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                           PRODUCTIVITY AND COSTS
                  Fourth Quarter and Annual Averages, 1996


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised fourth-quarter seasonally-adjusted annual rates of
productivity change--as measured by output per hour of all persons--and
revised annual changes for the full year 1996.  In the fourth quarter,
productivity rose in both the business and nonfarm business sectors.  Percent
changes in business and nonfarm business productivity were:

                                  Fourth  Annual averages
                                 quarter     1995-1996
     Business sector                1.2          1.0
     Nonfarm business sector        1.1          0.7
     
     For the year 1996, productivity increases in both sectors were the
largest since 1992.  Fourth-quarter productivity and related measures are
summarized in table A and appear in detail in tables 1 through 5; the
preliminary and revised fourth-quarter and annual measures appear in table C.

     In the manufacturing sector, increases in productivity were:

                                     Fourth  Annual averages
                                    quarter     1995-1996
     Manufacturing                     4.4          3.9
       Durable goods manufacturing     3.4          4.9
       Nondurable goods manufacturing  5.7          3.0

     Manufacturing productivity rose at a 4.4 percent annual rate in the
fourth quarter as output increased 4.5 percent but hours of all persons grew
only 0.1 percent (table A).  On an annual basis, manufacturing productivity
rose 3.9 percent in 1996, the largest increase in a decade.  Output and hours
in manufacturing, which includes about 18 percent of U.S. business-sector
employment, tend to vary more from quarter to quarter than data for the more
aggregate business and nonfarm business sectors.

-----------------------------------------------------------------------
Table A. Productivity and costs: Revised fourth-quarter 1996 measures
(Seasonally adjusted annual rates)
-----------------------------------------------------------------------                                                                
                                                    Real      
                                           Hourly   hourly    Unit
                  Produc-                  compen-  compen-   labor
Sector            tivity   Output  Hours   sation   sation    costs
-----------------------------------------------------------------------                   
                      Percent change from preceding quarter
Business           1.2       4.8    3.6      3.7      0.4       2.5
Nonfarm business   1.1       5.0    3.9      3.6      0.2       2.5
Manufacturing      4.4       4.5    0.1      2.8     -0.6      -1.6
  Durable          3.4       3.3   -0.1      2.0     -1.3      -1.4
  Nondurable       5.7       6.2    0.4      4.2      0.8      -1.5
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business           1.2       3.7    2.5      3.7      0.5       2.5
Nonfarm business   0.9       3.6    2.7      3.6      0.4       2.7
Manufacturing      4.2       4.2    0.0      3.4      0.2      -0.8
  Durable          4.9       5.8    0.9      2.7     -0.5      -2.1
  Nondurable       3.6       2.3   -1.2      4.3      1.1       0.7
-----------------------------------------------------------------------


     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


                    THIRD-TO-FOURTH QUARTER CHANGES, 1996
Business

     Business sector productivity rose at a 1.2 percent annual rate in the
fourth quarter of 1996 as output increased 4.8 percent and hours of all
persons engaged in the sector increased 3.6 percent.  The fourth-quarter
increase in labor productivity was larger than the 0.3 percent gain posted
during the third quarter of 1996, when output rose 2.2 percent and hours of
all persons grew 1.9 percent (table 1).

     Hourly compensation increased 3.7 percent during the fourth quarter of
1996, about the same as the 3.8 percent growth during the third quarter.
This measure includes wages and salaries, supplements, employer contributions
to employee-benefit plans, and taxes.  Unit labor costs, which reflect
changes in both hourly compensation and productivity, increased at a 2.5
percent annual rate during the fourth quarter, a slower rate of growth than
the 3.4 percent increase posted one quarter earlier.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 0.4 percent
annual rate for persons in the business sector.  This measure had risen 1.1
percent during the third quarter.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, rose 1.1 percent in the
fourth quarter.  This increase was down slightly from the 1.3 percent gain in
the third quarter of 1996.

Nonfarm business

     In the nonfarm business sector, productivity rose 1.1 percent at an
annual rate in the fourth quarter as output rose 5.0 percent, and hours of
all persons--employees, proprietors, and unpaid family workers--rose 3.9
percent. During the third quarter, nonfarm productivity had remained
unchanged as output and hours both grew 1.9 percent (table 2).

     Hourly compensation rose 3.6 percent in the fourth quarter, slightly
more than the 3.3 percent increase in the third quarter.  Real hourly
compensation in the fourth quarter increased 0.2 percent when the increase in
the CPI-U was taken into account.  During the third quarter, real hourly
compensation rose 0.7 percent.

