Internet address: http://www.bls.gov/lpc/ USDL 03-45 

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 information: (202) 691-5606 MATERIAL IS EMBARGOED 

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

Media contact: (202) 691-5902 THURSDAY, FEBRUARY 6, 2003 

PRODUCTIVITY AND COSTS

Preliminary Fourth Quarter and 

Annual Averages for 2002 

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 fourth 

quarter and for the full year 2002. The seasonally adjusted annual rates of productivity change in 

the fourth quarter and the annual average changes were: 

 Fourth Annual averages

 quarter 2001-2002

Business sector -0.7 4.7 

Nonfarm business sector -0.2 4.7 

In the fourth quarter, productivity dipped 0.7 percent in the business sector as output 

increased 0.9 percent but hours at work increased more, 1.5 percent (seasonally adjusted annual 

rates). A similar pattern of growth occurred in the nonfarm business sector where output rose 0.8 

percent, hours increased by 1.0 percent, and productivity fell 0.2 percent. On an annual average 

basis, productivity in both the business and nonfarm business sectors rose 4.7 percent in 2002. 

Fourth-quarter productivity and related measures are summarized in table A and annual average 

data in table B. Detailed information is presented in tables 1 through 5. 

In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages

 quarter 2001-2002

Manufacturing sector 0.7 4.6 

 Durable goods manufacturing 3.4 5.7 

 Nondurable goods manufacturing -2.5 2.8 

Manufacturing productivity grew 0.7 percent in the fourth quarter, reflecting a drop in 

output of 2.4 percent and a larger decline, 3.0 percent, in hours of all persons. On an annual 

average basis, output per hour in the manufacturing sector posted a 4.6-percent increase in 2002. 

Output and hours in manufacturing, which includes about 15 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. 
2 

Table A. Productivity and costs: Preliminary fourth-quarter 2002 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly

compensation 

Real

hourly

compensation 

Unit 

labor 

costs 

Percent change from preceding quarter 

Business -0.7 0.9 1.5 4.3 1.8 5.0

Nonfarm business -0.2 0.8 1.0 4.6 2.2 4.8

Manufacturing 0.7 -2.4 -3.0 5.3 2.9 4.6

 Durable 3.4 -1.6 -4.8 6.2 3.7 2.7 

 Nondurable -2.5 -2.9 -0.4 4.3 1.9 7.0 

Percent change from same quarter a year ago 

Business 3.8 3.1 -0.6 4.3 2.0 0.5

Nonfarm business 3.8 3.3 -0.6 4.2 1.9 0.3

Manufacturing 4.5 1.3 -3.1 4.9 2.6 0.4

 Durable 6.8 2.3 -4.2 5.4 3.1 -1.3 

Nondurable 1.7 0.4 -1.3 4.4 2.0 2.6

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 (page 9) for further information on data sources. 

THIRD-TO-FOURTH QUARTER CHANGES, 2002 

Business 

Productivity in the business sector declined by 0.7 percent in the fourth quarter of 2002, 

reflecting modest increases of 0.9 percent in output and 1.5 percent in hours of all persons 

(seasonally adjusted annual rates). Although business sector output has increased for five 

consecutive quarters, this was the first increase in hours since the first quarter of 2001, when they

rose 0.4 percent. Revised data for the third quarter of 2002 show that output per hour rose 5.8 

percent, reflecting an output increase of 5.3 percent and a decline of 0.5 percent in hours. 

 
3 

Hourly compensation increased 4.3 percent in the fourth quarter of 2002, following a 5.7-

percent increase one quarter earlier. This measure includes wages and salaries, supplements, 

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

takes into account changes in consumer prices, grew at an annual rate of 1.8 percent during the 

fourth quarter of 2002. This measure rose 3.8 percent in the third quarter. 

The unit labor cost measure, which relates hourly compensation to output, rose 5.0 

percent in the fourth quarter. During the third quarter of 2002, unit labor costs were unchanged. 

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

and unit nonlabor payments, increased 1.5 percent in fourth quarter 2002. 

Nonfarm business 

In the nonfarm business sector, productivity declined by 0.2 percent in the fourth quarter 

of 2002. Output grew 0.8 percent and hours of all persons grew slightly faster, 1.0 percent 

(seasonally adjusted annual rates). Productivity increased 5.5 percent in the third quarter of 2002 

(as revised), when output increased 5.2 percent and hours dropped 0.2 percent (table 2). 

Hourly compensation in the nonfarm business sector rose 4.6 percent in the fourth quarter 

of 2002, down somewhat from the 5.4-percent rise of the third quarter. When the changes in 

consumer prices were taken into account, real hourly compensation increased 2.2 percent during

the fourth quarter of 2002 and 3.4 percent one quarter earlier. 

Unit labor costs rose 4.8 percent in the fourth quarter, after falling 0.1 percent in the third 

quarter of 2002. The implicit price deflator for nonfarm business output increased 1.3 percent in 

the fourth quarter of 2002, after increasing 0.1 percent one quarter earlier. 

Manufacturing 

Manufacturing productivity grew 0.7 percent (seasonally adjusted annual rate) in the 

fourth quarter of 2002 as output fell 2.4 percent and hours fell further, 3.0 percent (table 3). This 

was the first drop in manufacturing output in a year. Hours of all persons in manufacturing fell 

in each of the last 10 quarters and have dropped in 16 quarters over the past five years. In the 

third quarter, total manufacturing productivity increased 5.5 percent (as revised), reflecting a 3.0-

percent rise in output and a 2.4-percent decrease in hours. In durable goods manufacturing,

productivity rose 3.4 percent in the fourth quarter as output fell 1.6 percent and hours dropped 

4.8 percent (table 4). Among nondurable goods manufacturers, productivity dropped 2.5 percent 

in the fourth quarter as output declined 2.9 percent but hours at work in the sector fell only 0.4 

percent (table 5). 

