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Historical, technical TRANSMISSION OF THIS 

 information: (202) 691-5606 dprweb@bls.gov MATERIAL IS EMBARGOED

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

Media contact: (202) 691-5902 hoyle_k@bls.gov THURSDAY, MAY 6, 2004. 

PRODUCTIVITY AND COSTS 

First Quarter 2004, 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 first 

quarter of 2004. The seasonally adjusted annual rates of productivity change in the first quarter 

were: 

4.5 percent in the business sector and 

 3.5 percent in the nonfarm business sector. 

In both the business and nonfarm business sectors, productivity and output increased 

more in the first quarter than they had in the fourth quarter of 2003 (as revised) while the hours 

of all persons grew more slowly. 

 In manufacturing, productivity changes in the first quarter were: 

3.1 percent in manufacturing, 

5.9 percent in durable goods manufacturing, and 

0.1 percent in nondurable goods manufacturing. 

 Productivity growth in manufacturing in the first quarter of 2004 reflected increases in 

both output and hours; output rose 5.8 percent and hours of all persons grew 2.7 percent 

(seasonally adjusted annual rates). Output and hours in manufacturing, which includes about 13 

percent of U.S. business sector employment, tend to vary more from quarter to quarter than data 

for the aggregate business and nonfarm business sectors. First-quarter measures are summarized 

in table A and appear in detail in tables 1 through 5. 

 The data sources and methods used in the preparation of the manufacturing series differ 

from those used in preparing the business and nonfarm business series, and these measures are 

not directly comparable. Output measures for business and nonfarm business are based on 

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

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

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

System. See Technical Notes for further information on data sources (page 9). 
2 

Table A. Productivity and costs: Preliminary first-quarter 2004 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change from preceding quarter 

Business 4.5 4.8 0.3 5.3 1.6 0.8

Nonfarm business 3.5 4.9 1.3 4.0 0.4 0.5

Manufacturing 3.1 5.8 2.7 5.2 1.5 2.0

Durable 5.9 9.3 3.3 4.4 0.8 -1.4

Nondurable 0.1 1.8 1.7 6.4 2.7 6.3

Percent change from same quarter a year ago 

Business 5.5 5.8 0.2 4.2 2.3 -1.3

Nonfarm business 5.4 5.8 0.4 4.0 2.1 -1.3

Manufacturing 5.3 3.1 -2.0 4.9 3.0 -0.4

Durable 7.4 5.7 -1.6 4.8 2.9 -2.4

Nondurable 3.0 0.2 -2.7 5.0 3.0 1.9

Business 

Productivity in the business sector rose 4.5 percent in the first quarter 2004, as output 

grew 4.8 percent and hours of all persons engaged in the sector increased 0.3 percent (seasonally 

adjusted annual rates). Revised data for the fourth quarter of 2003 show that output per hour 

increased 1.8 percent, reflecting a 3.9-percent rise in output and a 2.0-percent increase in hours 

at work. (See table 1.) 

Hourly compensation increased 5.3 percent during the first quarter of 2004. This 

measure includes wages and salaries, supplements, employer contributions to employee benefit 

plans, and taxes. Hourly compensation had risen 2.1 percent in the previous quarter. Real hourly 

compensation, which takes into account changes in consumer prices, increased 1.6 percent in the 

first quarter of 2004, growing slightly faster than in the fourth quarter of 2003, when it rose 1.3 

percent. 

Unit labor costs rose 0.8 percent in the first quarter of 2004, more rapidly than the 0.2-

percent increase in the fourth quarter. Growth in unit labor costs is roughly equivalent to the 

change in hourly compensation less the change in output per hour. 

The implicit price deflator for the business sector, which reflects changes in both unit 

labor costs and unit nonlabor payments, rose 2.1 percent in the first quarter. This was the largest 
3 

increase in the implicit price deflator since the second quarter of 2001, when it grew by 3.1 

percent. 

Nonfarm business 

Productivity rose 3.5 percent in the nonfarm business sector in first-quarter 2004, as 

output increased 4.9 percent and hours of all persons increased 1.3 percent (seasonally adjusted 

annual rates). In the fourth quarter of 2003, productivity had risen 2.5 percent, reflecting 

increases in output and hours of 4.2 and 1.6 percent, respectively. (See table 2.) 

Hourly compensation increased at a 4.0 percent annual rate in the first quarter of 2004, 

more rapidly than the 2.5-percent increase in the fourth quarter. When the rise in consumer 

prices was taken into account, real hourly compensation grew by 0.4 percent in the first quarter; 

it had increased 1.7 percent in the fourth quarter of 2003. 

Unit labor costs grew 0.5 percent in the first quarter of 2004; they were unchanged in the 

fourth quarter of 2003. The implicit price deflator for nonfarm business output rose 1.9 percent 

in the first quarter and 0.6 percent one quarter earlier. 

Manufacturing 

Productivity increased 3.1 percent in manufacturing in the first quarter of 2004, as output 

increased 5.8 percent and hours of all persons grew 2.7 percent (seasonally adjusted annual 

rates). Productivity rose 5.9 percent in durable goods manufacturing, reflecting a 9.3 percent 

growth in output and a 3.3 percent increase in all person hours. In contrast, all of these measures 

grew much more slowly in nondurable goods manufacturing, where productivity rose 0.1 percent 

and output and hours grew 1.8 percent and 1.7 percent, respectively. 

The hourly compensation of all manufacturing workers rose 5.2 percent during the first 

quarter, and real hourly compensation increased 1.5 percent. The 5.2-percent hourly 

compensation increase reflects a change of 4.4 percent in durable goods and 6.4 percent in 

nondurable goods. 

Because the hourly compensation of manufacturing workers rose more rapidly than 

output per hour, unit labor costs increased in the first quarter, by 2.0 percent. This increase 

followed two quarters of decreases. Total manufacturing unit labor costs fell 4.1 percent in the 

third quarter of 2003 and 1.8 percent in fourth quarter, 2003. In durable goods manufacturing, 

however, unit labor costs continued to fall in the first quarter of 2004, dropping 1.4 percent. All 

of the increase in manufacturing unit labor costs came from the nondurable goods subsector, 

where unit labor costs grew 6.3 percent. 
4 

Fourth-quarter and annual measures for nonfinancial corporations 

Fourth-quarter and annual 2003 measures of productivity and costs also were announced 

today for the nonfinancial corporate sector (tables B, C, and 6). Output per all-employee hour 

grew 3.3 percent from the third to the fourth quarter of 2003, as output grew 5.0 percent and 

employee hours increased 1.6 percent. This was the first increase in hours in the sector since a 

0.2-percent rise was recorded in the second quarter of 2000. The nonfinancial corporate sector 

includes all corporations doing business in the United States, except those classified as 

depository institutions, nondepository institutions, security and commodity brokers, insurance 

carriers, regulated investment offices, small business investment offices, and real estate 

investment trusts. 