     Unit labor costs rose 2.5 percent in the fourth quarter, down from a 3.3
percent increase in the third quarter of 1996.  The implicit price deflator
for nonfarm business rose 1.2 percent in both the third and fourth quarters.

Manufacturing

     Manufacturing productivity rose at a 4.4 percent seasonally adjusted
annual rate in the fourth quarter of 1996, following an increase of 5.9
percent in the third quarter.  Output in the fourth quarter rose 4.5 percent,
and hours of all persons increased 0.1 percent.  In the third quarter, output
grew 5.0 percent but hours dropped 0.9 percent (table 3).  Both durable and
nondurable goods industries experienced productivity increases in the fourth
quarter, 3.4 and 5.7 percent, respectively.  In durable goods manufacturing,
output increased 3.3 percent in the fourth quarter while hours fell 0.1
percent.  Output and hours growth in nondurable goods manufacturing were
stronger, 6.2 and 0.4 percent, respectively (tables 4 and 5).

     Hourly compensation of all manufacturing workers increased 2.8 percent
during the fourth quarter, down from the 4.6 percent increase in the previous
quarter.  When the increase in consumer prices was taken into account, real
hourly compensation fell 0.6 percent in the fourth quarter after rising 1.9
percent in the third quarter.  Unit labor costs dropped 1.6 percent in the
fourth quarter of 1996 and 1.2 percent in the third quarter.  These costs
have declined in four of the last six quarters.
     
-----------------------------------------------------------------------     
Table B. Productivity and costs: Revised 1996 annual averages
(Seasonally adjusted annual rates)
-----------------------------------------------------------------------
                                                     Real      
                                           Hourly   hourly   Unit
                  Produc-                  compen-  compen- labor
     Sector       tivity   Output  Hours   sation   sation  costs
-----------------------------------------------------------------------                                 
                           Percent change from previous year
Business             1.0    3.0     2.0      3.8      0.8    2.8
Nonfarm business     0.7    2.9     2.2      3.6      0.7    2.9
Manufacturing        3.9    2.8    -1.0      3.5      0.5   -0.3
  Durable            4.9    5.1     0.2      2.8     -0.1   -1.9
  Nondurable         3.0    0.1    -2.8      4.3      1.3    1.3
-----------------------------------------------------------------------
     
                      ANNUAL AVERAGE CHANGES, 1995-1996

Business

     In calendar year 1996, business productivity increased 1.0 percent, the
largest gain since the 3.4 percent increase posted in 1992 (table 1).  Output
grew 3.0 percent in 1996, and hours of all persons engaged in the sector
increased 2.0 percent.  In the previous year, productivity had risen only 0.1
percent as output grew 2.5 percent and hours of all persons increased 2.4
percent.

     Hourly compensation increased 3.8 percent in 1996, more than the 3.1
percent increase  in 1995.  The 1996 increase was the largest since 1992,
when hourly compensation rose 5.2 percent.  Real hourly compensation
increased 0.8 percent in 1996 and 0.3 percent in 1995.

     Unit labor costs increased 2.8 percent during 1996, just slightly less
than the 3.0 percent increase posted a year earlier.  The implicit price
deflator, reflecting both the increase in unit labor costs and the 0.3
percent decline in unit nonlabor payments in 1996, rose 1.6 percent.  The
implicit deflator had risen 2.3 percent in 1995.

Nonfarm business

     Productivity increased 0.7 percent in the nonfarm business sector during
1996, as output rose 2.9 percent and hours of all persons increased 2.2 per
cent.  The 1996 increase in productivity was higher than the 0.3 percent
increase posted in 1995, when output rose 2.7 percent and hours of all
persons grew 2.4 percent.

     Hourly compensation grew more in 1996, 3.6 percent, than it had in 1995,
3.2 percent.  Real hourly compensation increased 0.7 percent, compared with
0.3 percent in 1995.  The 1996 increase in real hourly compensation was the
largest since a 2.1 percent rise in 1992.
     
     Unit labor costs in the nonfarm business sector grew 2.9 percent in both
1995 and 1996.  The implicit price deflator, which reflects nonlabor payments
as well as labor costs, rose 1.5 percent in 1996 and 2.2 percent in 1995.
     
