Internet address:     http://stats.bls.gov/lprhome.htm  USDL 97-202
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                                                        1997.
                                      
                                      
                           PRODUCTIVITY AND COSTS
                             First Quarter 1997


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 1997.  The revised seasonally-adjusted
annual rates of productivity change in the first quarter were:

               2.9 percent in the business sector, and
               2.6 percent in the nonfarm business sector.

In both sectors, the first-quarter productivity gains were the largest since
the fourth quarter of 1993.

     In manufacturing, productivity changes in the first quarter were:

               2.8 percent in manufacturing,
               3.3 percent in durable goods manufacturing, and
               3.1 percent in nondurable goods manufacturing.

     Manufacturing productivity growth in the first quarter of 1997 was less
than it had been in the fourth quarter of 1996; increases in both output and
hours of all persons were larger, however.  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.  First-quarter measures are
summarized in table A and appear in detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect independent indexes of industrial production prepared by the Board of
Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


    ---------------------------------------------------------------------
    Historical measures of productivity and costs have been revised.  See
                             "Revised measures."
    ---------------------------------------------------------------------


-----------------------------------------------------------------------
Table A. Productivity and costs: Revised first-quarter 1997 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            2.9      7.0     4.0    5.0       2.6       2.1
Nonfarm business    2.6      7.0     4.2    5.2       2.8       2.5
Manufacturing       2.8      5.6     2.8    4.4       2.0       1.6
  Durable           3.3      8.6     5.2    4.8       2.4       1.5
  Nondurable        3.1      2.5     -0.6   3.2       0.8       0.1
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            1.3      4.7     3.4    4.2       1.2       2.8
Nonfarm business    1.0      4.6     3.6    4.0       1.0       3.0
Manufacturing       3.6      5.3     1.7    4.4       1.4       0.7
  Durable           3.9      6.9     2.9    4.5       1.5       0.6
  Nondurable        3.5      3.4     -0.1   3.9       0.9       0.3
-----------------------------------------------------------------------


Business

     From the fourth quarter of 1996 to the first quarter of 1997, business
productivity increased 2.9 percent as output grew 7.0 percent while hours of
all persons rose 4.0 percent (seasonally adjusted annual rates).  The
increase in productivity was the largest since a 3.6 percent increase
occurred during the fourth quarter of 1993.  During the fourth quarter of
1996, productivity rose 1.3 percent (as revised), and output and hours rose
4.8 and 3.4 percent, respectively (table 1).

     Hourly compensation increased 5.0 percent during the first quarter of
1997, a sharper rise than the 3.7 percent in the fourth quarter of 1996.
This measure of compensation includes wages and salaries, supplements,
employer contributions to employee benefit plans, and taxes.  However, unit
labor costs, which reflect changes in both hourly compensation and
productivity, increased slightly less during the first quarter, 2.1 percent,
than they had during the previous quarter, 2.3 percent.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 2.6 percent
annual rate in the first quarter; it had risen 0.3 percent in the fourth
quarter of 1996.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased 1.8 percent in the
first quarter, compared with a 1.1 percent increase during the fourth quarter
of 1996.


Nonfarm business

     Productivity rose 2.6 percent in nonfarm business during the first
quarter of 1997 as output rose 7.0 percent and hours of all persons increased
4.2 percent.  As in the larger business sector, the first-quarter
productivity gain was the largest since the fourth quarter of 1993 (when it
also rose 2.6 percent).  During the fourth quarter of 1996, productivity
increased 1.3 percent in nonfarm business, reflecting gains of 4.9 percent in
output and 3.6 percent in hours (table 2).

     Hourly compensation increased 5.2 percent during the first quarter, more
rapidly than the 3.7-percent increase one quarter earlier.  When the rise in
the CPI-U is taken into account, real hourly compensation rose 2.8 percent in
the first quarter and 0.3 percent during the previous quarter.  The increase
in unit labor costs in the sector, 2.5 percent in the first quarter, was
about the same as the 2.4-percent increase in the fourth quarter.

     The implicit price deflator for nonfarm business output rose 2.0 percent
in the first quarter, a higher rate of growth than the 1.2 percent rise one
quarter earlier.


Manufacturing

     Productivity increased 2.8 percent in manufacturing in the first quarter
of 1997, as output rose 5.6 percent and hours of all persons increased 2.8
percent (seasonally adjusted annual rates).  In the first quarter, durable
goods industries exhibited strong growth in both output, 8.6 percent, and
hours of all persons, 5.2 percent, resulting in a productivity increase of
3.3 percent.  The growth in productivity in nondurable good industries was
similar, 3.1 percent; however, the movements in output and hours were
different.  In nondurable manufacturing, output grew 2.5 percent, and hours
of all persons declined 0.6 percent (tables 3, 4, and 5).

     Hourly compensation of all manufacturing workers rose 4.4 percent during
the first quarter, compared with an increase of 2.6 percent in the previous
quarter.  In the first quarter of 1997, real hourly compensation rose 2.0
percent when the increase in consumer prices is taken into account, compared
with a 0.7 percent drop one quarter earlier.  The first-quarter increase in
hourly compensation in the durable goods industries, 4.8 percent, was greater
than that in nondurable goods industries, 3.2 percent.

     Unit labor costs rose 1.6 percent in manufacturing in the first quarter
of 1997, after having dropped 1.1 percent in the fourth quarter and 1.2
percent in the third quarter.  In durable goods manufacturing, unit labor
costs rose 1.5 percent in the first quarter and fell 0.7 percent in the
fourth quarter of 1996.  In nondurable goods manufacturing, unit labor costs
rose 0.1 percent in the first quarter and fell 0.8 percent in the previous
quarter.


