Internet address: http://www.bls.gov/lpc/ USDL 05-177 

Historical, technical TRANSMISSION OF THIS 

 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 3, 2005 

PRODUCTIVITY AND COSTS 

Preliminary Fourth Quarter and 

Annual Averages for 2004 

 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 2004. The seasonally adjusted annual rates of productivity change 

in the fourth quarter and the annual average changes were: 

 Fourth Annual averages 

 quarter 2003-2004 

Business sector 2.5 4.0 

Nonfarm business sector 0.8 4.1 

In the fourth quarter, productivity increased 2.5 percent in the business sector—about the 

same as in the third quarter, when it increased 2.4 percent (seasonally adjusted annual rates). In 

nonfarm businesses, productivity grew more slowly in the fourth quarter, 0.8 percent, than in the 

third quarter, when it rose 1.8 percent. On an annual average basis, productivity rose 4.0 percent 

in the business sector and 4.1 percent in the nonfarm business sector. 

 In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages 

 quarter 2003-2004 

Manufacturing sector 5.6 4.9 

 Durable goods manufacturing 7.3 6.1 

 Nondurable goods manufacturing 3.7 3.9 
2 

Manufacturing productivity grew 5.6 percent in the fourth quarter. On an annual average 

basis, output per hour in the manufacturing sector posted a 4.9-percent increase in 2004. 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. 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. 

Table A. Productivity and costs: Preliminary fourth-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 2.5 3.3 0.8 4.2 0.8 1.7 

Nonfarm business 0.8 2.8 1.9 3.1 -0.3 2.3 

Manufacturing 5.6 4.5 -1.0 6.0 2.5 0.4 

 Durable 7.3 6.6 -0.6 6.1 2.6 -1.1 

 Nondurable 3.7 2.0 -1.7 5.7 2.2 2.0 

 Percent change from same quarter a year ago 

Business 2.9 4.2 1.3 4.0 0.6 1.1 

Nonfarm business 2.5 4.2 1.6 3.6 0.2 1.0 

Manufacturing 4.8 5.0 0.2 3.2 -0.2 -1.5 

 Durable 5.4 6.7 1.2 2.4 -0.9 -2.8 

 Nondurable 4.4 2.9 -1.4 4.4 1.0 0.1 

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 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, 2004 

Business 

 Productivity in the business sector increased by 2.5 percent in the fourth quarter of 2004, 

reflecting increases of 3.3 percent in output and 0.8 percent in hours of all persons (seasonally 
3 

adjusted annual rates). Output per hour had increased 2.4 percent in the third quarter, as output 

and hours increased 4.5 percent and 2.0 percent, respectively. 

 Hourly compensation grew 4.2 percent in the fourth quarter of 2004, following a 3.8-

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, rose 0.8 percent in the fourth quarter, and 1.9 

percent in the third quarter, of 2004. 

 Unit labor costs, which relate hourly compensation to output per hour, increased 1.7 

percent in the fourth quarter. Business sector unit labor costs had increased 1.3 percent in the 

third quarter of 2004. 

Nonfarm business 

In the nonfarm business sector, productivity increased 0.8 percent in the fourth quarter of 

2004, as output grew 2.8 percent and hours of all persons grew 1.9 percent (seasonally adjusted 

annual rates). Productivity had increased 1.8 percent in the third quarter of 2004, reflecting a 

4.2-percent rise in output and 2.4-percent growth in hours of all persons (table 2). The fourthquarter 0.8-percent increase in productivity was the smallest since the first quarter of 2001, when 

nonfarm business output per hour declined 0.4 percent. 

 Hourly compensation in the nonfarm business sector rose 3.1 percent in the fourth quarter 

of 2004, following a 3.5-percent increase in the third quarter. When changes in consumer prices 

were taken into account, real hourly compensation declined 0.3 percent during the fourth quarter 

of 2004 and increased 1.6 percent in the third quarter. 

Unit labor costs increased 2.3 percent in the fourth quarter, after rising 1.6 percent in the 

third quarter of 2004. The implicit price deflator for nonfarm business output increased 2.0 

percent in the fourth quarter of 2004, after increasing 1.8 percent one quarter earlier. 

Manufacturing 

Manufacturing productivity grew 5.6 percent (seasonally adjusted annual rate) in the 

fourth quarter of 2004 as output increased 4.5 percent and hours decreased 1.0 percent (table 3). 

In the third quarter, manufacturing productivity increased 4.2 percent, reflecting a 4.0-percent 

rise in output and a 0.1-percent decline in hours. In durable goods manufacturing, productivity 

rose 7.3 percent in the fourth quarter as output grew 6.6 percent and hours decreased 0.6 percent 

(table 4). Among nondurable goods manufacturers, productivity increased 3.7 percent in the 

fourth quarter as output rose 2.0 percent and hours at work in the sector fell 1.7 percent (table 5). 

 Average hourly compensation of manufacturing workers increased 6.0 percent in the 

fourth quarter of 2004, reflecting increases in hourly compensation of 6.1 percent in durable 

goods manufacturing and 5.7 percent in nondurable goods manufacturing. When the increase in 

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

2.5 percent. 
4 

Unit labor costs for the manufacturing sector rose 0.4 percent in fourth-quarter 2004. In 

durable goods manufacturing, unit labor costs fell 1.1 percent, and in nondurable goods 

manufacturing unit labor costs increased 2.0 percent. 

ANNUAL AVERAGE CHANGES, 2003-2004 

Business 

Business sector productivity increased 4.0 percent when the annual average for 2004 was 

compared with the annual average for 2003 (table B). Output increased 5.1 percent and hours of 

all persons engaged in the sector rose 1.0 percent. Productivity had increased 4.5 percent in 

2003, when output rose 3.8 percent and hours fell 0.7 percent. The 4.5-percent productivity 

increase in 2003 was the largest in the sector since a 4.6-percent rise in 1962. 

 Table B. Annual average changes in productivity and related measures, 1995-2004 

 Measure 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 

 Business: 

 Productivity ...................... 0.2 2.9 1.9 2.7 2.9 2.9 2.5 4.3 4.5 4.0 

 Output ............................... 2.9 4.6 5.3 4.8 5.1 3.9 0.3 1.8 3.8 5.1 

 Hours ................................ 2.7 1.6 3.4 2.1 2.2 1.0 -2.1 -2.4 -0.7 1.0 

 Hourly compensation........ 2.0 3.4 3.2 6.0 4.8 7.1 4.2 3.2 4.1 4.3 

 Real hourly compensation 

............................................ 

