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Media contact: (202) 691-5902 THURSDAY, MARCH 4, 2004 

PRODUCTIVITY AND COSTS 

Fourth Quarter and Annual Averages, 2003 

 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised 

fourth-quarter seasonally-adjusted annual rates of productivity change—as measured by output per 

hour of all persons—and revised annual changes for the full year 2003. Percent changes in 

business and nonfarm business productivity were: 

 Fourth Annual averages 

 quarter 2002-2003 

Business sector ........................................ 2.0 4.5 

Nonfarm business sector ......................... 2.6 4.4 

In the fourth quarter, productivity increased 2.0 percent in the business sector, slightly 

more than the 1.8 percent rise reported Feb. 5. In nonfarm businesses, productivity grew 2.6 

percent, compared to the preliminary estimate of 2.7 percent (seasonally adjusted annual rates). 

On an annual average basis, productivity rose 4.5 percent in the business sector and 4.4 percent in 

the nonfarm business sector—0.2 percentage points higher than previously reported in both 

sectors. Fourth-quarter productivity and related measures are summarized in table A and appear in 

detail in tables 1 through 5. Preliminary and revised fourth-quarter and annual data appear in table 

C. 

 In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages 

 quarter 2002-2003 

Manufacturing ......................................... 4.8 5.1 

 Durable goods manufacturing ............... 6.1 7.7 

 Nondurable goods manufacturing ......... 4.4 1.9 

 Productivity in total manufacturing grew at a 4.8 percent annual rate in the fourth quarter 

of 2003, the same as reported Feb. 5, as a downward revision to fourth-quarter productivity growth 

in durable goods manufacturing was offset by an upward revision to output per hour in the 

nondurable goods subsector. Productivity increases from 2002 to 2003 were revised upward in 

total manufacturing and both subsectors. (Output and hours in manufacturing, which includes 
2 

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.) 

Table A. Productivity and costs: Revised fourth-quarter 2003 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

 Business 2.0 3.9 1.9 1.8 1.0 -0.2 

 Nonfarm business 2.6 4.1 1.5 2.2 1.4 -0.4 

 Manufacturing 4.8 6.1 1.3 2.7 2.0 -2.0 

 Durable 6.1 9.6 3.3 1.4 0.7 -4.4 

 Nondurable 4.4 2.2 -2.0 4.7 3.9 0.3 

 Percent change from same quarter a year ago 

 Business 5.3 5.0 -0.3 3.6 1.7 -1.6 

 Nonfarm business 5.4 5.1 -0.3 3.6 1.7 -1.7 

 Manufacturing 5.8 1.6 -3.9 5.1 3.2 -0.6 

 Durable 7.7 3.7 -3.7 4.7 2.8 -2.8 

 Nondurable 3.6 -0.8 -4.2 5.9 4.0 2.2 

 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 data for business and nonfarm business are based on measures of 

gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of 

Commerce. Quarterly output measures for manufacturing reflect indexes of industrial production 

independently prepared by the Board of Governors of the Federal Reserve System. See Technical 

Notes for further information on data sources (page 9). 

THIRD-TO-FOURTH QUARTER 2003 CHANGES 

Business 

 Labor productivity in the business sector rose at a 2.0 percent annual rate in the fourth 

quarter of 2003, as output increased 3.9 percent and hours of all persons engaged in the sector 

increased 1.9 percent (table 1). The fourth-quarter increase in business sector hours was the 

largest since hours increased 2.3 percent in both the third and fourth quarters of 1999. Hours had 

increased 1.5 percent in the third quarter of 2003. Increases in both productivity and output were 

smaller in the fourth quarter than in the third quarter of 2003, when productivity increased 8.7 

percent and output grew 10.3 percent. 
3 

 Hourly compensation grew at a 1.8-percent annual rate in the fourth quarter, compared 

with a 2.7-percent rise in the third quarter. This measure includes wages and salaries, 

supplements, employer contributions to employee-benefit plans, and taxes. Real hourly 

compensation, which takes into account changes in consumer prices, rose 1.0 percent in the fourth 

quarter of 2003 after rising 0.3 percent one quarter earlier. 

Unit labor costs, which reflect changes in hourly compensation and productivity, declined 

0.2 percent during the fourth quarter of 2003, after falling 5.5 percent in the third quarter. The 

implicit price deflator for business output, which reflects changes in unit labor costs and unit 

nonlabor payments, increased 1.2 percent in the fourth quarter and 1.3 percent in the third quarter. 

Nonfarm business 

In the nonfarm business sector, productivity rose at an annual rate of 2.6 percent in the 

fourth quarter of 2003, as output grew 4.1 percent and hours of all persons—employees, 

proprietors, and unpaid family workers—rose 1.5 percent (seasonally adjusted annual rates). This 

was the largest increase in hours since the first quarter of 2000. During the third quarter, 

productivity increased 9.5 percent, output grew 10.4 percent, and hours rose 0.9 percent 

 (table 2). 

 Hourly compensation rose 2.2 percent in the fourth quarter, after rising 3.3 percent in the 

third quarter. When the increase in consumer prices was taken into account, real hourly 

compensation rose 1.4 percent in the fourth quarter and 1.0 percent in the third quarter. 

Unit labor costs declined 0.4 percent in the fourth quarter, after dropping 5.6 percent in the 

third quarter. The implicit price deflator for nonfarm business increased 0.5 percent in the fourth 

quarter, and 1.1 percent in the third quarter, of 2003. 

Manufacturing 

Manufacturing productivity increased 4.8 percent in the fourth quarter of 2003, as output 

grew 6.1 percent and hours rose 1.3 percent (seasonally adjusted annual rates). This was the 

largest increase in manufacturing output since a 6.3-percent increase in the fourth quarter of 1999. 

The hours increase was the first since a 0.5-percent rise in the second quarter of 2000. In durable 

goods industries, productivity increased 6.1 percent when output grew 9.6 percent and hours rose 

3.3 percent. In nondurable goods industries, output per hour gained 4.4 percent, reflecting an 

increase of 2.2 percent in output and a 2.0 percent decline in hours. During the third quarter, 

productivity had increased rapidly: 10.1 percent in total manufacturing, 14.5 percent in durable 

goods manufacturing, and 5.2 percent in nondurable goods manufacturing (tables 3, 4, and 5). 

 Hourly compensation of all manufacturing workers increased 2.7 percent during the fourth 

quarter, rising in both of the manufacturing subsectors—1.4 percent in durable goods and 4.7 

percent in nondurable goods. When the increase in consumer prices was taken into account, real 

hourly compensation for all manufacturing workers rose 2.0 percent in the fourth quarter. 

Unit labor costs in manufacturing declined 2.0 percent in the fourth quarter of 2003, after 

falling 4.6 percent in the third quarter. These costs fell 4.4 percent in durable goods industries and 

edged up 0.3 percent in nondurable goods industries during the fourth quarter of 2003. 
4 

ANNUAL AVERAGE CHANGES, 2002-2003 

Business 

Business sector productivity increased 4.5 percent when the annual index for 2003 was 

compared with the annual index for 2002 (table B). The 2002-2003 increase reflected a 3.7-

percent increase in output and a 0.8-percent decline in hours. From 2001 to 2002, business sector 

productivity had increased 4.9 percent, when output grew 2.3 percent and hours worked fell 2.5 

percent. The consecutive productivity increases in 2002 and 2003 yielded a 4.7-percent average 

annual rate of growth from 2001 to 2003. This was the largest two-year productivity gain since 

1949-51, when output per hour grew at a 5.7-percent annual rate, reflecting annual increases of 8.1 

percent in 1950 and 3.1 percent in 1951. 

