124.4 148.2 119.1 139.3 r112.4 111.9 115.7 113.0 75.5 109.6 ANNUAL r123.5 150.2 r121.6 r137.3 111.1 111.2 112.6 111.6 82.2 108.9 2002 I r126.0 r149.3 118.5 r140.1 r112.7 r111.2 r113.0 r111.7 r85.8 r109.4 II r127.9 r151.4 118.4 r141.8 r113.1 r110.9 r110.7 r110.9 94.5 r109.4 III r129.1 152.2 117.9 r142.7 r113.3 r110.6 r110.0 r110.4 r100.3 109.5 IV r130.1 r153.0 117.6 r143.2 r113.1 r110.1 r109.6 r110.0 r111.2 110.1 ANNUAL r128.2 r151.5 118.1 r142.0 r113.0 r110.7 r110.8 r110.7 r98.0 109.6 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2000 I 7.1 9.5 2.2 15.2 10.9 7.6 1.4 5.9 -25.5 2.3 II r2.1 2.3 0.1 2.3 -0.8 0.1 6.6 1.8 4.7 2.1 III 2.7 3.4 0.7 7.7 3.8 4.9 5.0 4.9 -26.2 1.5 IV 0.7 -0.2 -0.9 4.5 r1.5 3.7 6.7 4.5 -33.4 0.6 ANNUAL 3.6 5.2 1.6 6.8 r3.3 3.1 3.8 3.3 -15.8 1.2 2001 I 1.4 -1.1 -2.4 3.4 r-0.5 1.9 10.5 4.1 -34.1 0.6 II 3.0 -2.2 -5.0 3.9 0.7 0.9 9.2 3.1 -2.5 2.7 III 0.6 -4.4 -5.0 3.2 2.4 2.6 8.9 4.3 -31.8 1.3 IV 2.5 -3.0 -5.4 4.2 4.8 1.6 5.9 2.8 -16.3 1.4 ANNUAL 1.7 -0.9 -2.5 4.1 r1.2 2.4 8.1 3.9 -24.3 1.3 2002 I r5.1 r2.9 -2.0 r2.3 r0.8 r-2.6 r-9.0 r-4.4 r66.7 r-0.8 II r6.1 r5.6 -0.5 r5.1 r1.7 r-1.0 r-7.9 r-2.9 r46.9 r0.1 III r3.9 r2.3 r-1.5 r2.6 r0.5 r-1.2 r-2.4 r-1.5 r27.0 r0.5 IV r3.2 r2.0 r-1.2 r1.3 r-0.7 r-1.8 r-1.5 r-1.7 r51.0 r2.0 ANNUAL r3.8 r0.9 -2.8 r3.4 r1.8 r-0.4 r-1.6 r-0.7 r19.2 0.6 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2000 I 3.4 6.1 2.7 5.8 2.5 2.3 2.8 2.4 -14.1 0.6 II r3.4 5.5 2.0 6.2 r2.8 2.7 3.8 3.0 -13.2 1.1 III 4.1 5.6 1.4 7.6 4.0 3.3 3.8 3.5 -14.9 1.5 IV 3.1 3.7 0.5 7.3 3.8 4.0 4.9 4.3 -21.3 1.6 ANNUAL 3.6 5.2 1.6 6.8 r3.3 3.1 3.8 3.3 -15.8 1.2 2001 I r1.7 1.1 -0.6 4.4 1.0 2.6 7.2 3.8 -23.7 1.2 II r1.9 0.0 -1.9 r4.8 1.4 2.8 7.8 4.1 -25.0 1.3 III 1.4 -2.0 -3.3 3.7 1.0 2.3 8.8 4.0 -26.5 1.3 IV 1.9 -2.7 -4.5 3.7 1.8 1.8 8.6 3.6 -22.2 1.5 ANNUAL 1.7 -0.9 -2.5 4.1 r1.2 2.4 8.1 3.9 -24.3 1.3 2002 I r2.8 r-1.7 -4.4 r3.4 r2.2 r0.6 r3.5 r1.4 r-1.9 r1.1 II r3.5 r0.2 -3.2 r3.7 r2.4 r0.1 r-0.9 r-0.1 r8.7 r0.5 III r4.4 1.9 r-2.4 r3.5 r1.9 r-0.8 r-3.5 r-1.6 r27.0 0.3 IV r4.5 r3.2 r-1.3 r2.8 r0.6 r-1.7 r-5.2 r-2.6 r47.2 r0.4 ANNUAL r3.8 r0.9 -2.8 r3.4 r1.8 r-0.4 r-1.6 r-0.7 r19.2 0.6 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 9, 2005 r=revised Source: Bureau of Labor Statistics