Average hourly compensation of manufacturing workers increased 5.3 percent in the 

fourth quarter of 2002, reflecting increases in hourly compensation of 6.2 percent in durable 

goods manufacturing and 4.3 percent in nondurable goods manufacturing. When the increase in 

consumer prices was taken into account, real hourly compensation in total manufacturing rose 

2.9 percent. 

 
4 

Unit labor costs for the manufacturing sector rose 4.6 percent in fourth quarter 2002. In

durable goods manufacturing, unit labor costs rose 2.7 percent. By contrast, unit labor costs of 

nondurable goods manufacturers rose 7.0 percent in the fourth quarter of 2002. 

ANNUAL AVERAGE CHANGES, 2001-2002 

Business 

Business sector productivity increased 4.7 percent when the annual average for 2002 was 

compared with the annual average for 2001 (table B). Output increased 2.6 percent and hours of 

all persons engaged in the sector dropped 2.0 percent. Productivity had increased 1.1 percent in 

2001, when output fell 0.2 percent and hours fell 1.3 percent. The 4.7-percent increase in 2002 is 

larger than the sharp increases of 1992 (3.9 percent) and 1983 (3.6 percent)—each two years 

following the last two business cycle peaks, when labor productivity frequently shows a rapid 

rise. In fact, the 4.7-percent increase in 2002 was the largest since 1950, when productivity rose 

8.5 percent. 

 Table B. Annual average changes in productivity and related measures, 1993-2002 

 Measure 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

Business:

Productivity ...................... 0.5 1.3 0.7 2.8 2.3 2.6 2.6 3.0 1.1 4.7

Output............................... 3.1 4.9 3.1 4.4 5.2 4.9 4.7 4.1 -0.2 2.6

Hours ................................ 2.6 3.5 2.4 1.6 2.9 2.2 2.0 1.0 -1.3 -2.0

Hourly compensation........ 2.5 2.0 2.1 3.2 3.1 5.5 4.6 6.8 2.9 2.9

Real hourly compensation 0.0 -0.1 -0.3 0.5 0.9 4.0 2.4 3.4 0.2 1.3

Unit labor costs ................ 1.9 0.7 1.4 0.4 0.8 2.8 1.9 3.7 1.8 -1.7

Nonfarm Business:

Productivity ...................... 0.5 1.3 0.9 2.5 2.0 2.6 2.4 2.9 1.1 4.7

Output............................... 3.3 4.7 3.4 4.3 5.1 5.0 4.6 4.0 -0.1 2.7

Hours ................................ 2.9 3.3 2.4 1.7 3.1 2.4 2.2 1.0 -1.2 -2.0

Hourly compensation........ 2.2 2.1 2.1 3.1 3.0 5.4 4.4 7.0 2.7 2.8

Real hourly compensation -0.3 0.0 -0.3 0.4 0.8 3.9 2.2 3.5 -0.1 1.2

Unit labor costs ................ 1.7 0.8 1.2 0.5 0.9 2.7 2.0 3.9 1.6 -1.8

Manufacturing:

Productivity ...................... 1.9 3.0 3.8 3.5 4.2 4.9 5.1 4.1 0.8 4.6

Output............................... 3.3 5.3 4.3 3.1 6.0 4.7 4.3 2.5 -4.9 -1.0

 Hours ................................ 1.4 2.2 0.4 -0.4 1.7 -0.2 -0.8 -1.5 -5.6 -5.4

Hourly compensation........ 2.7 2.8 2.1 1.4 1.9 5.3 4.0 7.4 1.5 3.8

 Real hourly compensation 0.2 0.7 -0.3 -1.3 -0.2 3.9 1.8 3.9 -1.2 2.1 

 Unit labor costs ................ 0.8 -0.2 -1.7 -2.1 -2.2 0.4 -1.1 3.2 0.8 -0.7

 
5 

Hourly compensation in the business sector increased 2.9 percent in 2002, the same as the 

increase in 2001. However, because consumer prices rose less in 2002 than they had in the 

previous year, real hourly compensation increased more in 2002, 1.3 percent, than it had in 2001, 

when it rose 0.2 percent. Unit labor costs in the business sector fell 1.7 percent in 2002, the first 

annual decline in these costs since the early 1960s. (Unit labor costs fell 0.2 percent in 1963, and 

0.1 percent in 1962.) The implicit price deflator for the business sector rose 0.4 percent in 2002 

and 2.0 percent in 2001. 

Nonfarm business

Productivity increased 4.7 percent in the nonfarm business sector during 2002, reflecting

a 2.7-percent rise in output and a 2.0-percent decline in hours. During 2001, productivity had 

increased 1.1 percent in nonfarm business, as output dropped 0.1 percent and hours of all persons 

fell 1.2 percent. As in the larger business sector, the 2002 productivity increase was the largest 

since 1950, when productivity rose 6.9 percent. It also was higher than the increases of 1992, 

when nonfarm business productivity rose 3.7 percent, and 1983, when nonfarm business 

productivity rose 4.5 percent. 

In 2002, hourly compensation increased 2.8 percent, similar to the 2.7-percent rise in 

2001. When the increase in consumer prices was taken into account, real hourly compensation 

rose 1.2 percent in 2002 and declined 0.1 percent in the previous year. 

Unit labor costs in the nonfarm business sector dropped 1.8 percent in 2002, compared 

with a 1.6-percent increase in 2001. The last time annual unit labor costs fell in the nonfarm 

business sector was in 1983, when they dropped 0.2 percent. The implicit price deflator for 

nonfarm business rose 0.5 percent in 2002, less than it had in 2001, when it rose 1.9 percent. 