-------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 1997
productivity and cost measures
(Seasonally adjusted annual rates)
-------------------------------------------------------------------------                                                                
                                        Real                     
                               Hourly   hourly   Unit            Implicit
        Produc-                compen-  compen-  labor  Unit     price
Period  tivity   Output Hours  sation   sation   costs  profits  deflator
-------------------------------------------------------------------------                                                                
                 Percent change from preceding quarter
1997 I    4.6      8.8   4.0    4.8      2.4      0.2    10.8     1.1
-------------------------------------------------------------------------
                 Percent change from same quarter a year ago
1997 I    2.9      6.4   3.4    3.9      1.0      1.0    2.3      0.7
-------------------------------------------------------------------------


Nonfinancial corporations
     
     Preliminary first-quarter 1997 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity rose 4.6 percent in the first quarter, as output increased 8.8
percent and employee-hours rose 4.0 percent (seasonally adjusted annual
rates).  In the fourth quarter of 1996, productivity had increased 1.7
percent.  Nonfinancial corporations include all corporations doing business
in the United States, except banks, stock and commodity brokers, and finance
and insurance agencies.
     
     Hourly compensation increased 4.8 percent during the first quarter, and
real hourly compensation rose 2.4 percent when the rise in the CPI-U is
taken into account.  In the fourth quarter, hourly compensation rose 3.3
percent, and real hourly compensation dropped 0.1 percent.

     Unit labor costs for nonfinancial corporations increased 0.2 percent in
the first quarter, less than the 1.5 percent increase recorded in the fourth
quarter of 1996.  Unit nonlabor costs fell 1.3 percent in the first quarter
of 1997, and unit profits increased 10.8 percent.  During the fourth quarter
of 1996, unit nonlabor costs rose 1.2 percent, and unit profits dropped 9.4
percent (annual rates).  The implicit price deflator for nonfinancial
corporate output rose 1.1 percent in the first quarter and 0.1 percent in
the fourth quarter.


REVISED MEASURES

     Current and previous measures for the first quarter of 1997 for
business, nonfarm business, and manufacturing are compared in table C.
Productivity and output increased more rapidly--and hours rose more slowly--
in the business and nonfarm business sectors than originally reported on May
7, based on information then available.  In manufacturing, productivity,
output, and hours of all persons grew more slowly than originally reported
last month.

-----------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
-----------------------------------------------------------------------                                                              
                                                     Real      
                                            Hourly   hourly    Unit
                   Produc-                  compen-  compen-   labor
Sector             tivity   Output  Hours   sation   sation    costs
-----------------------------------------------------------------------                                                              
                             First quarter 1997
Business:                                                     
  Previous          2.1       6.8    4.5     4.5      2.0       2.3
  Current           2.9       7.0    4.0     5.0      2.6       2.1
Nonfarm business:                                             
  Previous          2.0       6.8    4.7     4.7      2.3       2.7
  Current           2.6       7.0    4.2     5.2      2.8       2.5
Manufacturing:                                                
  Previous          3.1       6.7    3.5     4.5      2.0       1.4
  Current           2.8       5.6    2.8     4.4      2.0       1.6
-----------------------------------------------------------------------


     With this release of Productivity and Costs, labor input measures have
been revised to reflect the annual benchmarking of employment levels derived
from the monthly Current Employment Statistics survey and the updating of
seasonal adjustment factors.  (See USDL 97-186 for additional information.)
In addition, more recent information on employment in corporations and
nonprofit organizations has been incorporated into the employment and hours
data for the business, nonfarm business, and nonfinancial corporate sectors.
Seasonal adjustment factors also have been updated for the labor input series
that are computed from household survey data.
     
     
     The revision of the productivity and costs measures to reflect output
calculated using chain-type, annual-weighted indexes has been extended back
to 1947 for the business and nonfarm business sectors and to 1958 for
nonfinancial corporations.  Based on these revisions, the long-term rate of
growth in output per hour in the nonfarm business sector, 1947-96, was 2.0
percent a year.  Tables 1-6 show revised data in all sectors for 1995-97.
Appendix tables 1-3 show annual indexes of productivity and costs for the
business, nonfarm business, and nonfinancial corporate sectors for all years
since the inception of the series.
                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Tuesday, August 12, 1997.  Preliminary second-quarter measures for
business, nonfarm business, and manufacturing 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

  1995       I    r100.3      108.8     108.4     106.2        98.7      105.8      r107.5      106.4
            II    r100.7      109.0     108.2    r107.2       r98.9      106.5       107.8      107.0
           III    r101.0      110.3    r109.2    r108.2       r99.2      107.1       108.3      107.5
            IV    r100.9      110.4    r109.4    r109.3       r99.7      108.4       106.7      107.8

        ANNUAL    r100.7      109.6     108.8    r107.7       r99.1      106.9       107.6      107.2

  1996       I     101.5      111.2     109.6    r110.2        99.7     r108.6      r107.4      108.2
            II    r101.7      112.6    r110.7    r111.3       r99.8     r109.4      r107.7      108.8
           III    r101.8      113.2    r111.3    r112.3      r100.1      110.4       107.0      109.2
            IV    r102.1      114.5    r112.2    r113.4      r100.2      111.1       106.7      109.5