-0.4 0.7 1.0 4.6 2.6 3.6 1.3 1.5 1.8 1.6 

 Unit labor costs ................ 1.9 0.5 1.3 3.3 1.8 4.0 1.6 -1.1 -0.4 0.3 

 Nonfarm Business: 

 Productivity ...................... 0.5 2.7 1.6 2.7 2.8 2.8 2.5 4.4 4.4 4.1 

 Output ............................... 3.2 4.5 5.2 5.0 5.2 3.8 0.4 1.8 3.8 5.3 

 Hours ................................ 2.7 1.8 3.5 2.2 2.3 1.0 -2.0 -2.5 -0.6 1.1 

 Hourly compensation........ 2.1 3.4 3.1 5.9 4.6 7.1 4.0 3.3 4.1 4.2 

 Real hourly compensation 

............................................ 

-0.3 0.7 0.9 4.5 2.5 3.6 1.1 1.6 1.7 1.5 

 Unit labor costs ................ 1.6 0.7 1.4 3.2 1.8 4.2 1.5 -1.1 -0.4 0.1 

 Manufacturing: 

 Productivity ...................... 3.6 3.6 3.6 4.8 3.6 4.7 2.1 7.6 5.0 4.9 

 Output ............................... 4.5 3.2 5.5 4.5 2.9 3.0 -4.6 -0.1 0.0 4.8 

 Hours ................................ 0.8 -0.4 1.8 -0.3 -0.6 -1.6 -6.5 -7.1 -4.8 -0.1 

 Hourly compensation........ 1.9 1.9 2.6 5.8 3.9 9.1 2.3 6.7 8.5 3.6 

 Real hourly compensation 

............................................ 

-0.5 -0.8 0.5 4.3 1.8 5.6 -0.4 5.0 6.1 0.9 

 Unit labor costs ................ -1.7 -1.6 -0.9 1.0 0.3 4.2 0.2 -0.8 3.3 -1.3 
5 

Hourly compensation in the business sector increased 4.3 percent in 2004, following a 

4.1-percent increase in 2003. Real hourly compensation increased 1.6 percent in 2004 and 1.8 

percent one year earlier. Unit labor costs in the business sector rose 0.3 percent in 2004 and fell 

0.4 percent in 2003. The implicit price deflator for the business sector rose 1.7 percent in 2004 

and 1.3 percent in 2003. 

Nonfarm business

Productivity increased 4.1 percent in the nonfarm business sector in 2004, reflecting 

increases of 5.3 percent in output and 1.1 percent in hours. During 2003, output per hour 

increased 4.4 percent in nonfarm business, as output rose 3.8 percent and hours of all persons fell 

0.6 percent. Nonfarm productivity also had increased 4.4 percent in 2002. When the 

productivity increases for 2002, 2003, and 2004 are combined, productivity for the 2001-2004 

period rose 4.3 percent in nonfarm businesses. The last comparable three-year rise occurred over 

the 1948-1951 period, when productivity increased at a 4.2 percent annual rate, incorporating 

gains of 3.3 percent in 1949, 6.6 percent in 1950, and 2.7 percent in 1951. 

In 2004, hourly compensation increased 4.2 percent, similar to the 4.1-percent rise in 

2003. When the increase in consumer prices was taken into account, real hourly compensation 

rose 1.5 percent in 2004 and 1.7 percent in 2003. 

Unit labor costs in the nonfarm business sector edged up 0.1 percent in 2004, following a 

0.4-percent decline in 2003. The implicit price deflator for nonfarm business rose 1.6 percent in 

2004 and 1.1 percent in 2003. 

Manufacturing 

 In manufacturing, labor productivity rose 4.9 percent in 2004, as output grew 4.8 percent 

and hours of all persons declined 0.1 percent (table B). Although productivity had increased at a 

similar rate in 2003, 5.0 percent, that productivity gain was due almost entirely to falling hours, 

as output was unchanged. There was a 6.1-percent increase in durable goods manufacturing 

productivity in 2004, as output rose 7.1 percent and hours rose 0.9 percent. Nondurable goods 

manufacturing posted a more modest increase in productivity, 3.9 percent, reflecting an increase 

in output of 2.1 percent and a decrease in hours of 1.8 percent. 

 Hourly compensation of manufacturing workers increased 3.6 percent in 2004, down 

from the 8.5-percent growth rate in 2003. In 2004, hourly compensation rose 2.9 percent in 

durable goods manufacturing and 4.8 percent in nondurable good manufacturing. Taking into 

account the rise in consumer prices, real hourly compensation in manufacturing rose 0.9 percent 

in 2004 and 6.1 percent one year earlier. 

 

Unit labor costs in manufacturing fell 1.3 percent in 2004. These costs had increased 3.3 

percent in calendar year 2003. Unit labor costs in durable goods manufacturing fell 3.0 percent 

in 2004, compared with a 0.8-percent rise in unit labor costs in nondurable goods manufacturing. 
6 

Revised Measures

 Current and previous measures for the third quarter of 2004 for the business and nonfarm 

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

productivity, output, and hours growth in the third quarter were the same as reported on Dec. 7. 

Also in both of these sectors, hourly compensation and real hourly compensation grew less than 

reported in December. Because hourly compensation was revised down while productivity was 

unchanged, unit labor costs in the third quarter increased less than previously reported. 

In the manufacturing sector, output and productivity were revised down in the third 

quarter, and hours of all persons were unchanged. Growth in hourly compensation and real 

hourly compensation were also revised down. Because the downward revision to productivity 

was greater than that to hourly compensation, unit labor costs were revised up. 

Manufacturing sector productivity and costs measures reflect revised source data. 

Revised indexes of industrial production were published by the Board of Governors of the 

Federal Reserve System on Dec. 22. Incorporating the revised data impacted quarterly measures 

of output, productivity, and unit labor costs back to 1987 and annual measures for 2002 and 

2003. Also, revised data on manufacturing compensation for 1987-1997 were provided by the 

U.S. Department of Commerce on a NAICS rather than SIC basis for the first time. Annual and 

quarterly measures of hourly compensation, real hourly compensation, and unit labor costs were 

subject to revision from this source back to 1987. Annual historical data for manufacturing, 

durable manufacturing, and nondurable manufacturing are presented in appendix tables 1-3. 

Tables showing the quarterly and annual data for all years, 1987-2004, will be posted on the BLS 

website later today. 

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 2004 

Business: 

 Previous ....................... 2.4 4.5 2.0 4.0 2.1 1.5 

 Current ......................... 2.4 4.5 2.0 3.8 1.9 1.3 

Nonfarm business: 

 Previous ....................... 1.8 4.2 2.4 3.6 1.8 1.8 

 Current ......................... 1.8 4.2 2.4 3.5 1.6 1.6 

Manufacturing: 

 Previous ....................... 4.6 4.5 -0.1 4.6 2.7 0.0 

 Current ......................... 4.2 4.0 -0.1 4.5 2.6 0.3 
7 

Revised measures: Nonfinancial Corporations 

Revised third-quarter productivity and output measures for nonfinancial corporations also 

were announced today. In the third quarter, output and productivity increased less, and hours 

increased more, than reported on Dec. 7. Hourly compensation was revised down less than was 

productivity, resulting in a smaller decline in unit labor costs than previously reported (table D). 