Manufacturing 

In manufacturing, labor productivity rose 4.6 percent in 2002, faster than it had grown in 

2001, when it rose 0.8 percent. The 2002 increase occurred as output fell 1.0 percent and hours 

of all persons fell more sharply, 5.4 percent (table B). There was a 5.7-percent increase in 

durable goods manufacturing productivity, where output fell 1.4 percent and hours fell 6.6 

percent. Nondurable goods manufacturing posted a more modest increase in productivity, 2.8 

percent, as output decreased 0.6 percent and hours fell 3.4 percent. 

Hourly compensation of manufacturing workers increased 3.8 percent in 2002, more than 

it increased in 2001, when hourly compensation rose 1.5 percent. In 2002, hourly compensation 

rose 4.1 percent in durable goods manufacturing and 3.5 percent in nondurable good 

manufacturing. Taking into account the rise in consumer prices, real hourly compensation in 

manufacturing rose 2.1 percent in 2002 after falling 1.2 percent one year earlier. 

 

Unit labor costs in manufacturing fell in 2002, by 0.7 percent. This was the first annual 

drop in unit labor costs since 1999, when they decreased 1.1 percent. Unit labor costs in durable 

goods manufacturing declined 1.5 percent in 2002, compared with a 0.6-percent rise in unit labor 

costs in nondurable goods manufacturing. 

 
6 

Revised Measures

Current and previous measures for the third and second quarters of 2002 for the business, 

nonfarm business, and manufacturing sectors are compared in table C. In the business and 

nonfarm business sectors, productivity growth in the third quarter was higher than reported on 

Dec. 4, due to small upward revisions in output and slightly larger downward revisions to hours. 

In both sectors, hourly compensation in the third quarter grew more than reported in December. 

The upward revisions to productivity and hourly compensation nearly offset each other, and 

movements in unit labor costs were similar to those reported two months ago. In the second 

quarter of 2002, hourly compensation measures in the business and nonfarm business sectors 

were revised up by 0.1 percentage-point; unit labor costs in nonfarm businesses were revised up 

by the same amount. 

Table C. 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 

Third quarter 2002 

Business:

 Previous........................ 5.4 5.2 -0.2 5.3 3.4 -0.1 

Current ......................... 5.8 5.3 -0.5 5.7 3.8 0.0

Nonfarm business:

 Previous........................ 5.1 5.1 0.0 4.9 3.0 -0.2 

 Current ......................... 5.5 5.2 -0.2 5.4 3.4 -0.1 

Manufacturing:

 Previous........................ 5.5 3.2 -2.2 4.4 2.5 -1.0 

Current ......................... 5.5 3.0 -2.4 5.6 3.7 0.1

Second quarter 2002 

Business:

Previous........................ 1.8 0.6 -1.2 4.2 0.8 2.4

Current ......................... 1.8 0.6 -1.2 4.3 0.8 2.4

Nonfarm business:

Previous........................ 1.7 0.9 -0.7 3.9 0.5 2.2

Current ......................... 1.7 0.9 -0.7 4.0 0.5 2.3

Manufacturing:

 Previous........................ 4.2 3.5 -0.7 3.2 -0.2 -1.0 

Current ......................... 4.2 3.5 -0.7 5.0 1.5 0.7

In addition, corrections made to average weekly hours in the BLS Current Employment 

Statistics (CES) have caused some small revisions to the productivity and hourly compensation 

series beginning with the first quarter of 2000. (See http://stats.bls.gov/web/cesspec.htm for 

details of the CES corrections.) 

 
7 

Third-quarter productivity growth in the manufacturing sector was the same as reported 

on Dec. 4, as downward revisions to output and hours were the same. Hourly compensation 

grew 5.6 percent in the third quarter, more than the 4.4-percent figure reported in December. As 

a result, unit labor costs in the manufacturing sector grew 0.1 percent in the third quarter rather 

than falling 1.0 percent. A larger upward revision to second-quarter hourly compensation also 

changed the direction of the unit labor cost measure for that quarter. Manufacturing unit labor 

costs for the second quarter now show an increase of 0.7 percent. 

In addition, quarterly measures of productivity, output, and unit labor costs for 

manufacturing were revised back to first quarter 2001 due to the incorporation of revised indexes 

of industrial production. The annual measures for 2001 also were affected; annual average 

productivity was revised to show an increase of 0.8 percent for the year, down from the 0.9-

percent figure previously published. The output measures, based on those published by the 

Board of Governors of the Federal Reserve System, were changed to incorporate additional and 

revised source data, updated information on seasonal trends, and some improvements in 

measurement of real output. (See Federal Reserve statistical release G.17 (419), "Industrial 

Production and Capacity Utilization," Dec. 5, 2002.) 

Although the Federal Reserve has revised and reclassified its indexes of industrial 

production (IIP) back to 1972, the Bureau of Labor Statistics has not yet incorporated these 

changes into its historical quarterly measures for years before 2001. Later in 2003, the BLS 

intends to adopt the 2002 North American Industry Classification System (NAICS) for its major 

sector productivity measures. At that time, the updated information from the IIP will be 

incorporated into the quarterly measures. Persons wishing information on the methods used to 

extend the output measures on the 1987 Standard Industrial Classification (SIC) basis beginning

with first quarter 2001 may contact the Division of Major Sector Productivity at 202-691-5606 or 

email their question to dprweb@bls.gov. 

 
8 

Revised measures: Nonfinancial Corporations 

Revised productivity and output measures for the third and second quarters for 

nonfinancial corporations also were announced today. In the third quarter, output and 

productivity increased less and hours fell more than reported on Dec. 4. Hourly compensation 

was revised up. This, combined with the downward revision to productivity, led to a rise in unit 

labor costs (table D). There was a small upward revision to hourly compensation data in the 

second quarter 2002. 

