Internet address: http://www.bls.gov/lpc/ USDL 07-1200 

Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 MATERIAL IS EMBARGOED 

Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT, 

Media contact: (202) 691-5902 TUESDAY, AUG. 7, 2007. 

PRODUCTIVITY AND COSTS 

Second Quarter 2007, Preliminary 

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

preliminary productivity data—as measured by output per hour of all persons—for the second 

quarter of 2007. The preliminary seasonally adjusted annual rates of productivity change in the 

second quarter were: 

 2.6 percent in the business sector and 

 1.8 percent in the nonfarm business sector. 

These rates of growth are higher than those for the first quarter of 2007, when productivity 

increased 0.2 percent in the business sector and 0.7 percent in the nonfarm business sector. 

 In manufacturing, the preliminary productivity changes in the second quarter were: 

1.6 percent in manufacturing, 

4.7 percent in durable goods manufacturing, and 

-1.9 percent in nondurable goods manufacturing. 

Productivity in the total manufacturing sector grew 1.6 percent in the second quarter of 2007, as 

output increased 3.5 percent and hours increased 1.8 percent (seasonally adjusted annual rates). 

Growth in output and productivity was concentrated in the durable goods subsector. Output and 

hours in manufacturing, which includes about 12 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. 

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 27. The data also incorporate revised estimates of output in manufacturing and hours in all 

sectors. See Revised Measures, page 4. 
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 measures for business and nonfarm business are based on 

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

Department of Commerce. Quarterly output measures for manufacturing reflect indexes of 

industrial production independently prepared by the Board of Governors of the Federal Reserve 

System. See Technical Notes for further information on data sources (page 8). 

Table A. Productivity and costs: Preliminary second-quarter 2007 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 2.6 3.8 1.1 5.3 -0.7 2.6 

Nonfarm business 1.8 4.2 2.3 3.9 -2.0 2.1 

Manufacturing 1.6 3.5 1.8 2.8 -3.0 1.2 

 Durable 4.7 6.2 1.5 1.5 -4.2 -3.0 

 Nondurable -1.9 0.3 2.3 5.4 -0.5 7.5 

 Percent change from same quarter a year ago 

Business 0.6 1.8 1.2 5.3 2.6 4.7 

Nonfarm business 0.6 2.0 1.3 5.2 2.4 4.5 

Manufacturing 2.9 1.7 -1.2 6.2 3.4 3.2 

 Durable 4.5 2.4 -2.0 6.9 4.1 2.3 

 Nondurable 0.6 1.0 0.4 5.0 2.2 4.3 

Business 

 From the first quarter to the second quarter of 2007, business sector labor productivity 

increased at a 2.6-percent annual rate. Output increased 3.8 percent and hours of all persons 

engaged in the sector—employees, proprietors, and unpaid family workers—rose 1.1 percent 

(seasonally adjusted annual rates). As revised, output per hour rose at the same 0.2 percent 

annual rate as output in the first quarter of 2007, hours worked were unchanged from the 

previous quarter (tables 1 and B). 

 Hourly compensation increased 5.3 percent in the second quarter of 2007, more than the 

3.3 percent gain in the first quarter (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, fell 0.7 percent during the second quarter of 2007 as consumer prices increased 

6.0 percent (seasonally adjusted annual rates). 
3 

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

increased 2.6 percent during the second quarter of 2007 after rising 3.1 percent in the previous 

quarter. From the second quarter of 2006 to the second quarter of 2007, these costs increased 4.7 

percent—the largest four-quarter increase since unit labor costs increased 4.8 percent between 

the third quarter of 1999 and the third quarter of 2000. The implicit price deflator for the 

business sector, which reflects changes in both unit labor costs and unit nonlabor payments, 

increased 2.5 percent in the second quarter and 4.1 percent in the first quarter. 

Nonfarm Business 

 Productivity increased 1.8 percent in the nonfarm business sector during the second 

quarter of 2007 as output grew 4.2 percent and hours of all persons increased 2.3 percent 

(seasonally adjusted annual rates). Revised results for first-quarter 2007 show that productivity 

increased 0.7 percent, output rose 0.3 percent, and hours declined 0.3 percent (tables 2 and B). 

Nonfarm business output per hour had increased at an average annual rate of 2.7 percent from 

2000 through 2006. 

 Hourly compensation in the nonfarm business sector increased 3.9 percent in the second 

quarter of 2007, similar to a 3.7-percent rise one quarter earlier. When the 6.0-percent rise in 

consumer prices is taken into account, real hourly compensation fell 2.0 percent in the second 

quarter of 2007. It had fallen 0.2 percent in the first quarter. 

Unit labor costs increased 2.1 percent in the second quarter of 2007 and 3.0 percent in the 

first quarter. As in the total business sector, unit labor costs increased more from the second 

quarter of 2006 to the second quarter of 2007, 4.5 percent, than during any four-quarter period 

since third-quarter 1999 to third-quarter 2000, when they increased 5.0 percent. The implicit 

price deflator for nonfarm business output grew 2.4 percent in the second quarter, following a 

3.6-percent increase in the previous quarter. 

Manufacturing

 Productivity increased 1.6 percent in manufacturing, as output grew 3.5 percent and 

hours of all persons increased 1.8 percent (seasonally adjusted annual rates). All of the secondquarter productivity improvement occurred in durable goods industries, where productivity rose 

4.7 percent, output grew 6.2 percent, and hours of all persons increased 1.5 percent. In 

nondurable goods industries, second-quarter productivity fell 1.9 percent reflecting increases in 

output of 0.3 percent and in hours of 2.3 percent. In the first quarter of 2007, total 

manufacturing productivity rose 1.7 percent, reflecting a 0.9-percent increase in output and a 

0.8-percent decline in hours (tables 3, 4, and 5). 

 Hourly compensation of all manufacturing workers grew 2.8 percent during the second 

quarter of 2007, reflecting very different growth in the manufacturing subsectors. In durable 

goods industries, hourly compensation rose 1.5 percent, while in non-durable goods industries 

compensation per hour grew faster, 5.4 percent. When the increase in consumer prices is taken 

into account, the real hourly compensation of all manufacturing workers fell 3.0 percent in the 

second quarter after increasing 2.8 percent one quarter earlier. 
4 

 Unit labor costs in manufacturing rose 1.2 percent in the second quarter of 2007, showing 

the combined effect of a 3.0 percent decline in durable goods industries and a 7.5 percent 

increase in nondurable goods industries. 

Revised Measures 

 Revised and previous measures for the first quarter of 2007 for the business, nonfarm 

business, and manufacturing sectors are compared in table B. In all sectors, productivity growth 

was revised down, reflecting both smaller increases in output and smaller declines in hours than 

previously reported. In business and nonfarm business, upward revisions to hourly 

compensation combined with the smaller productivity gains to produce upward revisions to unit 

labor costs. In manufacturing, hourly compensation increased slightly less than reported June 6, 

so the upward revision to unit labor costs was due solely to the downward revision in 

productivity growth. 

Table B. Previous and revised productivity and related measures 

Quarterly percent changes at seasonally adjusted annual rates 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

First quarter 2007 

Business: 

 Previous ....................... 0.5 0.4 -0.1 2.5 -1.4 1.9 

 Revised......................... 0.2 0.2 0.0 3.3 -0.5 3.1 

Nonfarm business: 

 Previous ....................... 1.0 0.6 -0.4 2.8 -1.0 1.8 

 Revised......................... 0.7 0.3 -0.3 3.7 -0.2 3.0 

Manufacturing: 

 Previous ....................... 2.4 1.2 -1.1 6.9 3.0 4.5 

 Revised......................... 1.7 0.9 -0.8 6.8 2.8 5.0 

Table C presents previous and revised productivity and related measures for major 

sectors for the years 2004, 2005, and 2006. Output data for the business and nonfarm business 

sectors, and the compensation series for all sectors, incorporate the revised national income and 

product accounts data released by the Bureau of Economic Analysis, U.S. Department of 

Commerce, on July 27. Revisions for these sectors go back to the second quarter of 2001. 