Table B. Productivity and costs: Revised 2003 annual averages 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change from previous year 

Business 4.5 3.7 -0.8 3.3 1.0 -1.1 

Nonfarm business 4.4 3.7 -0.7 3.2 0.9 -1.2 

Manufacturing 5.1 0.1 -4.8 5.5 3.2 0.4 

 Durable 7.7 2.0 -5.3 5.4 3.1 -2.1 

 Nondurable 1.9 -2.2 -4.0 5.9 3.5 3.9 

 Hourly compensation in the business sector increased 3.3 percent in 2003 and 2.2 percent 

in 2002. Real hourly compensation also increased more in 2003, 1.0 percent, than in 2002, when 

it rose 0.6 percent. 

 Business sector unit labor costs decreased 1.1 percent in 2003. In 2002, these costs had 

fallen 2.5 percent— the largest annual decrease to date in this measure, which begins with data for 

1948. The implicit price deflator rose 1.4 percent in 2003 and 0.8 percent in 2002. 

Nonfarm business

Productivity increased 4.4 percent in the nonfarm business sector during 2003. Output 

grew 3.7 percent and hours of all persons declined 0.7 percent. During 2002, productivity had 

increased 5.0 percent in nonfarm business, as output rose 2.3 percent and hours of all persons fell 

2.6 percent. As in the larger business sector, when the productivity increases for 2002 and 2003 

are combined, productivity for the 2001-2003 period rose at an average annual rate of 4.7 percent 

in nonfarm businesses. The last comparable two-year rise occurred over the 1949-1951 period, 

when productivity increased at a 4.6 percent annual rate, incorporating rises of 6.6 percent in 1950 

and 2.7 percent in 1951. 
5 

Hourly compensation grew 3.2 percent in 2003, more than the 2.3-percent increase in 

2002. Real hourly compensation increased 0.9 percent in 2003, following a 0.7-percent rise in the 

previous year. 

Unit labor costs in the nonfarm business sector dropped 1.2 percent in 2003. These costs 

had decreased 2.5 percent during 2002, the largest annual decline in this measure ever recorded. 

The implicit price deflator, which reflects nonlabor payments as well as labor costs, rose 1.2 

percent in 2003, following a 0.9-percent rise in 2002. 

Manufacturing 

Manufacturing productivity grew 5.1 percent in 2003, reflecting a 0.1-percent rise in 

output and a 4.8-percent decline in hours. In 2002, output per hour had increased 7.2 percent, as 

output fell 0.6 percent but hours fell faster, 7.3 percent. Labor productivity increased 7.7 percent 

in durable goods manufacturing during 2003, as output grew 2.0 percent and hours dropped 5.3 

percent. In nondurable goods manufacturing, productivity rose 1.9 percent in 2003, as output and 

hours fell 2.2 percent and 4.0 percent, respectively (tables B, 3, 4, and 5). 

 Hourly compensation of manufacturing workers increased 5.5 percent in 2003, compared 

to a 4.0-percent increase one year earlier. Real hourly compensation rose 3.2 percent in 2003, 

after gaining 2.4 percent in 2002. Hourly compensation increased 5.4 percent in durable goods 

industries and 5.9 percent in nondurable goods industries in 2003. 

Unit labor costs rose 0.4 percent in manufacturing from 2002 to 2003. In durable 

manufacturing, unit labor costs fell 2.1 percent in 2003. By contrast, unit labor costs in 

nondurable manufacturing rose last year, by 3.9 percent. 

REVISED MEASURES 

 Productivity and cost data for the fourth quarter and full year 2003 for business, nonfarm 

business, and manufacturing were revised to incorporate the most recent information (table C). 

Quarterly and annual measures for the business, nonfarm business, nonfinancial corporate, and 

manufacturing sectors were revised back to 1999 to incorporate the annual benchmark adjustment 

and updated information on seasonal trends from the BLS nonfarm payroll series. Quarterly 

measures of real hourly compensation in these sectors during 2003 also reflect the recalculation of 

seasonal factors for the Consumer Price Index for All Urban Consumers. 
6 

Table C. Previous and revised productivity and related measures: 

Fourth-quarter and annual averages 2003 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change, third to fourth quarter 2003 

Business: 

 Previous....................... 1.8 3.7 1.9 0.9 0.1 -0.8 

 Current......................... 2.0 3.9 1.9 1.8 1.0 -0.2 

Nonfarm business: 

 Previous....................... 2.7 4.2 1.5 1.3 0.5 -1.3 

 Current......................... 2.6 4.1 1.5 2.2 1.4 -0.4 

Manufacturing: 

 Previous....................... 4.8 6.6 1.7 1.5 0.7 -3.1 

 Current......................... 4.8 6.1 1.3 2.7 2.0 -2.0 

Percent change, 2002 - 2003 

Business: 

 Previous....................... 4.3 3.7 -0.6 3.0 0.7 -1.2 

 Current......................... 4.5 3.7 -0.8 3.3 1.0 -1.1 

Nonfarm business: 

 Previous....................... 4.2 3.7 -0.5 2.9 0.6 -1.2 

 Current......................... 4.4 3.7 -0.7 3.2 0.9 -1.2 

Manufacturing: 

 Previous....................... 4.3 0.1 -4.0 4.5 2.2 0.3 

 Current......................... 5.1 0.1 -4.8 5.5 3.2 0.4 

Business sector productivity increased 2.0 percent in fourth-quarter 2003, compared to a 

preliminary estimate of 1.8 percent (seasonally adjusted annual rates). In the nonfarm business 

sector, productivity grew 2.6 percent, about the same as the 2.7 percent figure published Feb. 5. 

Because hourly compensation growth was revised up by 0.9 percentage points in business and 

nonfarm business, unit labor costs did not decline as much as reported Feb. 5. Manufacturing 

productivity growth in the fourth quarter was the same as originally reported, reflecting downward 

revisions to both output and hours, so the larger gain in hourly compensation than previously 

reported implied a smaller decrease in unit labor costs. 

When revised annual averages for 2003 are compared to those for 2002, downward 

revisions in hours worked led to upward revisions in productivity in business, nonfarm business, 

and especially manufacturing. In all of these sectors, upward revisions to hourly compensation 

approximately offset the larger productivity increases, and movements in unit labor costs were 

similar to the preliminary estimates. 
7 

Revised measures: Nonfinancial corporations 

 Measures for the nonfinancial corporate sector also were revised back to 1999 due to 

updated information on hours worked by employees. Third quarter measures for the sector were 

unchanged from information reported on Feb. 5. As a result of a slight downward revision to 

hours in 2002, productivity, hourly compensation, and real hourly compensation are slightly 

higher than previously announced. Unit labor costs are unchanged. 

Table D. Nonfinancial corporations: Previous and revised productivity and cost measures 

Quarterly percent c anges at easonally adjusted annual rate h s s

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

Third quarter 2003 

Previous 8.6 8.5 -0.1 3.6 1.2 -4.6 46.2 0.9 

Current 8.6 8.5 -0.1 3.6 1.2 -4.6 46.2 0.9 

Percent change, 2001-2002 

Previous 5.0 2.0 -2.8 2.2 0.6 -2.7 21.9 0.1 

Current 5.1 2.0 -3.0 2.3 0.7 -2.7 21.9 0.1 

Upcoming changes to productivity and cost data 

New estimates of average weekly hours at work for nonproduction and supervisory 

workers will be introduced into the BLS major sector productivity and cost measures beginning 

with the August 10, 2004, release. An article discussing these new measures and the effects of this 

change will be published in the Monthly Labor Review sometime in the next few months. A 

technical note describing the methodology will be available this summer. 