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 2004 

Previous 4.2 5.6 1.3 4.0 2.1 -0.3 0.9 0.3 

Current 3.9 5.4 1.4 3.8 1.9 -0.1 0.6 0.2 

The measure of output for the nonfinancial corporate sector has been revised by the 

Bureau of Economic Analysis (BEA), U.S. Department of Commerce. As a result, several 

measures for this sector were revised back to 1958. Recent quarterly and annual data for 

nonfinancial corporations are shown in table 6. Appendix table 4 provides complete annual 

measures. And full quarterly and annual historical series will be posted on the BLS website later 

today. 

Upcoming changes to productivity and cost data 

Later this year, BLS will improve the way it uses data for farm workers, the nonfarm selfemployed, and nonfarm unpaid family workers in the productivity program by accounting for the 

effects of multiple jobholding. Current measures treat all hours worked by individuals whose 

primary job is in these groups as being on the primary job. This may overstate the hours of some 

workers while omitting the hours of others. The revised measures will be adjusted in two ways. 

First, hours worked by these workers in their primary jobs will be used in each measure. 

Secondly, the hours of all persons who hold more than one job will be examined. Hours worked 

in secondary jobs by the self-employed, unpaid family workers, and farm wage and salary 

workers will be included in the hours used for the productivity and cost measures. The aggregate 

effect of these changes is small. 
8 

Next release date

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

March 3, 2005. Revised fourth-quarter and annual average measures for business, nonfarm 

business, and manufacturing will be released at that time. 
9 

TECHNICAL NOTES 

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

persons working in the sector—wage and salary 

workers, the self-employed, and unpaid family 

workers. The primary source of hours and 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 nonsupevisory workers in these 

establishments. Weekly paid hours are adjusted to 

hours at work using data from the National 

Compensation Survey (NCS). The BLS Hours at 

Work survey, conducted for this purpose, was used 

for years prior to 2001. The Office of Productivity 

and Technology estimates average weekly hours at 

work for nonproduction and supervisory workers 

using information from the Current Population 

Survey (CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, 

nonfarm proprietors, and nonfarm unpaid family 

workers. Estimates of labor input for government 

enterprises are derived from the CPS, the CES, 

and the National Income and Product Accounts 

(NIPA) prepared by the Bureau of Economic 

Analysis (BEA) of the Department of Commerce. 

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

gross domestic product (GDP) the following 

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

are made in labor inputs. Business output 

accounted for about 78 percent of the value of 

GDP in 2000. Nonfarm business, which also 

excludes farming, accounted for about 77 percent 

of GDP in 2000. 

Annual indexes for manufacturing and its 

durable and nondurable goods components are 

constructed by deflating current-dollar industry 

value of production data from the U.S. Bureau of 

the Census with deflators from the BEA. These 

deflators are based on data from the BLS producer 

price program and other sources. The industry 

shipments are aggregated using annual weights, 

and intrasector transactions are removed. 

Quarterly manufacturing output measures are 

based on the index of industrial production prepared monthly by the Board of Governors of the 

Federal Reserve System, adjusted to be consistent 

with annual indexes of manufacturing sector 

output prepared by BLS. Durables include the 

following 3-digit NAICS industries: wood product 

manufacturing; nonmetallic mineral product 

manufacturing; primary metal manufacturing; 

fabricated metal product manufacturing; 

machinery manufacturing; computer and 

electronic product manufacturing; electrical equipment and appliance manufacturing; transportation 

equipment manufacturing; furniture and related 

product manufacturing; and miscellaneous 

manufacturing. Nondurables include: food 

manufacturing; beverage and tobacco product 

manufacturing; textile mills; textile product mills; 

apparel manufacturing; leather and allied product 

manufacturing; paper manufacturing; printing and 

related support activities; petroleum and coal products manufacturing; chemical manufacturing; and 

plastics and rubber products manufacturing. 

Nonfinancial corporate output is an annualweighted index calculated on the basis of the costs 

incurred and the incomes earned from production. 

The output measure excludes the following 

outputs from GDP: general government; nonprofit 

institutions; private households; unincorporated 

business; and those corporations classified as 

offices of bank holding companies, offices of other 

holding companies, or offices in the finance and 

insurance sector. Nonfinancial corporations 

accounted for about 54 percent of the value of 

GDP in 2000. 

Productivity: These productivity measures 

describe the relationship between real output and 

the labor time involved in its production. They 

show the changes from period to period in the 

amount of goods and services produced per hour. 

Although these measures relate output to hours at 

work of all persons engaged in a sector, they do 

not measure the specific contribution of labor, 

capital, or any other factor of production. Rather, 

they reflect the joint effects of many influences, 

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

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

and effort of the work force. 

Information in this release will be made 

available to sensory-impaired individuals upon 

request. Voice phone: 202-691-5606; Federal 

Relay Service number: 1-800-877-8339.
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 122.7 142.2 115.9 143.2 115.2 116.7 113.4 115.5 

 II 123.2 142.9 116.0 144.4 115.2 117.2 113.6 115.9 

 III 124.7 144.3 115.7 145.0 115.0 116.3 115.7 116.1 

 IV 125.0 144.7 115.7 145.5 114.8 116.3 116.8 116.5 

 ANNUAL 123.9 143.5 115.8 144.5 115.0 116.6 114.9 116.0 

 2003 I 126.2 145.5 115.3 147.4 115.3 116.8 117.7 117.1 

 II 128.6 147.5 114.7 149.6 116.8 116.4 119.0 117.3 

 III 131.2 150.8 114.9 151.7 117.7 115.6 120.8 117.5 

 IV 132.0 152.3 115.4 153.2 118.7 116.0 120.7 117.8 

 ANNUAL 129.5 149.0 115.1 150.5 117.1 116.2 119.6 117.4 

 2004 I 133.3 154.3 115.8 154.2 118.4 115.7 122.9 118.4 

 II 134.2 155.8 116.1 156.2 118.6 116.4 124.4 119.4 

 III 135.0 157.5 116.6 157.7 r119.1 116.8 r124.6 r119.7 

 IV 135.8 158.8 116.9 159.3 119.3 117.3 125.3 120.3 

 ANNUAL 134.7 156.6 116.3 156.9 118.9 116.5 124.3 119.4 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 5.9 3.5 -2.3 4.9 3.5 -1.0 1.0 -0.3 