Output and productivity growth in the business and nonfarm business sectors were 

revised downward in each year from 2004 to 2006. The 1.0-percent productivity gains in 2006 

are small compared to recent years. Productivity had increased at average annual rates of 3.1 

percent in business and 3.0 percent in nonfarm business from 2000 through 2005. Hourly 

compensation was revised down more than productivity in these sectors for the year 2006, 

resulting in smaller increases in unit labor costs than reported in the June 6 release. 
5 

Table C. Previous and revised productivity and related measures 

Annual percent changes 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Annual average 2006 

Business: 

 Previous ....................... 1.7 3.8 2.1 5.0 1.6 3.2 

 Revised......................... 1.0 3.1 2.1 3.9 0.6 2.9 

Nonfarm business: 

 Previous ....................... 1.6 3.8 2.1 5.0 1.6 3.3 

 Revised......................... 1.0 3.2 2.2 3.9 0.6 2.9 

Manufacturing: 

 Previous ....................... 4.0 5.0 1.0 4.1 0.7 0.1 

 Revised......................... 4.0 4.9 0.9 2.5 -0.8 -1.5 

Annual average 2005 

Business: 

 Previous ....................... 2.1 3.7 1.6 4.2 0.8 2.0 

 Revised......................... 2.0 3.6 1.6 4.0 0.6 2.0 

Nonfarm business: 

 Previous ....................... 2.1 3.8 1.6 4.1 0.8 2.0 

 Revised......................... 1.9 3.6 1.6 4.0 0.7 2.0 

Manufacturing: 

 Previous ....................... 4.8 3.6 -1.1 4.7 1.3 -0.1 

 Revised......................... 4.8 3.5 -1.2 4.2 0.8 -0.6 

Annual average 2004 

Business: 

 Previous ....................... 3.1 4.4 1.3 3.8 1.1 0.7 

 Revised......................... 2.9 4.2 1.3 3.7 1.1 0.9 

Nonfarm business: 

 Previous ....................... 2.9 4.3 1.4 3.6 0.9 0.7 

 Revised......................... 2.7 4.1 1.4 3.6 0.9 0.9 

Manufacturing: 

 Previous ....................... 1.8 1.3 -0.5 2.0 -0.7 0.2 

 Revised......................... 2.1 1.8 -0.3 2.0 -0.6 -0.1 

Output data for the manufacturing sector also were revised. Annual output indexes are 

constructed by BLS using data from the Bureau of the Census and the Bureau of Economic 

Analysis (BEA), both in the U.S. Department of Commerce, together with information on price 

changes, primarily from the Bureau of Labor Statistics. 
6 

This release also reports revised data on hours at work and related measures for the 

manufacturing, durable manufacturing, and nondurable manufacturing sectors. The hours 

revision reflects extension of the methodology, already used in the business sectors, which 

utilizes information on employment and hours by primary and secondary job of self-employed 

and unpaid family workers from the BLS Current Population Survey. (See “Construction of 

Employment and Hours for Self-employed and other Nonfarm workers and for all Farm workers, 

using Current Population Survey data for primary and secondary jobs," on the productivity and 

costs home page, http://www.bls.gov/lpc/home.htm .) 

Manufacturing productivity grew 4.8 percent in 2005 and 4.0 percent in 2006, the same 

as reported June 6. Hourly compensation and unit labor costs were revised down in both years. 

For 2004, productivity was revised up to 2.1 percent, as an upward revision to output was 

partially offset by an upward revision to hours. Because hourly compensation was not revised 

for 2004, the larger increase in productivity implied a downward revision to unit labor costs. 

The average annual rate of productivity growth in manufacturing for the 2000 to 2006 period 

was unchanged at 4.2 percent per year. 

Revised quarterly series appear in tables 1-5 and appendix tables 1-5. Complete annual 

series for the manufacturing sectors appear in appendix tables 7 through 9. Links to tables 

showing the full historical revisions including the quarterly measures will be posted on the 

productivity and costs home page, http://www.bls.gov/lpc/home.htm . 

Revised Measures: Nonfinancial Corporations 

 Productivity and costs measures for the first quarter of 2007 for nonfinancial corporations 

also were revised (table D). Increases in productivity and output were revised down to 0.2 

percent and 0.4 percent, respectively (seasonally adjusted annual rates). Hourly compensation 

was revised down by more than productivity, and unit labor costs increased 3.6 percent, rather 

than 4.1 percent as reported June 6. The change in unit profits in the first quarter of 2007 was 

revised up from 6.8 percent to 12.4 percent. 
7 

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

Percent changes at easonally adjusted nnual ra es s a t

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

First quarter 2007 

Previous......... 0.6 0.7 0.1 4.7 0.8 4.1 6.8 3.7 

Revised.......... 0.2 0.4 0.2 3.8 -0.1 3.6 12.4 3.9 

Annual average 2006 

Previous......... 2.5 4.8 2.2 4.8 1.4 2.2 12.2 2.7 

Revised.......... 1.3 3.5 2.2 3.5 0.2 2.2 5.0 2.2 

Annual average 2005 

Previous......... 2.3 4.0 1.6 4.1 0.8 1.8 12.6 3.3 

Revised.......... 1.1 2.7 1.6 3.8 0.5 2.7 7.0 3.3 

Annual average 2004 

Previous......... 3.1 4.5 1.4 3.2 0.5 0.1 26.9 2.1 

Revised.......... 3.5 4.9 1.4 3.0 0.3 -0.5 32.0 2.1 

Historical data for nonfinancial corporations also were revised due to incorporation of 

revised data on output and compensation from the national income and product accounts. 

For the year 2006, output and output per hour were revised down, hourly compensation 

was revised down by a similar amount, and unit labor costs remained unchanged. In 2005, the 

downward revision to productivity was larger than that to hourly compensation, and unit labor 

costs increased more than reported June 6. The rates of productivity growth in 2005 and 2006, 

1.1 percent and 1.3 percent, respectively, are smaller than the 3.3-percent average annual growth 

rate from 2000 to 2004. In the year 2004, productivity growth was revised up along with output. 

Unit labor costs fell 0.5 percent rather than rising 0.1 percent. Revised data for nonfinancial 

corporations appear in table 6 and appendix table 6.

Next release date

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

Sept. 6, 2007. Revised second-quarter measures for business, nonfarm business, and 

manufacturing will be released at that time, along with preliminary measures for nonfinancial 

corporations. 
8 

TECHNICAL NOTES 

Labor Hours: Hours data for the labor productivity and cost measures include hours for all 

persons working in the sector—wage and salary workers, the self-employed and unpaid family 

workers. The primary source of hours and employment data is the BLS Current Employment 

Statistics (CES) program, which provides monthly survey data on the number of jobs held by 

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

paid hours of production and nonsupervisory workers in these establishments. Weekly paid 

hours are adjusted to hours at work using data from the National Compensation Survey (NCS). 

The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The 

Office of Productivity and Technology estimates average weekly hours at work for 

nonproduction and supervisory workers using information from the Current Population Survey 

(CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid 

family workers. Estimates of labor input for government 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. 

The CES measures jobs, counting a person who is employed by two or more 

establishments at each place of employment. In contrast, the CPS features measures of 

employment that count each person only once and classify each person according to his or her 

primary job; hours worked at all jobs by that person accrue to his or her primary job. However, 

the CPS also collects more detailed information on employment and hours worked at primary 

jobs and all other jobs, separately. The BLS productivity measures use the more detailed 

information on employment and hours to assign all hours worked to the correct industrial sector 

and avoid duplicating hours data from the CES. 

Output: Business sector output is an annual-weighted index constructed after excluding from 

gross domestic product (GDP) the following outputs: general government, nonprofit institutions, 

and private households (including owner-occupied housing). Corresponding exclusions also are 

made in labor inputs. Business output accounted for about 78 percent of the value of GDP in 

2000. Nonfarm business, which also excludes farming, accounted for about 77 percent of GDP in 

2000. 

Annual indexes for manufacturing and its durable and nondurable goods components are 

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of 

the Census with deflators from the BLS. 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, 
9 

offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial 

corporations accounted for about 54 percent of the value of GDP in 2000. 

Productivity: These productivity measures describe the relationship between real output and the 

labor time involved in its production. They show the changes from period to period in the 

amount of goods and services produced per hour. Although these measures relate output to hours 

at work of all persons engaged in a sector, they do not measure the specific contribution of labor, 

capital, or any other factor of production. Rather, they reflect the joint effects of many 

influences, including changes in technology; capital investment; level of output; utilization of 

capacity, energy, and materials; the organization of production; managerial skill; and the 

characteristics and effort of the work force. 

Labor Compensation: Estimates of labor compensation by major sector, required for measures 

of hourly compensation and unit labor costs, are based primarily on employee compensation data 

from the NIPA, prepared by the BEA. The compensation of employees in general government, 

nonprofit institutions and private households are subtracted from compensation of domestic 

employees to derive employee compensation for the business sector. The labor compensation of 

proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 

proprietors have the same hourly compensation as employees in the same sector. The quarterly 

labor productivity and cost measures do not contain estimates of compensation for unpaid family 

workers. 

Unit Labor Costs: The measures of unit labor costs in this release describe the relationship 

between compensation per hour and productivity, or real output per hour, and can be used as an 

indicator of inflationary pressure on producers. Increases in hourly compensation increase unit 

labor costs; labor productivity increases offset compensation increases and lower unit labor 

costs. 

Presentation of the data: The quarterly data in this release are presented in three ways; as 

index number series where 1992=100, as percent changes from the corresponding quarter of the 

previous year, and as percent changes from the previous quarter presented at a compound annual 

rate. Annual data are presented both as index number series and percent changes from the 

previous year. 