        ANNUAL    r101.7      112.9    r111.0    r111.7       r99.9      109.9       107.2      108.9

  1997       I    r102.8     r116.5     113.3    r114.8       100.8     r111.6       107.0      110.0
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I     r-2.5        0.4      r2.9      r2.9         0.1        5.5       r-1.2        3.0
            II      r1.5        0.7      -0.7       4.1        r1.0        2.6         1.3        2.1
           III      r1.2        4.7      r3.4      r3.5        r1.4        2.2        r1.7        2.0
            IV      -0.6        0.5       1.1       4.3         1.8       r4.9        -5.6        1.0

        ANNUAL       0.1        2.5       2.4       3.1        r0.2        3.0         1.1        2.3

  1996       I      r2.3        3.0      r0.6      r3.3        -0.1       r0.9        r2.6        1.5
            II      r0.9        5.0      r4.0      r4.0        r0.6        3.1         1.1        2.4
           III      r0.2        2.2      r2.0       3.8         1.1       r3.6       r-2.6        1.3
            IV      r1.3        4.8      r3.4       3.7         0.3       r2.3       r-1.0        1.1

        ANNUAL       1.0        3.0       2.0       3.8         0.8        2.8        -0.3        1.6

  1997       I      r2.9       r7.0      r4.0      r5.0        r2.6       r2.1        r1.1        1.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I     r-0.1        3.7       3.8       2.1       r-0.8       r2.1         2.8        2.4
            II       0.2        2.2       2.0      r2.9        -0.1        2.8         2.0        2.5
           III      r0.0        2.4       2.3      r3.3         0.7        3.3         0.6        2.3
            IV      -0.1        1.6       1.7       3.7        r1.0        3.8        -1.0        2.0

        ANNUAL       0.1        2.5       2.4       3.1        r0.2        3.0         1.1        2.3

  1996       I       1.1        2.2       1.1       3.8         1.0        2.7        r0.0        1.7
            II       1.0        3.3      r2.3       3.8        r0.9        2.8        -0.1        1.7
           III      r0.7        2.7       1.9       3.9         0.9        3.1        -1.2        1.6
            IV       1.2        3.7       2.5       3.7         0.5        2.5         0.0        1.6

        ANNUAL       1.0        3.0       2.0       3.8         0.8        2.8        -0.3        1.6

  1997       I      r1.3        4.7       3.4      r4.2        r1.2        2.8        -0.4        1.7
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 18, 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

  1995       I     100.5      109.0    r108.5    r106.1       r98.6      105.6       108.2      106.5
            II    r100.8      109.2     108.3    r107.1       r98.8     r106.2       108.5      107.1
           III    r101.2      110.6    r109.3    r108.1       r99.2      106.8      r108.8      107.5
            IV    r100.9      110.7    r109.6    r109.2       r99.5      108.1       107.1      107.8

        ANNUAL    r100.8      109.9    r109.0    r107.6        99.1      106.7       108.2      107.2

  1996       I     101.5      111.4     109.8    r110.1        99.6      108.5       107.4      108.1
            II    r101.6      112.7    r111.0    r111.1       r99.6      109.4      r107.4      108.7
           III    r101.5      113.3    r111.6    r112.0       r99.8     r110.4       106.6      109.0
            IV    r101.8      114.6    r112.6    r113.1       r99.9      111.0       106.3      109.3

        ANNUAL    r101.5      113.0    r111.3    r111.5       r99.7      109.8       106.9      108.8

  1997       I     102.5     r116.6    r113.7     114.5       100.6      111.7       106.6      109.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I      -2.2        0.6      r2.8       2.9        r0.1       r5.2       r-0.6        3.0
            II       1.5        0.9      -0.6       4.0         0.9        2.5        r1.2        2.0
           III      r1.5        5.0      r3.5      r3.6         1.5       r2.1        r1.1        1.7
            IV     r-1.0        0.4      r1.4      r4.1        r1.6        5.2        -6.4        0.9

        ANNUAL      r0.2        2.7       2.4       3.2         0.3        2.9         1.1        2.2

  1996       I      r2.1        2.7      r0.7       3.4         0.1       r1.3        r1.5        1.4
            II      r0.4        4.8      r4.4      r3.7        r0.3        3.3       r-0.2        2.1
           III     r-0.2        1.9      r2.1      r3.5        r0.8       r3.6       r-3.0        1.2
            IV      r1.3        4.9      r3.6      r3.7        r0.3       r2.4       r-0.9        1.2

        ANNUAL       0.7        2.9       2.2       3.6         0.7        2.9        -1.1        1.5

  1997       I      r2.6       r7.0      r4.2      r5.2        r2.8       r2.5        r1.2        2.0
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I       0.2        3.9       3.7       2.3       r-0.6        2.1        r3.3        2.5
            II       0.3        2.4       2.1       3.0       r-0.1        2.7         2.1        2.5
           III       0.3        2.6       2.3      r3.4         0.8       r3.2         0.4        2.2
            IV      -0.1        1.7       1.8      r3.6         1.0        3.7        -1.2        1.9

        ANNUAL      r0.2        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       r2.7       r-0.7        1.5
            II      r0.7        3.2      r2.5      r3.7        r0.8        3.0        -1.1        1.5
           III       0.3        2.4       2.1       3.7         0.7        3.3       r-2.1        1.4
            IV       0.9        3.6       2.7       3.6         0.4        2.6        -0.7        1.5