 II 1.7 2.1 0.4 3.4 -0.1 1.7 1.0 1.4 

 III 4.8 3.8 -1.0 1.6 -0.7 -3.1 7.3 0.7 

 IV 1.2 1.2 0.0 1.3 -0.6 0.0 3.8 1.4 

 ANNUAL 4.3 1.8 -2.4 3.2 1.5 -1.1 4.5 0.9 

 2003 I 3.9 2.2 -1.6 5.5 1.7 1.6 3.1 2.1 

 II 7.6 5.6 -1.9 6.1 5.4 -1.4 4.5 0.8 

 III 8.5 9.3 0.7 5.6 3.1 -2.6 6.3 0.7 

 IV 2.4 4.2 1.7 4.0 3.3 1.6 -0.4 0.8 

 ANNUAL 4.5 3.8 -0.7 4.1 1.8 -0.4 4.1 1.3 

 2004 I 3.9 5.3 1.3 2.8 -0.8 -1.1 7.4 2.1 

 II 2.9 3.9 1.0 5.2 0.5 2.3 5.0 3.3 

 III 2.4 4.5 2.0 r3.8 r1.9 r1.3 r0.7 r1.1 

 IV 2.5 3.3 0.8 4.2 0.8 1.7 2.4 2.0 

 ANNUAL 4.0 5.1 1.0 4.3 1.6 0.3 4.0 1.7 

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

 Percent change from corresponding quarter of previous year 

 2002 I 4.9 0.8 -3.9 3.2 1.9 -1.6 6.6 1.2 

 II 4.0 1.1 -2.8 3.4 2.1 -0.6 3.5 0.9 

 III 4.9 2.8 -2.0 3.3 1.6 -1.6 5.0 0.8 

 IV 3.4 2.7 -0.7 2.8 0.5 -0.6 3.2 0.8 

 ANNUAL 4.3 1.8 -2.4 3.2 1.5 -1.1 4.5 0.9 

 2003 I 2.9 2.3 -0.6 2.9 0.1 0.0 3.8 1.4 

 II 4.4 3.2 -1.1 3.6 1.4 -0.7 4.7 1.3 

 III 5.3 4.5 -0.7 4.6 2.4 -0.6 4.4 1.3 

 IV 5.6 5.3 -0.3 5.3 3.4 -0.3 3.4 1.1 

 ANNUAL 4.5 3.8 -0.7 4.1 1.8 -0.4 4.1 1.3 

 2004 I 5.6 6.1 0.5 4.6 2.7 -0.9 4.4 1.1 

 II 4.4 5.6 1.2 4.4 1.5 0.0 4.5 1.7 

 III 2.9 4.4 1.5 4.0 1.2 r1.0 r3.1 1.8 

 IV 2.9 4.2 1.3 4.0 0.6 1.1 3.8 2.1 

 ANNUAL 4.0 5.1 1.0 4.3 1.6 0.3 4.0 1.7 

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

 See footnotes following Table 6. February 3, 2005 

 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 122.4 142.6 116.5 142.6 114.7 116.4 115.1 116.0 

 II 122.8 143.2 116.7 143.8 114.7 117.1 115.4 116.5 

 III 124.1 144.5 116.4 144.3 114.4 116.2 117.7 116.8 

 IV 124.6 145.0 116.4 144.7 114.3 116.1 118.9 117.2 

 ANNUAL 123.5 143.9 116.5 143.8 114.5 116.5 116.8 116.6 

 2003 I 125.8 145.9 116.0 146.6 114.7 116.6 119.6 117.7 

 II 127.8 147.8 115.6 148.7 116.1 116.3 120.4 117.8 

 III 130.6 151.1 115.7 150.9 117.1 115.5 122.3 118.0 

 IV 131.7 152.8 116.1 152.5 118.2 115.9 121.9 118.1 

 ANNUAL 129.0 149.4 115.8 149.7 116.5 116.1 121.1 117.9 

 2004 I 132.8 155.0 116.7 153.3 117.7 115.4 124.3 118.7 

 II 134.1 156.5 116.7 155.5 118.0 115.9 125.7 119.6 

 III 134.7 158.2 117.4 r156.8 118.5 r116.4 r126.3 r120.1 

 IV 135.0 159.3 118.0 158.0 118.4 117.1 126.8 120.7 

 ANNUAL 134.2 157.2 117.1 156.0 118.2 116.2 125.8 119.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 6.9 4.0 -2.7 5.5 4.1 -1.4 1.6 -0.3 

 II 1.1 1.7 0.6 3.4 -0.1 2.3 1.0 1.8 

 III 4.5 3.6 -0.9 1.5 -0.8 -2.9 8.0 1.0 

 IV 1.6 1.4 -0.2 1.2 -0.6 -0.3 4.2 1.3 

 ANNUAL 4.4 1.8 -2.5 3.3 1.6 -1.1 4.7 1.0 

 2003 I 3.7 2.4 -1.3 5.3 1.5 1.6 2.4 1.9 

 II 6.7 5.3 -1.4 5.7 5.0 -1.0 2.9 0.5 

 III 9.0 9.3 0.3 6.1 3.6 -2.7 6.3 0.6 

 IV 3.1 4.6 1.4 4.4 3.6 1.2 -1.2 0.3 

 ANNUAL 4.4 3.8 -0.6 4.1 1.7 -0.4 3.7 1.1 

 2004 I 3.7 5.7 2.0 2.0 -1.6 -1.6 8.0 2.0 

 II 3.9 4.2 0.3 5.9 1.1 1.9 4.6 2.9 

 III 1.8 4.2 2.4 r3.5 r1.6 r1.6 r2.1 r1.8 

 IV 0.8 2.8 1.9 3.1 -0.3 2.3 1.6 2.0 

 ANNUAL 4.1 5.3 1.1 4.2 1.5 0.1 3.9 1.6 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.1 0.9 -4.0 3.2 2.0 -1.8 6.7 1.2 

 II 4.0 1.0 -2.9 3.5 2.2 -0.5 3.4 0.9 

 III 4.8 2.6 -2.1 3.4 1.7 -1.3 5.2 1.0 

 IV 3.5 2.7 -0.8 2.9 0.6 -0.6 3.7 1.0 

 ANNUAL 4.4 1.8 -2.5 3.3 1.6 -1.1 4.7 1.0 

 2003 I 2.7 2.3 -0.5 2.9 0.0 0.1 3.9 1.5 

 II 4.1 3.2 -0.9 3.4 1.2 -0.7 4.4 1.2 

 III 5.2 4.6 -0.7 4.6 2.4 -0.6 3.9 1.1 

 IV 5.6 5.4 -0.2 5.4 3.4 -0.2 2.5 0.8 

 ANNUAL 4.4 3.8 -0.6 4.1 1.7 -0.4 3.7 1.1 

 2004 I 5.6 6.2 0.6 4.5 2.6 -1.0 3.9 0.8 

 II 4.9 6.0 1.0 4.6 1.7 -0.3 4.4 1.5 

 III 3.1 4.7 1.5 r3.9 1.2 0.8 r3.3 r1.8 

 IV 2.5 4.2 1.6 3.6 0.2 1.0 4.1 2.2 

 ANNUAL 4.1 5.3 1.1 4.2 1.5 0.1 3.9 1.6 

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

 See footnotes following Table 6. February 3, 2005 

 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 r144.5 r131.1 90.7 r143.8 r115.7 r99.6 

