Internet address: http://www.bls.gov/lpc USDL 05-344 

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, MARCH 3, 2005 

PRODUCTIVITY AND COSTS 

Fourth Quarter and Annual Averages, 2004, Revised 

 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 2004. Percent changes in 

business and nonfarm business productivity were: 

 Fourth Annual averages 

 quarter 2003-2004 

Business sector........................................ 3.7 4.0 

Nonfarm business sector......................... 2.1 4.0 

In the fourth quarter, productivity increased 3.7 percent in the business sector, more than 

the 2.5 percent preliminary estimate published Feb. 3. In nonfarm businesses, productivity grew 

2.1 percent, compared to the preliminary estimate of 0.8 percent (seasonally adjusted annual 

rates). On an annual average basis, productivity rose 4.0 percent in both sectors—the same as 

the preliminary estimate for the business sector, and 0.1 percentage point lower than previously 

reported for nonfarm businesses. 

 In the manufacturing sector, increases in productivity were: 

 Fourth Annual averages 

 quarter 2003-2004 

Manufacturing......................................... 5.8 5.2 

 Durable goods manufacturing............... 7.1 6.3 

 Nondurable goods manufacturing......... 3.9 4.3 

Productivity in total manufacturing grew at a 5.8 percent annual rate in the fourth quarter 

of 2004, slightly more than the 5.6 percent preliminary estimate, as a downward revision to 

fourth-quarter productivity growth in durable goods manufacturing partially offset an upward 

revision to output per hour in the nondurable goods subsector. Productivity increases from 2003 

to 2004 were revised upward in total manufacturing and both subsectors. Output and hours in 
2 

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 appear 

in detail in tables 1 through 5. Preliminary and revised fourth-quarter and annual data appear in 

table C. 

Table A. Productivity and costs: Revised 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 3.7 4.2 0.5 4.5 0.9 0.8 

 Nonfarm business 2.1 3.7 1.6 3.4 -0.2 1.3 

 Manufacturing 5.8 4.6 -1.1 6.2 2.5 0.4 

 Durable 7.1 6.0 -1.0 6.6 2.9 -0.5 

 Nondurable 3.9 2.5 -1.3 5.4 1.8 1.5 

 Percent change from same quarter a year ago 

 Business 3.2 4.5 1.3 4.6 1.2 1.4 

 Nonfarm business 2.8 4.4 1.6 4.2 0.9 1.4 

 Manufacturing 5.2 5.0 -0.2 4.7 1.3 -0.5 

 Durable 5.7 6.5 0.8 4.3 0.9 -1.4 

 Nondurable 4.8 3.0 -1.7 5.2 1.8 0.4 

 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 2004 CHANGES 

Business 

 Labor productivity in the business sector rose at a 3.7 percent annual rate in the fourth 

quarter of 2004, as output increased 4.2 percent and hours of all persons engaged in the sector 

increased 0.5 percent (table 1). Output was revised up and hours growth was revised down, 
3 

resulting in a larger productivity gain than originally reported. Revised estimates show that 

output per hour increased 2.0 percent in the third quarter, as output increased 4.5 percent and 

hours increased 2.5 percent. 

 Hourly compensation grew at a 4.5-percent annual rate in the fourth quarter, compared 

with a 5.8-percent rise in the third quarter. 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 0.9 percent in the 

fourth quarter of 2004 after increasing 4.1 percent one quarter earlier. 

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

increased 0.8 percent during the fourth quarter of 2004, after rising 3.7 percent in the third 

quarter. The implicit price deflator for business output, which reflects changes in unit labor 

costs and unit nonlabor payments, increased 2.1 percent in the fourth quarter and 1.1 percent in 

the third quarter. 

Nonfarm business 

In the nonfarm business sector, productivity rose at an annual rate of 2.1 percent in the 

fourth quarter of 2004, as output grew 3.7 percent and hours of all persons—employees, 

proprietors, and unpaid family workers—rose 1.6 percent (seasonally adjusted annual rates). 

Nonfarm business productivity increased 1.3 percent in the third quarter of 2004, as output and 

hours grew 4.2 percent and 2.8 percent, respectively (table 2). 

 Hourly compensation rose 3.4 percent in the fourth quarter, after increasing 5.4 percent in 

the third quarter. When the increase in consumer prices was taken into account, real hourly 

compensation fell 0.2 percent in the fourth quarter and rose 3.7 percent in the third quarter. 

Unit labor costs rose 1.3 percent in the fourth quarter after increasing 4.0 percent one 

quarter earlier. The implicit price deflator for nonfarm business increased 2.2 percent in the 

fourth quarter, and 1.8 percent in the third quarter, of 2004. 

Manufacturing 

Manufacturing productivity increased 5.8 percent in the fourth quarter of 2004, as output 

grew 4.6 percent and hours fell 1.1 percent (seasonally adjusted annual rates). In durable goods 

industries, productivity increased 7.1 percent when output grew 6.0 percent and hours fell 1.0 

percent. In nondurable goods industries, output per hour gained 3.9 percent, reflecting an 

increase of 2.5 percent in output and a 1.3 percent decline in hours. During the third quarter, 

productivity increased 4.4 percent in total manufacturing, 4.6 percent in durable goods 

manufacturing, and 4.8 percent in nondurable goods manufacturing (tables 3, 4, and 5). 

 Hourly compensation of all manufacturing workers increased 6.2 percent during the 

fourth quarter—6.6 percent in durable goods and 5.4 percent in nondurable goods. When the 

increase in consumer prices was taken into account, real hourly compensation for all 

manufacturing workers rose 2.5 percent in the fourth quarter and 7.4 percent in the third quarter 

(as revised). 
4 

Unit labor costs in manufacturing rose 0.4 percent in the fourth quarter of 2004, after 

increasing 4.6 percent in the third quarter. These costs declined 0.5 percent in durable goods 

industries and rose 1.5 percent in nondurable goods industries during the fourth quarter of 2004. 

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 1.1 percent. In 2003, business sector productivity 

increased 4.5 percent, as output grew 3.8 percent and hours declined 0.6 percent. 

Table B. Productivity and costs: Revised 2004 annual averages 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change from previous year 

Business 4.0 5.1 1.1 4.5 1.8 0.5 

Nonfarm business 4.0 5.3 1.2 4.4 1.7 0.4 

Manufacturing 5.2 4.8 -0.4 4.5 1.8 -0.7 

 Durable 6.3 7.0 0.7 3.9 1.2 -2.3 

 Nondurable 4.3 2.1 -2.1 5.3 2.6 1.0 

 Hourly compensation in the business sector increased 4.5 percent in 2004 and 4.1 percent 

in 2003. Real hourly compensation increased 1.8 percent in each of the last two years. 

 Business sector unit labor costs increased 0.5 percent in 2004. In 2003, these costs fell 

0.4 percent. The implicit price deflator rose 1.7 percent in 2004 and 1.3 percent in 2003. 