        ANNUAL       0.7        2.9       2.2       3.6         0.7        2.9        -1.1        1.5

  1997       I      r1.0        4.6       3.6      r4.0        r1.0       r3.0       r-0.8        1.6
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 18, 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

  1995       I           r107.3        112.9       r105.2       r107.3           99.7         r99.9
            II            108.2        112.6        104.0        108.4          r99.9        r100.1
           III           r109.3        113.3       r103.6       r109.4         r100.4         100.1
            IV           r109.8        113.6       r103.4       r110.3         r100.6         100.4

        ANNUAL           r108.7        113.1       r104.1       r108.8         r100.2         100.2

  1996       I           r110.9        113.9       r102.7       r110.1          r99.6         r99.3
            II           r111.5        115.6       r103.7       r111.8         r100.3        r100.2
           III           r113.0        117.0       r103.6       r113.0         r100.6         100.0
            IV           r114.0        118.3       r103.7       r113.7         r100.5         r99.7

        ANNUAL           r112.2        116.2       r103.5       r112.0         r100.1          99.8

  1997       I           r114.8       r119.9       r104.4       r114.9         r101.0        r100.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r3.6          4.2         r0.6         r3.4           r0.6         r-0.2
            II             r3.3         -1.4        r-4.5          4.3           r1.1          r0.9
           III             r4.2          2.6        r-1.5         r4.0           r1.8          -0.2
            IV             r1.7          1.0        r-0.7         r3.1           r0.6          r1.4

        ANNUAL             r3.2          3.5         r0.3         r3.5           r0.7           0.3

  1996       I             r4.0          1.1        r-2.7        r-0.6          r-3.8         r-4.4
            II             r2.4          6.3         r3.8         r6.2           r2.7          r3.7
           III             r5.5          5.0        r-0.5         r4.2           r1.5          -1.2
            IV             r3.7          4.3         r0.6         r2.6          r-0.7         r-1.1

        ANNUAL             r3.3          2.7        r-0.5         r2.9          r-0.1         r-0.4

  1997       I             r2.8         r5.6         r2.8         r4.4            2.0          r1.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              3.1          6.0          2.8          2.7           -0.2          -0.4
            II              2.7          3.6         r0.9          3.5            0.4          r0.7
           III             r3.3          3.0        r-0.3         r3.7           r1.0           0.3
            IV             r3.2          1.6        r-1.6         r3.7           r1.0           0.5

        ANNUAL             r3.2          3.5         r0.3         r3.5           r0.7           0.3

  1996       I             r3.3          0.8        r-2.4         r2.7          r-0.1          -0.6
            II             r3.1          2.7        r-0.3         r3.2           r0.3           0.1
           III             r3.4          3.3        r-0.1         r3.2           r0.2          -0.1
            IV             r3.9          4.1         r0.3         r3.1          r-0.1         r-0.8

        ANNUAL             r3.3          2.7        r-0.5         r2.9          r-0.1         r-0.4

  1997       I             r3.6         r5.3          1.7          4.4            1.4          r0.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 18, 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

  1995       I           r110.5        118.1       r106.9        106.9           99.4         r96.8
            II           r111.1        117.8       r106.0        108.0           99.6         r97.2
           III           r112.7        119.4       r106.0       r109.2         r100.2          96.9
            IV           r113.4        120.4       r106.2       r109.8         r100.2         r96.9

        ANNUAL           r111.9        118.9       r106.3       r108.5          r99.9          96.9

  1996       I           r115.0        121.5       r105.6       r109.0          r98.6         r94.7
            II           r116.2        124.6       r107.2       r111.0          r99.6          95.6
           III           r117.9        126.4       r107.2       r112.1          r99.9          95.1
            IV           r118.6        127.3       r107.4       r112.5          r99.4         r94.9

        ANNUAL           r116.8        124.9       r107.0       r111.0          r99.3          95.1

  1997       I           r119.5       r129.9       r108.7       r113.9         r100.0         r95.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r6.1          7.1         r0.9          3.2            0.4         r-2.8
            II             r2.4         -1.1        r-3.4         r4.2           r1.1          r1.8
           III             r5.6          5.5        r-0.1         r4.4           r2.2         r-1.2
            IV             r2.5          3.5         r0.9         r2.4          r-0.1         r-0.1

        ANNUAL             r4.2          5.5         r1.3         r3.4           r0.6          -0.7

  1996       I             r6.0          3.7        r-2.2        r-3.1          r-6.2         r-8.6
            II             r4.0         10.3         r6.1         r7.7           r4.1          r3.5
           III             r6.2          6.0        r-0.2         r4.2           r1.5         r-1.9
            IV             r2.1          2.8         r0.7         r1.4          r-1.9         r-0.7

        ANNUAL             r4.3          5.0         r0.7         r2.3          r-0.6          -1.9

  1997       I             r3.3         r8.6         r5.2         r4.8           r2.4          r1.5
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              4.2          8.0          3.7          2.6           -0.3          -1.5
            II              3.6          5.6          1.9          3.3            0.3          -0.3
           III             r4.2          5.0         r0.7         r3.6           r1.0          -0.6
            IV             r4.2          3.7        r-0.4         r3.5           r0.9          -0.6

        ANNUAL             r4.2          5.5         r1.3         r3.4           r0.6          -0.7

  1996       I             r4.1          2.9        r-1.2         r1.9          r-0.8          -2.1
            II             r4.5          5.7         r1.2         r2.8          r-0.1          -1.7
           III             r4.7          5.8         r1.1         r2.7          r-0.3          -1.9
            IV             r4.6          5.7         r1.1         r2.5          r-0.7          -2.0