 II r146.4 r132.4 90.4 r146.7 r117.0 r100.2 

 III r148.7 r133.2 89.5 r148.3 r117.6 r99.7 

 IV r149.7 r132.1 88.2 r149.6 r118.1 r99.9 

 ANNUAL r147.3 r132.2 89.7 r147.1 r117.1 r99.8 

 2003 I r151.6 r131.8 87.0 r155.4 r121.6 r102.6 

 II r152.7 r130.7 85.6 r158.2 r123.5 r103.6 

 III r156.7 r132.1 84.3 r161.3 r125.2 r103.0 

 IV r158.1 r134.2 84.9 r163.6 r126.7 r103.5 

 ANNUAL r154.7 r132.2 85.4 r159.6 r124.2 r103.2 

 2004 I r158.8 r136.0 85.6 r161.9 r124.3 r101.9 

 II r161.7 r138.0 85.3 r164.6 r124.9 r101.8 

 III r163.4 r139.4 85.3 r166.4 r125.7 r101.8 

 IV 165.6 140.9 85.1 168.8 126.5 101.9 

 ANNUAL 162.4 138.6 85.3 165.4 125.4 101.9 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r10.9 r3.2 -6.9 14.2 12.7 r3.0 

 II r5.5 r4.1 -1.3 8.2 4.5 r2.5 

 III r6.6 r2.4 -3.9 4.5 2.1 r-1.9 

 IV r2.7 r-3.2 -5.7 3.5 1.6 r0.8 

 ANNUAL r7.6 r-0.1 -7.1 6.7 5.0 r-0.8 

 2003 I r5.0 r-0.9 -5.6 16.6 12.3 r11.0 

 II r3.0 r-3.4 -6.3 7.4 6.7 r4.2 

 III r10.8 r4.5 -5.7 8.1 5.6 r-2.4 

 IV r3.7 r6.6 2.8 5.7 4.9 r2.0 

 ANNUAL r5.0 r0.0 -4.8 8.5 6.1 r3.3 

 2004 I r1.9 r5.4 3.4 -4.1 -7.4 r-5.9 

 II r7.5 r5.9 -1.4 6.8 2.0 r-0.6 

 III r4.2 r4.0 -0.1 r4.5 r2.6 r0.3 

 IV 5.6 4.5 -1.0 6.0 2.5 0.4 

 ANNUAL 4.9 4.8 -0.1 3.6 0.9 -1.3 

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

 Percent change from corresponding quarter of previous year 

 2002 I r7.3 r-2.8 -9.4 4.1 2.8 r-3.0 

 II r8.0 r-0.5 -7.9 7.0 5.6 r-0.9 

 III r8.6 r1.5 -6.6 8.2 6.5 r-0.3 

 IV r6.3 r1.6 -4.5 7.5 5.1 r1.1 

 ANNUAL r7.6 r-0.1 -7.1 6.7 5.0 r-0.8 

 2003 I r4.9 0.6 -4.2 8.1 5.1 r3.0 

 II r4.3 -1.3 -5.4 7.9 5.6 r3.4 

 III r5.3 r-0.8 -5.8 8.8 6.5 r3.3 

 IV 5.6 r1.6 -3.8 9.4 7.3 r3.6 

 ANNUAL r5.0 r0.0 -4.8 8.5 6.1 r3.3 

 2004 I 4.8 3.2 -1.5 4.2 2.3 -0.6 

 II r5.9 r5.6 -0.3 4.0 1.1 r-1.8 

 III r4.3 r5.5 1.2 r3.1 0.4 r-1.1 

 IV 4.8 5.0 0.2 3.2 -0.2 -1.5 

 ANNUAL 4.9 4.8 -0.1 3.6 0.9 -1.3 

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

 See footnotes following Table 6. February 3, 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 r161.8 r153.1 94.6 r140.8 r113.3 r87.0 

 II r164.5 r155.3 94.4 r143.8 r114.7 r87.4 

 III r167.7 r156.6 93.4 r145.0 r115.0 r86.5 

 IV r170.8 r156.3 91.5 r146.3 r115.5 r85.7 

 ANNUAL r166.2 r155.3 93.5 r144.0 r114.6 r86.6 

 2003 I r172.5 r155.7 90.2 r153.4 r120.0 r88.9 

 II r174.1 r154.3 88.7 r156.4 r122.1 r89.8 

 III r180.7 r157.6 87.2 r159.6 r123.9 r88.3 

 IV r182.8 r161.5 88.3 r161.8 r125.3 r88.5 

 ANNUAL r177.5 r157.3 88.6 r157.8 r122.8 r88.9 

 2004 I r184.0 r164.6 89.5 r158.8 r121.9 r86.3 

 II r187.3 r167.1 89.2 r161.7 r122.7 r86.3 

 III r189.4 r169.5 89.5 r163.3 r123.4 r86.2 

 IV 192.8 172.3 89.3 165.7 124.2 86.0 

 ANNUAL 188.4 168.4 89.4 162.4 123.0 86.2 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r13.1 r4.1 -8.0 8.4 7.0 r-4.1 

 II r6.7 r6.0 -0.7 8.6 5.0 r1.8 

 III r8.0 3.3 -4.3 3.5 1.1 r-4.2 

 IV r7.5 r-0.7 -7.6 3.6 1.7 r-3.6 

 ANNUAL r8.6 r-0.4 -8.3 5.6 3.9 r-2.8 

 2003 I r4.2 r-1.6 -5.6 20.8 16.4 r15.9 

 II r3.7 r-3.4 -6.8 8.0 7.3 r4.2 

 III r16.1 r8.7 -6.3 8.7 6.1 r-6.4 

 IV r4.8 r10.1 5.1 5.5 4.7 r0.6 

 ANNUAL r6.8 r1.3 -5.2 9.6 7.1 r2.6 

 2004 I r2.6 r8.1 5.4 -7.1 -10.4 r-9.5 

 II r7.4 r6.0 -1.3 7.4 2.5 r0.0 

 III r4.6 r6.0 r1.3 r4.1 r2.2 r-0.5 

 IV 7.3 6.6 -0.6 6.1 2.6 -1.1 

 ANNUAL 6.1 7.1 0.9 2.9 0.2 -3.0 

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

 Percent change from corresponding quarter of previous year 

 2002 I r7.7 r-4.4 -11.2 3.3 2.0 r-4.1 

 II r8.6 r-1.5 -9.3 6.0 4.7 r-2.4 

 III r9.3 r1.4 -7.3 7.0 5.2 r-2.2 

 IV r8.8 r3.2 -5.2 6.0 3.7 r-2.6 

 ANNUAL r8.6 r-0.4 -8.3 5.6 3.9 r-2.8 

 2003 I r6.6 r1.7 -4.6 8.9 5.9 r2.2 

 II r5.8 r-0.6 -6.1 8.7 6.5 r2.8 

 III r7.8 r0.7 -6.6 10.1 7.7 r2.2 

 IV r7.1 r3.3 -3.5 10.6 8.5 r3.3 

 ANNUAL r6.8 r1.3 -5.2 9.6 7.1 r2.6 

 2004 I 6.7 5.8 -0.8 3.5 1.7 r-2.9 

 II r7.6 r8.3 0.6 3.4 0.5 r-3.9 

 III r4.8 r7.6 r2.6 2.3 r-0.4 r-2.4 

 IV 5.4 6.7 1.2 2.4 -0.9 -2.8 

 ANNUAL 6.1 7.1 0.9 2.9 0.2 -3.0 

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

 See footnotes following Table 6. February 3, 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 r127.0 r107.9 85.0 r147.9 r119.0 r116.5 