 The index numbers and rates of change reported in the productivity and costs news 

release are rounded to one decimal place. All percent changes in this release and on the BLS 

web site are calculated using index numbers to three decimal places. These index numbers are 

available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS 

Division of Major Sector Productivity. (Telephone 202-691-5606 or email 

DPRWEB@BLS.GOV) 

Information in this release will be made available to sensory-impaired individuals upon 

request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339. 
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 

2005 I r134.4 r157.2 r117.0 r161.4 r120.3 r120.1 r128.2 r123.1 

 II r134.3 r158.5 r118.0 r161.7 r119.4 r120.4 r129.8 r123.9 

 III r135.9 r160.6 r118.2 r164.2 r119.6 r120.8 r132.0 r125.0 

 IV r135.5 r161.0 r118.8 r165.4 r119.4 r122.0 r133.0 r126.1 

 ANNUAL r135.0 r159.3 r118.0 r163.2 r119.7 r120.9 r130.8 r124.5 

2006 I r136.4 r163.2 r119.6 r168.2 r120.9 r123.4 r133.0 r127.0 

 II r136.6 r164.2 r120.2 r168.1 r119.3 r123.0 r136.5 r128.0 

 III r136.1 r164.4 r120.8 r168.7 r118.9 r124.0 r136.6 r128.7 

 IV r136.5 r165.5 r121.2 r173.4 r122.8 r127.0 r132.2 r128.9 

 ANNUAL r136.4 r164.3 r120.5 r169.6 r120.4 r124.3 r134.6 r128.2 

2007 I r136.6 r165.6 r121.2 r174.8 r122.6 r128.0 r134.0 r130.2 

 II 137.5 167.1 121.6 177.0 122.4 128.8 134.8 131.0 

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

 Percent change from previous quarter at annual rate(5) 

2005 I r3.0 r3.7 r0.7 r3.0 r1.1 r0.0 r9.1 r3.4 

 II r-0.3 r3.3 3.6 r0.7 r-3.1 r1.0 r5.1 r2.6 

 III r4.9 r5.5 0.6 r6.2 r0.7 r1.3 r7.1 r3.5 

 IV r-1.1 r1.0 2.1 r2.9 r-0.5 r4.0 r3.1 r3.7 

 ANNUAL r2.0 r3.6 1.6 r4.0 r0.6 2.0 r4.9 r3.1 

2006 I r2.5 r5.5 r2.9 r7.2 r5.1 r4.6 r0.0 r2.8 

 II r0.8 r2.5 1.7 r-0.4 r-5.1 r-1.2 r10.7 r3.3 

 III r-1.5 r0.6 2.2 r1.6 r-1.6 r3.1 r0.5 r2.1 

 IV r1.2 r2.6 1.4 r11.4 r13.8 r10.1 r-12.4 r0.8 

 ANNUAL r1.0 r3.1 2.1 r3.9 r0.6 r2.9 r2.9 r2.9 

2007 I r0.2 r0.2 r0.0 r3.3 r-0.5 r3.1 r5.7 r4.1 

 II 2.6 3.8 1.1 5.3 -0.7 2.6 2.5 2.5 

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

 Percent change from corresponding quarter of previous year 

2005 I 2.5 3.8 r1.2 r5.0 r1.9 r2.4 r4.1 r3.1 

 II 1.5 r3.5 2.0 r3.8 0.9 2.3 r3.6 r2.8 

 III 2.4 3.9 1.5 r4.0 r0.3 r1.6 r5.8 r3.2 

 IV r1.6 r3.4 1.7 r3.2 r-0.5 1.6 r6.1 r3.3 

 ANNUAL r2.0 r3.6 1.6 r4.0 r0.6 2.0 r4.9 r3.1 

2006 I r1.5 r3.8 2.3 r4.2 r0.5 r2.7 r3.8 r3.1 

 II r1.7 r3.6 1.8 r3.9 r0.0 r2.2 r5.1 r3.3 

 III r0.2 r2.4 2.2 r2.8 r-0.6 r2.6 r3.5 r3.0 

 IV r0.7 r2.8 r2.1 r4.8 r2.8 r4.1 r-0.6 r2.2 

 ANNUAL r1.0 r3.1 2.1 r3.9 r0.6 r2.9 r2.9 r2.9 

2007 I r0.2 r1.5 1.3 r3.9 r1.4 r3.7 r0.8 r2.6 

 II 0.6 1.8 1.2 5.3 2.6 4.7 -1.2 2.4 

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

See footnotes following Table 6. August 7, 2007 

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 

2005 I r133.4 r157.4 r118.0 r160.3 r119.5 r120.2 r129.6 r123.6 

 II r133.5 r158.6 r118.8 r160.9 r118.8 r120.5 r131.3 r124.5 

 III r135.0 r160.8 r119.1 r163.2 r118.8 r120.9 r133.7 r125.6 

 IV r134.5 r161.2 r119.8 r164.2 r118.6 r122.1 r134.8 r126.8 

 ANNUAL r134.1 r159.5 r118.9 r162.1 r118.9 r120.9 r132.4 r125.1 

2006 I r135.3 r163.4 r120.8 r167.1 r120.1 r123.5 r135.0 r127.7 

 II r135.6 r164.4 r121.2 r167.0 r118.6 r123.2 r138.7 r128.9 

 III r135.0 r164.7 r122.0 r167.5 r118.0 r124.0 r138.6 r129.4 

 IV r135.6 r165.7 r122.2 r172.4 r122.1 r127.1 r133.6 r129.5 

 ANNUAL r135.4 r164.5 r121.5 r168.5 r119.7 r124.5 r136.5 r128.9 

2007 I r135.9 r165.9 r122.1 r174.0 r122.1 r128.1 r135.1 r130.6 

 II 136.5 167.6 122.8 175.7 121.5 128.7 136.0 131.4 

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

 Percent change from previous quarter at annual rate(5) 

2005 I r3.7 r3.9 r0.2 r3.6 r1.6 r-0.1 r10.4 r3.8 

 II r0.3 r3.2 2.9 r1.5 r-2.4 r1.2 r5.1 r2.7 

 III r4.4 r5.6 1.1 r5.7 r0.2 r1.3 r7.8 r3.8 

 IV r-1.4 r0.9 r2.4 r2.6 r-0.8 r4.1 r3.2 r3.7 

 ANNUAL r1.9 r3.6 1.6 r4.0 r0.7 2.0 r5.5 r3.4 

2006 I r2.5 r5.7 r3.1 r7.2 r5.1 r4.6 r0.5 r3.0 

 II r0.8 r2.4 r1.6 r-0.2 r-5.0 r-1.0 r11.5 r3.7 

 III r-1.6 r0.8 2.4 r1.3 r-1.8 r2.9 r-0.4 r1.6 

 IV r1.8 r2.6 0.8 r12.2 r14.6 r10.3 r-13.6 r0.3 

 ANNUAL r1.0 r3.2 r2.2 r3.9 r0.6 r2.9 r3.1 r3.0 

2007 I r0.7 r0.3 r-0.3 r3.7 r-0.2 r3.0 r4.6 r3.6 

 II 1.8 4.2 2.3 3.9 -2.0 2.1 2.8 2.4 

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

 Percent change from corresponding quarter of previous year 

2005 I r2.5 3.8 1.4 r4.9 r1.8 r2.3 r4.8 r3.3 

 II r1.4 r3.4 2.0 3.9 0.9 r2.5 r4.3 r3.2 

 III r2.2 r3.8 r1.5 r4.0 r0.3 r1.7 r6.4 r3.5 

 IV r1.7 r3.4 r1.7 r3.3 r-0.4 r1.6 r6.6 r3.5 

 ANNUAL r1.9 r3.6 1.6 r4.0 r0.7 2.0 r5.5 r3.4 

2006 I r1.4 r3.8 r2.4 r4.2 r0.5 r2.8 r4.1 r3.3 

 II r1.5 r3.6 2.0 r3.8 r-0.2 r2.2 r5.7 r3.5 

 III r0.1 r2.4 r2.4 r2.7 r-0.7 2.6 r3.6 r3.0 

 IV r0.9 r2.8 r2.0 r5.0 r3.0 r4.1 r-0.9 r2.2 

 ANNUAL r1.0 r3.2 r2.2 r3.9 r0.6 r2.9 r3.1 r3.0 

2007 I r0.4 r1.5 1.1 r4.1 r1.6 r3.7 r0.1 r2.3 

 II 0.6 2.0 1.3 5.2 2.4 4.5 -1.9 2.0 

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

See footnotes following Table 6. August 7, 2007 

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 

2005 I r168.3 r142.7 r84.8 r166.2 r123.9 r98.7 

 II r170.9 r143.8 r84.1 r167.8 r123.9 r98.2 

 III r172.4 r144.5 r83.8 r170.2 r124.0 r98.7 

 IV r173.7 r147.3 r84.8 r168.8 r121.9 r97.2 

 ANNUAL r171.3 r144.6 r84.4 r168.3 r123.4 r98.2 

2006 I r175.4 r149.5 r85.2 r172.6 r124.1 r98.4 

 II r177.0 r151.6 r85.6 r170.1 r120.8 r96.1 

 III r179.8 r153.4 r85.3 r170.7 r120.2 r94.9 

 IV r180.7 r152.6 r84.4 r176.4 r125.0 r97.6 

 ANNUAL r178.2 r151.7 r85.1 r172.4 r122.5 r96.8 

2007 I r181.5 r152.9 r84.3 r179.4 r125.8 r98.8 

 II 182.2 154.2 84.6 180.6 124.9 99.1 

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

 Percent change from previous quarter at annual rate(5) 