        ANNUAL             r4.3          5.0         r0.7         r2.3          r-0.6          -1.9

  1997       I             r3.9         r6.9         r2.9         r4.5           r1.5          r0.6
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 18, 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

  1995       I           r104.5        107.6        103.0       r107.4           99.8         102.8
            II           r105.6        107.1       r101.4       r108.5         r100.0        r102.7
           III           r106.4        106.9       r100.5       r109.3         r100.3        r102.7
            IV           r106.7        106.4        r99.7       r110.3         r100.6        r103.4

        ANNUAL           r105.8        107.0       r101.1       r108.9         r100.3         102.9

  1996       I           r107.2        105.9        r98.8       r111.3         r100.7        r103.9
            II           r107.4        106.3        r99.0       r112.2         r100.7         104.5
           III           r108.7        107.3        r98.7       r113.4         r101.0        r104.4
            IV           r110.1        108.8        r98.8       r114.7         r101.4        r104.2

        ANNUAL           r108.2        107.1        r99.0       r112.8         r100.8         104.2

  1997       I           r111.0        109.5        r98.7       r115.6         r101.6        r104.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r0.7          0.8         r0.1         r3.5           r0.7          r2.8
            II             r4.6         -1.7        r-6.0         r4.0           r0.8         r-0.6
           III             r3.0         -0.7        r-3.5         r3.1           r0.9          r0.1
            IV             r1.1         -1.9        r-3.0         r3.8           r1.3          r2.7

        ANNUAL             r2.3          1.2        r-1.1         r3.4           r0.6           1.1

  1996       I             r1.7         -1.9        r-3.5         r3.6           r0.3          r1.9
            II             r1.0          1.6         r0.5         r3.4           r0.0           2.4
           III              4.6          3.7         -0.9         r4.2           r1.5         r-0.3
            IV             r5.5          5.9         r0.4         r4.6           r1.2         r-0.8

        ANNUAL             r2.2          0.1        r-2.1         r3.6           r0.6           1.3

  1997       I             r3.1         r2.5        r-0.6         r3.2           r0.8          r0.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              2.0          3.6          1.6          2.7           -0.2          r0.7
            II              1.8          1.2        r-0.5         r3.4           r0.4          r1.6
           III             r2.5          0.7        r-1.8         r3.5           r0.8           0.9
            IV             r2.3         -0.9        r-3.1         r3.6           r1.0          r1.2

        ANNUAL             r2.3          1.2        r-1.1         r3.4           r0.6           1.1

  1996       I             r2.6         -1.5        r-4.0         r3.6           r0.8           1.0
            II             r1.7         -0.7        r-2.4         r3.5           r0.6           1.8
           III             r2.1          0.3        r-1.7         r3.8           r0.8          r1.6
            IV             r3.2          2.3        r-0.9         r4.0           r0.8           0.8

        ANNUAL             r2.2          0.1        r-2.1         r3.6           r0.6           1.3

  1997       I             r3.5          3.4        r-0.1         r3.9           r0.9          r0.3
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 18, 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

  1995       I   r101.7    111.3     109.4   r105.2     r97.8     103.4    100.5    102.7    124.9    104.7
            II   r102.3    112.0    r109.5   r106.2      98.0     103.8    101.6    103.2    124.0    105.1
           III   r103.5    114.0    r110.1   r107.1     r98.3     103.5    100.4    102.7    133.8    105.5
            IV   r104.1    115.2    r110.6   r108.2     r98.6     103.9    100.7    103.1    132.1    105.7

        ANNUAL    103.0    113.1    r109.9   r106.7      98.3     103.7    100.8    102.9    128.8    105.3

  1996       I   r104.5    115.8    r110.9   r108.9     r98.5     104.3    100.0    103.2    136.2    106.1
            II   r104.8    117.4    r112.0   r109.9     r98.6     104.9     99.0    103.3    138.5    106.5
           III   r105.8    119.2    r112.6   r111.0     r98.9     104.9     98.8    103.3    139.2    106.6
            IV   r106.3    120.6    r113.5   r111.9     r98.9     105.3     99.0    103.7    135.9    106.6

        ANNUAL   r105.3    118.3    r112.3   r110.4     r98.7     104.8     99.2    103.4    137.5    106.5

  1997       I    107.5    123.2     114.6    113.2      99.5     105.3     98.7    103.6    139.4    106.9
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1995       I     -3.4     -0.3      r3.2      2.4     r-0.3       6.0      7.5      6.4    -24.4      2.4
            II      2.3      2.4       0.2      3.8       0.6       1.5      4.4      2.2     -2.9      1.7
           III     r4.6      7.2      r2.4     r3.5      r1.3      -1.1     -4.5     -2.0     35.7      1.6
            IV      2.5      4.4       1.8     r4.0      r1.5       1.4      1.3      1.4     -4.9      0.6

        ANNUAL      0.4      3.5      r3.1      2.6      -0.2       2.2      1.2      1.9      0.5      1.8

  1996       I     r1.4      2.2      r0.8     r2.8     r-0.5       1.4     -2.9      0.3     12.9      1.7
            II     r1.3      5.6      r4.3     r3.7      r0.3       2.3     -3.9      0.7      7.1      1.4
           III     r3.9      6.1      r2.1     r4.0      r1.3       0.1     -1.0     -0.2      2.0      0.1
            IV      1.7      5.0      r3.2     r3.3      -0.1       1.5      1.2      1.4     -9.4      0.1