 II r128.3 r108.4 84.5 r150.5 r120.1 r117.4 

 III r129.7 r108.7 83.8 r152.9 r121.3 r117.9 

 IV r128.4 r106.9 83.3 r154.3 r121.8 120.2 

 ANNUAL r128.3 r108.0 84.2 r151.4 r120.5 r118.0 

 2003 I r130.3 r106.9 82.1 r157.7 r123.4 r121.1 

 II r130.9 r106.0 81.0 r160.2 r125.1 r122.3 

 III r132.3 r105.9 80.0 r163.0 r126.5 r123.2 

 IV r133.4 r106.5 79.9 r165.2 r128.0 r123.9 

 ANNUAL r131.7 r106.3 80.7 r161.5 r125.7 r122.6 

 2004 I r134.0 r107.1 79.9 r165.9 r127.4 r123.8 

 II r136.5 r108.6 79.6 r168.1 r127.6 r123.2 

 III r137.9 r109.0 r79.1 r170.2 r128.6 r123.4 

 IV 139.2 109.6 78.7 172.6 129.3 124.0 

 ANNUAL 136.9 108.6 79.3 169.2 128.2 123.6 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r7.7 r2.2 -5.1 26.5 24.9 r17.4 

 II r4.2 r1.8 -2.3 7.2 3.6 r2.9 

 III r4.6 r1.1 -3.3 6.6 4.1 r1.9 

 IV r-4.0 r-6.4 -2.5 3.7 1.8 r8.0 

 ANNUAL r5.6 r0.2 -5.2 9.3 7.5 r3.4 

 2003 I r5.9 r0.1 -5.5 9.1 5.1 r3.0 

 II r2.1 r-3.5 -5.5 6.3 5.7 r4.2 

 III r4.2 r-0.6 -4.6 7.2 4.7 r2.9 

 IV r3.2 r2.4 -0.7 5.6 4.8 r2.4 

 ANNUAL r2.6 r-1.5 -4.1 6.7 4.3 r3.9 

 2004 I r1.9 r2.1 0.2 1.5 -2.0 r-0.4 

 II r7.6 r5.7 -1.7 5.6 0.8 r-1.9 

 III r4.3 r1.7 r-2.5 r5.0 r3.0 r0.6 

 IV 3.7 2.0 -1.7 5.7 2.2 2.0 

 ANNUAL 3.9 2.1 -1.8 4.8 2.0 0.8 

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

 Percent change from corresponding quarter of previous year 

 2002 I r5.9 r-0.9 -6.4 6.2 5.0 r0.3 

 II r6.4 r0.6 -5.4 9.2 7.9 r2.7 

 III r7.3 r1.5 -5.4 10.9 9.2 r3.4 

 IV r3.0 r-0.4 -3.3 10.6 8.2 r7.4 

 ANNUAL r5.6 r0.2 -5.2 9.3 7.5 r3.4 

 2003 I r2.6 r-0.9 -3.4 6.6 3.6 r3.9 

 II r2.1 r-2.2 -4.2 6.4 4.2 r4.2 

 III r2.0 r-2.6 -4.5 6.6 4.3 r4.5 

 IV r3.9 r-0.4 -4.1 7.1 5.1 r3.1 

 ANNUAL r2.6 r-1.5 -4.1 6.7 4.3 r3.9 

 2004 I 2.9 r0.1 -2.7 5.2 3.3 2.2 

 II r4.2 r2.4 -1.7 5.0 2.1 r0.7 

 III r4.2 r3.0 r-1.2 r4.4 r1.6 r0.2 

 IV 4.4 2.9 -1.4 4.4 1.0 0.1 

 ANNUAL 3.9 2.1 -1.8 4.8 2.0 0.8 

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

 See footnotes following Table 6. February 3, 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 

 2002 I r126.8 r150.2 118.5 139.9 112.6 r110.4 r113.6 r111.3 r88.8 r109.3 

 II r128.1 r151.7 118.4 141.3 112.7 r110.3 r112.7 r111.0 r94.5 r109.5 

 III r129.0 r152.2 117.9 142.1 112.7 r110.1 r112.8 r110.9 r95.8 r109.5 

 IV r129.6 r152.4 117.6 142.9 112.8 r110.2 r112.8 r110.9 r102.3 r110.1 

 ANNUAL 128.4 151.6 118.1 141.5 112.7 r110.3 113.0 111.0 95.4 109.6 

 2003 I r130.2 r152.2 116.8 144.1 112.7 r110.7 r114.0 r111.6 r100.0 r110.5 

 II r132.7 r154.4 116.4 146.3 114.2 r110.3 r112.6 r110.9 r112.2 r111.0 

 III r135.3 r157.3 116.2 148.5 115.3 r109.8 r112.6 r110.5 r120.3 r111.4 

 IV r136.8 r159.6 116.7 150.0 116.2 r109.7 r112.2 r110.4 r125.1 r111.7 

 ANNUAL r133.7 r155.9 116.5 147.3 114.6 r110.1 r112.9 r110.8 r114.6 r111.2 

 2004 I r137.0 r160.9 117.5 150.9 115.9 r110.2 r111.1 r110.4 r129.9 r112.2 

 II r138.1 r162.6 117.7 152.9 116.1 r110.7 r111.4 r110.9 r136.3 r113.2 

 III r139.4 r164.7 r118.2 r154.3 r116.6 r110.7 r111.7 r111.0 r136.5 r113.2 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r7.5 r5.4 -2.0 1.7 0.4 r-5.4 r-7.0 r-5.9 r91.5 r-1.3 