2005 I r4.9 r4.6 r-0.3 r1.0 r-0.9 r-3.7 

 II r6.3 r3.1 r-3.0 r4.0 0.0 r-2.2 

 III r3.5 r2.1 r-1.4 r5.6 r0.1 r2.1 

 IV 3.1 7.9 r4.6 r-3.1 r-6.4 r-6.0 

 ANNUAL 4.8 r3.5 r-1.2 r4.2 r0.8 r-0.6 

2006 I r4.0 6.0 1.9 r9.4 r7.2 r5.1 

 II r3.7 5.7 r2.0 r-5.8 r-10.2 r-9.1 

 III r6.5 4.8 r-1.6 r1.4 r-1.8 r-4.8 

 IV r2.0 -2.1 r-4.0 r14.2 r16.6 r12.0 

 ANNUAL 4.0 r4.9 r0.9 r2.5 r-0.8 r-1.5 

2007 I r1.7 r0.9 r-0.8 r6.8 r2.8 r5.0 

 II 1.6 3.5 1.8 2.8 -3.0 1.2 

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

 Percent change from corresponding quarter of previous year 

2005 I 4.4 r3.1 r-1.2 r6.0 r2.9 r1.5 

 II r5.1 3.4 r-1.6 5.0 r2.1 0.0 

 III 5.2 r3.3 r-1.9 r4.0 r0.3 r-1.1 

 IV r4.4 r4.4 0.0 r1.8 r-1.8 r-2.5 

 ANNUAL 4.8 r3.5 r-1.2 r4.2 r0.8 r-0.6 

2006 I r4.2 r4.7 r0.5 r3.9 r0.1 r-0.3 

 II 3.6 r5.4 1.8 r1.3 r-2.5 r-2.1 

 III r4.3 6.1 r1.7 r0.3 r-3.0 r-3.8 

 IV r4.0 3.6 r-0.5 r4.5 r2.5 r0.5 

 ANNUAL 4.0 r4.9 r0.9 r2.5 r-0.8 r-1.5 

2007 I 3.5 r2.3 -1.1 r3.9 r1.4 r0.4 

 II 2.9 1.7 -1.2 6.2 3.4 3.2 

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

See footnotes following Table 6. August 7, 2007 

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 

2005 I r189.8 r169.7 r89.4 r161.4 r120.3 r85.0 

 II r193.4 r171.6 r88.8 r162.5 r120.0 r84.0 

 III r196.5 r174.5 r88.8 r165.2 r120.4 r84.1 

 IV r200.7 r180.5 r89.9 r163.6 r118.2 r81.5 

 ANNUAL r195.1 r174.1 r89.2 r163.2 r119.7 r83.6 

2006 I r202.7 r182.9 r90.3 r168.4 r121.0 r83.1 

 II r205.5 r187.1 r91.1 r165.7 r117.7 r80.7 

 III r210.1 r189.6 r90.3 r166.4 r117.3 r79.2 

 IV r211.5 r188.9 r89.3 r173.0 r122.5 r81.8 

 ANNUAL r207.4 r187.2 r90.2 r168.4 r119.6 r81.2 

2007 I r212.3 r188.7 r88.9 r176.6 r123.9 r83.1 

 II 214.8 191.6 89.2 177.2 122.5 82.5 

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

 Percent change from previous quarter at annual rate(5) 

2005 I r4.1 r5.5 r1.3 r0.4 r-1.5 r-3.6 

 II r7.7 r4.7 r-2.8 2.7 -1.2 r-4.7 

 III r6.6 r6.8 r0.2 r7.0 r1.4 r0.4 

 IV r8.9 r14.5 r5.2 r-3.8 r-7.0 r-11.7 

 ANNUAL r5.3 r5.0 r-0.3 r3.8 r0.5 r-1.4 

2006 I r3.9 5.5 r1.5 r12.1 r9.9 r7.9 

 II r5.7 9.4 r3.5 r-6.1 r-10.5 r-11.2 

 III r9.3 5.5 r-3.5 r1.7 r-1.5 r-6.9 

 IV r2.7 -1.4 r-4.1 r16.6 r19.1 r13.5 

 ANNUAL r6.3 7.5 r1.1 r3.2 r-0.1 r-2.9 

2007 I r1.6 r-0.5 r-2.0 r8.6 4.5 r6.9 

 II 4.7 6.2 1.5 1.5 -4.2 -3.0 

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

 Percent change from corresponding quarter of previous year 

2005 I r3.3 r3.0 r-0.3 r6.0 r2.9 r2.6 

 II r4.8 4.0 r-0.8 r4.4 r1.5 r-0.4 

 III r6.2 5.1 r-1.0 r3.5 r-0.2 r-2.5 

 IV r6.8 r7.8 0.9 r1.5 r-2.1 r-5.0 

 ANNUAL r5.3 r5.0 r-0.3 r3.8 r0.5 r-1.4 

2006 I r6.8 r7.8 r1.0 r4.3 r0.6 r-2.3 

 II r6.3 r9.0 r2.6 r2.0 r-1.9 r-4.0 

 III r6.9 8.7 r1.6 r0.7 r-2.6 r-5.8 

 IV r5.4 4.7 r-0.7 r5.7 r3.6 r0.3 

 ANNUAL r6.3 7.5 r1.1 r3.2 r-0.1 r-2.9 

2007 I 4.8 3.2 -1.5 r4.9 r2.4 r0.1 

 II 4.5 2.4 -2.0 6.9 4.1 2.3 

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

See footnotes following Table 6. August 7, 2007 

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 

2005 I r147.3 r114.7 r77.8 r173.3 r129.2 r117.6 

 II r149.1 r115.1 r77.2 r176.1 r130.0 r118.1 

 III r149.5 r114.2 r76.4 r177.3 r129.2 r118.6 

 IV r148.4 r114.4 r77.1 r176.5 r127.5 r118.9 

 ANNUAL r148.6 r114.6 r77.1 r175.8 r129.0 r118.3 

2006 I r149.8 r116.3 r77.6 r178.3 r128.2 r119.0 

 II r150.7 r116.8 r77.5 r175.9 r124.9 r116.7 

 III r151.6 r117.9 r77.8 r176.4 r124.3 r116.4 

 IV r152.0 r117.1 r77.0 r180.5 r127.9 r118.8 

 ANNUAL r151.0 r117.0 r77.5 r177.8 r126.3 r117.7 

2007 I r152.4 r117.8 r77.3 r182.2 r127.8 r119.5 

 II 151.7 117.9 77.7 184.6 127.7 121.7 

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

 Percent change from previous quarter at annual rate(5) 

2005 I 6.4 r3.3 r-2.9 r1.8 r-0.2 r-4.3 

 II r4.9 r1.3 r-3.4 r6.5 r2.5 r1.6 

 III r1.0 r-3.0 r-4.0 r2.8 r-2.6 r1.7 

 IV r-2.9 r0.8 r3.8 r-1.9 r-5.2 r1.0 

 ANNUAL r4.8 r1.9 -2.7 r4.8 r1.4 r0.0 

2006 I r3.9 6.6 2.7 r4.3 r2.3 r0.4 

 II r2.4 1.7 r-0.7 r-5.4 r-9.9 r-7.6 

 III r2.4 4.1 r1.7 r1.2 r-2.0 r-1.2 

 IV r1.0 -2.9 r-3.9 r9.7 r12.0 r8.6 

 ANNUAL r1.6 r2.1 0.5 r1.1 r-2.1 r-0.5 

2007 I r1.2 r2.6 r1.4 r3.8 r-0.1 r2.5 

 II -1.9 0.3 2.3 5.4 -0.5 7.5 

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

 Percent change from corresponding quarter of previous year 

2005 I 6.3 r3.3 r-2.8 r5.9 r2.8 -0.4 

 II r5.8 r2.5 r-3.1 r6.1 r3.0 r0.2 

 III r4.7 r1.2 r-3.3 r4.9 r1.1 r0.1 

 IV r2.3 r0.6 -1.7 r2.3 r-1.4 r0.0 

 ANNUAL r4.8 r1.9 -2.7 r4.8 r1.4 r0.0 

2006 I r1.7 r1.4 r-0.3 r2.9 r-0.8 r1.2 

 II r1.1 1.5 r0.4 r-0.1 r-3.9 r-1.2 

 III r1.4 3.3 1.8 r-0.5 r-3.8 r-1.9 

 IV r2.4 2.3 r-0.1 r2.3 r0.3 -0.1 

 ANNUAL r1.6 r2.1 0.5 r1.1 r-2.1 r-0.5 

2007 I r1.7 r1.3 r-0.4 r2.2 r-0.3 r0.4 

 II 0.6 1.0 0.4 5.0 2.2 4.3 

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

See footnotes following Table 6. August 7, 2007 

r=revised Source: Bureau of Labor Statistics 
15 

Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits, 

and prices, seasonally adjusted 

 Output Hourly Real Unit Total Unit Implicit 

 Year per all- compen- hourly Unit non- unit pro- price 

 and employee Employee sation compen- labor labor costs fits deflator 

 quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) 