        ANNUAL     r2.3      4.5      r2.2      3.5       0.5       1.1     -1.6      0.4      6.8      1.1

  1997       I      4.6      8.8       4.0      4.8       2.4       0.2     -1.3     -0.2     10.8      1.1
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1995       I    r-1.0      3.7      r4.7     r1.4      -1.4       2.4     -1.5      1.4      5.8      1.8
            II    r-0.3      2.9       3.1     r2.3     r-0.7       2.6      3.1      2.8     -4.2      2.0
           III     r1.1      3.9       2.8     r3.0       0.4       1.9      1.2      1.7      2.4      1.8
            IV      1.5      3.4       1.9     r3.4       0.8       1.9      2.1      2.0     -1.4      1.6

        ANNUAL      0.4      3.5      r3.1      2.6      -0.2       2.2      1.2      1.9      0.5      1.8

  1996       I      2.7      4.0       1.3      3.5      r0.7       0.8     -0.5      0.5      9.0      1.4
            II     r2.4      4.8      r2.3     r3.5      r0.6       1.0     -2.5      0.1     11.7      1.3
           III      2.3      4.6       2.2     r3.6      r0.6       1.3     -1.7      0.6      4.1      1.0
            IV      2.1      4.7       2.6     r3.4      r0.2       1.3     -1.7      0.6      2.8      0.8

        ANNUAL     r2.3      4.5      r2.2      3.5       0.5       1.1     -1.6      0.4      6.8      1.1

  1997       I      2.9      6.4       3.4      3.9       1.0       1.0     -1.3      0.4      2.3      0.7
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        June 18, 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.

Appendix table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices
 Indexes 1992=100
                                                            Real
                Output per            Hours     Compensa-   compensa-  Unit      Unit non-   Implicit
                hour of               of all    tion per    tion per   labor     labor pay-  price
       Year     all persons  Output   persons   hour (1)    hour (2)   costs     ments (3)   deflator (4)
  -------------------------------------------------------------------------------------------------------
       1947        33.7       21.9      65.1        6.8       42.8      20.2         18.5       19.6
       1948        35.2       23.1      65.6        7.4       43.0      21.0         20.5       20.8
       1949        36.0       22.8      63.4        7.5       44.1      20.8         20.3       20.6

       1950        39.1       25.1      64.2        8.0       46.8      20.6         21.4       20.8
       1951        40.3       26.7      66.2        8.8       47.5      21.9         23.5       22.4
       1952        41.4       27.5      66.3        9.4       49.6      22.6         22.9       22.7
       1953        43.0       28.8      67.0       10.0       52.4      23.2         22.4       22.9
       1954        43.9       28.4      64.7       10.3       53.8      23.5         22.4       23.1

       1955        45.8       30.7      67.1       10.6       55.4      23.1         23.8       23.4
       1956        45.8       31.2      68.1       11.3       58.2      24.6         23.2       24.1
       1957        47.2       31.7      67.1       12.0       60.0      25.5         23.9       24.9
       1958        48.5       31.0      64.0       12.6       61.0      25.9         24.5       25.4
       1959        50.5       33.7      66.7       13.1       63.1      25.9         25.0       25.6

       1960        51.4       34.3      66.7       13.6       64.7      26.6         24.6       25.8
       1961        53.2       34.9      65.7       14.2       66.6      26.7         25.0       26.1
       1962        55.7       37.2      66.8       14.8       68.9      26.6         25.7       26.3
       1963        57.9       38.9      67.2       15.4       70.5      26.6         26.3       26.5
       1964        60.5       41.4      68.3       16.2       73.2      26.7         26.8       26.8

       1965        62.7       44.2      70.6       16.8       74.8      26.8         28.0       27.2
       1966        65.2       47.2      72.5       17.9       77.5      27.5         28.6       27.9
       1967        66.6       48.1      72.3       18.9       79.5      28.4         29.2       28.7
       1968        68.9       50.5      73.3       20.5       82.5      29.7         30.0       29.8
       1969        69.2       52.0      75.2       21.9       83.7      31.7         30.0       31.1

       1970        70.5       52.0      73.7       23.6       85.4      33.5         30.6       32.4
       1971        73.6       54.0      73.3       25.1       87.0      34.1         33.4       33.9
       1972        76.0       57.6      75.7       26.7       89.6      35.1         34.8       35.0
       1973        78.4       61.6      78.5       29.0       91.6      37.0         36.6       36.8
       1974        77.1       60.6      78.6       31.8       90.5      41.3         38.6       40.3

       1975        79.8       60.0      75.2       35.1       91.5      44.0         44.5       44.2
       1976        82.5       64.0      77.6       38.2       94.1      46.2         47.1       46.5
       1977        83.9       67.6      80.6       41.2       95.3      49.0         50.0       49.4
       1978        84.9       71.7      84.5       44.8       96.5      52.8         53.3       53.0
       1979        84.5       73.9      87.4       49.2       95.0      58.2         56.5       57.6

       1980        84.2       73.0      86.6       54.5       92.7      64.7         59.6       62.8
       1981        85.7       74.8      87.2       59.6       92.0      69.5         67.1       68.7
       1982        85.3       72.5      85.0       64.1       93.1      75.1         68.3       72.7
       1983        88.0       76.1      86.5       66.7       94.0      75.8         74.6       75.4
       1984        90.2       82.5      91.5       69.6       94.0      77.2         78.5       77.7