Manufacturing

     Manufacturing productivity grew 3.9 percent in 1996, continuing a trend
of annual increases that began in 1980.  Output in the manufacturing sector
increased 2.8 percent in 1996, and hours of all persons declined 1.0 percent.
During 1995, productivity rose 3.4 percent, output 3.5 percent, and hours 0.1
percent.  Although productivity increased in both the durable and nondurable
goods sectors in 1996, durable goods manufacturers had a larger increase (4.9
percent) than nondurable goods manufacturers (3.0 percent).  Trends in output
and hours also were different in the two subsectors.  Output and hours rose
5.1 and 0.2 percent, respectively, in the durable goods sector in 1996.  In
the nondurable goods sector, output rose 0.1 percent while hours dropped 2.8
percent (tables B, 3, 4, and 5).

     The hourly compensation of manufacturing workers increased 3.5 percent
in 1996; however, the rise was only 0.5 percent after the increase in
consumer prices was taken into account.  In 1995, hourly compensation had
increased 3.7 percent, and real hourly compensation rose 0.9 percent.
Compensation growth differed between durable and nondurable goods producers
in 1996.  Hourly compensation in durable goods rose 2.8 percent in 1996, and
real hourly compensation dropped 0.1 percent.  In nondurable goods
industries, hourly compensation rose 4.3 percent, and real hourly
compensation rose 1.3 percent.

     Unit labor costs in the manufacturing sector fell 0.3 percent in 1996
after rising 0.3 percent in 1995.  In durable goods, unit labor costs fell
1.9 percent in 1996 and have fallen every year since 1991, when they rose 2.9
percent.  Unit labor costs in nondurable goods rose 1.3 percent in 1996,
about the same as the 1.1 percent rise in 1995.
     
-----------------------------------------------------------------------     
Table C. Previous and revised productivity and related measures:
Fourth-quarter and annual averages, 1996
(Seasonally adjusted annual rates)
-----------------------------------------------------------------------                                                              
                                                   Real      
                                          Hourly   hourly    Unit
                  Produc-                 compen-  compen-   labor
Sector            tivity  Output  Hours   sation   sation    costs
-----------------------------------------------------------------------                                                              
            Percent change, third to fourth quarter 1996
Business:                                                     
  Previous         2.4      5.8    3.4     3.7       0.6      1.3
  Current          1.2      4.8    3.6     3.7       0.4      2.5
Nonfarm business:                                            
  Previous         2.2      5.9    3.7     3.6       0.4      1.4
  Current          1.1      5.0    3.9     3.6       0.2      2.5
Manufacturing:                                                
  Previous         3.8      3.7    0.0     2.9      -0.3     -0.9
  Current          4.4      4.5    0.1     2.8      -0.6     -1.6
-----------------------------------------------------------------------
                     Percent change, 1995 - 1996
Business:                                                     
  Previous         1.0      3.0    2.0     3.8       0.8      2.7
  Current          1.0      3.0    2.0     3.8       0.8      2.8
Nonfarm business:                                             
  Previous         0.8      2.9    2.1     3.6       0.7      2.9
  Current          0.7      2.9    2.2     3.6       0.7      2.9
Manufacturing:                                                
  Previous         3.8      2.7   -1.1     3.5       0.5     -0.3
  Current          3.9      2.8   -1.0     3.5       0.5     -0.3
-----------------------------------------------------------------------

Revised Measures

     Productivity and cost measures for the fourth quarter and full year 1996
for business, nonfarm business, and manufacturing were revised to incorporate
the most recent information.  In the business and nonfarm business sectors,
productivity and output measures for the fourth quarter are lower than those
reported on February 11 based on information available at that time.  In
manufacturing, productivity and output measures are higher than those
announced on February 11.  In all sectors, quarterly measures of real hourly
compensation were revised back to the first quarter of 1992 to incorporate
the annual recalculation of seasonal factors for the Consumer Price Index
(table C).


                              Next release date
                                      
     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Wednesday, May 7, 1997, and will contain preliminary first-quarter
measures for business, nonfarm business, and manufacturing.  Fourth-quarter
and annual measures for nonfinancial corporations will be released at that
time.
                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. 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 Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted 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 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes 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;  non-
 electrical  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 constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  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 52 percent of the value of GDP in 1992.
 