In addition, on Aug. 10, BLS intends to introduce two improvements in the way it uses 

data from the Current Population Survey to measure the hours for its quarterly labor productivity 

and costs program. Employment and hours for the farm sector, nonfarm self-employed, and 

nonfarm unpaid family workers and hours for employees of government enterprises will be 

adjusted to account for the effects of multiple jobholding. Concurrent seasonal adjustment of 

these series also will be introduced. Further information on these changes will be announced later 

this year. 
8 

Next release date 

 The next release of Productivity and Costs is scheduled for 8:30 AM EDT, Thursday, 

May 6, 2004, and will present preliminary first-quarter measures for business, nonfarm business, 

and manufacturing. Fourth-quarter and annual data for nonfinancial corporations will be released 

at that time. 
9 

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 em- ployment data is the BLS Current Employment 

Statistics (CES) program, which provides 

monthly survey data on the number of jobs held 

by wage and salary workers in nonfarm establishments. The CES also provides average 

weekly paid hours of production and nonsupervisory workers in these establishments. The 

Office of Productivity and Technology estimates 

average weekly paid hours of nonproduction and 

supervisory workers. Weekly paid hours were 

adjusted to hours at work using the BLS Hours 

at Work survey, conducted for this purpose. 

Data from the National Compensation Survey 

are used for recent years. 

Data from the BLS Current Population 

Survey (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 annualweighted index constructed after excluding from

gross domestic product (GDP) the following 

outputs: General government, nonprofit institutions, and private households (including owneroccupied housing). Corresponding exclusions 

also are made in labor inputs. Business output 

accounted for about 78 percent of the value of 

GDP in 2000. Nonfarm business, which also 

excludes farming, accounted for about 77 

percent of GDP in 2000. 

Annual indexes for manufacturing and its 

durable and nondurable goods components are 

constructed by deflating current-dollar industry 

value of production data from the U.S. Bureau 

of the Census with deflators from the BEA. 

These deflators are based on data from the BLS 

producer price program and other sources. The 

industry shipments are aggregated using annual 

weights, and intrasector transactions are 

removed. Quarterly manufacturing output 

measures are based on the index of industrial 

production prepared monthly by the Board of 

Governors of the Federal Reserve System

adjusted to be consistent with annual indexes of 

manufacturing sector output prepared by BLS. 

Durables include the following 3-digit NAICS 

industries: wood product manufacturing; nonmetallic mineral product manufacturing; 

primary metal manufacturing; fabricated metal 

product manufacturing; machinery 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 manufacturing; 

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 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. 
10 

 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 

 2001 I r116.9 141.2 r120.8 r138.2 112.5 118.2 107.1 114.1 

 II r117.7 140.8 119.6 r139.1 112.4 118.2 109.6 115.0 

 III 118.2 139.9 r118.4 r140.1 112.9 118.6 r109.5 115.2 

 IV r120.4 140.6 116.9 r141.5 r114.2 117.6 112.0 115.5 

 ANNUAL 118.3 140.6 118.9 139.7 113.0 118.1 109.5 114.9 

 2002 I r122.8 142.6 r116.1 r141.8 r114.1 115.5 115.0 115.3 

 II r123.3 143.1 116.1 142.6 113.7 115.7 115.8 115.7 

 III 124.7 144.6 r115.9 r143.1 113.5 114.7 117.9 115.9 

 IV r125.4 145.1 r115.8 r143.8 r113.5 114.7 r119.3 116.5 

 ANNUAL r124.0 143.8 r116.0 r142.8 r113.7 r115.2 117.0 115.8 

 2003 I r126.4 145.8 r115.4 r145.5 r113.8 115.1 120.0 116.9 

 II r128.6 147.3 r114.5 r147.4 r115.1 114.6 r121.5 117.2 

 III r131.3 151.0 r115.0 r148.4 r115.2 r113.0 125.3 117.6 

 IV r132.0 152.4 r115.5 r149.0 r115.5 r112.9 r126.3 117.9 

 ANNUAL r129.6 149.1 r115.1 r147.6 r114.9 r113.9 r123.3 117.4 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.1 -0.8 r-0.7 r5.8 r2.0 5.9 r-3.1 2.7 

 II r3.0 -1.2 r-4.0 r2.7 r-0.6 -0.3 r9.7 3.1 

 III 1.5 -2.6 -4.0 r3.0 r2.1 1.5 -0.4 0.8 

 IV r7.6 2.2 r-5.0 r3.9 r4.5 -3.4 9.6 1.1 

 ANNUAL 2.2 0.1 -2.1 4.1 1.3 1.8 2.1 1.9 

 2002 I r8.4 5.6 r-2.6 r0.9 r-0.4 r-6.9 r11.0 -0.7 

 II r1.5 1.4 r-0.1 r2.3 r-1.2 0.9 r3.0 1.6 

 III 4.9 4.3 r-0.5 1.3 r-0.9 -3.4 7.4 0.5 

 IV r2.0 1.6 r-0.5 r2.2 r0.2 r0.1 r4.9 1.9 

 ANNUAL r4.9 2.3 r-2.5 r2.2 r0.6 -2.5 6.8 0.8 

 2003 I r3.5 1.9 r-1.5 r4.8 r0.9 r1.3 2.3 1.6 

 II r7.2 4.2 r-2.8 r5.3 r4.7 -1.7 5.2 0.9 

 III 8.7 10.3 r1.5 2.7 r0.3 -5.5 12.9 1.3 

 IV r2.0 r3.9 1.9 r1.8 r1.0 r-0.2 r3.4 r1.2 

 ANNUAL r4.5 3.7 r-0.8 r3.3 r1.0 r-1.1 r5.4 r1.4 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I 2.7 1.9 -0.8 4.6 1.2 1.8 1.7 1.8 

 II 1.5 -0.2 -1.7 r4.8 r1.4 3.3 0.0 2.1 

 III 2.0 -0.7 -2.6 3.5 0.8 1.4 3.0 2.0 

 IV 2.9 -0.6 r-3.5 3.8 r2.0 0.9 3.8 1.9 

 ANNUAL 2.2 0.1 -2.1 4.1 1.3 1.8 2.1 1.9 

 2002 I r5.1 1.0 -3.9 2.6 1.4 -2.3 7.4 1.1 

 II r4.7 1.6 -2.9 r2.5 1.2 -2.1 5.7 0.7 

 III 5.5 3.4 r-2.1 r2.1 r0.5 -3.3 7.7 0.6 

 IV r4.2 3.2 r-0.9 r1.7 r-0.6 -2.4 r6.5 0.8 

 ANNUAL r4.9 2.3 r-2.5 r2.2 r0.6 -2.5 6.8 0.8 

 2003 I r3.0 2.3 r-0.6 r2.6 r-0.2 -0.3 4.4 1.4 

 II r4.4 3.0 r-1.3 r3.4 r1.2 -1.0 r4.9 1.2 

 III r5.3 4.4 r-0.8 r3.7 r1.5 -1.5 6.3 1.4 

 IV r5.3 5.0 r-0.3 r3.6 r1.7 r-1.6 r5.9 r1.3 

 ANNUAL r4.5 3.7 r-0.8 r3.3 r1.0 r-1.1 r5.4 r1.4 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
11 