Table D. 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 2002 

Previous 5.7 4.3 -1.3 5.7 3.7 0.0 -10.4 -0.6

Current 5.5 3.8 -1.6 6.1 4.2 0.6 -13.0 -0.5

Second quarter 2002 

Previous 5.8 5.2 -0.5 4.4 1.0 -1.3 0.9 -0.3

Current 5.8 5.3 -0.5 4.5 1.0 -1.3 0.9 -0.3

Next release date

The next release of Productivity and Costs is scheduled for 8:30 A.M. EST, Thursday, 

March 6, 2003. Revised fourth-quarter and annual average measures for business, nonfarm 

business, and manufacturing will be released at that time. 

Upcoming change to productivity and cost data 

The Bureau of Labor Statistics discontinued the Hours at Work Survey (HWS), used to 

adjust the paid hours of wage and salary employees to their hours at the workplace, following the 

2000 survey. The survey will be replaced with a comparable set of measures derived from 

information on scheduled hours of work and paid leave collected from employers participating in 

the National Compensation Survey. 

The new ratios of hours worked to hours paid will be incorporated into the measures of 

employee hours beginning with the release of the second quarter 2003 data on Aug. 7. These 

ratios will be adjusted to levels from the HWS and will cover the period following 2000. 

 
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 

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. The Office of Productivity and 

Technology estimates average weekly paid hours 

of nonproduction and supervisory workers. 

Weekly paid hours are adjusted to hours at work 

using the BLS Hours at Work survey, conducted 

for this purpose. 

Data from the BLS Current Population 

Survey (CPS) are used for farm labor; in the 

nonfarm sector, the National Income and Product 

Accounts (NIPA) prepared by the Bureau of 

Economic Analysis (BEA) of the Department of 

Commerce and the CPS are used to measure labor 

input for government enterprises, proprietors, and 

unpaid family workers. 

Output: Business sector output is an annualweighted index constructed after excluding from 

gross domestic product (GDP) the following

outputs: General government, nonprofit

institutions, paid employees of private households, 

and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor 

inputs. Business output accounted for about 77 

percent of the value of GDP in 1996. Nonfarm 

business, which also excludes farming, accounted 

for about 76 percent of GDP in 1996. 

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 2-digit SIC industries: Primary

metal industries; fabricated metal products; 

nonelectrical machinery; industrial and 

commercial machinery and computer equipment;

electronic and other electrical equipment;

transportation equipment; instruments; lumber and 

lumber products; furniture and fixtures; stone, 

clay, and glass and concrete products; and 

miscellaneous manufactures. Nondurables 

include: Food and kindred products, tobacco 

products, textile mill products, apparel products, 

paper and allied products, printing and publishing, 

chemicals and chemical products, petroleum 

refining and related industries, rubber and plastic 

products, and leather and leather products. 

Nonfinancial corporate output is an 

annual-weighted index 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; employees of private 

households; the rental value of owner-occupied 

dwellings; unincorporated business; and those

corporations which are depository institutions, 

nondepository institutions, security and 

commodity brokers, insurance carriers, regulated 

investment offices, small business investment 

offices, and real estate investment trusts. 

Nonfinancial corporations accounted for about 53 

percent of the value of GDP in 1996. 

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: 202-691-5200; 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 

 2000 I 115.3 138.4 120.1 131.4 110.5 114.0 110.7 112.8 

 II 117.2 140.3 119.7 132.4 110.5 113.0 114.1 113.4 

 III 117.3 140.4 119.7 135.0 111.7 115.1 111.2 113.7 

 IV 117.9 140.7 119.4 136.3 111.9 115.6 112.0 114.3 

 ANNUAL 116.9 140.0 119.7 133.8 111.2 114.4 112.0 113.5 

 2001 I 117.5 140.4 119.5 137.3 111.8 116.9 112.3 115.2 

 II 117.4 139.4 118.7 137.5 111.0 117.1 113.6 115.8 

 III 117.9 139.1 117.9 137.8 111.1 116.8 115.5 116.4 

 IV 120.1 140.3 116.8 138.3 111.6 115.1 117.2 115.9 

 ANNUAL 118.2 139.8 118.2 137.7 111.4 116.5 114.7 115.8 

 2002 I 122.5 142.3 116.1 139.3 112.0 113.7 119.9 116.0 

 II 123.1 142.5 115.8 140.8 112.2 114.4 119.3 116.2 

 III r124.8 r144.4 r115.6 r142.7 r113.3 114.3 119.7 116.3 

 IV 124.6 144.7 116.1 144.2 113.8 115.7 118.5 116.7 

 ANNUAL 123.8 143.5 115.9 141.8 112.8 114.5 119.4 116.3 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.3 2.2 1.9 14.7 10.3 14.4 -15.1 2.4 

 II 6.7 5.4 -1.2 3.0 r0.1 -3.5 12.9 2.2 

 III 0.4 0.4 0.0 8.3 4.6 7.8 -9.6 1.1 

 IV 2.1 0.9 -1.2 3.7 0.7 1.6 2.6 1.9 

 ANNUAL 3.0 4.1 1.0 6.8 3.4 3.7 -1.7 1.7 

 2001 I -1.5 -1.0 0.4 3.1 -0.6 4.7 1.1 3.4 

 II -0.2 -2.8 -2.6 0.5 -2.6 0.7 4.9 2.2 

 III 1.8 -0.9 -2.6 0.9 0.2 -0.9 6.8 1.8 

 IV 7.6 3.5 r-3.8 1.4 1.7 -5.8 6.1 -1.6 

 ANNUAL 1.1 -0.2 -1.3 2.9 0.2 1.8 2.4 2.0 

 2002 I 8.3 5.9 -2.2 3.0 1.6 -4.9 r9.5 0.3 

 II 1.8 0.6 -1.2 r4.3 0.8 2.4 r-2.1 0.7 

 III r5.8 r5.3 r-0.5 r5.7 r3.8 r0.0 1.3 r0.5 

 IV -0.7 0.9 1.5 4.3 1.8 5.0 -4.0 1.5 

 ANNUAL 4.7 2.6 -2.0 2.9 1.3 -1.7 4.1 0.4 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.3 4.6 2.3 5.9 2.5 3.5 -2.0 1.4 