 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: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 
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

  1994       I     100.5      104.9     104.4     104.0       r99.4      103.6       104.5      103.9
            II     100.6      106.7     106.0     104.2        99.0      103.6       105.7      104.4
           III     101.1      107.7     106.6     104.7        98.6      103.6       107.6      105.1
            IV     101.1      108.7     107.6     105.5       r98.7      104.4       107.8      105.6

        ANNUAL     100.7      107.0     106.2     104.5        99.0      103.8       106.5      104.7

  1995       I     100.4      108.8     108.4     106.2       r98.7      105.8       107.4      106.4
            II     100.8      109.0     108.2     107.3       r99.0      106.5       107.8      106.9
           III     101.2      110.3     109.0     108.3        99.3      107.0       108.3      107.5
            IV     101.0      110.4     109.3     109.4        99.8      108.3       106.7      107.8

        ANNUAL     100.8      109.6     108.8     107.8        99.2      106.9       107.6      107.1

  1996       I     101.5      111.2     109.6     110.3       r99.7      108.6       107.4      108.2
            II     101.8      112.6     110.6     111.4        99.9      109.4       107.7      108.8
           III     101.9      113.2     111.1     112.5       100.2      110.4       107.0      109.2
            IV    r102.2     r114.6    r112.1     113.5       100.3     r111.0      r106.7      109.5

        ANNUAL    r101.8     r112.9     110.9     111.8       100.0     r109.9      r107.2      108.9

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      -1.7        1.7       3.5       2.8        r0.7        4.6        -1.3        2.4
            II       0.5        6.9       6.4       0.7       r-1.6        0.2         4.6        1.8
           III       1.9        4.1       2.1       2.0        -1.7        0.1         7.3        2.7
            IV       0.2        3.8       3.6       2.9        r0.4        2.8         0.8        2.0

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I      -2.6        0.3       3.0       2.8        r0.1        5.6        -1.4        3.0
            II       1.4        0.7      -0.7       4.1        r0.9        2.6         1.3        2.2
           III       1.4        4.8       3.3       3.6         1.5        2.1         1.8        2.0
            IV      -0.6        0.5       1.1       4.3        r1.8        5.0        -5.6        1.0

        ANNUAL       0.1        2.5       2.4       3.1         0.3        3.0         1.0        2.3

  1996       I       2.1        3.0       0.8       3.2       r-0.1        1.1         2.4        1.5
            II       1.2        5.0       3.8       4.3        r0.9        3.1         1.1        2.4
           III       0.3        2.2       1.9       3.8        r1.1        3.4        -2.3        1.3
            IV      r1.2       r4.8      r3.6       3.7        r0.4       r2.5       r-1.4        1.1

        ANNUAL       1.0        3.0       2.0       3.8         0.8       r2.8       r-0.3        1.6

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I       0.3        3.4       3.1       2.3        -0.2        2.0         2.4        2.2
            II       0.8        4.5       3.6       1.9        -0.5        1.0         3.7        2.0
           III       1.1        4.8       3.6       1.9        -1.0        0.8         5.1        2.3
            IV       0.2        4.1       3.9       2.1        -0.5        1.9         2.8        2.2

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I       0.0        3.8       3.8       2.1        -0.7        2.1         2.8        2.4
            II       0.2        2.2       2.0       3.0        -0.1        2.8         2.0        2.5
           III       0.1        2.4       2.3       3.4         0.7        3.3         0.6        2.3
            IV      -0.1        1.6       1.7       3.7        r1.1        3.8        -1.0        2.0

        ANNUAL       0.1        2.5       2.4       3.1         0.3        3.0         1.0        2.3

  1996       I       1.1        2.2       1.1       3.8         1.0        2.7        -0.1        1.7
            II       1.0        3.3       2.2       3.8         1.0        2.8        -0.1        1.7
           III       0.7        2.7       1.9       3.9         0.9        3.1        -1.1        1.6
            IV      r1.2       r3.7       2.5       3.7        r0.5       r2.5        r0.0        1.6

        ANNUAL       1.0        3.0       2.0       3.8         0.8       r2.8       r-0.3        1.6

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 11, 1997 
  r=revised                                                              Source: Bureau of Labor Statistics

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

  1994       I     100.3      104.9     104.6     103.8        99.2      103.4       104.8      103.9
            II     100.6      106.7     106.1     104.1        98.9      103.5       106.3      104.5
           III     101.0      107.8     106.7     104.5        98.4      103.5       108.4      105.3
            IV     101.1      108.8     107.6     105.4       r98.6      104.2       108.4      105.7

        ANNUAL     100.7      107.0     106.3     104.3        98.8      103.7       107.0      104.9

  1995       I     100.5      109.0     108.4     106.2        98.7      105.6       108.2      106.5
            II     100.9      109.2     108.3     107.2       r98.9      106.3       108.5      107.1
           III     101.3      110.6     109.1     108.2       r99.3      106.8       108.9      107.5
            IV     101.1      110.7     109.5     109.3        99.6      108.1       107.1      107.8