Table B. Nonfinancial corporations: Fourth-quarter 2003 productivity and cost measures 

(Seasonally adjusted annual rates) 

Period

Productivity Output Hours

Hourly 

compensation

Real 

hourly 

compensation

Unit 

labor 

costs

Unit 

profits

Implicit 

price 

deflator

Percent change from preceding quarter 

2003 IV 3.3 5.0 1.6 2.3 1.6 -1.0 12.7 1.1

Percent change from same quarter a year ago 

2003 IV 6.2 5.4 -0.7 4.2 2.2 -1.9 27.1 0.5

Hourly compensation increased 2.3 percent in the fourth quarter, and real hourly 

compensation rose 1.6 percent. Unit labor costs fell 1.0 percent in the fourth quarter of 2003—

the third consecutive drop in these costs. Unit labor costs have fallen in eight of the last nine 

quarters. In the fourth quarter, unit profits increased 12.7 percent after rising at a 45.0-percent 

annual rate in the previous quarter. The implicit price deflator for nonfinancial corporate output 

grew 1.1 percent during the fourth quarter of 2003, just slightly more than the 0.9-percent 

increase in the third quarter. 

Productivity grew 5.7 percent in calendar year 2003 for nonfinancial corporations, 

following an increase of 5.1 percent in the previous year. (See table C.) These are the largest 

annual productivity increases in the history of the series, which begins in 1959. Nonfinancial 

corporate output grew 4.2 percent in 2003, and employee hours decreased 1.5 percent. This was 

the third consecutive decrease in employee hours. 
5 

Table C. Nonfinancial corporations: Annual changes in productivity and related measures, 1994-

2003 

Measure 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Productivity........................... 2.0 0.8 3.6 2.5 2.8 3.2 3.6 1.8 5.1 5.7

Output ................................... 6.3 4.4 5.6 6.4 5.4 5.8 5.2 -0.7 2.0 4.2

Hours..................................... 4.2 3.5 2.0 3.8 2.5 2.6 1.6 -2.4 -3.0 -1.5

Hourly compensation............ 1.8 1.8 2.8 3.0 5.6 4.6 6.8 4.0 2.3 4.2

Real hourly compensation..... -0.3 -0.6 0.1 0.9 4.1 2.5 3.3 1.2 0.7 1.8

Unit labor costs..................... -0.2 1.0 -0.7 0.5 2.7 1.4 3.1 2.2 -2.7 -1.5

Unit nonlabor costs............... 0.8 0.8 -1.3 -0.1 0.1 1.1 3.8 5.1 1.2 -2.8

Total unit cost ....................... 0.1 0.9 -0.9 0.3 2.0 1.3 3.3 3.0 -1.6 -1.8

Unit profits............................ 15.3 4.2 9.5 3.0 -10.9 -5.6 -15.8 -16.4 21.9 20.5

Implicit price deflator ........... 1.6 1.3 0.3 0.7 0.3 0.5 1.2 1.2 0.1 0.2

Hourly compensation grew 4.2 percent in 2003, and real hourly compensation increased 

1.8 percent. Total unit costs declined 1.8 percent, reflecting a 1.5-percent decrease in unit labor 

costs and a 2.8-percent drop in unit nonlabor costs. Unit profits rose 20.5 percent in 2003. The 

implicit price deflator, which reflects both the unit costs and unit profits measures, rose 0.2 

percent in 2003. 

Revised measures 

Current and previous measures for the third and fourth quarters and annual average of 

2003 in the business, nonfarm business, and manufacturing sectors are compared in table D. 

Some of the quarterly movements differ from those reported on March 4. Productivity was 

revised down slightly in the fourth quarter for the business and nonfarm business sectors, 

reflecting upward revisions to hours of all persons. In manufacturing, the upward revision to 

hours was matched by an upward revision to output so growth in productivity was unchanged. 

In both the third and fourth quarters of 2003, hourly compensation and unit labor costs 

were revised up in the business and nonfarm business sectors. In the third quarter of 2003, unit 

labor costs in both the business and nonfarm business sectors continue to show a decline—

although by less than previously reported. In the fourth quarter, however, unit labor costs in the 

business and nonfarm business sectors no longer show the slight declines reported on March 4. 

In the business sector, unit labor costs now show a small increase, 0.2 percent, in the fourth 

quarter and those in the nonfarm business sector are now unchanged. The combination of the 

upward quarterly revisions to hourly compensation and unit labor costs in both quarters was 

enough to change the annual average for these two sectors but unit labor costs still show a 

decline in 2003. 
6 

Table D. Previous and revised productivity and related measures 

Quarterly percent change at seasonally adjusted annual rate 

Sector

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Fourth quarter 2003 

Business:

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

Current ......................... 1.8 3.9 2.0 2.1 1.3 0.2

Nonfarm business:

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

Current ......................... 2.5 4.2 1.6 2.5 1.7 0.0

Manufacturing:

Previous ....................... 4.8 6.1 1.3 2.7 2.0 -2.0

Current ......................... 4.8 6.2 1.4 2.9 2.1 -1.8

Third quarter 2003 

Business:

Previous ....................... 8.7 10.3 1.5 2.7 0.3 -5.5

Current ......................... 8.7 10.3 1.5 4.1 1.6 -4.3

Nonfarm business:

Previous ....................... 9.5 10.4 0.9 3.3 1.0 -5.6

Current ......................... 9.5 10.4 0.9 4.7 2.3 -4.3

Manufacturing:

Previous ....................... 10.1 4.3 -5.3 5.1 2.7 -4.6

Current ......................... 10.1 4.3 -5.3 5.6 3.1 -4.1

Annual average 2003 

Business:

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

Current ......................... 4.5 3.7 -0.8 3.5 1.2 -0.9

Nonfarm business:

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

Current ......................... 4.4 3.7 -0.7 3.4 1.1 -1.0

Manufacturing:

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

Current ......................... 5.1 0.1 -4.8 5.6 3.2 0.4

Hourly compensation also was revised up in manufacturing in both the third and fourth 

quarters of 2003. In the third quarter, hourly compensation was revised up by 0.5 percentage 

point, to 5.6 percent. Unit labor costs were revised up by the same amount, and now show a 

decline of 4.1 percent for the quarter. The upward revisions to hourly compensation in the fourth 

quarter were smaller, 0.2 percentage point. In the fourth quarter, hourly compensation rose 2.9 

percent and unit labor costs declined 1.8 percent. For the entire year 2003, hourly compensation 

in manufacturing rose 5.6 percent and unit labor costs increased 0.4 percent. 
7 

The Consumer Price Index Research Series has been updated and new seasonal factors 

applied to it. Real hourly compensation measures are revised beginning with 1999. (See 

appendix tables 1-6.) 