 II 4.1 5.4 1.3 6.5 3.1 2.3 0.8 1.7 

 III 3.3 4.1 0.7 7.7 4.1 4.3 -2.5 1.7 

 IV 2.4 2.2 -0.1 7.3 3.8 4.9 -2.9 1.9 

 ANNUAL 3.0 4.1 1.0 6.8 3.4 3.7 -1.7 1.7 

 2001 I 1.9 1.4 -0.5 4.5 1.2 2.6 1.4 2.2 

 II 0.2 -0.7 -0.9 3.9 0.5 3.6 -0.4 2.1 

 III 0.5 -1.0 -1.5 2.0 -0.6 1.5 3.8 2.3 

 IV 1.9 -0.3 -2.2 1.5 -0.3 -0.4 4.7 1.4 

 ANNUAL 1.1 -0.2 -1.3 2.9 0.2 1.8 2.4 2.0 

 2002 I 4.3 1.4 -2.8 1.4 0.2 -2.8 6.8 0.7 

 II 4.8 2.3 -2.5 2.4 1.1 r-2.3 5.0 0.3 

 III r5.9 3.8 -1.9 r3.6 r2.0 r-2.1 3.6 0.0 

 IV 3.8 3.1 -0.6 4.3 2.0 0.5 1.1 0.7 

 ANNUAL 4.7 2.6 -2.0 2.9 1.3 -1.7 4.1 0.4 

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

 See footnotes following Table 6. February 6, 2003 

 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 

 2000 I 114.7 138.7 120.9 130.8 110.0 114.0 112.3 113.4 

 II 116.4 140.5 120.7 131.5 109.8 113.0 115.6 113.9 

 III 116.6 140.6 120.6 134.3 111.1 115.2 112.8 114.3 

 IV 117.1 141.0 120.4 135.3 111.2 115.6 113.4 114.8 

 ANNUAL 116.2 140.2 120.6 133.0 110.6 114.4 113.5 114.1 

 2001 I 116.7 140.7 120.6 136.3 110.9 116.8 113.8 115.7 

 II 116.6 139.7 119.8 136.3 110.1 116.9 115.3 116.3 

 III 117.2 139.4 118.9 136.7 110.2 116.6 117.2 116.8 

 IV 119.3 140.4 117.7 137.2 110.7 115.0 119.2 116.5 

 ANNUAL 117.5 140.1 119.2 136.6 110.5 116.3 116.4 116.3 

 2002 I 121.8 142.5 117.0 r138.1 111.1 113.4 121.7 116.4 

 II 122.3 142.9 116.8 139.5 111.2 r114.1 121.7 116.8 

 III r123.9 144.7 116.8 r141.3 r112.2 114.0 r121.8 116.9 

 IV 123.9 145.0 117.0 142.9 112.8 115.4 120.6 117.3 

 ANNUAL 123.0 143.8 116.9 140.5 111.8 114.2 121.5 116.9 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.2 1.9 1.7 15.2 10.7 14.9 -15.3 2.7 

 II 6.0 5.4 -0.6 2.2 -0.7 -3.6 12.2 1.9 

 III 0.6 0.2 -0.4 8.7 4.9 8.0 -9.1 1.4 

 IV 1.7 1.1 -0.6 3.1 0.2 1.4 2.1 1.6 

 ANNUAL 2.9 4.0 1.0 7.0 3.5 3.9 -1.7 1.8 

 2001 I r-1.4 -0.9 0.5 2.8 -0.9 4.3 1.5 3.3 

 II -0.1 -2.7 -2.6 0.1 -2.9 0.3 5.1 2.0 

 III 2.1 -0.8 -2.9 1.0 0.3 -1.1 6.8 1.7 

 IV r7.2 2.9 r-4.0 1.5 1.8 -5.4 6.9 -1.0 

 ANNUAL 1.1 -0.1 -1.2 2.7 -0.1 1.6 2.5 1.9 

 2002 I 8.6 6.2 r-2.3 2.9 r1.5 -5.3 8.8 -0.2 

 II 1.7 0.9 -0.7 r4.0 0.5 r2.3 0.1 1.4 

 III r5.5 r5.2 r-0.2 r5.4 r3.4 r-0.1 0.4 0.1 

 IV -0.2 0.8 1.0 4.6 2.2 4.8 -4.1 1.3 

 ANNUAL 4.7 2.7 -2.0 2.8 1.2 -1.8 4.4 0.5 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.3 4.5 2.1 6.2 2.8 3.7 -1.8 1.7 