        ANNUAL     100.9      109.9     108.9     107.7        99.1      106.7       108.2      107.2

  1996       I     101.5      111.4     109.8     110.2       r99.6      108.5       107.4      108.1
            II     101.7      112.8     110.9     111.3       r99.8      109.4       107.3      108.7
           III     101.7      113.3     111.4     112.2        99.9      110.3       106.7      109.0
            IV    r102.0     r114.7    r112.5     113.2       100.0     r111.0      r106.3     r109.3

        ANNUAL    r101.6     r113.0     111.2     111.6        99.8     r109.8      r106.9      108.8

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      -1.8        0.8       2.7       2.9         0.9        4.9        -1.7        2.5
            II       1.0        7.0       6.0       1.3       r-1.1        0.3         5.6        2.2
           III       1.7        4.2       2.4       1.8        -1.9        0.1         8.2        2.9
            IV       0.4        4.0       3.6       3.3        r0.8        2.9         0.1        1.9

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I      -2.3        0.6       2.9       2.9        r0.2        5.3        -0.9        3.0
            II       1.5        0.9      -0.6       4.0        r0.9        2.5         1.1        2.0
           III       1.8        5.0       3.2       3.7        r1.5        1.9         1.4        1.7
            IV      -1.2        0.3       1.5       4.0        r1.5        5.2        -6.4        0.9

        ANNUAL       0.3        2.7       2.4       3.2         0.3        2.9         1.1        2.2

  1996       I       1.9        2.7       0.8       3.4        r0.1        1.5         1.1        1.4
            II       0.6        4.8       4.1       3.9        r0.5        3.3        -0.1        2.1
           III       0.0        1.9       1.9       3.3        r0.7        3.3        -2.5        1.2
            IV      r1.1       r5.0      r3.9       3.6        r0.2       r2.5       r-1.3       r1.2

        ANNUAL      r0.7        2.9      r2.2       3.6         0.7        2.9       r-1.1        1.5

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I       0.2        3.3       3.1       2.2        -0.3        2.0         2.1        2.1
            II       0.9        4.3       3.4       2.0        -0.4        1.1         3.9        2.1
           III       0.9        4.3       3.4       2.0        -0.8        1.1         5.1        2.5
            IV       0.3        4.0       3.7       2.3        -0.3        2.0         3.0        2.4

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I       0.2        3.9       3.7       2.3        -0.5        2.1         3.2        2.5
            II       0.3        2.4       2.1       3.0        r0.0        2.7         2.1        2.5
           III       0.3        2.6       2.3       3.5         0.8        3.1         0.4        2.1
            IV      -0.1        1.7       1.8       3.7         1.0        3.7        -1.2        1.9

        ANNUAL       0.3        2.7       2.4       3.2         0.3        2.9         1.1        2.2

  1996       I       1.0        2.2       1.2       3.8         1.0        2.8        -0.8        1.5
            II       0.8        3.2       2.4       3.8         0.9        3.0        -1.1        1.5
           III       0.3        2.4       2.1       3.7         0.7        3.3        -2.0        1.4
            IV      r0.9       r3.6      r2.7       3.6         0.4       r2.7       r-0.7        1.5

        ANNUAL      r0.7        2.9      r2.2       3.6         0.7        2.9       r-1.1        1.5

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 11, 1997
  r=revised                                                              Source: Bureau of Labor Statistics
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

  1994       I            104.0        106.6        102.4        104.4          r99.8         100.4
            II            105.3        108.7        103.2        104.7           99.5          99.4
           III            105.7        110.0        104.0        105.5           99.4          99.8
            IV            106.5        111.8        104.9        106.4          r99.5          99.9

        ANNUAL            105.2        109.3        103.8        105.1           99.5          99.9

  1995       I            107.2        112.9        105.3        107.2           99.7         100.0
            II            108.2        112.6        104.0        108.4         r100.0         100.2
           III            109.6        113.3        103.4        109.7         r100.7         100.1
            IV            110.5        113.6        102.8        110.9          101.1         100.4

        ANNUAL            108.9        113.1        103.9        109.0          100.4         100.2

  1996       I            111.6        113.9        102.0        111.0         r100.3          99.4
            II            112.2        115.6        103.0        112.5         r100.9         100.3
           III            113.8        117.0        102.8        113.8          101.4         100.0
            IV           r115.1       r118.3        102.8        114.6          101.3         r99.6

        ANNUAL           r113.1        116.2        102.8       r112.8          100.9         r99.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I              4.2          6.3          2.0          3.3            1.3          -0.8
            II              5.1          8.1          2.9          1.1          r-1.3          -3.8
           III              1.6          5.0          3.4          3.2           -0.6           1.6
            IV              3.0          6.7          3.6          3.2           r0.6           0.2