Revised measures: Nonfinancial Corporations 

Productivity and cost measures for nonfinancial corporations for the third quarter of 2003 

also were revised to incorporate more recent information than was available on March 4. 

Productivity and output in this sector were revised up for the third quarter of 2003. Productivity 

grew at an annual rate of 9.5 percent, compared with the increase of 8.6 percent published 

March 4. Hourly compensation was revised up more than output per hour, so unit labor costs 

decreased less than reported in March. (See tables E and 6.) 

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

Quarterly percent changes at seasonally adjusted annual rates

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 ............. 9.5 9.4 -0.1 4.9 2.4 -4.2 45.0 0.9

Next release date 

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

June 3, 2004. First-quarter measures for nonfinancial corporations and revised first and fourth 

quarter measures for business, nonfarm business, and manufacturing will be released at that time. 

Current and upcoming changes to productivity and cost data 

Effective with the next release of productivity and costs, BLS will begin to issue revised 

measures for hourly compensation and unit labor costs for the previous quarter along with 

revisions to the current quarterly estimates. Previously, revisions to the previous quarter had 

been reported two months later in the next quarter's preliminary estimates. This change is in 

accordance with the announcement by the Bureau of Economic Analysis of their new revision 

schedule for wage and salary data. See "Gross Domestic Product: First Quarter 2004 (Advance)" 

(BEA 04-18), released April 29. 
8 

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 April 2004 issue of Monthly Labor Review. A technical note 

describing the methodology will be available this summer. 

In addition, on Aug. 10, BLS will begin using concurrent seasonal adjustment when 

measuring employment and hours for the farm sector, nonfarm self-employed, and nonfarm

unpaid family workers and hours for employees of government enterprises in the productivity 

and cost measures. In addition, late in 2004 or early in 2005, BLS intends to improve the way it 

uses these series from the Current Population Survey, adjusting them to account for the effects of 

multiple jobholding. Further information on this change will be announced later this year. 
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 

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 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 

 2002 I 122.8 142.6 116.1 141.8 114.1 115.5 115.0 115.3 

 II 123.3 143.1 116.1 142.6 r113.8 115.7 115.8 115.7 

 III 124.7 144.6 115.9 143.1 113.5 114.7 117.9 115.9 

 IV 125.4 145.1 115.8 143.8 113.5 114.7 119.3 116.5 

 ANNUAL 124.0 143.8 116.0 142.8 113.7 115.2 117.0 115.8 

 2003 I 126.4 145.8 115.4 145.5 113.8 115.1 120.0 116.9 

 II 128.6 147.3 114.5 147.4 115.1 114.6 121.5 117.2 

 III 131.3 151.0 115.0 r148.9 r115.6 r113.4 r124.6 117.6 

 IV r131.9 152.4 115.5 r149.7 r115.9 r113.4 r125.5 r118.0 

 ANNUAL 129.6 149.1 115.1 r147.9 r115.1 r114.1 r123.0 117.4 

 2004 I 133.4 154.2 115.6 151.6 116.4 113.6 126.8 118.6 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 8.4 5.6 -2.6 0.9 -0.4 -6.9 11.0 -0.7 

 II 1.5 1.4 -0.1 2.3 r-1.1 0.9 3.0 1.6 

 III 4.9 4.3 -0.5 1.3 r-1.0 -3.4 7.4 0.5 

 IV 2.0 1.6 -0.5 2.2 r0.3 0.1 4.9 1.9 

 ANNUAL 4.9 2.3 -2.5 2.2 0.6 -2.5 6.8 0.8 

 2003 I 3.5 1.9 -1.5 4.8 r1.0 1.3 2.3 1.6 

 II 7.2 4.2 -2.8 5.3 r4.6 -1.7 5.2 0.9 

 III 8.7 10.3 1.5 r4.1 r1.6 r-4.3 r10.6 1.3 

 IV r1.8 3.9 r2.0 r2.1 r1.3 r0.2 r3.0 r1.3 

 ANNUAL 4.5 3.7 -0.8 r3.5 r1.2 r-0.9 r5.1 1.4 

 2004 I 4.5 4.8 0.3 5.3 1.6 0.8 4.1 2.1 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.1 1.0 -3.9 2.6 1.4 -2.3 7.4 1.1 

 II 4.7 1.6 -2.9 2.5 1.2 -2.1 5.7 0.7 

 III 5.5 3.4 -2.1 2.1 0.5 -3.3 7.7 0.6 

 IV 4.2 3.2 -0.9 1.7 -0.6 -2.4 6.5 0.8 

 ANNUAL 4.9 2.3 -2.5 2.2 0.6 -2.5 6.8 0.8 

 2003 I 3.0 2.3 -0.6 2.6 -0.2 -0.3 4.4 1.4 

 II 4.4 3.0 -1.3 3.4 1.2 -1.0 4.9 1.2 

 III 5.3 4.4 -0.8 r4.1 r1.9 r-1.2 r5.7 1.4 

 IV 5.3 5.0 r-0.2 r4.0 r2.1 r-1.1 r5.2 1.3 

 ANNUAL 4.5 3.7 -0.8 r3.5 r1.2 r-0.9 r5.1 1.4 

 2004 I 5.5 5.8 0.2 4.2 2.3 -1.3 5.7 1.4 

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

 See footnotes following Table 6. May 6, 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 

 2002 I 122.6 143.1 116.7 141.1 113.5 115.1 116.9 115.8 

 II 122.8 143.4 116.8 141.9 113.2 115.6 117.6 116.3 

 III 124.2 144.8 116.6 142.4 112.9 114.6 119.9 116.6 

 IV 124.9 145.4 116.4 143.2 113.0 114.6 121.3 117.1 

 ANNUAL 123.6 144.2 116.6 142.1 113.2 115.0 119.0 116.4 

 2003 I 126.0 146.3 116.1 144.6 113.1 114.8 122.2 117.5 

 II 127.9 147.6 115.4 146.3 114.2 114.4 123.4 117.7 

 III 130.8 151.3 115.7 r148.0 r114.9 r113.2 r126.5 118.1 

 IV 131.6 r152.9 r116.2 r148.9 r115.4 r113.2 r126.9 118.2 

 ANNUAL 129.1 149.5 r115.9 r147.0 r114.4 r113.9 r124.8 117.9 

 2004 I 132.7 154.7 116.5 150.4 115.5 113.3 128.2 118.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 9.8 6.7 -2.9 1.2 r-0.1 -7.8 13.0 -0.7 