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

 Indexes 1992=100 

2005 I r140.3 r164.6 r117.3 r158.0 r117.8 r112.6 r111.5 r112.3 r151.9 r115.9 

 II r141.1 r166.8 r118.2 r158.5 r117.0 r112.3 r111.7 r112.1 r161.7 r116.6 

 III r140.5 r166.9 r118.8 r160.8 r117.1 r114.4 r115.1 r114.6 r147.5 r117.6 

 IV r141.4 r169.2 r119.7 r161.8 r116.9 r114.5 r112.8 r114.0 r159.5 r118.1 

 ANNUAL r140.8 r166.9 r118.5 r159.8 r117.2 r113.5 r112.8 r113.3 r155.2 117.0 

2006 I r142.4 r171.5 r120.4 r163.8 r117.8 r115.0 r112.5 r114.4 r164.4 r118.8 

 II r141.8 r171.5 r120.9 r163.9 r116.4 r115.6 r114.3 r115.2 r164.8 r119.7 

 III r142.9 r173.6 r121.5 r164.6 r115.9 r115.2 r113.8 r114.8 r172.6 r120.0 

 IV r143.3 r174.6 r121.8 r169.3 r119.9 r118.1 r114.5 r117.1 r150.0 r120.1 

 ANNUAL r142.6 r172.8 r121.2 r165.4 r117.5 r116.0 r113.8 r115.4 r162.9 r119.6 

2007 I r143.4 r174.8 r121.9 r170.8 r119.9 r119.1 r114.7 r118.0 r154.5 r121.2 

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

 Percent change from previous quarter at annual rate(5) 

2005 I r0.3 r0.3 0.1 r2.7 r0.7 r2.4 r6.8 r3.6 r9.8 r4.3 

 II r2.2 r5.4 3.1 r1.2 r-2.6 r-1.0 r0.5 r-0.6 r28.4 r2.5 

 III r-1.6 r0.4 2.0 r6.1 r0.5 r7.8 r12.7 r9.1 r-30.8 r3.4 

 IV r2.4 r5.6 3.1 r2.4 r-1.0 r0.0 r-7.6 r-2.1 r36.9 r1.8 

 ANNUAL r1.1 r2.7 1.6 r3.8 r0.5 r2.7 3.0 r2.8 r7.0 3.3 

2006 I r3.1 r5.5 2.3 r5.2 r3.2 r2.0 r-1.0 r1.2 r12.7 r2.6 

 II r-1.8 r-0.1 1.7 r0.2 r-4.6 r2.0 r6.4 r3.1 r1.2 2.9 

 III r3.1 r5.0 1.9 r1.6 r-1.5 r-1.4 r-1.5 r-1.5 r20.1 r1.0 

 IV 1.3 2.4 r1.2 r11.9 r14.3 r10.5 r2.2 r8.3 r-42.9 r0.3 

 ANNUAL r1.3 r3.5 2.2 r3.5 r0.2 2.2 r0.9 r1.9 r5.0 r2.2 

2007 I r0.2 r0.4 r0.2 r3.8 r-0.1 r3.6 r0.9 r2.9 r12.4 r3.9 

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

 Percent change from corresponding quarter of previous year 

2005 I r2.2 r3.3 1.1 r4.8 r1.7 r2.5 r1.8 r2.3 r12.4 r3.4 

 II r1.6 r3.3 1.7 r3.7 r0.7 r2.1 2.1 r2.1 r10.9 r3.1 

 III r-0.1 r1.5 1.7 r3.8 r0.1 r4.0 r5.4 r4.3 r-2.1 3.6 

 IV r0.8 r2.9 2.1 r3.1 r-0.6 r2.3 r2.8 r2.4 r7.5 r3.0 

 ANNUAL r1.1 r2.7 1.6 r3.8 r0.5 r2.7 3.0 r2.8 r7.0 3.3 

2006 I r1.5 r4.2 2.6 r3.7 r0.0 r2.2 r0.9 r1.8 r8.2 r2.6 

 II r0.5 r2.8 2.3 r3.4 r-0.5 r2.9 r2.3 r2.8 r1.9 r2.7 

 III r1.7 r4.0 r2.3 r2.3 r-1.0 r0.6 r-1.1 r0.2 r17.0 r2.1 

 IV r1.4 r3.2 1.8 r4.6 r2.6 r3.2 r1.5 r2.7 r-5.9 r1.7 

 ANNUAL r1.3 r3.5 2.2 r3.5 r0.2 2.2 r0.9 r1.9 r5.0 r2.2 

2007 I r0.7 r1.9 r1.3 r4.3 r1.8 r3.6 r2.0 r3.1 r-6.0 2.0 

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

See footnotes following Table 6. August 7, 2007 

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 –1.6 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 2007. 

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 1978-2006 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. 

 
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 

 2002 I r122.8 141.9 r115.5 143.7 r115.6 117.0 r113.2 115.6 

 II 123.4 142.6 115.6 145.4 116.0 117.9 112.6 115.9 

 III 124.8 143.8 115.2 146.1 116.0 117.1 114.7 116.2 

 IV r124.8 144.0 r115.4 146.1 r115.3 117.1 116.0 116.7 

 ANNUAL 123.9 143.1 115.4 145.3 115.7 117.3 114.1 116.1 

 2003 I r125.8 144.4 r114.8 r148.1 r115.7 r117.7 r116.5 117.3 

 II r127.9 146.0 r114.1 r150.8 r117.8 r117.9 116.7 117.4 

 III r130.8 149.7 r114.5 r152.5 r118.4 r116.6 r120.2 118.0 

 IV r130.3 150.1 r115.2 r153.6 r118.9 117.9 r119.5 118.5 

 ANNUAL r128.7 147.5 r114.6 r151.2 r117.7 117.5 118.3 117.8 

 2004 I r131.1 r151.4 r115.5 r153.8 r118.1 r117.3 r123.1 r119.5 

 II r132.3 r153.1 r115.7 r155.8 r118.4 r117.7 r125.3 r120.5 

 III r132.7 r154.6 r116.5 r157.8 r119.2 r118.9 r124.7 r121.1 

 IV r133.4 r155.7 r116.8 r160.2 r120.0 r120.1 r125.4 r122.1 

 ANNUAL r132.4 r153.7 r116.1 r156.9 r118.9 r118.5 r124.6 r120.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 5.6 2.6 -2.9 5.7 4.2 0.1 0.4 0.2 

 II 1.8 2.1 0.3 4.7 1.4 2.8 -2.1 1.0 

 III 4.8 3.6 -1.2 2.0 -0.1 -2.7 7.9 1.0 

 IV -0.2 0.5 0.6 -0.1 -2.5 0.1 4.6 1.7 

 ANNUAL 4.1 1.5 -2.5 3.5 1.9 -0.5 3.8 1.0 

 2003 I 3.3 1.1 -2.2 5.5 1.7 2.1 1.7 1.9 

 II r6.9 4.6 -2.2 r7.5 7.2 0.6 0.6 0.6 

 III 9.1 10.4 1.2 r4.6 r2.1 -4.1 12.5 1.8 

 IV r-1.4 1.1 2.5 2.9 1.8 4.3 -2.1 1.8 

 ANNUAL 3.8 3.1 -0.7 4.1 1.7 0.2 3.6 1.5 

 2004 I r2.4 r3.7 1.2 r0.6 r-2.9 r-1.8 r12.4 r3.4 

 II r3.9 r4.4 0.5 r5.2 r1.0 r1.3 r7.5 3.6 

 III r1.2 r4.0 2.8 r5.3 r3.0 r4.1 -1.8 r1.8 

 IV r2.0 r3.0 1.0 r6.3 r2.6 r4.2 r2.2 r3.5 

 ANNUAL r2.9 r4.2 1.3 r3.7 1.1 r0.9 r5.4 2.6 

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

 Percent change from corresponding quarter of previous year 

 2002 I 4.8 0.5 -4.1 3.4 2.2 -1.3 6.3 1.3 

 II 3.9 0.8 -2.9 3.9 2.5 0.0 2.4 0.9 

 III 4.7 2.5 -2.1 3.8 2.2 -0.8 3.9 0.9 

 IV 3.0 2.2 -0.8 3.1 0.7 0.1 2.6 1.0 

 ANNUAL 4.1 1.5 -2.5 3.5 1.9 -0.5 3.8 1.0 

 2003 I 2.4 1.8 -0.6 3.0 0.1 0.6 2.9 1.4 

 II 3.7 2.4 -1.3 3.7 1.5 0.0 3.6 1.3 

 III 4.7 4.0 -0.7 4.4 2.1 -0.4 4.7 1.5 

 IV 4.4 4.2 -0.2 5.1 3.2 0.7 3.0 1.5 

 ANNUAL 3.8 3.1 -0.7 4.1 1.7 0.2 3.6 1.5 

 2004 I r4.2 r4.9 r0.7 r3.9 r2.0 r-0.3 r5.6 1.9 

 II r3.4 r4.8 r1.4 3.3 0.5 r-0.1 r7.4 r2.6 

 III r1.5 r3.3 1.7 r3.5 r0.7 r1.9 r3.8 r2.6 

 IV 2.4 3.8 1.4 r4.3 r0.9 r1.9 r4.9 r3.0 

 ANNUAL r2.9 r4.2 1.3 r3.7 1.1 r0.9 r5.4 2.6 

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

 See footnotes following Table 6. August 7, 2007 

 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 

 2002 I 122.7 142.5 r116.1 r143.1 r115.1 116.6 115.0 116.0 

 II r122.9 143.0 r116.3 r144.6 r115.4 117.7 114.8 116.6 

 III 124.2 144.1 116.0 145.3 115.3 117.0 116.6 116.9 

 IV 124.1 144.1 116.1 r145.4 r114.7 117.1 117.7 117.3 

 ANNUAL 123.5 143.4 116.1 144.6 115.1 117.1 116.0 116.7 

 2003 I r125.2 144.6 r115.5 r147.3 r115.2 117.7 118.3 117.9 

 II r126.9 146.1 r115.1 r149.7 r116.9 118.0 118.1 118.0 

 III r130.1 150.0 r115.3 r151.7 r117.8 r116.6 121.5 118.4 

 IV r129.9 150.6 r115.9 r152.9 r118.4 r117.7 r120.5 118.7 

 ANNUAL r128.0 147.8 r115.4 r150.4 r117.1 117.5 r119.6 118.3 

 2004 I r130.2 r151.5 r116.4 r152.9 r117.4 r117.4 r123.7 r119.7 

 II r131.7 r153.4 r116.5 r154.9 r117.7 r117.6 r125.9 r120.6 

 III r132.0 r154.9 r117.3 r156.8 r118.5 r118.8 r125.7 r121.4 

 IV r132.2 r155.9 r117.9 r158.9 r119.0 r120.2 r126.5 r122.5 

 ANNUAL r131.5 r153.9 r117.0 r155.9 r118.2 r118.5 r125.5 r121.1 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 6.9 3.5 -3.2 6.2 4.7 -0.7 1.2 0.0 