 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 

 2001 I r116.4 141.5 r121.6 r137.5 111.9 118.1 r108.6 114.6 

 II 117.3 141.2 120.4 138.3 111.7 117.9 111.2 115.5 

 III 117.8 140.3 119.1 139.3 112.3 118.3 111.0 115.6 

 IV r119.8 140.8 117.6 r140.7 113.5 117.5 113.4 116.0 

 ANNUAL 117.8 141.0 119.7 138.9 r112.4 118.0 111.1 115.4 

 2002 I r122.6 143.1 r116.7 r141.1 r113.5 115.1 116.9 115.8 

 II 122.8 143.4 116.8 141.9 r113.2 115.6 117.6 116.3 

 III r124.2 144.8 r116.6 r142.4 112.9 114.6 119.9 116.6 

 IV r124.9 145.4 r116.4 r143.2 r113.0 114.6 r121.3 117.1 

 ANNUAL r123.6 144.2 r116.6 r142.1 r113.2 115.0 119.0 116.4 

 2003 I r126.0 146.3 r116.1 r144.6 r113.1 114.8 r122.2 117.5 

 II r127.9 147.6 r115.4 r146.3 r114.2 114.4 r123.4 117.7 

 III r130.8 151.3 r115.7 r147.5 r114.5 r112.8 r127.1 118.1 

 IV r131.6 r152.8 r116.1 r148.3 r114.9 r112.7 r127.7 118.2 

 ANNUAL r129.1 149.5 r115.8 r146.7 r114.2 r113.6 r125.2 117.9 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.1 -0.8 r-0.7 r5.6 r1.8 5.7 -3.0 2.5 

 II r3.1 -1.0 r-4.0 r2.4 r-0.8 r-0.7 r9.9 2.9 

 III 1.6 -2.5 r-4.1 3.0 2.1 1.3 -0.8 0.6 

 IV r7.0 1.6 r-5.1 r4.0 r4.6 -2.8 9.0 1.3 

 ANNUAL 2.1 0.1 -2.0 3.9 1.1 1.7 2.1 1.9 

 2002 I r9.8 6.7 r-2.9 r1.2 r0.0 -7.8 13.0 -0.7 

 II r0.7 0.8 r0.1 r2.3 r-1.2 1.6 2.3 1.9 

 III 4.5 4.0 -0.5 1.3 -0.9 -3.1 8.2 1.0 

 IV r2.3 1.6 r-0.7 r2.2 r0.2 r-0.1 r4.8 1.7 

 ANNUAL r5.0 2.3 r-2.6 r2.3 r0.7 -2.5 7.1 0.9 

 2003 I r3.4 2.4 r-1.0 r4.0 r0.2 r0.6 3.0 1.5 

 II r6.2 3.8 r-2.3 r4.9 4.2 -1.3 4.0 0.7 

 III 9.5 10.4 r0.9 r3.3 1.0 -5.6 12.5 1.1 

 IV r2.6 r4.1 1.5 r2.2 r1.4 r-0.4 r1.9 r0.5 

 ANNUAL r4.4 3.7 r-0.7 r3.2 r0.9 -1.2 r5.2 1.2 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I 2.5 2.0 -0.6 4.3 0.9 1.7 1.9 1.8 

 II 1.5 -0.1 -1.6 4.7 r1.2 3.1 0.1 2.1 

 III 2.0 -0.5 -2.5 r3.2 0.5 1.2 3.0 1.8 

 IV r2.9 -0.7 -3.5 r3.8 1.9 0.8 3.6 1.8 

 ANNUAL 2.1 0.1 -2.0 3.9 1.1 1.7 2.1 1.9 

 2002 I 5.3 1.1 -4.0 r2.7 1.4 r-2.5 7.6 1.0 

 II 4.7 1.6 r-3.0 2.6 r1.4 -2.0 5.7 0.7 

 III r5.5 3.2 -2.1 r2.2 r0.6 -3.1 8.0 0.8 

 IV r4.3 3.2 r-1.0 r1.8 r-0.5 -2.4 7.0 1.0 

 ANNUAL r5.0 2.3 r-2.6 r2.3 r0.7 -2.5 7.1 0.9 

 2003 I r2.7 2.2 r-0.5 r2.5 r-0.4 -0.3 r4.5 1.5 

 II r4.1 2.9 r-1.1 r3.1 r0.9 -1.0 5.0 1.2 

 III r5.3 4.5 r-0.8 r3.6 r1.4 r-1.6 6.0 1.3 

 IV r5.4 r5.1 r-0.3 r3.6 r1.7 r-1.7 r5.2 0.9 

 ANNUAL r4.4 3.7 r-0.7 r3.2 r0.9 -1.2 r5.2 1.2 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
12 

 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 

 2001 I r135.0 135.2 r100.1 r138.6 r112.9 102.7 

 II r136.0 133.3 r98.0 r137.4 r111.0 101.0 

 III r137.3 131.1 r95.5 r137.5 r110.8 100.1 

 IV 140.5 129.7 r92.3 r139.7 r112.7 99.4 

 ANNUAL r137.1 132.3 96.5 138.3 r111.8 100.8 

 2002 I r144.0 130.5 r90.6 r141.1 r113.5 98.0 

 II r146.3 131.8 r90.1 r143.3 r114.3 97.9 

 III r148.5 132.4 r89.2 r144.6 r114.7 97.4 

 IV r149.5 131.3 r87.8 r146.5 r115.7 98.0 

 ANNUAL r147.1 131.5 r89.4 r143.8 r114.5 97.8 

 2003 I r151.4 131.3 r86.7 r149.0 r116.5 98.4 

 II r152.6 130.1 r85.3 r151.2 r118.0 99.0 

 III r156.4 131.5 r84.1 r153.1 r118.8 97.9 

 IV r158.2 r133.5 r84.4 r154.1 r119.4 r97.4 

 ANNUAL r154.6 r131.6 r85.1 r151.8 r118.2 r98.2 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r-1.1 -7.5 r-6.5 r4.4 r0.7 5.6 

 II r3.0 -5.4 r-8.1 r-3.6 r-6.6 -6.4 

 III r4.0 -6.3 r-9.9 r0.3 r-0.6 -3.6 

 IV r9.8 -4.3 r-12.8 r6.5 r7.1 -2.9 

 ANNUAL 2.2 -4.6 -6.6 2.4 -0.4 0.2 

 2002 I r10.2 2.5 r-7.0 r4.2 r2.9 -5.5 

 II 6.5 4.0 -2.3 6.2 2.6 -0.2 

 III r6.0 1.7 r-4.1 r3.7 r1.5 -2.2 

 IV r3.0 -3.1 r-5.9 r5.5 r3.5 r2.5 

 ANNUAL r7.2 -0.6 r-7.3 r4.0 r2.4 -3.0 

 2003 I r5.1 0.1 r-4.8 r6.9 r2.9 1.7 

 II r3.3 -3.6 r-6.6 r5.9 r5.3 2.6 

 III r10.1 4.3 r-5.3 r5.1 r2.7 r-4.6 

 IV 4.8 r6.1 r1.3 r2.7 r2.0 r-2.0 

 ANNUAL r5.1 0.1 r-4.8 r5.5 r3.2 r0.4 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I r2.0 -2.0 r-3.9 3.9 r0.5 1.9 

 II 1.6 -4.6 r-6.0 r3.6 0.3 2.0 

 III r2.1 -5.7 -7.7 0.8 r-1.9 -1.3 

 IV 3.8 -5.9 r-9.4 1.8 0.0 -1.9 

 ANNUAL 2.2 -4.6 -6.6 2.4 -0.4 0.2 

 2002 I r6.7 -3.4 r-9.5 r1.8 r0.6 -4.6 

 II r7.6 -1.1 r-8.1 r4.3 r3.0 -3.1 

 III r8.1 0.9 r-6.6 r5.2 r3.5 -2.7 

 IV r6.4 1.2 r-4.9 r4.9 r2.6 -1.4 

 ANNUAL r7.2 -0.6 r-7.3 r4.0 r2.4 -3.0 

 2003 I r5.1 0.6 r-4.3 r5.6 r2.6 0.4 

 II r4.3 -1.3 r-5.4 r5.5 r3.3 1.1 

 III r5.3 -0.6 r-5.7 r5.9 r3.6 0.5 

 IV r5.8 r1.6 r-3.9 r5.1 r3.2 r-0.6 

 ANNUAL r5.1 0.1 r-4.8 r5.5 r3.2 r0.4 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
13 