 II r4.3 r4.2 -0.1 4.0 0.4 r-0.3 r-3.1 r-1.1 r28.2 r0.8 

 III r2.9 r1.1 -1.7 2.3 0.0 r-0.6 r0.3 r-0.3 r5.8 r0.1 

 IV r1.9 r0.7 -1.2 2.2 0.3 r0.3 r0.0 r0.2 r29.9 r2.3 

 ANNUAL r3.9 r1.0 -2.8 3.1 1.4 r-0.8 r0.3 r-0.5 r16.0 r0.6 

 2003 I r1.9 r-0.7 -2.5 3.6 -0.2 r1.6 r4.4 r2.4 r-8.8 r1.4 

 II r7.7 r6.0 -1.5 6.2 5.5 r-1.4 r-4.9 r-2.4 r58.5 r1.8 

 III r8.2 r7.6 -0.6 6.2 3.6 r-1.9 r0.1 r-1.4 r32.3 r1.4 

 IV r4.3 r6.0 1.6 4.2 3.4 r-0.1 r-1.5 r-0.5 r16.8 r1.1 

 ANNUAL r4.2 r2.8 -1.3 4.0 1.7 r-0.1 r-0.1 r-0.1 r20.1 r1.4 

 2004 I r0.6 r3.4 2.8 2.3 -1.3 r1.6 r-4.0 r0.1 r16.3 r1.6 

 II 3.3 r4.3 0.9 5.5 0.7 r2.1 1.3 1.9 r21.0 3.8 

 III r3.9 r5.4 r1.4 r3.8 r1.9 r-0.1 r0.9 r0.1 r0.6 r0.2 

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

 Percent change from corresponding quarter of previous year 

 2002 I 3.4 -1.1 -4.3 3.2 2.0 r-0.1 4.0 r1.0 r1.6 1.0 

 II r3.8 r0.4 -3.2 3.4 2.1 r-0.4 r1.0 r0.0 r8.8 r0.6 

 III r4.3 r1.9 -2.4 3.1 1.4 r-1.2 r-1.1 r-1.2 r21.4 r0.3 

 IV r4.1 r2.8 -1.3 2.5 0.3 r-1.5 r-2.5 r-1.8 r35.5 r0.5 

 ANNUAL r3.9 r1.0 -2.8 3.1 1.4 r-0.8 r0.3 r-0.5 r16.0 r0.6 

 2003 I r2.7 r1.3 -1.4 3.0 0.1 r0.3 r0.4 r0.3 r12.6 r1.2 

 II r3.6 r1.8 -1.7 3.6 1.4 r0.0 r-0.1 r0.0 r18.7 r1.4 

 III r4.9 r3.3 -1.5 4.5 2.3 r-0.4 r-0.2 r-0.3 r25.5 r1.7 

 IV r5.5 r4.7 -0.8 5.0 3.1 r-0.5 r-0.5 r-0.5 r22.3 r1.4 

 ANNUAL r4.2 r2.8 -1.3 4.0 1.7 r-0.1 r-0.1 r-0.1 r20.1 r1.4 

 2004 I r5.2 r5.7 0.5 4.7 2.8 r-0.5 r-2.6 r-1.0 r29.9 r1.5 

 II r4.1 r5.3 1.2 4.5 1.6 r0.4 r-1.0 r0.0 r21.5 r2.0 

 III r3.0 r4.7 1.7 r3.9 1.2 r0.9 r-0.8 0.4 r13.4 r1.7 

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

 See footnotes following Table 6. February 3, 2005 

 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 +1.4 index 

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

measure between the fourth quarter of 1995 and the third quarter of 2004. 

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 1978-2003 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. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

 Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

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

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

 1987 88.4 91.7 103.8 r81.3 r98.0 r92.0 

 1988 90.0 96.3 107.0 r84.1 r97.8 r93.4 

 1989 90.3 97.2 107.6 r86.6 r96.6 r95.9 

 1990 92.9 97.6 105.0 r90.5 r96.1 r97.3 

 1991 95.4 96.0 100.5 r95.6 r98.0 r100.1 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 102.7 104.1 101.4 r102.0 r99.5 r99.3 

 1994 106.1 110.0 103.8 r105.3 r100.6 r99.3 

 1995 109.9 115.0 104.6 r107.3 r100.1 r97.6 

 1996 113.9 118.6 104.2 r109.3 r99.3 r96.0 

 1997 118.0 125.1 106.0 r112.2 r99.8 r95.1 

 1998 123.6 130.7 105.7 r118.7 r104.2 r96.0 

 1999 128.1 134.6 105.1 r123.4 r106.0 r96.4 

 2000 134.1 138.6 103.4 r134.7 r112.0 r100.5 

 2001 136.9 132.3 96.6 r137.8 r111.5 r100.7 

 2002 r147.3 r132.2 89.7 r147.1 r117.1 r99.8 

 2003 r154.7 r132.2 85.4 r159.6 r124.2 r103.2 

 2004 r162.4 r138.6 r85.3 r165.4 r125.4 r101.9 

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

 See footnotes following Table 6. February 3, 2004 

 r=revised Source: Bureau of Labor Statistics 
18 

 Appendix table 2. Durable manufacturing sector: Productivity, hourly compensation, 

 and unit labor costs, Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

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

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

 1987 89.3 95.1 106.5 r81.3 r97.9 r91.0 

 1988 91.2 100.9 110.6 r83.6 r97.2 r91.6 

 1989 91.1 101.1 111.0 r85.9 r95.8 r94.3 

 1990 93.2 100.1 107.4 r89.5 r95.0 r96.0 

 1991 94.5 95.9 101.4 94.9 r97.3 100.4 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 104.5 106.0 101.4 r101.9 r99.4 r97.4 

 1994 109.7 114.8 104.7 r105.4 r100.7 r96.1 

 1995 115.2 122.8 106.6 r106.7 r99.5 r92.6 

 1996 120.7 129.5 107.3 108.1 98.2 89.5 

 1997 126.3 139.5 110.5 110.6 98.4 87.6 

 1998 135.4 150.2 111.0 r117.1 r102.7 r86.5 

 1999 143.3 158.5 110.6 r122.4 r105.2 r85.4 

 2000 150.9 165.7 109.8 r134.2 r111.6 r89.0 

 2001 152.9 155.9 101.9 r136.4 r110.3 r89.2 

 2002 r166.2 r155.3 93.5 r144.0 r114.6 r86.6 

 2003 r177.5 r157.3 88.6 r157.8 r122.8 r88.9 

 2004 r188.4 r168.4 r89.4 r162.4 r123.0 r86.2 

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

 See footnotes following Table 6. February 3, 2004 

 r=revised Source: Bureau of Labor Statistics 
19 

 Appendix table 3. Nondurable manufacturing sector: Productivity, hourly compensation, 

 and unit labor costs, Indexes 1992=100 

 Real 

 Output per Hours Compensa- compensa- Unit 

 hour of of all tion per tion per labor 

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

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

 1987 90.5 90.2 99.7 r80.8 r97.4 r89.3 

 1988 92.0 93.3 101.5 r84.2 r98.0 r91.6 

 1989 92.3 94.7 102.7 r87.1 r97.2 r94.4 

 1990 94.8 96.1 101.4 r91.7 r97.4 r96.8 

 1991 97.4 96.6 99.2 r96.5 r98.9 r99.1 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 100.5 101.9 101.4 r102.3 r99.8 r101.8 