       1985        91.7       85.7      93.5       73.0       95.2      79.7         80.5       80.0
       1986        94.0       88.5      94.1       76.8       98.3      81.7         81.7       81.7
       1987        94.0       91.1      97.0       79.8       98.5      84.9         81.9       83.8
       1988        94.6       94.6     100.0       83.5       99.0      88.2         84.1       86.8
       1989        95.4       97.8     102.5       85.8       97.1      89.9         91.3       90.4

       1990        96.1       98.6     102.6       90.7       97.4      94.4         93.5       94.1
       1991        96.7       96.9     100.2       95.1       97.9      98.3         96.6       97.7
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.1      102.7     102.5      102.5       99.5     102.3        102.8      102.5
       1994       100.6      107.0     106.3      104.5       98.9     103.8        106.4      104.8

       1995       100.7      109.6     108.8      107.7       99.1     106.9        107.6      107.2
       1996       101.7      112.9     111.0      111.7       99.9     109.9        107.2      108.9
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     June 18, 1997 
                                                                       Source: Bureau of Labor Statistics

Appendix table 2. Nonfarm business sector:  Productivity, hourly compensation, unit labor costs, and prices
 Indexes 1992=100
                                                            Real
                Output per            Hours     Compensa-   compensa-  Unit      Unit non-   Implicit
                hour of               of all    tion per    tion per   labor     labor pay-  price
       Year     all persons  Output   persons   hour (1)    hour (2)   costs     ments (3)   deflator (4)
  -------------------------------------------------------------------------------------------------------
       1947        38.9       21.5      55.3        7.3       45.9      18.7         17.6       18.3
       1948        39.9       22.5      56.3        7.9       46.1      19.8         19.1       19.6
       1949        41.3       22.3      54.0        8.2       48.1      19.8         19.7       19.7

       1950        44.2       24.6      55.7        8.7       50.4      19.6         20.6       20.0
       1951        45.3       26.4      58.3        9.4       50.8      20.8         22.1       21.3
       1952        46.1       27.2      58.9        9.9       52.7      21.6         21.9       21.7
       1953        47.2       28.4      60.3       10.5       55.2      22.3         21.9       22.1
       1954        48.1       28.0      58.2       10.9       56.7      22.6         22.1       22.4

       1955        50.1       30.3      60.5       11.3       59.0      22.5         23.3       22.8
       1956        49.7       30.8      62.0       12.0       61.7      24.1         22.8       23.6
       1957        50.9       31.4      61.7       12.6       63.2      24.8         23.5       24.4
       1958        52.0       30.7      59.0       13.2       63.9      25.3         23.8       24.8
       1959        54.2       33.5      61.7       13.7       66.0      25.3         24.7       25.0

       1960        54.8       34.0      62.0       14.3       67.7      26.1         24.0       25.3
       1961        56.5       34.7      61.3       14.8       69.3      26.1         24.5       25.6
       1962        59.1       37.0      62.6       15.4       71.5      26.0         25.3       25.8
       1963        61.2       38.7      63.3       15.9       73.0      26.0         25.9       26.0
       1964        63.8       41.3      64.8       16.7       75.4      26.1         26.6       26.3

       1965        65.7       44.2      67.3       17.2       76.7      26.2         27.6       26.7
       1966        68.0       47.4      69.7       18.2       78.8      26.8         28.2       27.3
       1967        69.2       48.2      69.7       19.3       80.9      27.8         28.8       28.2
       1968        71.6       50.7      70.9       20.8       83.8      29.0         29.7       29.3
       1969        71.6       52.3      72.9       22.2       84.9      31.0         29.6       30.5

       1970        72.6       52.1      71.8       23.8       86.1      32.8         30.3       31.9
       1971        75.6       54.1      71.5       25.4       87.8      33.5         33.0       33.3
       1972        78.2       57.8      73.9       27.0       90.6      34.5         34.0       34.3
       1973        80.7       62.0      76.9       29.2       92.3      36.2         34.3       35.5
       1974        79.4       61.1      77.0       32.1       91.3      40.4         36.7       39.1

       1975        81.5       60.0      73.6       35.3       92.1      43.3         43.0       43.2
       1976        84.5       64.3      76.1       38.4       94.6      45.4         46.0       45.6
       1977        85.8       67.9      79.2       41.5       96.0      48.3         49.0       48.6
       1978        86.9       72.3      83.1       45.2       97.3      52.0         51.8       51.9
       1979        86.3       74.3      86.1       49.5       95.7      57.4         54.7       56.4

       1980        86.0       73.4      85.4       54.8       93.3      63.8         58.6       61.9
       1981        86.9       74.8      86.1       60.1       92.8      69.2         65.6       67.9
       1982        86.3       72.4      83.9       64.6       93.9      74.8         67.4       72.2
       1983        89.9       76.8      85.5       67.3       94.8      74.9         74.3       74.7
       1984        91.4       82.8      90.6       70.1       94.7      76.7         77.4       77.0

       1985        92.3       85.8      92.9       73.4       95.7      79.5         79.9       79.6
       1986        94.7       88.7      93.7       77.2       98.8      81.5         81.3       81.4
       1987        94.5       91.3      96.7       80.1       98.9      84.7         81.4       83.6
       1988        95.2       95.1      99.9       83.6       99.1      87.8         83.8       86.4
       1989        95.7       98.1     102.5       85.8       97.1      89.7         90.7       90.0