        ANNUAL              3.1          5.6          2.4          2.7            0.1          -0.4

  1995       I              2.8          4.2          1.4          3.3           r0.5           0.5
            II              3.6         -1.4         -4.7          4.3           r1.2           0.7
           III              5.3          2.6         -2.5          5.1           r2.9          -0.2
            IV              3.2          1.0         -2.2          4.2            1.7           0.9

        ANNUAL              3.4          3.5          0.1          3.7            0.9           0.3

  1996       I              4.3          1.1         -3.0          0.4          r-2.9          -3.7
            II              2.1          6.3          4.1          5.8           r2.3           3.6
           III              5.9          5.0         -0.9          4.6           r1.9          -1.2
            IV             r4.4         r4.5         r0.1         r2.8          r-0.6         r-1.6

        ANNUAL             r3.9         r2.8        r-1.0          3.5            0.5          -0.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              2.2          3.8          1.5          3.1            0.6           0.9
            II              3.5          5.5          1.9          2.8            0.4          -0.7
           III              3.9          6.4          2.4          2.9            0.0          -1.0
            IV              3.5          6.5          3.0          2.7            0.0          -0.7

        ANNUAL              3.1          5.6          2.4          2.7            0.1          -0.4

  1995       I              3.1          6.0          2.8          2.7           -0.2          -0.4
            II              2.7          3.6          0.8          3.5            0.4           0.8
           III              3.6          3.0         -0.6          4.0            1.3           0.3
            IV              3.7          1.6         -2.0          4.2            1.5           0.5

        ANNUAL              3.4          3.5          0.1          3.7            0.9           0.3

  1996       I              4.1          0.8         -3.1          3.5            0.7          -0.6
            II              3.7          2.7         -1.0          3.8           r1.0           0.1
           III              3.9          3.3         -0.5          3.7           r0.7          -0.1
            IV             r4.2         r4.2          0.0          3.4           r0.2         r-0.8

        ANNUAL             r3.9         r2.8        r-1.0          3.5            0.5          -0.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 11, 1997
  r=revised                                                       Source: Bureau of Labor Statistics
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

  1994       I            106.0        109.4        103.2        104.2           99.7          98.4
            II            107.1        111.5        104.1        104.5           99.3          97.6
           III            108.1        113.7        105.3        105.3          r99.2          97.5
            IV            109.0        116.1        106.5        106.1           99.3          97.3

        ANNUAL            107.3        112.7        105.0        104.8           99.2          97.7

  1995       I            110.4        118.1        107.0        106.9           99.4          96.9
            II            111.0        117.8        106.1        108.0          r99.6          97.3
           III            112.9        119.4        105.8        109.4         r100.4          96.9
            IV            114.1        120.4        105.6        110.4          100.7          96.8

        ANNUAL            112.1        118.9        106.1        108.6          100.0          96.9

  1996       I            115.7        121.5        105.0        109.7           99.3          94.8
            II            116.7        124.6        106.8        111.6         r100.1          95.6
           III            118.6        126.4        106.5        112.8          100.5          95.1
            IV           r119.6       r127.4       r106.5        113.4          100.2         r94.8

        ANNUAL            117.5       r125.0        106.3        111.7           99.9          95.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I              4.1          7.7          3.4          3.0            0.9          -1.1
            II              4.5          8.2          3.6          1.0          r-1.3          -3.3
           III              3.5          8.2          4.5          3.1           -0.7          -0.4
            IV              3.7          8.6          4.7          3.1           r0.6          -0.6

        ANNUAL              3.8          7.4          3.5          2.5            0.0          -1.2

  1995       I              5.0          7.1          2.0          3.2           r0.4          -1.7
            II              2.3         -1.1         -3.3          3.9           r0.8           1.6
           III              7.0          5.5         -1.4          5.4           r3.2          -1.5
            IV              4.2          3.5         -0.7          3.6           r1.1          -0.6

        ANNUAL              4.4          5.5          1.1          3.6            0.8          -0.7

  1996       I              5.8          3.7         -2.0         -2.3          r-5.5          -7.7
            II              3.3         10.3          6.8          6.8           r3.3           3.3
           III              7.0          6.0         -0.9          4.6           r1.9          -2.2
            IV             r3.4         r3.3        r-0.1         r2.0          r-1.3         r-1.4

        ANNUAL             r4.9         r5.1          0.2         r2.8           -0.1          -1.9