 II 0.7 1.4 0.6 4.4 1.2 3.6 -0.9 2.0 

 III 4.2 3.1 -1.0 1.9 -0.2 -2.2 6.6 0.9 

 IV -0.1 0.1 0.2 0.1 -2.3 0.2 3.9 1.6 

 ANNUAL 4.1 1.5 -2.6 3.6 2.0 -0.5 4.0 1.1 

 2003 I 3.4 1.2 -2.1 5.5 1.7 2.0 1.8 2.0 

 II 5.7 4.3 -1.3 6.7 6.4 1.0 -0.6 0.4 

 III 10.4 11.0 0.5 5.4 2.9 -4.5 11.9 1.3 

 IV -0.5 1.6 2.2 3.3 2.2 3.8 -3.2 1.1 

 ANNUAL 3.7 3.1 -0.6 4.0 1.7 0.3 3.1 1.3 

 2004 I r0.9 r2.6 1.7 r-0.2 r-3.6 r-1.0 r11.3 r3.4 

 II r4.7 r5.0 0.3 r5.3 r1.1 r0.6 r7.1 r3.0 

 III r0.9 r3.8 3.0 r5.2 r2.9 r4.3 -0.4 2.4 

 IV r0.7 r2.6 2.0 r5.4 r1.7 r4.7 r2.4 r3.8 

 ANNUAL r2.7 r4.1 1.4 3.6 0.9 r0.9 r4.9 2.4 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.1 0.7 -4.2 3.5 2.2 -1.6 6.5 1.2 

 II 3.9 0.8 -3.0 4.0 2.6 0.1 2.8 1.0 

 III 4.5 2.3 -2.1 3.9 2.3 -0.6 4.1 1.1 

 IV 2.9 2.0 -0.8 3.1 0.8 0.2 2.7 1.1 

 ANNUAL 4.1 1.5 -2.6 3.6 2.0 -0.5 4.0 1.1 

 2003 I 2.0 1.5 -0.6 3.0 0.1 0.9 2.8 1.6 

 II 3.3 2.2 -1.0 3.5 1.3 0.2 2.9 1.2 

 III 4.8 4.1 r-0.6 4.4 2.1 -0.4 4.2 1.3 

 IV 4.7 4.5 -0.2 5.2 3.3 0.5 2.3 1.2 

 ANNUAL 3.7 3.1 -0.6 4.0 1.7 0.3 3.1 1.3 

 2004 I r4.0 r4.8 0.8 r3.8 r1.9 r-0.3 r4.6 1.6 

 II r3.8 r5.0 1.2 3.4 0.6 r-0.3 r6.6 r2.2 

 III r1.5 r3.3 1.8 r3.4 r0.6 r1.9 r3.5 2.5 

 IV 1.8 r3.5 1.7 r3.9 r0.5 r2.1 r5.0 3.2 

 ANNUAL r2.7 r4.1 1.4 3.6 0.9 r0.9 r4.9 2.4 

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

 See footnotes following Table 6. August 7, 2007 

 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 

 2002 I r147.0 r134.2 r91.2 r144.6 r116.3 r98.3 

 II r149.9 r136.0 r90.7 r147.6 r117.8 r98.4 

 III r152.3 r136.9 r89.8 r149.1 r118.3 r97.9 

 IV r154.1 r136.6 r88.7 r150.1 r118.4 r97.4 

 ANNUAL r150.8 r135.9 r90.1 r147.8 r117.7 r98.0 

 2003 I r157.3 r137.3 r87.3 r154.5 r120.8 r98.2 

 II r159.2 r136.5 r85.8 r157.2 r122.8 r98.8 

 III r162.4 r137.2 r84.5 r159.4 r123.7 r98.1 

 IV r161.8 r138.0 r85.3 r161.8 r125.3 r100.0 

 ANNUAL r160.1 r137.3 r85.7 r158.2 r123.1 r98.8 

 2004 I r161.2 r138.4 r85.8 r156.8 r120.4 r97.2 

 II r162.7 r139.1 r85.5 r159.8 r121.4 r98.2 

 III r163.8 r140.0 r85.5 r163.5 r123.6 r99.8 

 IV r166.4 r141.1 r84.8 r165.8 r124.2 r99.7 

 ANNUAL r163.5 r139.7 r85.4 r161.5 r122.4 r98.7 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r9.4 r2.3 r-6.5 17.1 15.4 r7.0 

 II r8.1 r5.7 r-2.3 8.7 5.3 r0.6 

 III r6.6 r2.6 r-3.8 4.2 2.0 r-2.3 

 IV r4.7 r-0.8 r-5.2 2.8 0.3 r-1.8 

 ANNUAL r6.9 r-0.7 -7.1 7.3 5.6 r0.3 

 2003 I r8.7 r2.1 r-6.1 12.2 8.2 r3.3 

 II r4.7 r-2.3 r-6.7 7.2 6.9 r2.4 

 III r8.4 r1.9 -6.0 5.5 3.0 r-2.7 

 IV r-1.5 r2.6 r4.1 6.4 5.3 r8.0 

 ANNUAL 6.2 1.0 -4.9 7.0 4.7 0.8 

 2004 I r-1.4 r1.1 r2.5 r-11.9 r-14.9 r-10.7 

 II r3.6 r2.1 r-1.4 r7.8 r3.5 r4.1 

 III r2.8 r2.4 r-0.4 r9.8 r7.4 r6.8 

 IV r6.4 r3.3 r-2.9 r5.6 r2.0 r-0.7 

 ANNUAL r2.1 r1.8 r-0.3 2.0 r-0.6 r-0.1 

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

 Percent change from corresponding quarter of previous year 

 2002 I r5.4 r-4.5 r-9.3 4.7 3.4 r-0.6 

 II r6.8 r-1.5 -7.8 7.5 6.1 r0.6 

 III r8.2 r1.1 -6.6 8.8 7.2 r0.6 

 IV 7.2 r2.4 r-4.5 8.0 5.6 r0.8 

 ANNUAL r6.9 r-0.7 -7.1 7.3 5.6 r0.3 

 2003 I r7.0 r2.4 -4.3 6.9 3.9 r-0.1 

 II r6.1 0.4 -5.4 6.5 4.3 r0.4 

 III r6.6 0.2 -6.0 6.9 r4.6 0.3 

 IV r5.0 r1.0 r-3.8 7.8 5.8 2.7 

 ANNUAL 6.2 1.0 -4.9 7.0 4.7 0.8 

 2004 I r2.5 r0.8 r-1.6 r1.5 r-0.4 r-1.0 

 II r2.2 r1.9 r-0.3 1.6 r-1.1 r-0.6 

 III r0.9 r2.0 r1.2 r2.6 r-0.1 r1.7 

 IV r2.8 r2.2 r-0.6 r2.4 r-0.9 r-0.4 

 ANNUAL r2.1 r1.8 r-0.3 2.0 r-0.6 r-0.1 

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

 See footnotes following Table 6. August 7, 2007 

 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 

 2002 I r165.1 r156.7 r94.9 141.9 r114.1 r85.9 

 II r169.0 r159.7 r94.5 r145.0 r115.7 r85.8 

 III r172.5 r161.3 r93.5 r146.1 r116.0 r84.7 

 IV r175.8 r161.3 r91.7 r147.3 r116.2 r83.8 

 ANNUAL r170.5 r159.8 r93.7 r145.0 r115.4 r85.1 

 2003 I r179.0 r161.7 r90.4 r153.0 r119.6 r85.5 

 II r181.0 r160.5 r88.7 r155.8 r121.7 r86.1 

 III r185.9 r162.2 r87.2 r158.0 r122.7 r85.0 

 IV r184.9 r163.7 r88.5 160.5 124.3 r86.8 

 ANNUAL r182.6 r162.0 r88.7 r156.8 r122.0 r85.8 

 2004 I r183.8 r164.8 r89.6 r152.3 r116.9 r82.8 

 II r184.4 r165.0 r89.5 r155.6 r118.2 r84.3 

 III r185.1 r166.1 r89.7 r159.6 r120.6 r86.2 

 IV r187.9 r167.4 r89.1 r161.2 r120.8 r85.8 

 ANNUAL r185.3 r165.8 r89.5 r157.2 r119.1 r84.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r10.6 r2.5 r-7.3 12.0 10.4 r1.3 