 II 0.7 0.8 0.1 2.3 r-1.1 1.6 2.3 1.9 

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

 IV 2.3 1.6 -0.7 2.2 r0.3 -0.1 4.8 1.7 

 ANNUAL 5.0 2.3 -2.6 2.3 0.7 -2.5 7.1 0.9 

 2003 I 3.4 2.4 -1.0 4.0 0.2 0.6 3.0 1.5 

 II 6.2 3.8 -2.3 4.9 4.2 -1.3 4.0 0.7 

 III 9.5 10.4 0.9 r4.7 r2.3 r-4.3 r10.2 1.1 

 IV r2.5 r4.2 r1.6 r2.5 r1.7 r0.0 r1.5 r0.6 

 ANNUAL 4.4 3.7 -0.7 r3.4 r1.1 r-1.0 r4.9 1.2 

 2004 I 3.5 4.9 1.3 4.0 0.4 0.5 4.1 1.9 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.3 1.1 -4.0 2.7 1.4 -2.5 7.6 1.0 

 II 4.7 1.6 -3.0 2.6 r1.3 -2.0 5.7 0.7 

 III 5.5 3.2 -2.1 2.2 0.6 -3.1 8.0 0.8 

 IV 4.3 3.2 -1.0 1.8 -0.5 -2.4 7.0 1.0 

 ANNUAL 5.0 2.3 -2.6 2.3 0.7 -2.5 7.1 0.9 

 2003 I 2.7 2.2 -0.5 2.5 -0.4 -0.3 4.5 1.5 

 II 4.1 2.9 -1.1 3.1 0.9 -1.0 5.0 1.2 

 III 5.3 4.5 -0.8 r4.0 r1.7 r-1.3 r5.4 1.3 

 IV 5.4 5.1 r-0.2 r4.0 r2.1 r-1.3 r4.6 r1.0 

 ANNUAL 4.4 3.7 -0.7 r3.4 r1.1 r-1.0 r4.9 1.2 

 2004 I 5.4 5.8 0.4 4.0 2.1 -1.3 4.9 1.1 

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

 See footnotes following Table 6. May 6, 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 

 2002 I 144.0 130.5 90.6 141.1 113.5 98.0 

 II 146.3 131.8 90.1 143.3 114.3 97.9 

 III 148.5 132.4 89.2 144.6 114.7 97.4 

 IV 149.5 131.3 87.8 146.5 115.7 98.0 

 ANNUAL 147.1 131.5 89.4 143.8 114.5 97.8 

 2003 I 151.4 131.3 86.7 149.0 116.5 98.4 

 II 152.6 130.1 85.3 151.2 118.0 99.0 

 III 156.4 131.5 84.1 r153.2 r118.9 r98.0 

 IV 158.2 133.5 84.4 r154.3 r119.6 r97.6 

 ANNUAL 154.6 131.6 85.1 r151.9 118.2 98.2 

 2004 I 159.4 135.4 85.0 156.3 120.0 98.0 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 10.2 2.5 -7.0 4.2 r2.8 -5.5 

 II 6.5 4.0 -2.3 6.2 r2.7 -0.2 

 III 6.0 1.7 -4.1 3.7 r1.4 -2.2 

 IV 3.0 -3.1 -5.9 5.5 r3.6 2.5 

 ANNUAL 7.2 -0.6 -7.3 4.0 2.4 -3.0 

 2003 I 5.1 0.1 -4.8 6.9 r3.0 1.7 

 II 3.3 -3.6 -6.6 5.9 r5.2 2.6 

 III 10.1 4.3 -5.3 r5.6 r3.1 r-4.1 

 IV 4.8 r6.2 r1.4 r2.9 r2.1 r-1.8 

 ANNUAL 5.1 0.1 -4.8 r5.6 3.2 0.4 

 2004 I 3.1 5.8 2.7 5.2 1.5 2.0 

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

 Percent change from corresponding quarter of previous year 

 2002 I 6.7 -3.4 -9.5 1.8 r0.5 -4.6 

 II 7.6 -1.1 -8.1 4.3 3.0 -3.1 

 III 8.1 0.9 -6.6 5.2 3.5 -2.7 

 IV 6.4 1.2 -4.9 4.9 2.6 -1.4 

 ANNUAL 7.2 -0.6 -7.3 4.0 2.4 -3.0 

 2003 I 5.1 0.6 -4.3 5.6 2.6 0.4 

 II 4.3 -1.3 -5.4 5.5 3.3 1.1 

 III 5.3 -0.6 -5.7 r6.0 r3.7 r0.6 

 IV 5.8 r1.7 -3.9 r5.3 r3.4 r-0.4 

 ANNUAL 5.1 0.1 -4.8 r5.6 3.2 0.4 

 2004 I 5.3 3.1 -2.0 4.9 3.0 -0.4 

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

 See footnotes following Table 6. May 6, 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 

 2002 I 161.2 152.6 94.7 140.0 112.6 86.8 

 II 164.4 154.7 94.1 142.4 113.5 86.6 

 III 167.4 155.9 93.1 143.5 113.8 85.7 

 IV 171.0 156.1 91.3 145.7 115.0 85.2 

 ANNUAL 166.0 154.8 93.3 142.9 113.7 86.1 

 2003 I 173.8 156.6 90.1 147.8 115.6 85.0 

 II 175.5 155.1 88.4 150.1 117.2 85.5 

 III 181.6 158.3 87.2 r152.5 r118.4 r84.0 

 IV r184.1 r161.9 87.9 r153.2 r118.7 r83.2 

 ANNUAL r178.7 158.0 88.4 r150.9 r117.4 r84.4 

 2004 I 186.7 165.5 88.6 154.9 118.9 82.9 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 11.9 2.8 r-8.1 1.7 0.4 -9.1 

 II 8.0 5.5 -2.3 7.0 r3.4 -0.9 

 III 7.7 3.3 -4.1 3.3 r0.9 -4.1 

 IV 8.9 0.4 -7.8 6.1 r4.1 -2.6 

 ANNUAL 8.5 -0.7 -8.5 3.8 2.1 -4.4 

 2003 I 6.7 1.4 -5.0 6.0 r2.2 -0.7 

 II 4.0 -3.9 -7.5 6.5 r5.8 2.4 

 III 14.5 8.4 -5.3 r6.5 r4.0 r-7.0 

 IV r5.6 r9.4 r3.5 r1.8 r1.0 r-3.7 

 ANNUAL 7.7 2.0 -5.3 r5.6 r3.3 r-1.9 

 2004 I 5.9 9.3 3.3 4.4 0.8 -1.4 

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

 Percent change from corresponding quarter of previous year 

 2002 I 6.9 -4.9 -11.0 1.5 0.3 -5.0 

 II 8.4 -1.8 -9.4 4.1 2.8 -4.0 

 III 9.4 1.2 -7.5 5.0 3.3 -4.1 

 IV 9.1 3.0 -5.6 4.5 2.2 -4.2 

 ANNUAL 8.5 -0.7 -8.5 3.8 2.1 -4.4 

 2003 I 7.8 2.6 -4.8 5.6 2.6 -2.1 

 II 6.8 0.3 -6.1 5.5 r3.2 -1.2 

 III 8.5 1.5 -6.4 r6.3 r4.0 r-2.0 

 IV r7.6 3.7 -3.7 r5.2 r3.2 r-2.3 

 ANNUAL 7.7 2.0 -5.3 r5.6 r3.3 r-1.9 

 2004 I 7.4 5.7 -1.6 4.8 2.9 -2.4 

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

 See footnotes following Table 6. May 6, 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 