Nonfarm business

Productivity increased 4.0 percent in the nonfarm business sector during 2004. Output 

grew 5.3 percent and hours of all persons increased 1.2 percent. In 2003, productivity grew 4.4 

percent when output grew 3.8 percent and hours declined 0.5 percent. During 2002, productivity 

increased 4.3 percent in the nonfarm business sector, as output rose 1.8 percent and hours of all 

persons fell 2.5 percent. Productivity for the 2001-2004 period rose at an average annual rate of 

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 rises of 3.3 

percent in 1949, 6.6 percent in 1950, and 2.7 percent in 1951. 
5 

Hourly compensation grew 4.4 percent in 2004, following a 4.0-percent increase in 2003. 

Real hourly compensation increased 1.7 percent in both 2003 and 2004. 

Unit labor costs in the nonfarm business sector rose 0.4 percent in 2004, after falling 0.4 

percent in 2003. The implicit price deflator, which reflects nonlabor payments as well as labor 

costs, rose 1.6 percent in 2004, following a 1.1-percent rise in 2003. 

Manufacturing 

Manufacturing productivity grew 5.2 percent in 2004, reflecting a 4.8-percent rise in 

output and a 0.4-percent decline in hours. In 2003, output per hour also increased 5.2 percent, 

but that productivity gain was due almost entirely to falling hours, as output was unchanged. 

Labor productivity increased 6.3 percent in durable goods manufacturing during 2004, as output 

grew 7.0 percent and hours rose 0.7 percent. In nondurable goods manufacturing, productivity 

rose 4.3 percent in 2004, as output rose 2.1 percent and hours fell 2.1 percent (tables B, 3, 4, 

and 5). 

 Hourly compensation of manufacturing workers increased 4.5 percent in 2004, compared 

to an 8.7-percent increase one year earlier. Hourly compensation increased 3.9 percent in 

durable goods industries and 5.3 percent in nondurable goods industries in 2004. Real hourly 

compensation in the manufacturing sector rose 1.8 percent in 2004, and 6.2 percent in 2003. 

Unit labor costs declined 0.7 percent in manufacturing from 2003 to 2004. In durable 

manufacturing, unit labor costs fell 2.3 percent in 2004. By contrast, unit labor costs in 

nondurable manufacturing rose last year, by 1.0 percent. 

REVISED MEASURES 

 Productivity and cost data for the fourth quarter and full year 2004 for business, nonfarm 

business, and manufacturing were revised to incorporate the most recent information. In 

addition, quarterly and annual measures for these sectors were revised back to 2000 to 

incorporate the annual benchmark adjustment and updated information on seasonal trends from 

the BLS nonfarm payroll series (appendix tables 1-5). Third-quarter 2004 measures of hourly 

compensation, real hourly compensation, and unit labor costs were revised to reflect new 

information on compensation from the National Income and Product Accounts. Quarterly 

measures of real hourly compensation during 2004 also reflect the recalculation of seasonal 

factors for the Consumer Price Index for All Urban Consumers (table C). 
6 

Table C. Previous and revised productivity and related measures: 

Fourth-quarter, third-quarter, and annual averages 2004 

(Seasonally adjusted annual rates) 

 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Percent change, third to fourth quarter 2004 

Business: 

 Previous ....................... 2.5 3.3 0.8 4.2 0.8 1.7 

 Revised......................... 3.7 4.2 0.5 4.5 0.9 0.8 

Nonfarm business: 

 Previous ....................... 0.8 2.8 1.9 3.1 -0.3 2.3 

 Revised......................... 2.1 3.7 1.6 3.4 -0.2 1.3 

Manufacturing: 

 Previous ....................... 5.6 4.5 -1.0 6.0 2.5 0.4 

 Revised......................... 5.8 4.6 -1.1 6.2 2.5 0.4 

Percent change, second to third quarter 2004 

Business: 

 Previous ....................... 2.4 4.5 2.0 3.8 1.9 1.3 

 Revised......................... 2.0 4.5 2.5 5.8 4.1 3.7 

Nonfarm business: 

 Previous ....................... 1.8 4.2 2.4 3.5 1.6 1.6 

 Revised......................... 1.3 4.2 2.8 5.4 3.7 4.0 

Manufacturing: 

 Previous ....................... 4.2 4.0 -0.1 4.5 2.6 0.3 

 Revised......................... 4.4 4.0 -0.3 9.1 7.4 4.6 

Percent change, 2003 - 2004 

Business: 

 Previous ....................... 4.0 5.1 1.0 4.3 1.6 0.3 

 Revised......................... 4.0 5.1 1.1 4.5 1.8 0.5 

Nonfarm business: 

 Previous ....................... 4.1 5.3 1.1 4.2 1.5 0.1 

 Revised......................... 4.0 5.3 1.2 4.4 1.7 0.4 

Manufacturing: 

 Previous ....................... 4.9 4.8 -0.1 3.6 0.9 -1.3 

 Revised......................... 5.2 4.8 -0.4 4.5 1.8 -0.7 

 

In fourth-quarter 2004, business sector productivity increased 3.7 percent compared to a 

preliminary estimate of 2.5 percent (seasonally adjusted annual rates). In the nonfarm business 

sector, productivity grew 2.1 percent, more than the 0.8 percent preliminary estimate published 

Feb. 3. Because hourly compensation growth was revised up less than productivity in business 

and nonfarm business, unit labor costs did not increase as much as reported Feb. 3. In the 

manufacturing sector, a small upward revision in output combined with a small downward 
7 

revision in hours to produce an upward revision in output per hour from 5.6 percent to 5.8 

percent. A similar upward revision in hourly compensation left unit labor costs unchanged. 

Measures of hourly compensation, real hourly compensation, and unit labor costs in all 

sectors show substantially larger increases in the third quarter of 2004 after incorporation of 

revised compensation data. 

When revised annual averages for 2004 are compared to those for 2003, productivity 

increased 4.0 percent in both the business and nonfarm business sectors—about the same as 

previously reported. Small upward revisions to hourly compensation in both of these sectors led 

to larger increases in unit labor costs than previously reported. Manufacturing productivity 

growth was revised up as hours declined faster than in the preliminary estimate. Because hourly 

compensation was revised up much more than productivity, unit labor costs decreased less than 

previously reported. 

Revised measures: Nonfinancial corporations 

 Measures for the nonfinancial corporate sector also were revised back to 2000 due to 

updated information on hours worked by employees (appendix table 6). New information on 

output and compensation in the third quarter of 2004, and consumer prices in all quarters of 

2004, also impacted measures for this sector (table 6). 

Productivity in nonfinancial corporations in third-quarter 2004 increased more than in the 

preliminary estimates, as a large upward revision to output was partially offset by an upward 

revision to hours worked. Hourly compensation was revised up by more than productivity, and 

unit labor costs increased, rather than falling slightly, as reported Feb. 3. Unit profits were 

revised down, posting a small decline rather than the slight increase originally reported. 

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 3.9 5.4 1.4 3.8 1.9 -0.1 0.6 0.2 

Revised 4.9 6.9 1.9 5.6 3.9 0.6 -0.8 0.2 
8 

Upcoming changes to productivity and cost data 

Effective with the release of Productivity and Costs on June 2, 2005, BLS will improve 

the way it uses data for farm workers, the nonfarm self employed, 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 selfemployed, 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. 