       1990        96.2       98.8     102.7       90.6       97.3      94.1         93.2       93.8
       1991        96.9       97.1     100.2       95.1       97.9      98.1         96.8       97.6
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.1      102.9     102.8      102.2       99.2     102.1        103.4      102.5
       1994       100.6      107.0     106.4      104.3       98.7     103.7        107.0      104.9

       1995       100.8      109.9     109.0      107.6       99.1     106.7        108.2      107.2
       1996       101.5      113.0     111.3      111.5       99.7     109.8        106.9      108.8
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     June 18, 1997
                                                                       Source: Bureau of Labor Statistics

Appendix table 3. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, 
 unit profits, and prices
 Indexes 1992=100

               Output                      Hourly    Real                Unit     Total     Unit  Implicit
               per all-                    compen-   hourly     Unit     non-     unit      pro-  price
               employee           Employee sation    compen-r   labor    labor    costs     fits  deflator
      Year     hour       Output  hours     (1)      sation(2)  costs    costs(6) (7)       (8)     (4)
  --------------------------------------------------------------------------------------------------------
      1958       50.9      25.0     49.2     14.4      70.0      28.4     25.5     27.6     44.9     29.2
      1959       53.5      27.9     52.2     15.0      72.2      28.0     24.5     27.1     52.4     29.4

      1960       54.5      28.8     52.9     15.6      73.9      28.6     25.3     27.8     47.7     29.6
      1961       56.2      29.4     52.4     16.1      75.6      28.7     25.8     27.9     47.9     29.7
      1962       58.6      31.9     54.5     16.7      77.7      28.6     25.4     27.7     52.0     29.9
      1963       60.6      33.7     55.7     17.3      79.2      28.5     25.3     27.7     55.0     30.1
      1964       63.1      36.1     57.3     18.0      81.6      28.6     25.2     27.7     57.3     30.4

      1965       64.5      39.1     60.6     18.5      82.6      28.7     25.1     27.8     61.8     30.9
      1966       65.5      41.8     63.9     19.5      84.6      29.8     25.1     28.6     61.5     31.6
      1967       66.4      42.9     64.6     20.6      86.6      31.0     26.6     29.9     57.6     32.4
      1968       68.7      45.6     66.4     22.2      89.4      32.3     28.4     31.3     57.5     33.6
      1969       68.7      47.4     69.0     23.7      90.5      34.5     30.6     33.5     51.7     35.1

      1970       69.0      47.0     68.0     25.4      91.7      36.7     34.3     36.1     42.0     36.6
      1971       71.9      48.9     67.9     27.0      93.4      37.5     36.0     37.1     47.6     38.0
      1972       73.8      52.7     71.4     28.5      95.7      38.6     35.9     37.9     51.6     39.2
      1973       74.4      55.8     74.9     30.7      97.2      41.3     37.5     40.3     52.8     41.5
      1974       72.7      54.8     75.3     33.7      95.8      46.3     43.3     45.5     46.2     45.6

      1975       75.5      53.9     71.4     37.0      96.6      49.0     48.9     49.0     61.0     50.1
      1976       78.1      58.3     74.6     40.1      99.0      51.4     48.8     50.7     68.7     52.4
      1977       80.1      62.6     78.1     43.3     100.2      54.0     50.4     53.1     75.4     55.1
      1978       80.8      66.7     82.6     47.0     101.2      58.2     53.8     57.1     78.0     59.0
      1979       79.4      68.2     85.9     51.4      99.3      64.7     59.8     63.4     73.0     64.3

      1980       80.3      68.3     85.1     56.7      96.5      70.5     69.2     70.2     64.4     69.7
      1981       82.8      71.5     86.3     61.8      95.5      74.7     79.0     75.8     75.9     75.8
      1982       84.2      70.5     83.7     66.2      96.3      78.7     85.4     80.4     68.2     79.3
      1983       86.8      73.7     84.9     68.7      96.8      79.1     85.8     80.9     83.3     81.1
      1984       89.6      81.0     90.4     71.7      96.8      80.0     84.3     81.1     99.9     82.8

      1985       91.0      84.2     92.5     74.9      97.7      82.3     85.2     83.1     97.8     84.4
      1986       93.7      86.9     92.7     78.7     100.8      84.0     87.5     84.9     88.0     85.2
      1987       95.1      91.1     95.8     81.6     100.7      85.7     87.5     86.2     95.9     87.1
      1988       96.7      95.9     99.2     84.8     100.6      87.7     89.7     88.2    103.8     89.6
      1989       95.4      97.5    102.2     86.9      98.4      91.1     96.3     92.5     96.0     92.8

      1990       96.1      98.4    102.4     91.4      98.1      95.2     99.1     96.2     94.6     96.1
      1991       97.5      97.1     99.6     95.6      98.5      98.0    103.0     99.3     93.9     98.8
      1992      100.0     100.0    100.0    100.0     100.0     100.0    100.0    100.0    100.0    100.0
      1993      101.3     103.6    102.3    102.2      99.2     100.9     99.7    100.6    113.2    101.7
      1994      102.5     109.3    106.6    104.0      98.5     101.4     99.6    101.0    128.1    103.4

      1995      103.0     113.1    109.9    106.7      98.3     103.7    100.8    102.9    128.8    105.3
      1996      105.3     118.3    112.3    110.4      98.7     104.8     99.2    103.4    137.5    106.5
  --------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                      June 18, 1997
                                                                        Source: Bureau of Labor Statistics