 II 4.0 5.4 1.3 6.6 3.2 2.5 0.7 1.8 

 III 3.3 3.9 r0.7 7.9 4.3 4.5 -2.6 1.8 

 IV 2.1 2.2 0.0 7.2 3.7 4.9 -3.1 1.9 

 ANNUAL 2.9 4.0 1.0 7.0 3.5 3.9 -1.7 1.8 

 2001 I 1.7 1.4 -0.3 4.2 0.9 2.4 1.4 2.1 

 II 0.2 -0.6 -0.8 r3.7 0.3 3.5 -0.3 2.1 

 III r0.6 -0.8 -1.4 1.8 -0.8 1.2 r3.8 2.2 

 IV 1.9 -0.4 -2.3 1.4 -0.4 -0.5 5.1 1.5 

 ANNUAL 1.1 -0.1 -1.2 2.7 -0.1 1.6 2.5 1.9 

 2002 I 4.4 1.3 -2.9 1.4 0.1 -2.9 6.9 0.6 

 II 4.9 2.3 -2.5 2.3 1.0 -2.4 5.6 0.5 

 III r5.7 3.8 -1.8 r3.4 r1.8 -2.2 4.0 0.1 

 IV 3.8 3.3 -0.6 4.2 1.9 0.3 1.2 0.7 

 ANNUAL 4.7 2.7 -2.0 2.8 1.2 -1.8 4.4 0.5 

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

 See footnotes following Table 6. February 6, 2003 

 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 

 2000 I 133.6 138.3 103.5 131.4 110.5 98.4 

 II 134.9 139.8 103.6 129.3 107.9 95.9 

 III 135.4 139.3 102.9 132.2 109.4 97.7 

 IV 135.9 137.6 101.3 131.5 108.0 96.7 

 ANNUAL 134.9 138.7 102.8 131.1 109.0 97.2 

 2001 I r135.2 r134.9 99.8 132.0 107.4 r97.6 

 II r135.2 r132.8 98.2 133.0 107.4 r98.4 

 III r136.2 r131.1 96.3 133.3 107.5 r97.9 

 IV r137.5 r129.1 93.9 134.3 108.3 r97.7 

 ANNUAL r136.0 r132.0 97.1 133.1 107.7 r97.9 

 2002 I r140.1 r129.5 92.4 135.6 109.0 r96.8 

 II r141.5 r130.6 92.3 r137.2 r109.4 r96.9 

 III r143.4 r131.6 r91.7 r139.1 r110.4 r97.0 

 IV 143.7 130.8 91.0 140.9 111.2 98.1 

 ANNUAL 142.2 130.6 91.9 138.2 110.0 97.2 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 4.5 2.7 -1.7 25.3 20.5 19.9 

 II 3.8 4.4 0.5 -6.3 -9.0 -9.7 

 III 1.6 -1.3 -2.8 9.5 5.8 7.8 

 IV 1.6 -4.8 -6.3 -2.3 -5.1 -3.8 

 ANNUAL 4.1 2.5 -1.5 7.4 3.9 3.2 

 2001 I r-2.1 r-7.6 -5.6 1.6 -2.1 r3.7 

 II 0.0 -6.2 -6.2 3.1 -0.1 3.1 

 III r3.0 -4.9 -7.6 1.0 0.3 -1.9 

 IV r3.9 r-6.1 -9.7 2.9 3.2 r-1.0 

 ANNUAL r0.8 r-4.9 -5.6 1.5 -1.2 r0.8 

 2002 I r7.8 r1.2 -6.1 3.8 2.4 r-3.7 

 II 4.2 3.5 -0.7 r5.0 r1.5 r0.7 

 III 5.5 r3.0 r-2.4 r5.6 r3.7 r0.1 

 IV 0.7 -2.4 -3.0 5.3 2.9 4.6 

 ANNUAL 4.6 -1.0 -5.4 3.8 2.1 -0.7 

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

 Percent change from corresponding quarter of previous year 

 2000 I 4.4 3.6 -0.8 8.9 5.5 4.3 

 II 4.7 3.8 -0.8 6.9 3.5 2.1 

 III 4.3 2.6 -1.7 7.9 4.3 3.4 

 IV 2.9 0.2 -2.6 5.9 2.4 2.9 

 ANNUAL 4.1 2.5 -1.5 7.4 3.9 3.2 

 2001 I r1.2 r-2.4 -3.6 0.5 -2.7 r-0.7 

 II r0.2 r-5.0 -5.2 2.9 -0.5 r2.6 

 III r0.6 r-5.9 -6.4 0.8 -1.8 r0.2 

 IV r1.2 r-6.2 -7.3 2.1 0.3 r1.0 

 ANNUAL r0.8 r-4.9 -5.6 1.5 -1.2 r0.8 

 2002 I r3.6 r-4.0 -7.4 2.7 1.4 r-0.9 

 II r4.7 r-1.7 -6.1 r3.2 r1.8 r-1.5 

 III r5.3 r0.3 r-4.8 r4.3 r2.7 r-1.0 

 IV 4.5 1.3 -3.1 4.9 2.6 0.4 

 ANNUAL 4.6 -1.0 -5.4 3.8 2.1 -0.7 

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

 See footnotes following Table 6. February 6, 2003 

 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 

 2000 I 148.6 162.9 109.7 130.8 109.9 88.0 

 II 150.0 165.2 110.2 127.5 106.4 85.0 

 III 150.3 164.6 109.5 130.6 108.0 86.9 

 IV 150.1 162.0 107.9 128.4 105.5 85.5 

 ANNUAL 149.7 163.7 109.3 129.3 107.5 86.4 

 2001 I r149.3 r158.3 106.0 129.4 105.3 r86.7 

 II r148.8 r154.9 104.1 130.5 105.4 r87.7 

 III r149.6 r151.8 101.4 130.2 105.0 r87.0 

 IV r151.0 148.6 98.5 131.8 106.3 87.3 

 ANNUAL r149.6 r153.4 102.5 130.4 105.5 r87.2 

 2002 I r154.7 r149.4 96.5 132.7 106.7 r85.8 

 II r156.8 r151.2 96.4 r134.8 r107.5 r86.0 

 III r159.8 r152.6 95.5 r136.9 r108.6 r85.6 

 IV 161.2 152.0 94.3 138.9 109.6 86.2 

 ANNUAL 158.1 151.3 95.7 135.8 108.1 85.9 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 7.6 6.3 -1.2 29.7 24.6 20.5 