Next release date

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

May 5, 2005, and will present preliminary first-quarter measures for business, nonfarm business, 

and manufacturing. Fourth-quarter and annual data for nonfinancial corporations 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 nonsupervisory workers in these 

establishments. Weekly paid hours are adjusted to 

hours at work using data from the National 

Compensation Survey (NCS). The BLS Hours at 

Work survey, conducted for this purpose, was used 

for 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 r122.6 142.2 115.9 143.2 115.2 116.7 113.4 115.5 

 II 123.2 142.9 116.0 r144.5 115.2 117.2 113.6 115.9 

 III r124.6 144.3 r115.8 145.0 115.0 116.3 115.7 116.1 

 IV 125.0 144.7 r115.8 r145.4 114.8 116.3 116.8 116.5 

 ANNUAL 123.9 143.5 r115.9 144.5 115.0 116.6 114.9 116.0 

 2003 I r126.3 145.5 r115.2 147.4 115.3 116.8 117.7 117.1 

 II 128.6 147.5 114.7 149.6 116.8 116.4 119.0 117.3 

 III r131.1 150.8 r115.0 r151.5 r117.6 115.6 120.8 117.5 

 IV r131.8 152.3 r115.6 r152.9 r118.5 116.0 120.7 117.8 

 ANNUAL 129.5 149.0 115.1 r150.4 r117.0 116.2 119.6 117.4 

 2004 I r133.1 154.3 r115.9 r154.0 r118.3 115.7 122.9 118.4 

 II r134.1 155.8 r116.2 r156.0 r118.5 116.4 124.4 119.4 

 III r134.7 157.5 r116.9 r158.2 r119.7 r117.4 r123.5 119.7 

 IV r136.0 r159.1 r117.0 r160.0 r120.0 r117.7 r124.7 120.3 

 ANNUAL r134.6 r156.7 r116.4 r157.2 r119.2 r116.8 r123.9 r119.5 

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

 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 r1.9 2.1 r0.2 r3.7 r0.2 1.7 1.0 1.4 

 III r4.6 3.8 r-0.8 r1.4 r-0.9 -3.1 7.3 0.7 

 IV 1.2 1.2 0.0 r1.2 r-0.7 0.0 3.8 1.4 

 ANNUAL 4.3 1.8 -2.4 r3.1 1.5 -1.1 4.5 0.9 

 2003 I r4.1 2.2 r-1.8 r5.8 r1.9 1.6 3.1 2.1 

 II 7.6 5.6 -1.9 6.1 5.4 -1.4 4.5 0.8 

 III r8.1 9.3 r1.1 r5.2 r2.7 r-2.7 r6.4 0.7 

 IV r2.1 4.2 r2.0 r3.7 r2.9 1.6 r-0.3 0.8 

 ANNUAL 4.5 3.8 r-0.6 4.1 1.8 -0.4 4.1 1.3 

 2004 I r4.0 5.3 r1.2 r2.9 r-0.7 -1.1 r7.3 2.1 

 II 2.9 3.9 r0.9 r5.3 r0.8 2.3 5.0 3.3 

 III r2.0 4.5 r2.5 r5.8 r4.1 r3.7 r-2.9 1.1 

 IV r3.7 r4.2 r0.5 r4.5 r0.9 r0.8 r4.2 r2.1 

 ANNUAL 4.0 5.1 r1.1 r4.5 r1.8 r0.5 r3.6 1.7 

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

 Percent change from corresponding quarter of previous year 

 2002 I 4.9 0.8 r-4.0 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 r3.2 1.6 -1.6 5.0 0.8 

 IV 3.4 2.7 -0.7 2.8 0.5 -0.6 r3.3 0.8 

 ANNUAL 4.3 1.8 -2.4 r3.1 1.5 -1.1 4.5 0.9 

 2003 I r3.0 2.3 -0.6 r3.0 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 r5.2 4.5 -0.7 r4.5 r2.3 -0.6 4.4 1.3 

 IV r5.5 5.3 r-0.2 r5.2 r3.2 -0.3 3.4 1.1 

 ANNUAL 4.5 3.8 r-0.6 4.1 1.8 -0.4 4.1 1.3 

 2004 I r5.4 6.1 r0.6 r4.5 r2.6 -0.9 4.4 1.1 

 II r4.3 5.6 r1.3 r4.3 r1.4 0.0 r4.6 1.7 

 III r2.8 4.4 r1.6 r4.4 r1.8 r1.6 r2.2 1.8 

 IV r3.2 r4.5 1.3 r4.6 r1.2 r1.4 r3.3 2.1 

 ANNUAL 4.0 5.1 r1.1 r4.5 r1.8 r0.5 r3.6 1.7 

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

 See footnotes following Table 6. March 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 r142.5 114.7 116.4 115.1 116.0 

 II 122.8 143.2 r116.6 143.8 114.7 117.1 115.4 116.5 

 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 r114.2 116.1 118.9 117.2 

 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 r146.7 114.7 116.6 119.6 117.7 

 II r127.9 147.8 115.6 148.7 116.1 116.3 120.4 117.8 

 III r130.5 151.1 115.7 r150.8 r117.0 115.5 122.3 118.0 

 IV r131.5 152.8 r116.2 r152.3 r118.0 115.9 121.9 118.1 

 ANNUAL r128.9 149.4 r115.9 r149.6 r116.4 116.1 121.1 117.9 

 2004 I r132.7 155.0 r116.8 r153.1 r117.6 115.4 124.3 118.7 

 II r134.0 156.5 r116.8 r155.3 118.0 115.9 125.7 119.6 

 III r134.4 158.2 r117.7 r157.4 r119.1 r117.1 r125.2 120.1 

 IV r135.1 r159.6 r118.1 r158.7 r119.0 r117.5 r126.3 120.7 

 ANNUAL r134.1 r157.3 r117.3 r156.3 r118.5 r116.5 r125.4 119.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 6.9 4.0 -2.7 r5.4 4.1 -1.4 1.6 -0.3 

 II r1.3 1.7 r0.4 r3.7 r0.2 2.3 1.0 1.8 

 III r4.3 3.6 r-0.6 r1.2 r-1.1 -2.9 r8.1 1.0 

 IV r1.5 1.4 r-0.1 1.2 r-0.7 -0.3 4.2 1.3 

 ANNUAL r4.3 1.8 -2.5 r3.2 1.6 -1.1 4.7 1.0 

 2003 I r4.0 2.4 r-1.5 r5.6 r1.8 1.6 r2.3 1.9 

 II 6.7 5.3 -1.4 5.7 5.0 -1.0 2.9 0.5 

 III r8.7 9.3 r0.6 r5.7 r3.2 -2.7 6.3 0.6 

 IV r2.8 4.6 r1.7 r4.1 r3.3 1.2 -1.2 0.3 

 ANNUAL 4.4 3.8 r-0.5 r4.0 1.7 -0.4 3.7 1.1 

 2004 I r3.8 5.7 r1.9 r2.1 r-1.5 -1.6 8.0 2.0 

 II 3.9 4.2 r0.2 5.9 r1.4 1.9 4.6 2.9 

 III r1.3 4.2 r2.8 r5.4 r3.7 r4.0 r-1.6 1.8 

 IV r2.1 r3.7 r1.6 r3.4 r-0.2 r1.3 r3.6 r2.2 

 ANNUAL r4.0 5.3 r1.2 r4.4 r1.7 r0.4 r3.5 1.6 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.1 0.9 r-4.1 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 r4.7 2.6 r-2.0 r3.3 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 r4.3 1.8 -2.5 r3.2 1.6 -1.1 4.7 1.0 