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              3.2          5.6          2.3          3.1           r0.5          -0.1
            II              3.9          6.9          3.0          2.8           r0.4          -1.1
           III              5.3          8.9          3.5          2.9            0.0          -2.3
            IV              4.0          8.2          4.0          2.5           -0.1          -1.4

        ANNUAL              3.8          7.4          3.5          2.5            0.0          -1.2

  1995       I              4.2          8.0          3.7          2.6           -0.3          -1.5
            II              3.6          5.6          1.9          3.3           r0.3          -0.3
           III              4.5          5.0          0.5          3.9            1.2          -0.6
            IV              4.6          3.7         -0.9          4.0           r1.4          -0.6

        ANNUAL              4.4          5.5          1.1          3.6            0.8          -0.7

  1996       I              4.8          2.9         -1.9          2.6           -0.1          -2.1
            II              5.1          5.7          0.6          3.3           r0.5          -1.7
           III              5.1          5.8          0.7          3.1           r0.1          -1.9
            IV             r4.9         r5.8         r0.9          2.7          r-0.5         r-2.1

        ANNUAL             r4.9         r5.1          0.2         r2.8           -0.1          -1.9

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 11, 1997
  r=revised                                                       Source: Bureau of Labor Statistics
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

  1994       I            102.3        103.8        101.4        104.6          100.0         102.2
            II            103.8        105.8        101.9        104.9           99.6         101.0
           III            103.7        106.2        102.4        105.6           99.5         101.8
            IV            104.3        107.3        102.9        106.4          r99.6         102.0

        ANNUAL            103.5        105.8        102.2        105.3           99.7         101.8

  1995       I            104.4        107.6        103.0        107.3           99.8         102.8
            II            105.8        107.1        101.3        108.6          100.1         102.6
           III            106.7        106.9        100.2        109.7          100.6         102.8
            IV            107.4        106.4         99.1        110.9          101.2         103.3

        ANNUAL            106.1        107.0        100.9        109.2          100.5         102.9

  1996       I            108.1        105.9         98.0        112.2          101.5         103.8
            II            108.4        106.3         98.1        113.2         r101.6         104.5
           III            109.6        107.3         97.9        114.6          102.1         104.5
            IV           r111.2       r108.9         98.0       r115.7          102.3        r104.1

        ANNUAL            109.2        107.1         98.1        113.8          101.8        r104.2

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I              4.6          4.6          0.1          3.6            1.6          -0.9
            II              6.0          8.1          1.9          1.1          r-1.3          -4.6
           III             -0.5          1.5          1.9          3.1           -0.7           3.5
            IV              2.3          4.4          2.1          3.1           r0.5           0.7

        ANNUAL              2.5          3.5          1.0          2.6            0.1           0.2

  1995       I              0.3          0.8          0.5          3.4           r0.6           3.1
            II              5.3         -1.7         -6.7          4.6           r1.4          -0.7
           III              3.6         -0.7         -4.1          4.2           r2.0           0.6
            IV              2.5         -1.9         -4.3          4.7            2.2           2.2

        ANNUAL              2.5          1.2         -1.3          3.7            0.8           1.1

  1996       I              2.7         -1.9         -4.4          4.7           r1.3           2.0
            II              1.3          1.6          0.3          3.7           r0.3           2.4
           III              4.6          3.7         -0.9          4.7           r2.0           0.1
            IV             r5.7         r6.2          0.4          4.2           r0.8         r-1.5

        ANNUAL             r3.0          0.1         -2.8          4.3            1.3           1.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              1.4          1.9          0.5          3.0            0.5           1.6
            II              3.3          3.8          0.5          2.7           r0.3          -0.7
           III              2.5          3.6          1.0          2.6           -0.2           0.1
            IV              3.1          4.6          1.5          2.7           r0.0          -0.4

        ANNUAL              2.5          3.5          1.0          2.6            0.1           0.2

  1995       I              2.0          3.6          1.6          2.7           -0.2           0.6
            II              1.8          1.2         -0.6          3.5           r0.5           1.7
           III              2.9          0.7         -2.1          3.8            1.1           0.9
            IV              2.9         -0.9         -3.7          4.2           r1.6           1.3

        ANNUAL              2.5          1.2         -1.3          3.7            0.8           1.1

  1996       I              3.5         -1.5         -4.9          4.5            1.7           1.0
            II              2.5         -0.7         -3.1          4.3            1.4           1.8
           III              2.7          0.3         -2.3          4.4           r1.4           1.7
            IV             r3.6         r2.3         -1.2          4.3           r1.1          r0.7