 II 3.9 5.8 1.8 -9.6 -12.1 -13.0 

 III 0.8 -1.6 -2.3 9.9 6.1 9.1 

 IV -0.6 -6.2 -5.7 -6.5 -9.2 -6.0 

 ANNUAL 4.4 3.6 -0.7 7.7 4.2 3.2 

 2001 I r-2.1 r-8.9 -6.9 3.1 -0.6 r5.3 

 II r-1.4 r-8.2 -6.9 3.6 0.4 r5.1 

 III r2.4 r-7.9 -10.0 -1.0 -1.7 r-3.3 

 IV r3.5 r-8.0 -11.2 5.0 5.4 r1.5 

 ANNUAL r-0.1 r-6.3 -6.2 0.9 -1.9 r0.9 

 2002 I r10.4 r2.1 -7.5 2.8 1.3 r-6.9 

 II r5.5 r4.9 -0.5 r6.7 r3.1 r1.1 

 III r7.9 r3.8 r-3.8 r6.1 r4.2 r-1.7 

 IV 3.4 -1.6 -4.8 6.2 3.7 2.7 

 ANNUAL 5.7 -1.4 -6.6 4.1 2.5 -1.5 

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

 Percent change from corresponding quarter of previous year 

 2000 I 5.2 5.1 -0.1 10.5 7.0 5.0 

 II 5.1 5.3 0.2 7.4 4.0 2.2 

 III 4.3 3.2 -1.1 8.1 4.5 3.6 

 IV 2.9 1.0 -1.9 4.8 1.4 1.8 

 ANNUAL 4.4 3.6 -0.7 7.7 4.2 3.2 

 2001 I r0.5 r-2.9 -3.3 -1.1 -4.2 r-1.6 

 II r-0.8 r-6.3 -5.5 2.3 -1.0 r3.2 

 III r-0.4 r-7.8 -7.4 -0.3 -2.8 r0.1 

 IV 0.6 -8.2 -8.8 2.6 0.8 2.1 

 ANNUAL r-0.1 r-6.3 -6.2 0.9 -1.9 r0.9 

 2002 I r3.6 r-5.6 -8.9 2.6 1.3 r-1.0 

 II r5.4 r-2.4 -7.4 r3.3 r2.0 r-2.0 

 III r6.8 r0.5 r-5.9 r5.1 r3.5 r-1.6 

 IV 6.8 2.3 -4.2 5.4 3.1 -1.3 

 ANNUAL 5.7 -1.4 -6.6 4.1 2.5 -1.5 

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

 See footnotes following Table 6. February 6, 2003 

 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 

 2000 I 120.6 114.9 95.3 130.6 109.8 108.3 

 II 121.8 115.6 95.0 130.4 108.9 107.1 

 III 122.6 115.4 94.1 133.2 110.2 108.7 

 IV 123.9 114.5 92.4 135.0 110.9 108.9 

 ANNUAL 122.2 115.1 94.2 132.3 110.0 108.3 

 2001 I r123.1 r112.7 91.6 134.7 109.7 r109.4 

 II 123.6 111.7 90.4 135.5 109.4 r109.7 

 III r124.3 111.3 89.5 137.2 110.6 110.3 

 IV r125.5 r110.1 87.8 137.1 110.6 r109.2 

 ANNUAL r124.1 r111.5 89.8 136.1 110.1 r109.7 

 2002 I r126.8 r110.2 86.9 139.1 111.8 r109.7 

 II r127.7 r110.8 86.7 r139.8 r111.5 109.5 

 III r128.4 r111.4 86.7 r141.5 r112.3 r110.2 

 IV 127.6 110.6 86.6 143.0 112.8 112.1 

 ANNUAL 127.6 110.7 86.8 140.8 112.1 110.3 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 0.8 -1.8 -2.5 17.8 13.3 17.0 

 II 3.8 2.4 -1.4 -0.5 -3.4 -4.2 

 III 2.6 -0.9 -3.5 8.7 4.9 5.9 

 IV 4.6 -3.0 -7.2 5.6 2.5 0.9 

 ANNUAL 3.8 1.1 -2.6 6.7 3.3 2.9 

 2001 I r-2.5 r-6.0 -3.6 -0.8 -4.4 r1.8 

 II r1.3 r-3.8 -5.0 2.3 -0.8 r0.9 

 III r2.6 r-1.4 -3.8 5.1 4.4 r2.4 

 IV r3.6 r-4.0 -7.4 -0.3 0.0 r-3.8 

 ANNUAL r1.6 r-3.2 -4.7 2.9 0.1 r1.3 

 2002 I r4.3 r0.3 -3.9 6.0 4.5 r1.6 

 II r2.9 r1.9 -0.9 r2.2 r-1.2 r-0.7 

 III r2.4 r2.3 -0.1 r5.0 r3.1 r2.6 

 IV -2.5 -2.9 -0.4 4.3 1.9 7.0 

 ANNUAL 2.8 -0.6 -3.4 3.5 1.8 0.6 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 1.6 -1.8 6.1 2.8 2.6 