 2003 I r2.8 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 r-0.6 r4.5 r2.3 -0.6 3.9 1.1 

 IV r5.5 5.4 r-0.1 r5.3 r3.3 -0.2 r2.6 0.8 

 ANNUAL 4.4 3.8 r-0.5 r4.0 1.7 -0.4 3.7 1.1 

 2004 I r5.5 6.2 r0.7 r4.4 r2.5 -1.0 r4.0 0.8 

 II r4.8 6.0 r1.1 r4.5 r1.6 -0.3 4.4 1.5 

 III r3.0 4.7 r1.7 r4.4 r1.7 r1.4 r2.4 1.8 

 IV r2.8 r4.4 1.6 r4.2 r0.9 r1.4 r3.6 2.2 

 ANNUAL r4.0 5.3 r1.2 r4.4 r1.7 r0.4 r3.5 1.6 

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

 See footnotes following Table 6. March 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 r144.4 131.1 r90.8 143.8 115.7 99.6 

 II r146.5 132.4 90.4 146.7 117.0 100.2 

 III 148.7 133.2 r89.6 148.3 117.6 99.7 

 IV r149.5 132.1 r88.4 r149.4 r117.9 99.9 

 ANNUAL 147.3 132.2 r89.8 r147.0 r117.0 99.8 

 2003 I 151.6 131.8 r86.9 r155.5 121.6 102.6 

 II r152.9 130.7 r85.5 r158.4 r123.7 103.6 

 III r156.9 132.1 r84.2 r161.6 r125.4 103.0 

 IV 158.1 134.2 84.9 163.6 r126.8 103.5 

 ANNUAL r154.8 132.2 85.4 r159.7 r124.3 103.2 

 2004 I r159.3 136.0 r85.4 r162.4 r124.7 101.9 

 II r162.2 138.0 r85.1 r165.1 r125.4 101.8 

 III r164.0 139.4 r85.0 r168.7 r127.6 r102.9 

 IV r166.3 r141.0 r84.8 r171.3 r128.4 r103.0 

 ANNUAL r163.0 138.6 r85.1 r166.9 r126.5 r102.4 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r11.2 3.2 r-7.2 r14.6 r13.1 3.0 

 II r5.8 4.1 r-1.6 r8.5 r4.8 r2.6 

 III r6.3 2.4 r-3.7 r4.3 r1.9 -1.9 

 IV r2.2 -3.2 r-5.3 r3.0 r1.1 0.8 

 ANNUAL r7.5 -0.1 -7.1 r6.6 5.0 -0.8 

 2003 I r5.7 -0.9 r-6.3 r17.4 r13.1 11.0 

 II r3.3 -3.4 r-6.5 r7.6 r6.9 4.2 

 III r11.0 4.5 r-5.9 r8.3 r5.8 -2.4 

 IV r3.2 6.6 r3.3 r5.2 r4.4 r1.9 

 ANNUAL r5.2 0.0 r-4.9 r8.7 r6.2 3.3 

 2004 I r3.0 5.4 r2.4 r-3.1 r-6.5 -5.9 

 II r7.6 5.9 r-1.6 r6.9 r2.4 -0.6 

 III r4.4 4.0 r-0.3 r9.1 r7.4 r4.6 

 IV r5.8 r4.6 r-1.1 r6.2 2.5 0.4 

 ANNUAL r5.2 4.8 r-0.4 r4.5 r1.8 r-0.7 

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

 Percent change from corresponding quarter of previous year 

 2002 I 7.3 -2.8 -9.4 4.1 2.8 -3.0 

 II r7.8 -0.5 r-7.8 r6.9 r5.5 -0.9 

 III 8.6 1.5 -6.6 8.2 6.5 -0.3 

 IV 6.3 1.6 -4.5 7.5 5.1 1.1 

 ANNUAL r7.5 -0.1 -7.1 r6.6 5.0 -0.8 

 2003 I r5.0 0.6 -4.2 8.1 5.1 3.0 

 II r4.4 -1.3 -5.4 7.9 r5.7 3.4 

 III r5.5 -0.8 r-6.0 r9.0 r6.6 3.3 

 IV r5.8 1.6 r-3.9 r9.5 r7.5 3.6 

 ANNUAL r5.2 0.0 r-4.9 r8.7 r6.2 3.3 

 2004 I r5.1 3.2 r-1.8 r4.4 r2.5 -0.6 

 II r6.1 5.6 r-0.5 r4.3 r1.4 -1.8 

 III r4.5 5.5 r0.9 r4.4 r1.8 r-0.1 

 IV r5.2 5.0 r-0.2 r4.7 r1.3 r-0.5 

 ANNUAL r5.2 4.8 r-0.4 r4.5 r1.8 r-0.7 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
13 

 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2002 I 161.8 153.1 94.6 140.8 113.3 87.0 

 II r164.6 155.3 r94.3 r143.9 114.7 87.4 

 III 167.7 156.6 93.4 145.0 115.0 86.5 

 IV r170.6 156.3 r91.6 r146.1 r115.3 85.7 

 ANNUAL r166.1 155.3 93.5 r143.9 114.6 86.6 

 2003 I r172.7 155.7 r90.1 r153.5 r120.1 88.9 

 II r174.3 154.3 r88.6 r156.5 r122.2 89.8 

 III r180.9 157.6 r87.1 r159.8 r124.0 88.3 

 IV 182.8 161.5 88.3 r161.7 125.3 88.5 

 ANNUAL r177.6 157.3 r88.5 r157.9 r122.9 88.9 

 2004 I r184.4 164.6 r89.3 r159.1 r122.2 86.3 

 II r187.8 167.1 r88.9 r162.1 r123.1 86.3 

 III r190.0 169.5 r89.2 r166.0 r125.5 r87.4 

 IV r193.2 r172.0 r89.0 r168.6 r126.4 r87.3 

 ANNUAL r188.9 r168.3 r89.1 r164.0 r124.3 r86.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r13.3 4.1 r-8.1 r8.7 r7.3 -4.1 