 2002 I 126.6 107.2 84.7 141.6 113.9 111.8 

 II 128.1 107.8 84.1 143.3 114.3 111.9 

 III 129.4 107.7 83.3 144.9 114.9 112.0 

 IV 127.9 105.7 82.7 146.7 115.8 114.7 

 ANNUAL 128.0 107.1 83.7 144.1 114.7 112.6 

 2003 I 128.8 105.3 81.8 149.7 117.1 116.3 

 II 129.4 104.4 80.7 151.6 118.4 117.1 

 III 131.1 104.3 79.6 r153.1 r118.8 r116.8 

 IV r132.6 r105.0 79.2 r154.7 r119.9 r116.7 

 ANNUAL r130.5 r104.8 80.3 r152.3 r118.5 r116.7 

 2004 I 132.6 105.5 79.5 157.1 120.7 118.5 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 7.5 2.0 -5.1 9.5 8.1 1.8 

 II 4.8 2.2 -2.5 4.9 1.3 0.1 

 III 4.1 -0.2 -4.1 4.6 r2.2 0.5 

 IV -4.7 -7.3 -2.8 5.0 r3.0 10.1 

 ANNUAL 5.1 -0.6 -5.4 4.9 3.2 -0.2 

 2003 I 2.9 -1.5 -4.3 8.6 r4.7 5.5 

 II 2.0 -3.2 -5.2 5.1 4.5 3.1 

 III 5.2 -0.4 -5.3 r3.9 r1.4 r-1.3 

 IV r4.7 r2.6 r-1.9 r4.4 r3.6 r-0.2 

 ANNUAL 1.9 -2.2 -4.0 r5.7 r3.3 r3.7 

 2004 I 0.1 1.8 1.7 6.4 2.7 6.3 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.5 -1.7 -6.9 2.8 1.6 -2.6 

 II 5.8 -0.4 -5.8 5.0 3.7 -0.7 

 III 6.0 0.5 -5.2 5.8 r4.1 -0.2 

 IV 2.8 -0.9 -3.6 6.0 3.6 3.0 

 ANNUAL 5.1 -0.6 -5.4 4.9 3.2 -0.2 

 2003 I 1.7 -1.8 -3.4 5.8 2.8 4.0 

 II 1.0 -3.1 -4.1 5.8 3.6 4.7 

 III 1.3 -3.1 -4.4 r5.6 r3.4 r4.3 

 IV r3.7 r-0.7 -4.2 r5.5 r3.5 r1.7 

 ANNUAL 1.9 -2.2 -4.0 r5.7 r3.3 r3.7 

 2004 I 3.0 0.2 -2.7 5.0 3.0 1.9 

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

 See footnotes following Table 6. May 6, 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 r110.0 111.3 108.2 110.5 90.9 108.7 

 II 121.9 149.7 122.8 136.2 r110.1 111.8 109.8 111.3 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 125.0 149.3 119.5 139.0 r112.2 111.2 111.4 111.3 96.4 109.9 

 ANNUAL 122.7 149.6 121.9 137.0 110.8 111.6 110.2 111.2 91.4 109.5 

 2002 I 126.4 150.2 118.8 138.1 111.1 109.3 111.9 110.0 105.3 109.5 

 II 128.3 152.2 118.7 139.6 r111.4 108.8 111.5 109.6 112.3 109.8 

 III 129.8 153.4 118.2 140.6 r111.5 108.3 111.5 109.2 111.8 109.4 

 IV 131.4 154.5 117.6 142.0 112.1 108.1 111.3 109.0 116.2 109.6 

 ANNUAL 128.9 152.6 118.3 140.1 111.5 108.6 111.5 109.4 111.4 109.6 

 2003 I 132.2 154.7 117.0 143.3 112.1 108.4 110.7 109.0 114.0 109.5 

 II 135.3 157.3 116.3 145.3 113.5 107.4 108.0 107.6 130.7 109.6 

 III r138.4 r160.9 116.3 r147.1 r114.1 r106.3 r107.4 106.6 r143.4 109.9 

 IV 139.5 162.8 116.7 147.9 114.6 106.0 107.7 106.5 147.8 110.2 

 ANNUAL 136.3 158.9 116.6 145.9 113.5 107.0 108.4 107.4 134.2 109.8 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I 0.2 -2.1 -2.3 2.7 r-0.9 2.5 4.1 3.0 -24.6 0.5 

 II 1.7 -2.7 -4.3 3.6 0.3 1.8 6.0 2.9 1.0 2.8 

 III 2.9 -2.3 -5.0 4.4 3.4 1.4 5.7 2.6 -16.1 1.1 

 IV 7.6 1.4 -5.8 3.7 4.3 -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 4.6 2.3 -2.2 -2.5 -3.7 -6.7 1.5 -4.6 42.4 -1.4 

 II 6.0 5.6 -0.4 4.4 0.9 -1.5 -1.4 -1.5 29.5 0.9 

 III 4.9 3.2 -1.6 3.0 r0.7 -1.8 0.0 -1.3 -1.7 -1.4 

 IV 4.9 2.8 -2.0 3.9 r2.0 -0.9 -0.4 -0.8 16.7 0.7 

 ANNUAL 5.1 2.0 -3.0 2.3 0.7 -2.7 1.2 -1.6 21.9 0.1 

 2003 I 2.4 0.5 -1.9 3.8 r0.0 1.3 -2.4 0.3 -7.4 -0.5 

 II 9.7 7.1 -2.4 5.7 r5.0 -3.7 -9.3 -5.2 72.6 0.6 

 III r9.5 r9.4 -0.1 r4.9 r2.4 r-4.2 r-2.1 r-3.6 r45.0 0.9 

 IV 3.3 5.0 1.6 2.3 1.6 -1.0 1.2 -0.4 12.7 1.1 

 ANNUAL 5.7 4.2 -1.5 4.2 1.8 -1.5 -2.8 -1.8 20.5 0.2 

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

 Percent change from corresponding quarter of previous year 

 2001 I 1.6 0.9 -0.7 4.4 r1.0 2.7 5.6 3.5 -21.1 1.1 

 II 1.5 -0.4 -1.8 4.7 1.3 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 3.1 -1.4 -4.4 3.6 1.8 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 4.2 -0.3 -4.3 2.3 r1.0 -1.8 3.4 -0.5 15.8 0.8 