 II 4.4 1.8 -2.5 5.8 2.5 1.4 

 III 4.4 1.7 -2.5 7.4 3.8 2.9 

 IV 2.9 -0.8 -3.7 7.7 4.2 4.6 

 ANNUAL 3.8 1.1 -2.6 6.7 3.3 2.9 

 2001 I r2.1 r-1.9 -3.9 3.1 -0.1 r1.0 

 II 1.5 -3.4 -4.8 3.9 0.5 r2.4 

 III 1.5 -3.5 -4.9 3.0 0.4 1.5 

 IV r1.2 r-3.8 -5.0 1.5 -0.3 r0.3 

 ANNUAL r1.6 r-3.2 -4.7 2.9 0.1 r1.3 

 2002 I r3.0 r-2.2 -5.0 3.2 2.0 r0.2 

 II r3.4 r-0.8 -4.0 r3.2 r1.9 r-0.2 

 III r3.3 r0.1 -3.1 r3.2 r1.6 r-0.1 

 IV 1.7 0.4 -1.3 4.4 2.0 2.6 

 ANNUAL 2.8 -0.6 -3.4 3.5 1.8 0.6 

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

 See footnotes following Table 6. February 6, 2003 

 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 

 2000 I r117.7 147.3 125.1 126.9 106.7 107.8 104.5 106.9 119.5 108.0 

 II 118.3 147.9 125.0 127.8 106.6 108.0 106.3 107.5 118.8 108.5 

 III 119.5 149.4 125.0 130.4 107.9 109.1 107.1 108.6 109.5 108.6 

 IV 119.5 149.2 124.8 131.7 108.2 110.2 108.9 109.8 98.6 108.9 

 ANNUAL 118.8 148.4 125.0 129.2 107.4 108.8 106.7 108.2 111.6 108.5 

 2001 I 118.8 147.9 124.6 131.3 106.9 110.6 111.6 110.8 93.1 109.3 

 II 119.4 147.8 123.7 131.9 106.5 110.4 113.5 111.3 95.4 109.9 

 III 120.4 147.7 122.7 132.7 107.0 110.3 115.5 111.7 97.9 110.5 

 IV 123.5 149.6 121.2 133.6 107.8 108.2 114.1 109.8 107.6 109.6 

 ANNUAL 120.5 148.2 123.0 132.4 107.0 109.9 113.7 110.9 98.5 109.8 

 2002 I 124.9 150.8 120.8 134.7 108.3 107.9 114.0 109.5 107.6 109.4 

 II 126.7 152.8 120.6 136.2 108.6 107.5 114.5 109.4 107.8 109.3 

 III 128.4 r154.2 r120.1 r138.2 r109.7 r107.7 114.8 r109.6 r104.1 109.1 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I 7.1 9.5 2.3 14.2 9.8 6.7 -0.4 4.7 -19.0 2.2 

 II 2.0 1.6 -0.4 2.8 -0.1 0.8 7.0 2.4 -2.2 2.0 

 III r4.0 4.0 0.0 8.5 4.7 4.2 3.0 3.9 -27.8 0.6 

 IV 0.1 -0.4 -0.5 4.1 1.1 4.0 6.9 4.8 -34.5 0.8 

 ANNUAL 3.5 5.0 1.5 6.7 3.2 3.1 3.3 3.1 -15.2 1.2 

 2001 I -2.6 -3.3 -0.7 -1.2 -4.8 1.4 10.1 3.7 -20.2 1.7 

 II 2.2 -0.5 -2.7 1.8 -1.3 -0.4 7.1 1.6 10.0 2.2 

 III 3.2 -0.3 -3.4 2.5 1.9 -0.6 7.2 1.5 10.8 2.2 

 IV r10.7 5.4 -4.8 r2.6 r2.9 -7.3 -4.9 -6.7 46.1 -3.3 

 ANNUAL 1.4 -0.1 -1.5 2.5 -0.3 1.0 6.5 2.5 -11.7 1.2 

 2002 I r4.7 3.3 -1.3 r3.5 2.0 -1.2 -0.2 -0.9 -0.2 -0.8 

 II 5.8 r5.3 -0.5 r4.5 1.0 -1.3 1.7 -0.5 0.9 -0.3 

 III r5.5 r3.8 r-1.6 r6.1 r4.2 r0.6 r1.0 r0.7 r-13.0 r-0.5 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.0 5.7 2.6 5.6 2.3 2.5 2.9 2.6 -12.9 0.9 

 II 3.5 5.4 1.9 r6.1 2.8 2.6 3.5 2.8 -12.4 1.2 

 III 4.2 5.4 1.2 7.6 4.0 3.3 2.5 3.1 -14.2 1.3 

 IV 3.3 3.6 0.3 7.3 3.8 3.9 4.1 4.0 -21.8 1.4 

 ANNUAL 3.5 5.0 1.5 6.7 3.2 3.1 3.3 3.1 -15.2 1.2 

 2001 I 0.9 0.4 -0.4 3.5 0.2 2.6 6.7 3.7 -22.0 1.3 

 II 0.9 -0.1 -1.0 3.2 -0.1 2.3 6.8 3.5 -19.7 1.3 

 III 0.7 -1.1 -1.8 1.8 -0.8 1.1 7.8 2.9 -10.6 1.7 

 IV 3.3 0.3 -2.9 1.4 -0.4 -1.8 4.7 0.0 9.2 0.7 

 ANNUAL 1.4 -0.1 -1.5 2.5 -0.3 1.0 6.5 2.5 -11.7 1.2 

 2002 I 5.2 1.9 r-3.0 2.6 1.4 -2.4 2.2 -1.2 15.5 0.0 

 II 6.1 3.4 -2.5 3.3 1.9 -2.6 0.9 -1.7 13.0 -0.6 

 III 6.7 r4.4 r-2.1 r4.2 r2.5 r-2.3 -0.6 r-1.9 r6.4 -1.3 

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

 See footnotes following Table 6. February 6, 2003 

 r=revised Source: Bureau of Labor Statistics 
16 

SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of 

the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; 

and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor 

Statistics and the Bureau of Economic Analysis. 

RELIABILITY: Productivity and cost measures are regularly revised as more complete 

information becomes available. The measures are first published within 40 days of the close of 

the reference period; revisions appear 30 days later, and second revisions after an additional 60 

days. In the business sector, the third publication (second revision) of a quarterly index of output 

per hour of all persons has differed from the initial value by between –1.5 and +1.7 index points 

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

between the fourth quarter of 1995 and the third quarter of 2002.

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 1978-2001 is based on the Consumer Price Index research 

series (CPI-U-RS). 

(3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental 

income of persons, and indirect taxes. 

(4) Current dollar output divided by the output index.

(5) Quarterly changes: Percent change compounded at annual rate from the original data rather 

than index numbers. Annual changes: Percent change between annual average levels. 

(6) Unit nonlabor costs include capital consumption allowances, interest, rental income of 

persons, and indirect taxes. For nonfinancial corporations, rental income of persons is 

zero by definition. 

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

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

adjustments.