 II r9.9 r7.8 r-1.8 9.2 5.8 r-0.6 

 III r8.5 r4.1 r-4.0 3.0 0.8 r-5.1 

 IV r8.0 r0.0 r-7.4 3.2 0.7 r-4.4 

 ANNUAL r7.5 r-1.4 r-8.2 6.4 4.7 r-1.1 

 2003 I r7.3 r1.0 r-5.9 16.6 12.5 r8.7 

 II r4.5 r-3.0 r-7.2 7.4 7.0 r2.7 

 III r11.3 r4.2 r-6.4 5.8 3.3 r-4.9 

 IV r-2.1 r3.9 6.1 r6.4 r5.3 r8.6 

 ANNUAL r7.1 r1.4 -5.3 8.1 5.7 r0.9 

 2004 I r-2.2 r2.7 r5.1 r-18.8 r-21.6 r-17.0 

 II r1.3 r0.4 r-0.9 r8.8 r4.5 r7.4 

 III r1.4 r2.7 r1.3 r10.7 r8.3 r9.2 

 IV r6.2 r3.2 r-2.9 r4.2 r0.6 r-1.9 

 ANNUAL r1.5 r2.3 r0.9 r0.2 r-2.4 r-1.2 

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

 Percent change from corresponding quarter of previous year 

 2002 I r4.9 r-6.7 r-11.0 4.1 2.8 r-0.7 

 II r7.0 r-2.8 r-9.1 6.8 5.4 r-0.2 

 III r8.9 r0.9 -7.3 7.8 6.1 r-1.0 

 IV r9.2 r3.6 r-5.2 6.8 4.4 r-2.2 

 ANNUAL r7.5 r-1.4 r-8.2 6.4 4.7 r-1.1 

 2003 I r8.4 r3.2 -4.8 7.9 4.9 r-0.5 

 II r7.1 r0.5 -6.1 7.4 5.2 r0.3 

 III r7.8 r0.5 -6.7 r8.1 5.8 r0.4 

 IV r5.2 1.5 r-3.5 9.0 7.0 r3.6 

 ANNUAL r7.1 r1.4 -5.3 8.1 5.7 r0.9 

 2004 I r2.7 r1.9 r-0.8 r-0.5 r-2.3 r-3.1 

 II r1.9 r2.8 r0.8 r-0.1 r-2.8 r-2.0 

 III r-0.4 r2.4 r2.9 r1.0 r-1.7 r1.4 

 IV r1.6 r2.3 r0.6 r0.5 r-2.8 r-1.1 

 ANNUAL r1.5 r2.3 r0.9 r0.2 r-2.4 r-1.2 

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

 See footnotes following Table 6. August 7, 2007 

 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 

 2002 I r128.5 r110.1 r85.7 r148.1 r119.1 r115.3 

 II r130.5 r111.0 r85.0 r150.9 r120.4 r115.6 

 III r131.9 r111.2 r84.3 r153.3 r121.7 r116.2 

 IV r131.7 r110.6 r84.0 r154.2 r121.6 r117.1 

 ANNUAL r130.7 r110.7 r84.8 r151.6 r120.7 r116.0 

 2003 I r134.9 r111.5 r82.6 r155.9 r121.8 r115.5 

 II r136.5 r111.1 r81.4 r158.5 r123.8 r116.2 

 III r138.1 r110.9 r80.3 r160.5 r124.6 r116.2 

 IV r138.2 r111.2 r80.5 162.8 r126.1 r117.8 

 ANNUAL r136.9 r111.1 r81.2 r159.4 r124.1 r116.4 

 2004 I r138.6 r111.0 r80.1 r163.7 r125.7 r118.1 

 II r140.9 r112.2 r79.6 r166.0 r126.2 r117.9 

 III r142.8 r112.8 r79.0 r169.1 r127.8 r118.4 

 IV r145.1 r113.8 r78.4 r172.6 r129.3 r119.0 

 ANNUAL r141.8 r112.4 r79.3 r167.8 r127.2 r118.3 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r8.2 2.5 r-5.3 27.8 26.0 r18.1 

 II r6.4 r3.3 r-2.9 7.6 4.3 r1.2 

 III r4.2 r0.7 -3.4 6.5 4.3 r2.2 

 IV r-0.5 r-1.9 r-1.4 2.4 -0.1 r2.9 

 ANNUAL 5.7 0.3 -5.1 9.4 7.6 r3.4 

 2003 I r10.1 r3.1 r-6.4 4.4 0.7 r-5.2 

 II r4.7 r-1.5 -5.9 7.1 r6.8 r2.3 

 III r4.9 r-0.8 r-5.4 r5.0 r2.5 r0.1 

 IV r0.2 r1.2 r1.0 5.8 4.7 r5.7 

 ANNUAL r4.8 r0.4 -4.2 5.1 2.8 r0.3 

 2004 I r1.1 r-0.6 r-1.7 r2.2 r-1.3 r1.0 

 II r6.9 r4.4 r-2.3 r5.9 r1.7 r-0.9 

 III r5.4 r2.1 r-3.2 r7.6 r5.2 r2.0 

 IV r6.6 r3.5 -2.9 r8.4 r4.7 r1.7 

 ANNUAL r3.6 r1.2 r-2.3 r5.3 r2.5 r1.6 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.2 -1.5 -6.4 6.4 5.1 r1.2 

 II 6.0 0.4 r-5.4 9.3 7.9 3.1 

 III 7.2 1.4 r-5.3 11.1 9.4 3.7 

 IV r4.5 r1.1 -3.3 10.7 8.2 r5.9 

 ANNUAL 5.7 0.3 -5.1 9.4 7.6 r3.4 

 2003 I r5.0 r1.3 -3.5 5.2 2.3 r0.2 

 II r4.5 r0.1 -4.3 5.1 2.9 r0.5 

 III r4.7 r-0.3 r-4.8 4.7 2.4 r0.0 

 IV r4.9 r0.5 r-4.2 5.6 3.7 r0.6 

 ANNUAL r4.8 r0.4 -4.2 5.1 2.8 r0.3 

 2004 I r2.7 r-0.4 r-3.0 r5.0 r3.1 2.3 

 II r3.2 r1.0 r-2.1 r4.7 r1.9 r1.4 

 III r3.4 r1.8 r-1.6 r5.4 r2.6 r1.9 

 IV r5.0 r2.3 r-2.5 r6.0 r2.5 r1.0 

 ANNUAL r3.6 r1.2 r-2.3 r5.3 r2.5 r1.6 

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

 See footnotes following Table 6. August 7, 2007 

 r=revised Source: Bureau of Labor Statistics 
22 

Appendix table 6. Nonfinancial corporate sector: Revised productivity, hourly compensation, unit labor costs, 

unit profits, and prices, seasonally adjusted 

 Output Hourly Real Unit Total Unit Implicit 

 Year per all- compen- hourly Unit non- unit pro- price 

 and employee Employee sation compen- labor labor costs fits deflator 

 quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) 

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

 Indexes 1992=100 

 2002 I r127.3 149.3 r117.3 r141.6 r113.9 111.2 113.0 111.7 85.8 109.4 

 II 129.3 151.3 117.0 143.5 114.5 111.0 110.7 110.9 94.5 109.4 

 III r130.6 152.2 r116.6 r144.4 r114.6 110.6 110.0 110.5 100.3 109.5 

 IV r131.6 153.0 r116.3 r144.9 r114.3 110.1 109.6 110.0 111.2 110.1 

 ANNUAL 129.7 151.5 116.8 143.6 114.3 110.7 110.8 110.7 98.0 109.6 

 2003 I r132.1 152.3 r115.3 r146.2 r114.3 110.7 112.6 111.2 102.9 110.5 

 II r133.8 153.6 r114.8 r148.8 r116.2 111.2 111.0 111.2 105.7 110.7 

 III 135.9 155.9 114.7 150.8 117.1 111.0 110.7 110.9 112.8 111.1 

 IV r136.6 157.5 r115.3 r152.0 r117.7 111.2 110.0 110.9 117.8 111.5 

 ANNUAL 134.6 154.8 115.0 149.5 116.3 111.0 111.1 111.0 109.9 110.9 

 2004 I r137.4 r159.4 r116.1 r150.8 r115.8 r109.8 r109.6 r109.7 r135.2 112.0 

 II r138.9 r161.5 r116.2 r152.8 r116.2 r110.0 r109.4 r109.8 r145.8 r113.1 

 III r140.7 r164.4 r116.8 r154.9 r117.1 r110.1 r109.2 r109.8 r150.6 r113.5 

 IV r140.2 r164.5 r117.3 r156.9 r117.6 r111.9 r109.7 r111.3 r148.4 r114.6 

 ANNUAL r139.3 r162.4 r116.6 r153.9 r116.7 r110.5 r109.5 r110.2 r145.1 113.3 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 5.2 2.9 -2.2 2.5 1.1 -2.6 -9.0 -4.4 66.8 -0.8 