 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 

 2001 I r150.9 160.5 r106.4 r137.9 r112.3 91.4 

 II r151.5 157.5 r103.9 r136.7 r110.4 90.2 

 III r153.0 154.0 r100.7 r136.7 r110.2 89.4 

 IV r156.8 151.6 r96.7 r139.4 r112.5 88.9 

 ANNUAL 153.0 155.9 101.9 137.7 r111.3 90.0 

 2002 I r161.2 152.6 r94.7 r140.0 r112.6 86.8 

 II r164.4 154.7 r94.1 r142.4 r113.5 86.6 

 III r167.4 155.9 r93.1 r143.5 r113.8 85.7 

 IV r171.0 156.1 r91.3 r145.7 r115.0 r85.2 

 ANNUAL r166.0 154.8 r93.3 r142.9 r113.7 86.1 

 2003 I r173.8 156.6 r90.1 r147.8 r115.6 85.0 

 II r175.5 155.1 r88.4 r150.1 r117.2 85.5 

 III r181.6 158.3 r87.2 r152.0 r118.0 83.7 

 IV r184.3 r162.0 r87.9 r152.5 r118.2 r82.8 

 ANNUAL r178.8 158.0 r88.4 r150.6 r117.2 84.2 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r-1.8 -9.7 r-8.0 r3.3 r-0.4 5.2 

 II r1.8 -7.3 r-9.0 r-3.4 r-6.5 -5.1 

 III r3.8 -8.5 r-11.9 r0.0 r-0.9 -3.7 

 IV r10.2 -6.2 r-14.9 r8.1 r8.7 -2.0 

 ANNUAL 1.5 -5.9 -7.3 1.7 -1.1 0.2 

 2002 I r11.9 2.8 r-8.2 r1.7 r0.4 r-9.1 

 II r8.0 5.5 r-2.3 r7.0 r3.3 -0.9 

 III r7.7 3.3 r-4.1 r3.3 r1.1 -4.1 

 IV r8.9 0.4 r-7.8 r6.1 r4.0 -2.6 

 ANNUAL r8.5 -0.7 r-8.5 r3.8 r2.1 -4.4 

 2003 I r6.7 1.4 r-5.0 r6.0 r2.1 -0.7 

 II r4.0 -3.9 r-7.5 r6.5 r5.9 2.4 

 III r14.5 8.4 r-5.3 r5.0 r2.6 -8.3 

 IV r6.1 r9.6 r3.3 r1.4 r0.7 r-4.4 

 ANNUAL r7.7 r2.0 r-5.3 r5.4 r3.1 r-2.1 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I 1.2 -2.4 -3.6 r2.6 -0.8 1.3 

 II r0.7 -5.7 r-6.4 r3.0 r-0.4 2.3 

 III 1.2 -7.6 -8.7 -0.2 -2.8 -1.4 

 IV 3.4 -7.9 -11.0 1.9 0.1 -1.5 

 ANNUAL 1.5 -5.9 -7.3 1.7 -1.1 0.2 

 2002 I r6.9 -4.9 -11.0 r1.5 r0.3 -5.0 

 II r8.4 -1.8 r-9.4 r4.1 r2.8 -4.0 

 III r9.4 1.2 r-7.5 r5.0 r3.3 -4.1 

 IV r9.1 3.0 r-5.6 r4.5 r2.2 -4.2 

 ANNUAL r8.5 -0.7 r-8.5 r3.8 r2.1 -4.4 

 2003 I r7.8 2.6 r-4.8 r5.6 r2.6 -2.1 

 II r6.8 0.3 r-6.1 r5.5 r3.3 r-1.2 

 III r8.5 1.5 r-6.4 r5.9 r3.6 -2.4 

 IV r7.7 r3.7 r-3.7 r4.7 r2.8 r-2.8 

 ANNUAL r7.7 r2.0 r-5.3 r5.4 r3.1 r-2.1 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
14 

 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 

 2001 I r120.0 109.0 r90.9 r137.7 r112.1 114.8 

 II r121.1 108.2 89.3 r136.5 r110.2 112.7 

 III r122.0 107.2 r87.9 r137.0 r110.4 112.2 

 IV 124.3 106.7 85.8 138.4 111.7 111.3 

 ANNUAL r121.8 107.8 r88.5 137.4 111.1 112.8 

 2002 I r126.6 107.2 r84.7 r141.6 r113.9 111.8 

 II r128.1 107.8 r84.1 r143.3 r114.3 r111.9 

 III r129.4 107.7 r83.3 r144.9 r114.9 112.0 

 IV r127.9 105.7 r82.7 r146.7 r115.8 114.7 

 ANNUAL r128.0 107.1 r83.7 r144.1 r114.7 112.6 

 2003 I r128.8 105.3 r81.8 r149.7 r117.1 r116.3 

 II r129.4 104.4 r80.7 r151.6 r118.4 117.1 

 III r131.1 104.3 r79.6 r153.6 r119.2 r117.2 

 IV r132.5 r104.9 r79.2 r155.4 r120.4 r117.3 

 ANNUAL r130.4 r104.7 r80.3 r152.6 r118.7 r117.0 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r-1.2 -4.9 r-3.8 r7.3 r3.5 8.6 

 II r4.0 -3.0 r-6.7 r-3.6 r-6.7 -7.3 

 III r3.0 -3.7 r-6.5 r1.5 r0.6 -1.5 

 IV r7.8 -2.0 r-9.1 r4.3 r4.9 r-3.2 

 ANNUAL 2.6 -3.0 -5.4 4.1 1.3 1.5 

 2002 I r7.5 2.0 r-5.1 r9.5 r8.1 1.8 

 II 4.8 2.2 -2.5 4.9 1.3 0.1 

 III r4.1 -0.2 r-4.1 r4.6 r2.4 0.5 

 IV r-4.7 -7.3 r-2.8 r5.0 r2.9 r10.1 

 ANNUAL r5.1 -0.6 r-5.4 r4.9 r3.2 -0.2 

 2003 I r2.9 -1.5 r-4.3 r8.6 r4.6 5.5 

 II r2.0 -3.2 r-5.2 r5.1 r4.5 r3.1 

 III 5.2 -0.4 -5.3 5.3 2.9 0.1 

 IV r4.4 r2.2 r-2.0 r4.7 r3.9 r0.3 

 ANNUAL r1.9 -2.2 r-4.0 r5.9 r3.5 r3.9 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I r2.7 -1.8 r-4.4 r6.6 r3.1 3.8 