 II r7.1 6.0 r-1.0 r9.0 r5.3 1.8 

 III r7.7 3.3 r-4.0 r3.2 r0.9 -4.2 

 IV r7.1 -0.7 r-7.2 r3.2 r1.3 -3.6 

 ANNUAL 8.6 -0.4 -8.3 r5.5 3.9 -2.8 

 2003 I r5.1 -1.6 r-6.4 r21.8 r17.4 15.9 

 II 3.7 -3.4 r-6.9 r8.1 r7.4 4.2 

 III r16.0 8.7 -6.3 r8.6 r6.0 -6.4 

 IV r4.2 10.1 r5.7 r4.9 r4.1 0.6 

 ANNUAL r6.9 1.3 r-5.3 r9.7 r7.2 2.6 

 2004 I r3.6 8.1 r4.3 r-6.2 r-9.5 -9.5 

 II r7.7 6.0 r-1.5 r7.7 r3.1 0.0 

 III 4.6 6.0 1.3 r9.9 r8.1 r5.1 

 IV r7.1 r6.0 r-1.0 r6.6 r2.9 r-0.5 

 ANNUAL r6.3 r7.0 r0.7 r3.9 r1.2 r-2.3 

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

 Percent change from corresponding quarter of previous year 

 2002 I 7.7 -4.4 -11.2 3.3 2.0 -4.1 

 II r8.5 -1.5 r-9.2 6.0 r4.6 -2.4 

 III 9.3 1.4 r-7.2 r6.9 5.2 -2.2 

 IV 8.8 3.2 r-5.1 6.0 r3.6 -2.6 

 ANNUAL 8.6 -0.4 -8.3 r5.5 3.9 -2.8 

 2003 I r6.7 1.7 r-4.7 r9.0 r6.0 2.2 

 II r5.9 -0.6 -6.1 r8.8 6.5 2.8 

 III r7.9 0.7 r-6.7 r10.2 r7.9 2.2 

 IV r7.2 3.3 r-3.6 r10.7 r8.6 3.3 

 ANNUAL r6.9 1.3 r-5.3 r9.7 r7.2 2.6 

 2004 I r6.8 5.8 r-1.0 r3.7 r1.8 -2.9 

 II r7.8 8.3 r0.4 r3.6 r0.7 -3.9 

 III r5.0 7.6 r2.4 r3.9 r1.2 r-1.1 

 IV r5.7 r6.5 r0.8 r4.3 r0.9 r-1.4 

 ANNUAL r6.3 r7.0 r0.7 r3.9 r1.2 r-2.3 

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

 See footnotes following Table 6. March 3, 2005 

 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 r126.9 107.9 85.0 147.9 119.0 116.5 

 II 128.3 108.4 84.5 150.5 120.1 117.4 

 III 129.7 108.7 83.8 152.9 121.3 117.9 

 IV r128.2 106.9 r83.4 r154.1 r121.6 120.2 

 ANNUAL r128.2 108.0 84.2 r151.3 120.5 118.0 

 2003 I r130.2 106.9 82.1 157.7 r123.3 121.1 

 II r131.1 106.0 r80.9 r160.3 r125.2 122.3 

 III r132.6 105.9 r79.8 r163.4 r126.8 123.2 

 IV r133.6 106.5 r79.7 r165.5 r128.2 123.9 

 ANNUAL r131.8 106.3 r80.6 r161.7 r125.8 122.6 

 2004 I r134.5 107.1 r79.6 r166.6 r127.9 123.8 

 II r137.0 108.6 r79.3 r168.8 r128.2 123.2 

 III r138.6 109.0 r78.7 r171.8 r129.9 r123.9 

 IV r139.9 r109.7 r78.4 r174.1 r130.5 r124.4 

 ANNUAL r137.5 108.6 r79.0 r170.3 r129.1 r123.8 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I r8.2 2.2 r-5.5 r27.1 r25.5 r17.5 

 II r4.4 1.8 r-2.4 r7.4 r3.8 2.9 

 III r4.5 1.1 r-3.2 r6.4 r4.0 1.9 

 IV r-4.5 -6.4 r-2.0 r3.1 r1.2 8.0 

 ANNUAL 5.6 0.2 r-5.1 r9.2 7.5 3.4 

 2003 I r6.5 0.1 r-6.0 r9.7 r5.7 3.0 

 II r2.6 -3.5 r-5.9 r6.9 r6.2 4.2 

 III r4.9 -0.6 r-5.2 r8.0 r5.4 2.9 

 IV r2.8 2.4 r-0.4 r5.2 r4.4 r2.3 

 ANNUAL r2.8 -1.5 r-4.2 r6.8 r4.5 3.9 

 2004 I r2.9 2.1 r-0.8 r2.6 r-1.0 r-0.3 

 II r7.5 5.7 -1.7 r5.5 r1.0 -1.9 

 III r4.8 1.7 r-3.0 r7.2 r5.5 r2.3 

 IV r3.9 r2.5 r-1.3 r5.4 r1.8 r1.5 

 ANNUAL r4.3 2.1 r-2.1 r5.3 r2.6 r1.0 

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

 Percent change from corresponding quarter of previous year 

 2002 I 5.9 -0.9 -6.4 6.2 r4.9 0.3 

 II r6.2 0.6 r-5.3 r9.1 r7.7 2.7 

 III 7.3 1.5 -5.4 10.9 9.2 3.4 

 IV 3.0 -0.4 -3.3 10.6 8.2 7.4 

 ANNUAL 5.6 0.2 r-5.1 r9.2 7.5 3.4 

 2003 I 2.6 -0.9 -3.4 6.6 3.6 3.9 

 II r2.2 -2.2 r-4.3 r6.5 4.2 4.2 

 III r2.3 -2.6 r-4.8 r6.9 r4.6 4.5 

 IV r4.2 -0.4 r-4.4 r7.4 r5.4 3.1 

 ANNUAL r2.8 -1.5 r-4.2 r6.8 r4.5 3.9 

 2004 I r3.3 0.1 r-3.1 r5.7 r3.7 r2.3 

 II r4.5 2.4 r-2.0 r5.3 r2.4 0.7 

 III r4.5 3.0 r-1.5 r5.1 r2.4 r0.6 

 IV r4.8 r3.0 r-1.7 r5.2 r1.8 r0.4 

 ANNUAL r4.3 2.1 r-2.1 r5.3 r2.6 r1.0 

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

 See footnotes following Table 6. March 3, 2005 

 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 r126.7 150.2 118.5 139.9 r112.5 110.4 113.6 111.3 88.8 109.3 

 II r128.2 151.7 118.4 141.3 112.7 110.3 112.7 111.0 94.5 109.5 

 III 129.0 152.2 r118.0 142.1 112.7 110.1 112.8 110.9 95.8 109.5 

 IV 129.6 152.4 117.6 r142.8 r112.7 110.2 112.8 110.9 102.3 110.1 

 ANNUAL 128.4 151.6 118.1 141.5 112.7 110.3 113.0 111.0 95.4 109.6 

 2003 I r130.3 152.2 116.8 r144.2 112.7 110.7 114.0 111.6 100.0 110.5 

 II 132.7 154.4 116.4 r146.4 r114.3 110.3 112.6 110.9 112.2 111.0 

 III r135.2 157.3 r116.3 r148.4 r115.2 109.8 112.6 110.5 120.3 111.4 

 IV r136.6 159.6 r116.8 r149.8 r116.1 109.7 112.2 110.4 125.1 111.7 

 ANNUAL 133.7 155.9 r116.6 r147.2 114.6 110.1 112.9 110.8 114.6 111.2 

 2004 I r136.9 160.9 r117.6 r150.8 r115.7 110.2 111.1 110.4 129.9 112.2 

 II r138.0 162.6 r117.9 r152.8 r116.0 110.7 111.4 110.9 136.3 113.2 

 III r139.6 r165.3 r118.4 r154.9 r117.1 r110.9 r111.3 111.0 r136.0 113.2 

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

 Percent change from previous quarter at annual rate(5) 