 II 5.2 1.7 -3.4 2.5 1.2 -2.6 1.5 -1.5 23.2 0.3 

 III 5.8 3.1 -2.5 2.1 0.5 -3.4 0.1 -2.5 28.2 -0.3 

 IV 5.1 3.5 -1.6 2.2 -0.1 -2.8 -0.1 -2.1 20.6 -0.3 

 ANNUAL 5.1 2.0 -3.0 2.3 0.7 -2.7 1.2 -1.6 21.9 0.1 

 2003 I 4.6 3.0 -1.5 3.8 0.9 -0.7 -1.1 -0.8 8.3 -0.1 

 II 5.5 3.4 -2.0 4.1 1.9 -1.3 -3.1 -1.8 16.4 -0.1 

 III r6.6 r4.9 -1.6 r4.6 r2.3 r-1.9 r-3.6 -2.4 r28.3 0.4 

 IV 6.2 5.4 -0.7 4.2 2.2 -1.9 -3.2 -2.3 27.1 0.5 

 ANNUAL 5.7 4.2 -1.5 4.2 1.8 -1.5 -2.8 -1.8 20.5 0.2 

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

 See footnotes following Table 6. May 6, 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 –1.4 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 fourth 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, 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 

 1999 I 111.5 132.7 119.0 124.1 107.8 111.3 108.5 110.3 

 II 111.7 133.9 119.9 124.4 107.3 111.4 109.0 110.5 

 III 112.5 135.7 120.6 125.5 107.4 111.6 109.6 110.8 

 IV 114.1 138.5 121.3 127.7 108.5 111.9 109.9 111.1 

 ANNUAL 112.4 135.2 120.2 125.4 107.8 111.6 109.2 110.7 

 2000 I 113.8 138.6 121.8 132.1 111.2 116.1 105.3 112.1 

 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 

 2001 I 116.9 141.2 120.8 138.2 112.5 118.2 107.1 114.1 

 II 117.7 140.8 119.6 139.1 112.4 118.2 109.6 115.0 

 III 118.2 139.9 118.4 140.1 112.9 118.6 109.5 115.2 

 IV 120.4 140.6 116.9 141.5 114.2 117.6 112.0 115.5 

 ANNUAL 118.3 140.6 118.9 139.7 113.0 118.1 109.5 114.9 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 3.3 3.7 0.4 7.9 r6.2 4.4 -3.9 1.2 

 II 0.6 3.8 3.2 0.9 r-1.9 0.3 1.5 0.8 

 III 3.0 5.4 2.3 3.7 0.6 0.7 2.3 1.3 

 IV 6.0 8.4 2.3 7.1 4.0 1.1 1.1 1.1 

 ANNUAL 2.9 5.1 2.1 4.8 2.7 1.8 -0.6 0.9 

 2000 I -1.3 0.3 1.7 14.5 10.4 16.0 -15.8 3.4 

 II 8.2 7.5 -0.7 1.8 r-1.4 -5.9 17.2 1.8 

 III -0.6 -0.8 -0.2 8.5 r4.6 9.2 -11.4 1.3 

 IV 3.8 2.0 -1.7 2.5 -0.4 -1.3 6.3 1.4 

 ANNUAL 2.9 3.9 1.0 7.0 3.6 4.0 -1.8 1.8 

 2001 I -0.1 -0.8 -0.7 5.8 r2.1 5.9 -3.1 2.7 

 II 3.0 -1.2 -4.0 2.7 -0.6 -0.3 9.7 3.1 

 III 1.5 -2.6 -4.0 3.0 r2.0 1.5 -0.4 0.8 

 IV 7.6 2.2 -5.0 3.9 4.5 -3.4 9.6 1.1 

 ANNUAL 2.2 0.1 -2.1 4.1 1.3 1.8 2.1 1.9 

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

 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 4.5 2.5 1.6 -0.4 0.9 

 III 2.8 5.2 2.3 4.2 1.8 1.4 0.3 1.0 

 IV 3.2 5.3 2.0 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 6.5 r3.2 4.3 -3.0 1.6 

 II 3.9 5.4 1.4 6.7 3.3 2.7 0.5 1.9 

 III 3.0 3.8 0.8 7.9 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 3.6 4.0 -1.8 1.8 

 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 4.8 1.4 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 -3.5 3.8 2.0 0.9 3.8 1.9 

 ANNUAL 2.2 0.1 -2.1 4.1 1.3 1.8 2.1 1.9 

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

 See footnotes following Table 6. May 6, 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 111.4 134.3 120.5 123.8 106.8 111.2 110.6 111.0 

 III 112.2 136.1 121.3 125.0 107.0 111.4 111.3 111.3 

 IV 114.0 138.9 121.8 127.3 108.2 111.7 111.7 111.7 

 ANNUAL 112.2 135.6 120.8 124.9 107.3 111.3 110.8 111.1 

 2000 I 113.5 138.8 122.3 131.8 110.9 116.1 106.7 112.6 

 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 116.4 141.8 121.8 135.6 111.4 116.5 109.5 113.9 

 ANNUAL 115.3 140.8 122.1 133.7 111.2 116.0 108.8 113.3 

 2001 I 116.4 141.5 121.6 137.5 111.9 118.1 108.6 114.6 

 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 119.8 140.8 117.6 140.7 r113.6 117.5 113.4 116.0 

 ANNUAL 117.8 141.0 119.7 138.9 112.4 118.0 111.1 115.4 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 2.7 3.7 1.0 7.0 r5.4 4.2 -3.6 1.3 

 II 0.6 3.7 3.1 1.0 r-1.8 0.4 3.6 1.6 

 III 3.0 5.6 2.5 3.7 0.6 0.6 2.8 1.4 

 IV 6.5 8.4 1.8 7.9 4.7 1.3 1.4 1.4 

 ANNUAL 2.8 5.2 2.3 4.7 2.5 1.8 -0.1 1.1 

 2000 I -1.7 -0.1 1.6 14.7 10.5 16.7 -16.9 3.3 

 II 7.5 7.5 -0.1 1.1 r-2.1 -6.0 17.6 1.8 

 III -0.4 -0.8 -0.4 8.8 r4.9 9.2 -11.3 1.4 

 IV 3.3 2.2 -1.1 2.0 -0.9 -1.3 6.3 1.3 

 ANNUAL 2.8 3.8 1.0 7.0 3.6 4.2 -1.9 1.9 

 2001 I -0.1 -0.8 -0.7 5.6 r1.9 5.7 -3.0 2.5 

 II 3.1 -1.0 -4.0 2.4 -0.8 -0.7 9.9 2.9 

 III 1.6 -2.5 -4.1 3.0 r2.0 1.3 -0.8 0.6 

 IV 7.0 1.6 -5.1 4.0 4.6 -2.8 9.0 1.3 

 ANNUAL 2.1 0.1 -2.0 3.9 1.1 1.7 2.1 1.9 

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

 Percent change from corresponding quarter of previous year 

 1999 I 2.8 4.9 2.1 5.5 r3.9 2.7 -2.5 0.7 

 II 2.6 5.1 2.5 4.3 2.3 1.7 0.1 1.1 

 III 2.6 5.2 2.6 3.9 1.6 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 2.1 4.4 2.3 6.7 3.4 4.5 -2.7 1.9 