 II 2.3 -3.3 -5.5 5.1 r1.6 2.7 

 III r2.6 -3.5 r-5.9 r3.1 r0.4 0.4 

 IV r3.4 -3.4 -6.5 r2.3 r0.5 -1.0 

 ANNUAL 2.6 -3.0 -5.4 4.1 1.3 1.5 

 2002 I 5.5 -1.7 r-6.9 r2.8 r1.6 -2.6 

 II r5.8 -0.4 r-5.8 r5.0 r3.7 -0.7 

 III r6.0 0.5 r-5.2 r5.8 r4.2 -0.2 

 IV r2.8 -0.9 r-3.6 r6.0 r3.6 3.0 

 ANNUAL r5.1 -0.6 r-5.4 r4.9 r3.2 -0.2 

 2003 I r1.7 -1.8 r-3.4 r5.8 r2.8 4.0 

 II r1.0 -3.1 r-4.1 r5.8 r3.6 4.7 

 III r1.3 -3.1 r-4.4 r6.0 r3.7 4.6 

 IV r3.6 r-0.8 r-4.2 r5.9 r4.0 r2.2 

 ANNUAL r1.9 -2.2 r-4.0 r5.9 r3.5 r3.9 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
15 

 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 

 2001 I 121.3 150.7 124.2 135.0 109.9 111.3 108.2 110.5 90.9 108.7 

 II 121.9 149.7 122.8 r136.2 r110.0 111.8 109.8 111.3 91.2 109.5 

 III 122.7 148.8 121.2 137.7 111.0 112.2 111.3 112.0 87.2 109.8 

 IV r125.0 149.3 119.5 r139.0 112.1 111.2 111.4 111.3 96.4 109.9 

 ANNUAL 122.7 149.6 121.9 r137.0 110.8 111.6 110.2 111.2 91.4 109.5 

 2002 I r126.4 150.2 r118.8 r138.1 r111.1 109.3 111.9 110.0 105.3 109.5 

 II r128.3 152.2 118.7 r139.6 111.3 108.8 111.5 109.6 112.3 109.8 

 III r129.8 153.4 r118.2 r140.6 r111.6 108.3 111.5 109.2 111.8 109.4 

 IV r131.4 154.5 r117.6 r142.0 r112.1 108.1 111.3 109.0 116.2 109.6 

 ANNUAL r128.9 152.6 r118.3 r140.1 r111.5 108.6 111.5 109.4 111.4 109.6 

 2003 I r132.2 154.7 r117.0 r143.3 r112.1 108.4 110.7 109.0 114.0 109.5 

 II r135.3 157.3 r116.3 r145.3 r113.5 107.4 108.0 107.6 130.7 109.6 

 III r138.1 160.5 r116.3 r146.6 r113.8 106.2 107.6 106.6 143.7 109.9 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2001 I r0.2 -2.1 r-2.3 r2.7 r-1.0 2.5 4.1 3.0 -24.6 0.5 

 II r1.7 -2.7 r-4.3 r3.6 r0.3 1.8 6.0 2.9 1.0 2.8 

 III r2.9 -2.3 r-5.0 r4.4 3.4 1.4 5.7 2.6 -16.1 1.1 

 IV r7.6 1.4 r-5.8 r3.7 r4.3 -3.6 0.4 -2.5 48.8 0.6 

 ANNUAL 1.8 -0.7 -2.4 4.0 1.2 2.2 5.1 3.0 -16.4 1.2 

 2002 I r4.6 2.3 r-2.2 r-2.5 r-3.7 -6.7 1.5 -4.6 42.4 -1.4 

 II r6.0 5.6 r-0.4 r4.4 r0.9 -1.5 -1.4 -1.5 29.5 0.9 

 III r4.9 3.2 -1.6 r3.0 r0.8 -1.8 0.0 -1.3 -1.7 -1.4 

 IV r4.9 2.8 r-2.0 r3.9 r1.9 -0.9 -0.4 -0.8 16.7 0.7 

 ANNUAL r5.1 2.0 r-3.0 r2.3 r0.7 -2.7 1.2 -1.6 21.9 0.1 

 2003 I r2.4 0.5 r-1.9 r3.8 r-0.1 1.3 -2.4 0.3 -7.4 -0.5 

 II r9.7 7.1 r-2.4 r5.7 r5.1 -3.7 -9.3 -5.2 72.6 0.6 

 III 8.6 8.5 -0.1 3.6 1.2 -4.6 -1.3 -3.7 46.2 0.9 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2001 I 1.6 0.9 -0.7 4.4 0.9 2.7 5.6 3.5 -21.1 1.1 

 II 1.5 -0.4 r-1.8 r4.7 r1.3 3.2 5.4 3.8 -21.8 1.3 

 III 1.3 -1.8 -3.1 3.7 1.0 2.4 5.6 3.2 -19.2 1.2 

 IV r3.1 -1.4 r-4.4 3.6 r1.8 0.5 4.0 1.5 -1.2 1.2 

 ANNUAL 1.8 -0.7 -2.4 4.0 1.2 2.2 5.1 3.0 -16.4 1.2 

 2002 I r4.2 -0.3 -4.3 r2.3 r1.1 -1.8 3.4 -0.5 15.8 0.8 

 II 5.2 1.7 r-3.4 r2.5 r1.2 -2.6 1.5 -1.5 23.2 0.3 

 III r5.8 3.1 r-2.5 2.1 0.5 -3.4 0.1 -2.5 28.2 -0.3 

 IV r5.1 3.5 r-1.6 r2.2 r-0.1 -2.8 -0.1 -2.1 20.6 -0.3 

 ANNUAL r5.1 2.0 r-3.0 r2.3 r0.7 -2.7 1.2 -1.6 21.9 0.1 

 2003 I r4.6 3.0 r-1.5 r3.8 r0.9 -0.7 -1.1 -0.8 8.3 -0.1 

 II r5.5 3.4 r-2.0 r4.1 r1.9 -1.3 -3.1 -1.8 16.4 -0.1 

 III r6.4 4.6 r-1.6 r4.2 r2.0 -2.0 -3.4 -2.4 28.5 0.4 

 ---------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 

 
16 

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 –1.5 and +1.5 index 

points approximately 95 percent of the time. This interval is based on the performance of this 

measure between the fourth quarter of 1995 and the third quarter of 2003. 

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 selfemployed, 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 1978-2002 is based on the Consumer Price Index research 

series (CPI-U-RS). 

(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) Data for the manufacturing sectors are not comparable to those published in releases of 

Dec. 3, 2003 and earlier. 

(7) 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. 

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

(9) Unit profits include corporate profits with inventory valuation and capital consumption 

adjustments.
17 

 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 

 1999 I 111.5 132.7 119.0 124.1 107.8 111.3 108.5 110.3 

 II 111.7 133.9 119.9 124.4 107.3 111.4 r109.0 110.5 

 III 112.5 135.7 120.6 r125.5 r107.4 111.6 109.6 110.8 

 IV 114.1 138.5 121.3 127.7 108.5 111.9 109.9 111.1 

 ANNUAL r112.4 135.2 120.2 r125.4 107.8 111.6 109.2 110.7 

 2000 I r113.8 138.6 r121.8 132.1 111.2 116.1 105.3 112.1 

 II 116.0 141.1 121.6 132.7 110.8 114.4 109.5 112.6 

 III 115.8 140.8 121.6 135.4 112.1 116.9 106.3 112.9 

 IV 116.9 141.5 121.0 136.3 112.0 116.5 107.9 113.3 

 ANNUAL 115.7 140.5 121.4 134.2 111.6 116.0 107.2 112.7 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I r3.3 3.7 r0.4 7.9 r6.3 4.4 r-3.9 1.2 