 II 6.4 5.6 -0.8 5.4 2.1 -0.9 -7.9 -2.9 46.9 0.1 

 III 4.0 2.3 -1.5 2.7 0.5 -1.2 -2.4 -1.6 27.0 0.5 

 IV 3.1 2.0 -1.1 1.2 -1.3 -1.9 -1.6 -1.8 50.9 1.9 

 ANNUAL 4.0 0.9 -3.0 3.6 1.9 -0.4 -1.6 -0.7 19.2 0.6 

 2003 I 1.6 -1.8 -3.3 3.9 0.2 2.3 11.4 4.7 -26.5 1.5 

 II 5.3 3.6 -1.6 7.3 6.9 1.9 -5.6 -0.2 11.3 0.7 

 III 6.3 6.1 -0.2 5.4 2.9 -0.8 -1.2 -0.9 29.4 1.4 

 IV 2.3 4.3 2.0 r3.1 2.1 0.9 -2.5 -0.1 18.9 1.6 

 ANNUAL 3.8 2.2 -1.5 4.1 1.8 0.3 0.2 0.3 12.1 1.2 

 2004 I r2.2 r4.8 2.6 r-3.0 r-6.3 r-5.0 r-1.5 r-4.1 r73.6 1.8 

 II r4.7 r5.3 0.6 r5.5 r1.3 r0.8 r-0.6 r0.4 r35.4 r3.8 

 III r5.2 r7.5 2.2 r5.5 r3.2 r0.3 r-0.8 r0.0 r13.8 r1.5 

 IV r-1.4 r0.1 1.5 r5.3 r1.7 r6.9 r2.0 r5.5 r-5.7 r4.1 

 ANNUAL r3.5 r4.9 1.4 r3.0 r0.3 r-0.5 r-1.4 r-0.8 r32.0 2.1 

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

 Percent change from corresponding quarter of previous year 

 2002 I 3.0 -1.7 -4.5 3.6 2.4 0.6 3.5 1.4 -1.9 1.2 

 II 3.8 0.2 -3.5 4.0 2.6 0.2 -0.8 -0.1 8.7 0.5 

 III 4.6 1.9 -2.6 3.7 2.1 -0.8 -3.5 -1.5 27.0 0.3 

 IV 4.7 3.2 -1.4 2.9 0.6 -1.7 -5.3 -2.7 47.2 0.4 

 ANNUAL 4.0 0.9 -3.0 3.6 1.9 -0.4 -1.6 -0.7 19.2 0.6 

 2003 I 3.8 2.0 -1.7 3.3 0.4 -0.5 -0.4 -0.4 20.0 1.0 

 II 3.5 1.5 -1.9 3.7 1.5 0.2 0.3 0.2 11.9 1.1 

 III 4.1 2.4 -1.6 4.4 2.1 0.3 0.6 0.4 12.4 1.4 

 IV 3.8 3.0 -0.8 4.9 3.0 1.0 0.3 0.8 5.9 1.3 

 ANNUAL 3.8 2.2 -1.5 4.1 1.8 0.3 0.2 0.3 12.1 1.2 

 2004 I 4.0 4.7 0.7 r3.1 r1.3 r-0.8 r-2.7 r-1.3 r31.3 1.4 

 II r3.8 r5.1 1.2 r2.7 r-0.1 r-1.1 r-1.4 r-1.2 r37.9 2.2 

 III r3.6 r5.5 1.8 2.7 0.0 r-0.8 r-1.4 r-1.0 r33.5 2.2 

 IV r2.6 r4.4 1.7 3.3 -0.1 r0.6 r-0.2 r0.4 r26.0 2.8 

 ANNUAL r3.5 r4.9 1.4 r3.0 r0.3 r-0.5 r-1.4 r-0.8 r32.0 2.1 

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

 See footnotes following Table 6. August 7, 2007 

 r=revised Source: Bureau of Labor Statistics 
23 

Appendix table 7. Manufacturing sector: Productivity, hourly compensation, and unit labor costs 

Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

 Year all persons Output persons hour (1) hour (2) costs 

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

 1987 r89.0 r92.4 r103.8 r81.3 r98.0 r91.3 

 1988 r90.9 r97.2 r106.9 r84.1 r97.8 r92.5 

 1989 r91.8 r98.8 r107.6 r86.6 r96.6 r94.3 

 1990 r93.9 r98.5 r104.9 90.5 r96.1 r96.4 

 1991 r96.3 r96.8 r100.5 r95.6 r98.0 r99.2 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r102.5 r103.9 r101.3 r102.0 r99.5 r99.5 

 1994 r106.1 r110.1 r103.7 r105.3 r100.6 r99.2 

 1995 r110.9 r115.8 r104.4 r107.3 r100.1 r96.7 

 1996 r114.9 r119.8 r104.2 r109.3 r99.4 r95.1 

 1997 r121.3 r128.6 r106.0 r112.2 r99.8 r92.5 

 1998 r127.9 r135.2 r105.8 r118.7 r104.2 r92.9 

 1999 r133.5 r140.3 r105.1 r123.4 r106.0 r92.4 

 2000 r138.9 r144.2 r103.8 r134.7 r112.0 r97.0 

 2001 r141.1 r136.8 r97.0 r137.8 r111.5 r97.7 

 2002 r150.8 r135.9 r90.1 r147.8 r117.7 r98.0 

 2003 r160.1 r137.3 r85.7 r158.2 r123.1 r98.8 

 2004 r163.5 r139.7 r85.4 r161.5 r122.4 r98.7 

 2005 r171.3 r144.6 r84.4 r168.3 r123.4 r98.2 

 2006 r178.2 r151.7 r85.1 r172.4 r122.5 r96.8 

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

 See footnotes following Table 6. August 7, 2007 

 r=revised Source: Bureau of Labor Statistics 

Appendix table 8. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs 

Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

 Year all persons Output persons hour (1) hour (2) costs 

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

 1987 r88.5 r94.2 r106.5 r81.2 r98.0 r91.8 

 1988 r90.4 r100.0 r110.7 r83.6 r97.3 r92.5 

 1989 r91.1 r101.1 r111.0 r85.9 r95.8 r94.3 

 1990 r92.9 r99.8 r107.4 r89.5 r95.0 r96.3 

 1991 r94.6 r96.0 r101.4 r94.9 r97.3 100.3 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r103.9 r105.4 r101.4 r101.9 r99.4 r98.1 

 1994 r109.0 r114.2 r104.8 r105.4 r100.7 r96.7 

 1995 r115.9 r123.3 r106.4 r106.7 r99.5 r92.1 

 1996 r122.0 r131.0 r107.3 r108.1 r98.2 r88.6 

 1997 r130.5 144.0 r110.4 r110.6 r98.4 r84.8 

 1998 r140.5 r156.0 r111.0 r117.1 r102.7 r83.3 

 1999 r150.5 r166.4 r110.6 r122.4 r105.1 r81.3 

 2000 r157.7 r173.5 r110.0 r134.2 r111.6 r85.1 

 2001 r158.6 r161.9 r102.1 r136.4 r110.3 r86.0 

 2002 r170.5 r159.8 r93.7 r145.0 r115.4 r85.1 

 2003 r182.6 r162.0 r88.7 r156.8 r122.0 r85.8 

 2004 r185.3 r165.8 r89.5 r157.2 r119.1 r84.8 

 2005 r195.1 r174.1 r89.2 r163.2 r119.7 r83.6 

 2006 r207.4 r187.2 r90.2 r168.4 r119.6 r81.2 

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

 See footnotes following Table 6. August 7, 2007 

 r=revised Source: Bureau of Labor Statistics 
24 

Appendix table 9. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs 

Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

 Year all persons Output persons hour (1) hour (2) costs 

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

 1987 r91.3 r91.1 r99.7 80.8 97.4 r88.5 

 1988 r93.2 r94.5 r101.4 r84.2 r98.0 r90.4 

 1989 r94.0 r96.4 r102.6 r87.2 r97.2 r92.7 

 1990 r95.9 r97.1 r101.2 r91.7 r97.4 r95.6 

 1991 r98.3 r97.4 r99.1 r96.5 r99.0 r98.2 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r101.1 r102.4 r101.2 r102.3 r99.7 r101.1 

 1994 r103.4 r105.7 r102.2 r104.7 r100.1 r101.3 

 1995 r106.1 r107.7 r101.5 r107.8 r100.6 r101.6 

 1996 r108.3 r107.8 r99.5 r110.8 r100.7 r102.3 

 1997 r112.8 r112.2 r99.4 r114.1 r101.5 r101.1 

 1998 r115.8 r113.4 r97.9 r120.3 r105.6 r103.9 

 1999 r116.9 r113.3 r96.9 r123.6 r106.2 r105.7 

 2000 r120.8 r114.1 r94.4 r133.2 r110.8 r110.3 

 2001 r123.6 r110.4 r89.3 r138.6 r112.1 r112.2 

 2002 r130.7 r110.7 r84.8 r151.6 r120.7 r116.0 

 2003 r136.9 r111.1 r81.2 r159.4 r124.1 r116.4 

 2004 r141.8 r112.4 r79.3 r167.8 r127.2 r118.3 

 2005 r148.6 r114.6 r77.1 r175.8 r129.0 r118.3 

 2006 r151.0 r117.0 r77.5 r177.8 r126.3 r117.7 

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

 See footnotes following Table 6. August 7, 2007 

 r=revised Source: Bureau of Labor Statistics