 II 3.8 5.3 1.5 6.7 3.3 2.8 0.5 2.0 

 III 2.9 3.6 0.7 8.0 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 2.8 3.8 1.0 7.0 3.6 4.2 -1.9 1.9 

 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 1.2 3.1 0.1 2.1 

 III 2.0 -0.5 -2.5 3.2 0.5 1.2 3.0 1.8 

 IV 2.9 -0.7 -3.5 3.8 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 

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

 See footnotes following Table 6. May 6, 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 r105.7 96.0 

 II 127.4 133.9 105.1 122.3 105.5 96.0 

 III 127.9 134.7 105.3 124.0 106.1 96.9 

 IV 130.8 136.8 104.5 127.1 108.0 97.2 

 ANNUAL 128.2 134.6 105.0 123.8 106.3 96.6 

 2000 I 132.4 137.9 104.2 133.4 112.3 100.8 

 II 133.9 139.7 104.3 132.6 110.7 99.0 

 III 134.5 139.1 103.4 136.4 112.9 101.5 

 IV 135.4 137.8 101.8 137.2 112.7 101.3 

 ANNUAL 134.2 138.6 103.3 135.0 112.3 100.6 

 2001 I 135.0 135.2 100.1 138.6 112.9 102.7 

 II 136.0 133.3 98.0 137.4 111.0 101.0 

 III 137.3 131.1 95.5 137.5 110.8 100.1 

 IV 140.5 129.7 92.3 139.7 112.7 99.4 

 ANNUAL 137.1 132.3 96.5 138.3 111.8 100.8 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 4.8 1.8 -2.9 3.9 r2.3 -0.9 

 II 2.1 2.9 0.8 2.1 r-0.8 0.0 

 III 1.6 2.4 0.8 5.5 2.3 3.7 

 IV 9.4 6.3 -2.8 10.5 7.3 1.0 

 ANNUAL 3.8 2.9 -0.8 4.2 2.0 0.3 

 2000 I 4.8 3.5 -1.3 21.3 16.9 15.7 

 II 4.7 5.2 0.5 -2.5 r-5.6 -6.9 

 III 1.7 -1.7 -3.4 12.2 r8.2 10.3 

 IV 2.7 -3.6 -6.1 2.1 -0.8 -0.6 

 ANNUAL 4.7 3.0 -1.6 9.1 5.6 4.2 

 2001 I -1.1 -7.5 -6.5 4.4 r0.8 5.6 

 II 3.0 -5.4 -8.1 -3.6 -6.6 -6.4 

 III 4.0 -6.3 -9.9 0.3 r-0.7 -3.6 

 IV 9.8 -4.3 -12.8 6.5 7.1 -2.9 

 ANNUAL 2.2 -4.6 -6.6 2.4 -0.4 0.2 

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

 Percent change from corresponding quarter of previous year 

 1999 I 4.2 2.5 -1.6 4.4 r2.8 0.3 

 II 3.8 2.8 -0.9 3.3 1.2 -0.5 

 III 2.9 3.0 0.1 3.5 1.2 0.7 

 IV 4.4 3.3 -1.1 5.4 2.7 1.0 

 ANNUAL 3.8 2.9 -0.8 4.2 2.0 0.3 

 2000 I 4.4 3.8 -0.7 9.6 6.2 4.9 

 II 5.1 4.4 -0.7 8.4 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 4.7 3.0 -1.6 9.1 5.6 4.2 

 2001 I 2.0 -2.0 -3.9 3.9 0.5 1.9 

 II 1.6 -4.6 -6.0 3.6 0.3 2.0 

 III 2.1 -5.7 -7.7 0.8 -1.9 -1.3 

 IV 3.8 -5.9 -9.4 1.8 0.0 -1.9 

 ANNUAL 2.2 -4.6 -6.6 2.4 -0.4 0.2 

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

 See footnotes following Table 6. May 6, 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 141.0 155.4 110.2 121.0 r105.1 85.8 

 II 142.4 157.3 110.5 121.7 105.0 85.5 

 III 143.2 159.6 111.4 123.6 105.8 86.3 

 IV 146.0 161.6 110.7 127.3 108.2 87.2 

 ANNUAL 143.1 158.5 110.7 123.4 106.0 86.2 

 2000 I 149.0 164.5 110.4 134.4 113.2 90.2 

 II 150.5 167.1 111.0 132.7 110.8 88.2 

 III 151.2 166.7 110.2 137.0 113.4 90.6 

 IV 151.6 164.6 108.6 136.8 112.4 90.3 

 ANNUAL 150.7 165.7 109.9 135.4 112.5 89.8 

 2001 I 150.9 160.5 106.4 137.9 112.3 91.4 

 II r151.6 157.5 103.9 136.7 110.4 90.2 

 III 153.0 154.0 100.7 136.7 110.2 89.4 

 IV 156.8 151.6 96.7 139.4 112.5 88.9 

 ANNUAL 153.0 155.9 101.9 137.7 111.3 90.0 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 7.4 2.5 -4.6 5.1 r3.5 -2.2 

 II 3.9 4.8 0.9 2.4 r-0.5 -1.5 

 III 2.4 5.9 3.4 6.4 3.2 3.9 

 IV 8.0 5.2 -2.6 12.5 9.3 4.2 

 ANNUAL 6.2 5.5 -0.6 4.8 2.7 -1.3 

 2000 I 8.6 7.5 -1.0 24.1 19.7 14.4 

 II 4.0 6.3 2.2 -5.0 r-8.0 -8.6 

 III 1.8 -1.0 -2.7 13.5 r9.4 11.5 

 IV 1.0 -4.7 -5.7 -0.5 -3.3 -1.6 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I -1.8 -9.7 -8.0 3.3 r-0.3 5.2 

 II 1.8 -7.3 -9.0 -3.4 -6.5 -5.1 

 III 3.8 -8.5 -11.9 0.0 -0.9 -3.7 

 IV r10.3 -6.2 -14.9 8.1 8.7 -2.0 

 ANNUAL 1.5 -5.9 -7.3 1.7 -1.1 0.2 

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

 Percent change from corresponding quarter of previous year 

 1999 I 7.0 5.4 -1.5 4.7 3.1 -2.1 

 II 7.0 6.1 -0.9 3.7 1.7 -3.1 

 III 5.3 6.0 0.7 4.3 1.9 -1.0 

 IV 5.4 4.6 -0.8 6.5 3.8 1.1 

 ANNUAL 6.2 5.5 -0.6 4.8 2.7 -1.3 

 2000 I 5.7 5.8 0.2 11.1 7.6 5.1 

 II 5.7 6.2 0.5 9.0 r5.6 3.1 

 III 5.6 4.5 -1.1 10.8 7.1 5.0 

 IV 3.8 1.9 -1.9 7.4 3.9 3.5 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I 1.2 -2.4 -3.6 2.6 -0.8 1.3 