 1994 102.2 104.5 102.3 r104.7 r100.1 r102.5 

 1995 104.6 106.3 101.6 r107.8 r100.6 r103.0 

 1996 107.1 106.5 99.5 r110.8 r100.7 r103.5 

 1997 110.7 110.0 99.4 r114.1 r101.5 r103.1 

 1998 113.0 110.6 97.9 r120.3 r105.5 r106.5 

 1999 113.9 110.3 96.9 r123.6 r106.2 r108.5 

 2000 118.5 111.1 93.8 r133.2 r110.7 r112.4 

 2001 121.5 107.8 88.7 r138.6 r112.1 r114.1 

 2002 r128.3 r108.0 84.2 r151.4 r120.5 r118.0 

 2003 r131.7 r106.3 80.7 r161.5 r125.7 r122.6 

 2004 r136.9 r108.6 r79.3 r169.2 r128.2 r123.6 

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

 See footnotes following Table 6. February 3, 2004 

 r=revised Source: Bureau of Labor Statistics 
20 

Appendix table 4. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, 

 unit profits, and prices 

 Indexes 1992=100 

 Output Hourly Real Unit Total Unit Implicit 

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

 employee Employee sation compen labor labor costs fits deflator 

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

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

 1958 r52.8 r25.4 48.0 15.0 67.2 r28.4 r23.5 r27.1 r47.2 r28.9 

 1959 r55.3 r28.2 50.9 15.6 69.3 r28.1 r22.3 r26.6 r55.8 r29.2 

 1960 r56.2 r29.1 51.8 16.2 70.8 r28.8 r23.3 r27.3 r50.2 r29.4 

 1961 r57.9 r29.7 51.3 16.7 72.4 r28.8 r23.8 r27.5 r50.3 r29.5 

 1962 r60.4 r32.2 53.3 17.4 74.4 r28.7 r23.4 r27.3 r54.5 r29.7 

 1963 r62.5 r34.1 54.5 17.9 75.7 r28.6 r23.4 r27.2 r57.3 r29.9 

 1964 r63.5 r36.5 57.5 18.2 76.2 r28.7 r23.3 r27.2 r59.7 r30.1 

 1965 r65.1 r39.5 60.7 18.8 77.1 r28.8 r23.1 r27.3 r64.1 r30.6 

 1966 r66.2 r42.3 63.9 19.8 79.2 r29.9 r23.3 r28.2 r63.6 r31.3 

 1967 r67.1 r43.4 64.6 20.9 81.1 r31.2 r24.7 r29.4 r59.9 r32.2 

 1968 r69.5 r46.1 66.4 22.5 83.7 r32.4 r26.2 r30.7 r60.0 r33.4 

 1969 r69.5 r47.9 69.0 24.0 84.8 r34.6 r28.6 r33.0 r54.0 r34.8 

 1970 r69.8 r47.4 67.9 25.7 85.9 r36.9 r32.2 r35.6 r44.4 r36.4 

 1971 r72.7 r49.3 67.9 27.3 87.4 r37.6 r33.6 r36.5 r50.5 r37.8 

 1972 r74.2 r53.1 71.6 28.8 89.2 r38.8 r33.9 r37.5 r54.1 r39.0 

 1973 r74.8 r56.3 75.2 31.0 90.4 r41.4 r35.7 r39.9 r54.9 r41.2 

 1974 r73.3 r55.3 75.5 33.9 89.2 r46.3 r41.1 r44.9 r48.4 r45.2 

 1975 r76.1 r54.6 71.7 37.3 89.7 r49.0 r46.6 r48.3 r63.1 r49.6 

 1976 r78.5 r58.9 75.0 40.3 91.8 r51.3 r46.4 r50.0 r71.4 r51.9 

 1977 r80.6 r63.2 78.4 43.5 93.0 r54.0 r48.4 r52.5 r77.3 r54.7 

 1978 r81.7 r67.4 82.5 47.6 95.1 r58.2 r51.2 r56.4 r79.1 r58.4 

 1979 r81.0 r69.5 85.8 51.9 94.9 r64.1 r55.8 r61.9 r74.0 r62.9 

 1980 r80.8 r68.8 85.2 57.2 94.1 r70.8 r64.9 r69.2 r66.9 r69.0 

 1981 r82.9 r71.6 86.4 62.4 93.9 r75.3 r73.4 r74.8 r81.0 r75.4 

 1982 83.1 69.9 84.1 66.5 94.4 r80.0 81.3 r80.4 r75.2 r79.9 

 1983 r85.7 r73.1 85.3 68.9 94.0 r80.4 r81.6 r80.7 r91.2 r81.7 

 1984 r87.8 r79.7 90.8 71.9 94.3 r81.9 r81.3 r81.7 r107.6 r84.1 

 1985 r89.6 r83.2 92.9 75.2 95.4 r83.9 r83.6 r83.8 r102.3 r85.5 

 1986 r91.4 r85.2 93.2 78.9 98.3 r86.3 r86.3 r86.3 r90.2 r86.6 

 1987 r93.3 r89.7 96.1 81.6 98.3 r87.4 r85.8 r87.0 r100.1 r88.1 

 1988 r95.7 r94.9 99.1 84.9 98.7 r88.7 r86.8 r88.2 r111.6 r90.3 

 1989 r94.6 r96.6 102.2 87.0 97.0 r92.0 r93.3 r92.4 r101.2 r93.2 

 1990 r95.4 r97.8 102.5 91.1 96.8 r95.5 r97.3 r96.0 r96.9 r96.1 

 1991 r97.4 r97.0 99.6 95.5 97.9 r98.0 r102.7 r99.3 r93.2 r98.7 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r100.3 r102.8 102.4 101.8 99.3 r101.4 r99.9 r101.0 r114.1 r102.2 

 1994 r102.2 r109.2 106.8 103.6 98.9 r101.3 r100.8 r101.2 r131.7 r103.9 

 1995 103.3 114.3 110.6 105.3 98.3 r101.9 r101.2 r101.7 136.9 104.9 

 1996 r107.1 r120.6 112.6 108.5 98.6 r101.3 r100.0 100.9 r150.0 105.3 

 1997 109.9 128.4 116.9 111.7 99.4 101.7 r99.7 r101.1 r154.3 105.9 

 1998 r113.5 r135.8 119.7 118.1 103.6 r104.1 r99.5 r102.9 r137.0 r105.9 

 1999 r117.3 r144.0 122.8 123.5 106.1 r105.3 r100.4 r104.0 r129.1 r106.2 

 2000 r121.5 r151.5 124.7 132.0 109.7 r108.6 r104.2 r107.4 r108.7 r107.5 

 2001 r123.5 r150.2 121.5 137.3 111.1 r111.2 r112.6 r111.6 r82.2 r108.9 

 2002 128.4 151.6 118.1 141.5 112.7 r110.3 113.0 111.0 95.4 109.6 

 2003 r133.7 r155.9 116.5 147.3 114.6 r110.1 r112.9 r110.8 r114.6 r111.2 

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

 See footnotes following Table 6. February 3, 2005 

 r=revised Source: Bureau of Labor Statistics