 II r0.6 3.8 r3.2 r0.9 r-2.0 r0.3 1.5 0.8 

 III 3.0 5.4 2.3 3.7 r0.6 0.7 2.3 1.3 

 IV r6.0 8.4 r2.3 r7.1 r4.0 r1.1 r1.1 1.1 

 ANNUAL 2.9 5.1 2.1 4.8 2.7 1.8 -0.6 0.9 

 2000 I r-1.3 0.3 r1.7 r14.5 r10.4 16.0 -15.8 3.4 

 II r8.2 7.5 -0.7 r1.8 -1.5 -5.9 17.2 1.8 

 III r-0.6 -0.8 r-0.2 r8.5 r4.7 9.2 -11.4 1.3 

 IV r3.8 2.0 -1.7 r2.5 -0.4 -1.3 6.3 1.4 

 ANNUAL 2.9 3.9 1.0 7.0 r3.6 4.0 -1.8 1.8 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I 2.9 4.9 1.9 5.7 4.1 2.7 -2.6 0.7 

 II 2.9 5.1 2.2 r4.5 2.5 1.6 -0.4 0.9 

 III 2.8 5.2 2.3 4.2 r1.8 1.4 0.3 1.0 

 IV 3.2 5.3 r2.0 4.9 2.2 1.6 0.2 1.1 

 ANNUAL 2.9 5.1 2.1 4.8 2.7 1.8 -0.6 0.9 

 2000 I 2.0 4.5 2.4 r6.5 3.1 4.3 -3.0 1.6 

 II r3.9 5.4 r1.4 r6.7 r3.3 2.7 0.5 1.9 

 III r3.0 3.8 0.8 r7.9 4.3 4.8 -3.0 1.9 

 IV 2.4 2.2 -0.2 6.7 3.2 4.2 -1.8 2.0 

 ANNUAL 2.9 3.9 1.0 7.0 r3.6 4.0 -1.8 1.8 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
18 

 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 

 1999 I 111.2 133.0 119.6 123.5 107.3 111.1 109.6 110.5 

 II 111.4 134.3 120.5 r123.8 106.8 111.2 110.6 111.0 

 III r112.2 136.1 r121.3 125.0 107.0 111.4 111.3 111.3 

 IV 114.0 138.9 121.8 127.3 108.2 111.7 111.7 111.7 

 ANNUAL 112.2 135.6 120.8 r124.9 107.3 111.3 110.8 111.1 

 2000 I 113.5 138.8 r122.3 r131.8 110.9 116.1 106.7 112.6 

 II 115.6 141.4 122.3 132.1 110.3 114.3 111.1 113.1 

 III 115.5 141.1 122.2 134.9 111.7 116.9 107.8 113.5 

 IV 116.4 141.8 r121.8 135.6 111.4 116.5 109.5 113.9 

 ANNUAL 115.3 140.8 122.1 133.7 111.2 116.0 108.8 113.3 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I r2.7 3.7 r1.0 r7.0 r5.5 4.2 -3.6 1.3 

 II r0.6 3.7 r3.1 r1.0 r-1.9 0.4 3.6 1.6 

 III r3.0 5.6 2.5 3.7 0.6 0.6 2.8 1.4 

 IV r6.5 8.4 r1.8 r7.9 r4.7 1.3 r1.4 1.4 

 ANNUAL 2.8 5.2 2.3 4.7 2.5 1.8 -0.1 1.1 

 2000 I r-1.7 -0.1 r1.6 r14.7 r10.5 16.7 -16.9 3.3 

 II r7.5 7.5 -0.1 r1.1 r-2.2 -6.0 17.6 1.8 

 III r-0.4 -0.8 r-0.4 r8.8 r5.0 9.2 -11.3 1.4 

 IV 3.3 2.2 r-1.1 r2.0 -0.9 -1.3 r6.3 1.3 

 ANNUAL r2.8 3.8 r1.0 7.0 3.6 4.2 -1.9 1.9 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I 2.8 4.9 2.1 5.5 4.0 2.7 -2.5 0.7 

 II 2.6 5.1 r2.5 4.3 2.3 1.7 0.1 1.1 

 III 2.6 5.2 r2.6 r3.9 r1.6 1.3 0.9 1.2 

 IV 3.2 5.4 2.1 4.9 2.2 1.6 1.0 1.4 

 ANNUAL 2.8 5.2 2.3 4.7 2.5 1.8 -0.1 1.1 

 2000 I r2.1 4.4 2.3 r6.7 r3.4 4.5 -2.7 1.9 

 II r3.8 5.3 1.5 r6.7 r3.3 2.8 0.5 2.0 

 III r2.9 3.6 r0.7 r8.0 4.4 5.0 -3.2 2.0 

 IV 2.1 2.1 0.0 6.5 3.0 4.3 -2.0 2.0 

 ANNUAL r2.8 3.8 r1.0 7.0 3.6 4.2 -1.9 1.9 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
19 

 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 

 1999 I 126.7 132.9 104.9 121.7 r105.8 96.0 

 II r127.4 133.9 r105.1 r122.3 r105.5 r96.0 

 III r127.9 134.7 r105.3 r124.0 r106.1 96.9 

 IV 130.8 136.8 r104.5 127.1 108.0 97.2 

 ANNUAL 128.2 134.6 r105.0 123.8 r106.3 96.6 

 2000 I r132.4 137.9 104.2 r133.4 112.3 100.8 

 II r133.9 139.7 104.3 r132.6 110.7 99.0 

 III r134.5 139.1 103.4 r136.4 r112.9 101.5 

 IV r135.4 137.8 r101.8 r137.2 r112.7 101.3 

 ANNUAL 134.2 138.6 103.3 r135.0 112.3 100.6 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I 4.8 1.8 r-2.9 3.9 2.4 -0.9 

 II r2.1 2.9 r0.8 r2.1 r-0.9 0.0 

 III 1.6 2.4 0.8 r5.5 2.3 3.7 

 IV r9.4 6.3 r-2.8 r10.5 r7.3 1.0 

 ANNUAL 3.8 2.9 r-0.8 4.2 r2.0 0.3 

 2000 I 4.8 3.5 r-1.3 r21.3 16.9 15.7 

 II r4.7 5.2 r0.5 r-2.5 r-5.7 r-6.9 

 III r1.7 -1.7 -3.4 r12.2 r8.3 10.3 

 IV r2.7 -3.6 r-6.1 r2.1 r-0.8 -0.6 

 ANNUAL r4.7 3.0 r-1.6 9.1 5.6 4.2 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I r4.2 2.5 -1.6 4.4 2.9 0.3 

 II r3.8 2.8 r-0.9 r3.3 r1.2 -0.5 

 III 2.9 3.0 0.1 r3.5 r1.2 0.7 

 IV 4.4 3.3 r-1.1 5.4 2.7 1.0 

 ANNUAL 3.8 2.9 r-0.8 4.2 r2.0 0.3 

 2000 I 4.4 3.8 r-0.7 9.6 6.2 4.9 

 II 5.1 4.4 -0.7 r8.4 4.9 3.1 

 III 5.1 3.3 -1.8 10.1 6.4 4.7 

 IV 3.5 0.8 -2.6 7.9 4.3 4.3 

 ANNUAL r4.7 3.0 r-1.6 9.1 5.6 4.2 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
20 

 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 

 1999 I 141.0 155.4 r110.2 121.0 r105.2 85.8 

 II r142.4 157.3 r110.5 r121.7 r105.0 85.5 

 III r143.2 159.6 r111.4 r123.6 r105.8 86.3 

 IV 146.0 161.6 110.7 127.3 108.2 87.2 

 ANNUAL r143.1 158.5 110.7 r123.4 r106.0 86.2 

 2000 I r149.0 164.5 r110.4 r134.4 r113.2 90.2 

 II r150.5 167.1 r111.0 r132.7 r110.8 88.2 

 III r151.2 166.7 r110.2 r137.0 r113.4 90.6 

 IV r151.6 164.6 r108.6 r136.8 r112.4 90.3 

 ANNUAL 150.7 165.7 109.9 135.4 r112.5 89.8 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I r7.4 2.5 r-4.6 r5.1 r3.6 -2.2 