 II 0.7 -5.7 -6.4 3.0 -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 

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

 See footnotes following Table 6. May 6, 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 113.4 110.0 97.0 121.4 105.5 107.0 

 II 113.4 110.1 97.2 121.8 105.1 107.5 

 III 113.8 109.5 96.3 122.7 105.0 107.8 

 IV 116.9 111.6 95.5 124.6 105.8 106.6 

 ANNUAL 114.3 110.3 96.5 122.6 105.3 107.2 

 2000 I 116.8 111.0 95.0 129.2 108.7 110.6 

 II 118.4 111.9 94.5 129.9 r108.5 109.7 

 III 118.9 111.1 93.4 132.8 109.9 111.7 

 IV 120.3 110.4 91.8 135.3 111.2 112.5 

 ANNUAL 118.8 111.1 93.5 132.0 109.7 111.1 

 2001 I 120.0 109.0 90.9 137.7 r112.2 114.8 

 II 121.1 108.2 89.3 136.5 110.2 112.7 

 III 122.0 107.2 87.9 137.0 110.4 112.2 

 IV 124.3 106.7 85.8 138.4 111.7 111.3 

 ANNUAL 121.8 107.8 88.5 137.4 111.1 112.8 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 1.3 1.4 0.1 2.3 r0.7 1.0 

 II -0.3 0.4 0.7 1.4 r-1.5 1.7 

 III 1.4 -2.3 -3.6 2.8 -0.3 1.4 

 IV 11.4 7.8 -3.3 6.4 3.3 -4.5 

 ANNUAL 0.9 -0.3 -1.2 2.8 0.7 1.9 

 2000 I -0.3 -2.2 -1.8 15.6 11.4 15.9 

 II 5.8 3.5 -2.2 2.3 r-1.0 -3.4 

 III 1.5 -3.1 -4.5 9.4 r5.5 7.8 

 IV 4.9 -2.3 -6.9 7.7 4.6 2.7 

 ANNUAL 3.9 0.7 -3.1 7.6 4.2 3.6 

 2001 I -1.2 -4.9 -3.8 7.3 r3.6 8.6 

 II 4.0 -3.0 -6.7 -3.6 -6.7 -7.3 

 III 3.0 -3.7 -6.5 1.5 r0.5 -1.5 

 IV 7.8 -2.0 -9.1 4.3 4.9 -3.2 

 ANNUAL 2.6 -3.0 -5.4 4.1 1.3 1.5 

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

 Percent change from corresponding quarter of previous year 

 1999 I 0.7 -1.0 -1.7 3.9 2.3 3.2 

 II -0.2 -1.1 -0.9 2.4 0.4 2.6 

 III 0.0 -0.8 -0.7 1.9 -0.4 2.0 

 IV 3.3 1.8 -1.5 3.2 0.5 -0.2 

 ANNUAL 0.9 -0.3 -1.2 2.8 0.7 1.9 

 2000 I 2.9 0.9 -2.0 6.4 3.1 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 2.9 -1.1 -3.9 8.6 5.0 5.5 

 ANNUAL 3.9 0.7 -3.1 7.6 4.2 3.6 

 2001 I 2.7 -1.8 -4.4 6.6 r3.2 3.8 

 II 2.3 -3.3 -5.5 5.1 1.6 2.7 

 III 2.6 -3.5 -5.9 3.1 0.4 0.4 

 IV 3.4 -3.4 -6.5 2.3 0.5 -1.0 

 ANNUAL 2.6 -3.0 -5.4 4.1 1.3 1.5 

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

 See footnotes following Table 6. May 6, 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 r106.4 105.8 99.7 104.2 134.1 106.8 

 II 116.2 142.4 122.5 122.6 105.7 105.5 100.3 104.1 134.4 106.8 

 III 116.2 143.5 123.5 123.3 105.5 106.1 101.6 104.9 126.9 106.9 

 IV 117.3 146.0 124.4 124.8 106.1 106.4 102.2 105.2 124.1 106.9 

 ANNUAL 116.4 143.2 123.0 123.3 105.9 106.0 101.0 104.6 129.8 106.9 

 2000 I 119.4 149.4 125.0 129.4 108.9 108.3 102.5 106.8 115.3 107.5 

 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 120.6 150.7 124.9 131.7 109.5 109.2 104.8 108.0 109.3 108.1 

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

 Percent change from previous quarter at annual rate(5) 

 1999 I 6.8 8.6 1.7 9.8 r8.1 2.8 -5.2 0.7 3.7 1.0 

 II 1.3 4.5 3.1 0.2 r-2.6 -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 4.0 7.2 3.1 5.0 2.0 1.0 2.2 1.3 -8.6 0.2 

 ANNUAL 3.2 5.8 2.6 4.6 2.5 1.4 1.1 1.3 -5.6 0.5 

 2000 I 7.4 9.6 2.1 15.4 11.2 7.5 1.3 5.8 -25.6 2.2 

 II 2.2 2.4 0.2 2.2 r-1.0 0.1 6.5 1.7 4.6 2.0 

 III 3.5 3.5 -0.1 8.5 r4.6 4.8 5.0 4.8 -26.3 1.5 

 IV 0.5 -0.1 -0.6 4.2 1.3 3.7 6.6 4.4 -33.4 0.5 

 ANNUAL 3.6 5.2 1.6 6.8 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 2.2 5.7 r4.1 1.7 0.3 1.3 -4.2 0.7 

 II 3.3 6.0 2.6 4.5 2.4 1.1 0.9 1.0 -2.0 0.7 

 III 2.3 5.1 2.8 4.0 1.6 1.6 2.1 1.7 -9.5 0.4 

 IV 3.0 5.8 2.7 4.3 1.6 1.2 1.1 1.2 -6.6 0.3 

 ANNUAL 3.2 5.8 2.6 4.6 2.5 1.4 1.1 1.3 -5.6 0.5 

 2000 I 3.1 6.1 2.8 5.6 2.3 2.4 2.8 2.5 -14.0 0.6 

 II 3.4 5.5 2.1 6.1 r2.8 2.7 3.8 3.0 -13.2 1.1 

 III 4.2 5.6 1.3 7.7 4.1 3.3 3.7 3.4 -14.9 1.5 

 IV 3.4 3.8 0.4 7.4 3.9 4.0 4.8 4.2 -21.4 1.5 

 ANNUAL 3.6 5.2 1.6 6.8 3.3 3.1 3.8 3.3 -15.8 1.2 

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

 See footnotes following Table 6. May 6, 2004 

 r=revised Source: Bureau of Labor Statistics