 2002 I 7.5 5.4 -2.0 1.7 0.4 -5.4 -7.0 -5.9 91.5 -1.3 

 II r4.6 4.2 r-0.3 r4.2 r0.7 -0.3 -3.1 -1.1 28.2 0.8 

 III r2.6 1.1 r-1.4 r2.0 r-0.3 -0.6 0.3 -0.3 5.8 0.1 

 IV 1.9 0.7 -1.2 r2.1 r0.2 0.3 0.0 0.2 29.9 2.3 

 ANNUAL 3.9 1.0 -2.8 r3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

 2003 I r2.2 -0.7 r-2.8 r3.8 r0.1 1.6 4.4 2.4 -8.8 1.4 

 II 7.7 6.0 -1.5 6.2 5.5 -1.4 -4.9 -2.4 58.5 1.8 

 III r7.9 7.6 r-0.3 r5.8 r3.3 -1.9 0.1 -1.4 32.3 1.4 

 IV r3.9 6.0 r2.0 r3.8 r3.0 -0.1 -1.5 -0.5 16.8 1.1 

 ANNUAL 4.2 2.8 -1.3 4.0 1.7 -0.1 -0.1 -0.1 20.1 1.4 

 2004 I r0.9 3.4 r2.5 r2.5 r-1.1 1.6 -4.0 0.1 16.3 1.6 

 II 3.3 4.3 r1.0 5.5 r1.0 2.1 1.3 1.9 21.0 3.8 

 III r4.9 r6.9 r1.9 r5.6 r3.9 r0.6 r-0.5 r0.3 r-0.8 0.2 

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

 Percent change from corresponding quarter of previous year 

 2002 I 3.4 -1.1 r-4.4 3.2 2.0 -0.1 4.0 1.0 1.6 1.0 

 II 3.8 0.4 -3.2 r3.3 r2.0 -0.4 1.0 0.0 8.8 0.6 

 III 4.3 1.9 r-2.3 r3.0 1.4 -1.2 -1.1 -1.2 21.4 0.3 

 IV 4.1 2.8 r-1.2 2.5 0.3 -1.5 -2.5 -1.8 35.5 0.5 

 ANNUAL 3.9 1.0 -2.8 r3.0 1.4 -0.8 0.3 -0.5 16.0 0.6 

 2003 I r2.8 1.3 -1.4 r3.1 r0.2 0.3 0.4 0.3 12.6 1.2 

 II 3.6 1.8 -1.7 r3.5 1.4 0.0 -0.1 0.0 18.7 1.4 

 III 4.9 3.3 r-1.4 4.5 2.3 -0.4 -0.2 -0.3 25.5 1.7 

 IV r5.4 4.7 r-0.7 r4.9 r3.0 -0.5 -0.5 -0.5 22.3 1.4 

 ANNUAL 4.2 2.8 -1.3 4.0 1.7 -0.1 -0.1 -0.1 20.1 1.4 

 2004 I r5.0 5.7 r0.7 r4.6 r2.7 -0.5 -2.6 -1.0 29.9 1.5 

 II r4.0 5.3 r1.3 r4.4 r1.5 0.4 -1.0 0.0 21.5 2.0 

 III r3.2 r5.1 r1.8 r4.3 r1.7 r1.1 r-1.2 0.4 r13.0 1.7 

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

 See footnotes following Table 6. March 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. 

 Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally 

 adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 2000 I 114.0 138.6 121.6 132.4 111.5 116.2 105.2 112.1 

 II 116.2 141.1 r121.4 133.0 r111.1 r114.5 109.4 112.6 

 III 115.9 140.8 121.5 135.6 112.2 117.0 106.2 112.9 

 IV 117.1 141.5 r120.9 136.5 r112.1 116.6 107.9 113.3 

 ANNUAL 115.9 140.5 r121.2 134.5 111.8 116.1 107.2 112.7 

 2001 I r116.9 141.1 120.7 138.8 113.0 118.7 106.4 114.1 

 II r118.5 141.4 119.4 139.7 r112.9 117.9 r109.8 114.9 

 III 118.8 140.3 118.1 140.4 113.2 118.2 110.2 115.2 

 IV 120.9 141.0 116.6 141.5 114.2 117.0 113.1 115.6 

 ANNUAL 118.8 141.0 118.7 140.1 113.3 118.0 109.9 114.9 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r-1.3 0.3 r1.6 r14.6 r10.4 16.0 -15.7 3.4 

 II r8.1 7.5 -0.5 1.7 r-1.5 -5.9 17.1 1.8 

 III r-1.1 -0.8 r0.3 r7.9 r4.0 9.1 r-11.1 1.3 

 IV r4.1 2.0 r-2.0 r2.8 r-0.1 r-1.3 6.3 1.4 

 ANNUAL 2.9 3.9 1.0 7.1 3.6 4.0 -1.8 1.8 

 2001 I -0.5 -1.1 -0.6 6.8 3.1 7.4 -5.4 2.7 

 II r5.5 0.8 r-4.4 r2.9 r-0.4 -2.5 r13.7 3.0 

 III r1.2 -3.1 r-4.2 r2.0 r1.0 0.8 r1.4 1.0 

 IV r7.1 1.8 -5.0 3.1 r3.6 -3.8 10.9 1.3 

 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.5 2.0 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.2 4.5 2.2 r6.7 r3.4 4.4 -3.0 1.6 

 II r4.0 5.4 r1.3 r6.8 3.4 2.7 0.5 1.9 

 III 3.0 3.8 0.8 7.9 4.3 4.8 -3.0 1.9 

 IV 2.4 2.2 -0.2 r6.6 3.1 4.1 -1.7 2.0 

 ANNUAL 2.9 3.9 1.0 7.1 3.6 4.0 -1.8 1.8 

 2001 I 2.6 1.8 r-0.7 4.8 r1.3 r2.1 1.1 1.8 

 II r2.0 0.2 -1.7 r5.1 1.6 3.0 0.4 2.1 

 III 2.5 -0.4 -2.8 3.6 0.9 1.0 3.7 2.0 

 IV r3.3 -0.4 r-3.6 r3.7 1.8 0.4 4.8 2.0 

 ANNUAL 2.5 0.3 -2.1 4.2 1.3 1.6 2.5 2.0 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
18 

 Appendix table 2. 

 Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and prices, 

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit Unit non- Implicit 

 and hour of of all tion per tion per labor labor pay- price 

 quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) 

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

 Indexes 1992=100 

 2000 I 113.7 138.8 122.1 132.1 111.2 116.2 106.6 112.6 

 II 115.8 141.4 122.1 132.5 r110.7 114.4 111.0 113.1 

 III 115.5 141.1 122.1 135.1 111.8 116.9 107.8 113.5 

 IV 116.6 141.8 r121.7 r135.8 111.6 116.5 109.4 113.9 

 ANNUAL 115.5 140.8 121.9 134.0 111.4 116.0 108.7 113.3 

 2001 I r116.4 141.4 r121.5 138.1 r112.4 118.6 107.9 114.6 

 II 118.1 141.9 r120.1 r139.0 r112.3 117.6 111.6 115.4 

 III 118.5 140.8 118.9 139.6 112.5 117.8 111.9 115.6 

 IV 120.4 141.2 117.3 140.7 113.5 116.8 114.7 116.0 

 ANNUAL 118.3 141.3 119.4 139.3 112.7 117.7 111.5 115.4 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r-1.6 -0.1 r1.5 r14.8 r10.6 16.7 -16.8 3.3 

 II r7.5 7.5 r0.0 r1.1 r-2.1 -6.0 17.4 1.8 

 III r-1.0 -0.8 r0.1 r8.0 r4.1 9.1 -11.0 1.4 

 IV r3.6 2.2 r-1.4 r2.3 r-0.6 -1.3 6.3 1.3 

 ANNUAL 2.8 3.8 1.0 7.1 3.6 4.2 -1.8 1.9 

 2001 I -0.4 -1.1 -0.7 6.7 3.0 7.2 -5.4 2.6 

 II r5.9 1.2 r-4.4 r2.6 r-0.6 -3.1 r14.3 2.7 

 III r1.2 -2.9 r-4.1 r1.8 r0.9 0.6 0.9 0.7 

 IV 6.6 1.2 -5.1 3.1 3.7 -3.3 10.5 1.5 

 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.5 2.6 1.9 

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

 Percent change from corresponding quarter of previous year 

 2000 I 2.2 4.4 2.1 6.9 3.6 4.6 -2.7 1.9 

 II r3.9 5.3 1.4 6.8 3.4 r2.9 0.4 2.0 

 III 2.9 3.6 0.8 8.0 4.4 5.0 -3.1 2.0 

 IV 2.1 2.1 r0.1 6.4 2.9 4.3 r-1.9 2.0 

 ANNUAL 2.8 3.8 1.0 7.1 3.6 4.2 -1.8 1.9 

 2001 I 2.4 1.9 -0.5 4.5 1.1 2.1 1.2 1.8 

 II 2.0 0.4 -1.6 4.9 1.4 2.8 0.6 2.0 

 III 2.6 -0.2 -2.7 3.3 r0.7 0.8 3.8 1.8 

 IV 3.3 -0.4 -3.6 r3.6 1.7 0.3 4.8 1.9 

 ANNUAL 2.5 0.4 -2.0 4.0 1.1 1.5 2.6 1.9 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
19 

 Appendix table 3. 

 Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs, 

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2000 I 132.6 138.1 104.1 133.2 112.1 100.5 

 II r134.4 140.0 r104.1 r132.5 r110.7 98.6 

 III r134.0 139.0 103.8 r135.9 112.4 101.4 

 IV r134.9 137.5 r102.0 r136.7 r112.3 101.4 

 ANNUAL 134.1 138.6 103.4 134.7 112.0 100.5 

 2001 I 134.6 134.9 100.2 r138.1 112.5 102.7 

 II r135.8 133.1 r98.0 r137.3 r110.9 101.1 

 III 137.0 131.3 95.8 137.0 110.4 100.0 

 IV r140.6 130.0 r92.5 r139.0 r112.2 98.8 

 ANNUAL 136.9 132.3 96.6 137.8 111.5 100.7 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r5.6 3.7 r-1.9 r21.8 r17.4 15.3 

 II r5.6 5.6 r0.0 r-2.1 r-5.2 -7.3 

 III r-1.4 -2.8 r-1.4 r10.6 r6.6 12.1 

 IV r2.8 -4.1 r-6.7 r2.4 r-0.4 -0.3 

 ANNUAL 4.7 3.0 -1.6 r9.2 5.6 4.2 

 2001 I r-0.9 -7.6 r-6.7 r4.3 r0.6 5.2 

 II r3.8 -5.0 r-8.5 r-2.4 r-5.5 -5.9 

 III r3.5 -5.5 r-8.6 r-0.9 r-1.8 -4.2 

 IV r11.1 -3.7 r-13.3 r5.9 r6.5 -4.6 

 ANNUAL 2.1 -4.6 -6.5 2.3 r-0.5 0.2 

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

 Percent change from corresponding quarter of previous year 

 2000 I 4.7 3.8 -0.8 9.8 6.4 4.9 

 II r5.6 4.6 r-0.9 r8.5 r5.1 2.8 

 III r5.1 3.3 -1.7 10.0 r6.4 4.7 

 IV r3.1 0.5 r-2.5 r7.8 r4.2 4.6 

 ANNUAL 4.7 3.0 -1.6 r9.2 5.6 4.2 

 2001 I 1.5 -2.3 r-3.7 3.7 r0.3 2.2 

 II 1.0 -4.9 r-5.9 3.6 0.2 2.5 

 III 2.3 -5.5 r-7.6 r0.8 r-1.8 -1.4 

 IV 4.3 -5.5 r-9.3 1.7 -0.1 -2.5 

 ANNUAL 2.1 -4.6 -6.5 2.3 r-0.5 0.2 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
20 

 Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and 

 unit labor costs seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2000 I 149.6 164.9 110.2 133.4 112.3 89.2 

 II r151.4 167.5 110.7 r131.9 r110.1 87.1 

 III r151.0 166.4 r110.2 r135.7 r112.3 89.9 

 IV r151.0 164.1 108.6 r135.4 111.3 89.7 

 ANNUAL 150.9 165.7 109.8 134.2 111.6 89.0 

 2001 I 150.3 160.1 106.5 136.4 r111.0 90.7 

 II r151.7 157.6 r103.9 r135.8 r109.7 89.5 

 III 153.4 154.4 100.7 135.6 109.3 88.4 

 IV r156.8 151.5 r96.6 r137.9 r111.3 87.9 

 ANNUAL r153.0 155.9 101.9 136.4 110.3 89.2 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r9.8 7.9 r-1.7 r25.0 r20.5 13.9 

 II r4.9 6.6 r1.6 r-4.5 r-7.6 -9.0 

 III r-1.1 -2.6 -1.6 r12.1 8.1 13.3 

 IV r0.2 -5.4 r-5.6 r-0.7 r-3.5 -0.9 

 ANNUAL 5.3 4.6 -0.7 r9.7 6.1 4.2 

 2001 I -2.0 -9.5 -7.6 r2.7 r-0.9 4.8 

 II r3.7 -6.1 r-9.4 r-1.7 r-4.8 -5.2 

 III r4.6 -7.7 r-11.8 r-0.6 r-1.5 -5.0 

 IV r9.2 -7.3 r-15.2 r7.1 r7.7 -2.0 

 ANNUAL 1.4 -5.9 -7.2 1.6 r-1.2 0.2 

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

 Percent change from corresponding quarter of previous year 

 2000 I 5.9 6.0 0.2 11.2 7.8 5.0 

 II 5.9 6.5 0.6 8.9 r5.5 2.8 

 III 5.6 4.4 r-1.2 r10.9 r7.2 4.9 

 IV 3.4 1.5 r-1.8 7.4 r3.8 3.9 

 ANNUAL 5.3 4.6 -0.7 r9.7 6.1 4.2 

 2001 I 0.5 -2.9 -3.4 r2.2 -1.1 1.7 

 II r0.2 -5.9 -6.1 r3.0 r-0.4 2.8 

 III r1.6 -7.2 -8.7 r-0.1 r-2.7 -1.7 

 IV r3.8 -7.7 -11.1 r1.8 r0.0 -1.9 

 ANNUAL 1.4 -5.9 -7.2 1.6 r-1.2 0.2 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
21 

 Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and 

 unit labor costs seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2000 I 116.7 110.9 r95.0 130.5 r109.9 111.8 

 II r118.7 112.0 r94.4 r131.4 r109.7 110.7 

 III 118.0 111.1 r94.1 133.7 r110.7 113.3 

 IV r119.9 110.4 r92.0 r136.6 r112.2 113.9 

 ANNUAL 118.5 111.1 r93.7 133.2 r110.8 112.4 

 2001 I 119.9 108.9 90.8 139.2 113.4 116.1 

 II r120.8 107.8 r89.2 r138.0 r111.5 114.3 

 III 120.9 107.1 88.6 r137.8 111.1 114.0 

 IV r124.4 107.3 r86.3 r139.3 r112.4 111.9 

 ANNUAL 121.5 107.8 88.7 138.6 112.1 114.1 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r-0.1 -2.3 r-2.2 r15.4 r11.2 r15.5 

 II r6.8 3.9 r-2.8 r2.7 r-0.5 -3.8 

 III r-2.3 -3.2 r-1.0 r7.4 r3.5 r9.8 

 IV r6.6 -2.5 r-8.5 r8.9 r5.9 2.2 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I r-0.2 -5.3 r-5.1 r7.8 r4.0 8.0 

 II r3.2 -3.8 r-6.8 r-3.4 r-6.4 r-6.3 

 III r0.3 -2.6 r-2.9 r-0.6 r-1.5 r-0.9 

 IV r12.2 0.8 r-10.1 r4.3 r4.9 -7.1 

 ANNUAL 2.5 -3.0 r-5.3 4.0 1.2 1.5 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 0.8 -2.5 6.7 r3.5 3.2 

 II r5.3 1.7 r-3.5 r7.3 r3.9 1.8 

 III r4.2 1.5 -2.6 r8.2 r4.6 3.8 

 IV r2.7 -1.1 r-3.7 r8.5 r4.9 5.7 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I 2.7 -1.9 r-4.4 6.7 3.2 3.9 

 II r1.8 -3.7 -5.4 r5.1 1.6 3.2 

 III r2.4 -3.6 -5.9 3.1 0.4 0.6 

 IV 3.8 -2.7 -6.3 r1.9 r0.1 -1.8 

 ANNUAL 2.5 -3.0 r-5.3 4.0 1.2 1.5 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics 
22 

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

 unit profits, and prices, seasonally adjusted 

 

 Output Hourly Real Unit Total Unit Implicit 

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

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

 2000 I 120.5 150.3 124.7 129.7 109.2 107.7 101.9 106.1 114.6 106.9 

 II 121.1 151.1 124.8 r130.5 108.9 107.7 103.5 106.6 115.9 107.4 

 III 121.9 152.4 125.0 132.9 110.0 109.0 104.8 107.9 107.4 107.8 

 IV 122.2 152.3 r124.7 134.4 r110.4 110.0 106.5 109.1 97.0 108.0 

 ANNUAL 121.5 151.5 124.7 132.0 109.7 108.6 104.2 107.4 108.7 107.5 

 2001 I 122.6 151.9 123.9 135.5 r110.3 110.5 109.2 110.2 87.4 108.1 

 II r123.5 151.1 r122.3 r136.8 r110.5 110.8 111.6 111.0 86.9 108.9 

 III 123.7 149.4 120.8 137.9 111.1 111.5 114.1 112.2 79.0 109.2 

 IV 124.5 148.2 119.1 139.3 r112.4 111.9 115.7 113.0 75.5 109.6 

 ANNUAL 123.5 150.2 121.5 137.3 111.1 111.2 112.6 111.6 82.2 108.9 

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

 Percent change from previous quarter at annual rate(5) 

 2000 I r7.2 9.5 r2.1 r15.3 r11.1 7.6 1.4 5.9 -25.5 2.3 

 II 2.1 2.3 0.2 r2.3 -1.0 0.1 6.6 1.8 4.7 2.1 

 III r2.7 3.4 r0.6 r7.7 r3.8 4.9 5.0 4.9 -26.2 1.5 

 IV r0.8 -0.2 r-0.9 r4.5 r1.6 3.7 6.7 4.5 -33.4 0.6 

 ANNUAL 3.6 5.2 1.5 6.8 3.4 3.1 3.8 3.3 -15.8 1.2 

 2001 I 1.4 -1.1 -2.4 r3.4 -0.3 1.9 10.5 4.1 -34.1 0.6 

 II r2.9 -2.2 r-4.9 r3.8 r0.6 0.9 9.2 3.1 -2.5 2.7 

 III r0.6 -4.4 r-5.0 r3.3 r2.3 2.6 8.9 4.3 -31.8 1.3 

 IV 2.6 -3.0 -5.5 r4.2 r4.8 1.6 5.9 2.8 -16.3 1.4 

 ANNUAL 1.7 -0.9 -2.5 4.1 r1.2 2.4 8.1 3.9 -24.3 1.3 

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

 Percent change from corresponding quarter of previous year 

 2000 I 3.4 6.1 r2.6 5.8 2.5 2.3 2.8 2.4 -14.1 0.6 

 II r3.5 5.5 2.0 6.2 r2.9 2.7 3.8 3.0 -13.2 1.1 

 III 4.1 5.6 1.4 7.6 4.0 3.3 3.8 3.5 -14.9 1.5 

 IV 3.2 3.7 0.5 r7.3 3.8 4.0 4.9 4.3 -21.3 1.6 

 ANNUAL 3.6 5.2 1.5 6.8 3.4 3.1 3.8 3.3 -15.8 1.2 

 2001 I r1.7 1.1 r-0.6 r4.4 r1.0 2.6 7.2 3.8 -23.7 1.2 

 II 1.9 0.0 -1.9 4.8 1.4 2.8 7.8 4.1 -25.0 1.3 

 III 1.4 -2.0 -3.3 3.7 1.0 2.3 8.8 4.0 -26.5 1.3 

 IV r1.9 -2.7 r-4.5 3.7 1.8 1.8 8.6 3.6 -22.2 1.5 

 ANNUAL 1.7 -0.9 -2.5 4.1 r1.2 2.4 8.1 3.9 -24.3 1.3 

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

 See footnotes following Table 6. March 3, 2005 

 r=revised Source: Bureau of Labor Statistics