 II r3.9 4.8 r0.9 r2.4 r-0.6 -1.5 

 III r2.4 5.9 r3.4 r6.4 r3.2 3.9 

 IV r8.0 5.2 r-2.6 r12.5 r9.3 4.2 

 ANNUAL 6.2 5.5 r-0.6 4.8 2.7 -1.3 

 2000 I r8.6 7.5 r-1.0 r24.1 r19.7 14.4 

 II r4.0 6.3 r2.2 r-5.0 r-8.1 -8.6 

 III 1.8 -1.0 -2.7 13.5 9.5 r11.5 

 IV r1.0 -4.7 r-5.7 r-0.5 r-3.3 -1.6 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I 7.0 5.4 -1.5 4.7 3.1 -2.1 

 II r7.0 6.1 r-0.9 r3.7 r1.7 -3.1 

 III r5.3 6.0 r0.7 4.3 r1.9 -1.0 

 IV 5.4 4.6 -0.8 6.5 3.8 1.1 

 ANNUAL 6.2 5.5 r-0.6 4.8 2.7 -1.3 

 2000 I 5.7 5.8 0.2 r11.1 7.6 5.1 

 II 5.7 6.2 0.5 9.0 5.5 3.1 

 III 5.6 4.5 -1.1 10.8 7.1 5.0 

 IV 3.8 1.9 r-1.9 7.4 r3.9 3.5 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
21 

 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 

 1999 I r113.4 110.0 97.0 121.4 105.5 107.0 

 II 113.4 110.1 r97.2 r121.8 105.1 107.5 

 III 113.8 109.5 r96.3 r122.7 r105.0 107.8 

 IV r116.9 111.6 95.5 r124.6 105.8 106.6 

 ANNUAL r114.3 110.3 96.5 122.6 r105.3 107.2 

 2000 I 116.8 111.0 95.0 129.2 108.7 110.6 

 II r118.4 111.9 94.5 129.9 r108.4 109.7 

 III r118.9 111.1 r93.4 r132.8 r109.9 111.7 

 IV 120.3 110.4 r91.8 r135.3 111.2 112.5 

 ANNUAL 118.8 111.1 93.5 132.0 109.7 111.1 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I r1.3 1.4 r0.1 r2.3 r0.8 1.0 

 II -0.3 0.4 0.7 1.4 -1.6 1.7 

 III r1.4 -2.3 r-3.6 r2.8 r-0.3 1.4 

 IV r11.4 7.8 r-3.3 r6.4 r3.3 -4.5 

 ANNUAL r0.9 -0.3 r-1.2 r2.8 r0.7 1.9 

 2000 I r-0.3 -2.2 r-1.8 r15.6 r11.4 15.9 

 II r5.8 3.5 r-2.2 2.3 r-1.1 -3.4 

 III r1.5 -3.1 r-4.5 r9.4 r5.6 7.8 

 IV r4.9 -2.3 r-6.9 r7.7 r4.6 2.7 

 ANNUAL 3.9 0.7 r-3.1 7.6 4.2 3.6 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I 0.7 -1.0 -1.7 3.9 r2.3 3.2 

 II r-0.2 -1.1 r-0.9 2.4 0.4 2.6 

 III 0.0 -0.8 r-0.7 r1.9 r-0.4 2.0 

 IV 3.3 1.8 -1.5 3.2 0.5 -0.2 

 ANNUAL r0.9 -0.3 r-1.2 r2.8 r0.7 1.9 

 2000 I 2.9 0.9 -2.0 6.4 r3.1 3.4 

 II 4.5 1.6 -2.7 6.6 3.2 2.0 

 III 4.5 1.4 -3.0 8.3 4.7 3.6 

 IV r2.9 -1.1 -3.9 r8.6 r5.0 5.5 

 ANNUAL 3.9 0.7 r-3.1 7.6 4.2 3.6 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics 
22 

 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 

 1999 I 115.8 140.8 121.6 122.5 106.5 105.8 99.7 104.2 134.1 106.8 

 II 116.2 142.4 122.5 122.6 r105.7 105.5 100.3 104.1 134.4 106.8 

 III r116.2 143.5 r123.5 r123.3 r105.5 106.1 101.6 104.9 126.9 106.9 

 IV 117.3 146.0 124.4 124.8 r106.1 106.4 102.2 105.2 124.1 106.9 

 ANNUAL 116.4 143.2 123.0 123.3 r105.9 106.0 101.0 104.6 129.8 106.9 

 2000 I 119.4 149.4 r125.0 r129.4 108.9 108.3 102.5 106.8 115.3 107.5 

 II 120.1 150.2 125.1 130.1 108.6 108.3 104.1 107.2 116.6 108.0 

 III 121.1 151.5 125.1 132.8 109.9 109.6 105.4 108.5 108.0 108.4 

 IV 121.3 151.5 124.9 134.1 110.2 110.6 107.1 109.7 97.6 108.6 

 ANNUAL 120.6 150.7 r124.9 131.7 109.5 109.2 104.8 108.0 109.3 108.1 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 1999 I r6.8 8.6 1.7 r9.8 r8.2 2.8 -5.2 0.7 3.7 1.0 

 II r1.3 4.5 r3.1 r0.2 r-2.7 -1.1 2.5 -0.2 0.9 0.0 

 III 0.1 3.1 3.0 2.4 -0.7 2.3 5.3 3.0 -20.3 0.2 

 IV r4.0 7.2 r3.1 r5.0 r2.0 1.0 2.2 1.3 -8.6 0.2 

 ANNUAL 3.2 5.8 r2.6 4.6 2.5 1.4 1.1 1.3 -5.6 0.5 

 2000 I r7.4 9.6 2.1 r15.4 r11.2 7.5 1.3 5.8 -25.6 2.2 

 II r2.2 2.4 r0.2 r2.2 r-1.1 0.1 6.5 1.7 4.6 2.0 

 III r3.5 3.5 -0.1 8.5 4.7 4.8 5.0 4.8 -26.3 1.5 

 IV 0.5 -0.1 -0.6 r4.2 r1.3 3.7 6.6 4.4 -33.4 0.5 

 ANNUAL 3.6 5.2 1.6 r6.8 3.3 3.1 3.8 3.3 -15.8 1.2 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 1999 I 4.0 6.2 r2.2 5.7 4.2 1.7 0.3 1.3 -4.2 0.7 

 II r3.3 6.0 2.6 4.5 r2.4 1.1 0.9 1.0 -2.0 0.7 

 III 2.3 5.1 r2.8 4.0 r1.6 1.6 2.1 1.7 -9.5 0.4 

 IV 3.0 5.8 r2.7 4.3 1.6 1.2 1.1 1.2 -6.6 0.3 

 ANNUAL 3.2 5.8 r2.6 4.6 2.5 1.4 1.1 1.3 -5.6 0.5 

 2000 I 3.1 6.1 r2.8 r5.6 2.3 2.4 2.8 2.5 -14.0 0.6 

 II r3.4 5.5 2.1 6.1 2.7 2.7 3.8 3.0 -13.2 1.1 

 III 4.2 5.6 r1.3 r7.7 r4.1 3.3 3.7 3.4 -14.9 1.5 

 IV 3.4 3.8 0.4 r7.4 3.9 4.0 4.8 4.2 -21.4 1.5 

 ANNUAL 3.6 5.2 1.6 r6.8 3.3 3.1 3.8 3.3 -15.8 1.2 

 ---------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. March 4, 2004 

 r=revised Source: Bureau of Labor Statistics