        ANNUAL             r3.0          0.1         -2.8          4.3            1.3           1.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 11, 1997
  r=revised                                                       Source: Bureau of Labor Statistics
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

  1994       I    102.7    107.4     104.5    103.8      99.2     101.0    102.1    101.3    120.5    102.8
            II    102.6    108.9     106.1    103.8      98.6     101.2     98.7    100.5    134.5    103.1
           III    102.4    109.7     107.0    104.1      98.0     101.6     99.3    101.0    136.5    103.7
            IV    102.7    111.5     108.5    104.7      98.0     101.9     98.3    100.9    141.5    104.0

        ANNUAL    102.6    109.3     106.6    104.1      98.5     101.4     99.6    100.9    133.4    103.4

  1995       I    101.8    111.4     109.4    105.3      97.9     103.4    100.0    102.5    130.9    104.7
            II    102.4    112.1     109.4    106.3      98.0     103.8    100.9    103.0    130.1    105.1
           III    103.7    114.0     110.0    107.3      98.4     103.5     99.7    102.5    142.1    105.5
            IV    104.3    115.2     110.5    108.3      98.8     103.9    100.0    102.8    140.4    105.7

        ANNUAL    103.1    113.2     109.8    106.8      98.3     103.6    100.1    102.7    136.0    105.2

  1996       I    104.6    115.8     110.7    109.0      98.6     104.3     99.3    102.9    145.1    106.1
            II    105.0    117.4     111.9    110.1      98.7     104.9     98.4    103.1    147.8    106.5
           III    106.0    119.2     112.4    111.2      99.1     104.9     98.1    103.0    148.6    106.5
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1994       I      1.0      5.0       4.0      3.6       1.6       2.6     12.0      5.1    -22.4      2.2
            II     -0.5      5.7       6.3      0.0     r-2.3       0.5    -12.8     -3.3     55.2      1.2
           III     -0.6      2.8       3.5      1.1      -2.6       1.7      2.4      1.9      5.9      2.3
            IV      1.1      6.7       5.5      2.4     r-0.1       1.2     -3.7     -0.1     15.6      1.4

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I     -3.4     -0.2       3.3      2.4     r-0.4       6.0      7.0      6.3    -26.8      2.4
            II      2.3      2.4       0.2      3.8      r0.6       1.5      3.7      2.1     -2.4      1.6
           III      4.9      7.2       2.2      3.7      r1.6      -1.1     -4.7     -2.1     42.2      1.6
            IV      2.4      4.3       1.8      3.9      r1.4       1.5      1.0      1.4     -4.8      0.7

        ANNUAL      0.4      3.5       3.0      2.6      -0.2       2.2      0.6      1.8      1.9      1.8

  1996       I      1.3      2.2       0.9      2.7     r-0.6       1.5     -2.6      0.4     14.3      1.7
            II      1.5      5.6       4.1      3.9      r0.5       2.4     -3.6      0.8      7.5      1.5
           III      4.1      6.2       2.0      4.1      r1.4       0.0     -1.1     -0.3      2.2      0.0
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1994       I      2.6      6.1       3.4      2.3      -0.2      -0.3      1.5      0.2     17.1      1.5
            II      1.7      5.8       4.1      1.9      -0.5       0.2     -1.3     -0.2     20.6      1.6
           III      1.0      5.2       4.2      1.6      -1.2       0.7     -0.6      0.3     18.1      1.9
            IV      0.2      5.1       4.8      1.8      -0.9       1.5     -0.9      0.9     10.2      1.8

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I     -0.9      3.7       4.6      1.5      -1.4       2.4     -2.1      1.1      8.6      1.8
            II     -0.2      2.9       3.1      2.4      -0.6       2.6      2.3      2.5     -3.3      1.9
           III      1.2      4.0       2.8      3.1       0.4       1.9      0.5      1.5      4.1      1.8
            IV      1.5      3.4       1.9      3.5       0.8       1.9      1.7      1.9     -0.8      1.6

        ANNUAL      0.4      3.5       3.0      2.6      -0.2       2.2      0.6      1.8      1.9      1.8

  1996       I      2.7      4.0       1.3      3.5       0.8       0.8     -0.7      0.4     10.9      1.4
            II      2.5      4.8       2.2      3.6       0.7       1.1     -2.5      0.1     13.6      1.4
           III      2.3      4.5       2.2      3.7       0.7       1.3     -1.6      0.6      4.6      1.0
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        March 11, 1997
  r=revised                                                               Source: Bureau of Labor Statistics

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 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            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 self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(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.