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USDL 99-320
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FRIDAY, NOVEMBER 12, 1999.


                           PRODUCTIVITY AND COSTS
                             Third Quarter 1999


   The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the third quarter of 1999.  The preliminary seasonally-adjusted
annual rates of productivity growth in the third quarter were:

               4.0 percent in the business sector, and
               4.2 percent in the nonfarm business sector.

In both the business and the nonfarm business sectors, productivity increases
in the third quarter were larger than those recorded in the second quarter of
1999 (as revised).

   In manufacturing, productivity increases in the third quarter were:

               3.4 percent in manufacturing,
               3.6 percent in durable goods manufacturing, and
               4.1 percent in nondurable goods manufacturing.

   The 3.4 percent rise in manufacturing productivity matches the increase
in output; hours of all persons working in the sector were unchanged.  Output
and hours in manufacturing, which includes about 17 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.  Third-quarter
measures are summarized in table A and appear in detail in tables 1
through 5.

-----------------------------------------------------------------------------
NOTE:  This release of Productivity and Costs incorporates the comprehensive,
historical  revision  of the national income and product  accounts  for  1959
through  second-quarter 1999, produced by the Bureau  of  Economic  Analysis,
U.S.  Department  of  Commerce.  The BLS also has incorporated  the  Consumer
Price Index research series using current methods (CPI-U-RS) into its measure
of real hourly compensation.
-----------------------------------------------------------------------------

------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary third-quarter 1999
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           4.0       5.4       1.4     4.7       2.0       0.7
 Nonfarm business   4.2       5.7       1.5     4.8       2.2       0.6
 Manufacturing      3.4       3.4       0.0     6.2       3.5       2.7
   Durable          3.6       7.2       3.5     5.7       3.0       2.1
   Nondurable       4.1      -1.2      -5.1     6.3       3.6       2.1
------------------------------------------------------------------------
                      Percent change from same quarter a year ago
 Business           3.0       4.6       1.6     4.9       2.6       1.9
 Nonfarm business   2.9       4.7       1.8     4.6       2.3       1.7
 Manufacturing      4.9       3.4      -1.4     4.8       2.5      -0.1
  Durable           7.3       6.2      -1.0     4.7       2.4      -2.4
  Nondurable        2.0      -0.1      -2.1     4.9       2.6       2.8
------------------------------------------------------------------------


   The data sources and methods used in the preparation of the manufacturing
series differ from those used in preparing the business and nonfarm business
series, and these measures are not directly comparable.  Output measures for
business and nonfarm business are based on measures of gross domestic product
prepared by the Bureau of Economic Analysis of the U.S. Department of
Commerce.  Quarterly output measures for manufacturing reflect indexes of
industrial production independently prepared by the Board of Governors of the
Federal Reserve System.  See Technical Notes for further information on data
sources.


Business

   From the second quarter to the third quarter of 1999, business sector
productivity increased at a 4.0 percent annual rate.  Output rose 5.4
percent, while hours of all persons engaged in the sector went up 1.4 percent
(seasonally adjusted annual rates).  After revisions, second-quarter
productivity in the business sector rose 0.8 percent, as output increased 1.9
percent and hours rose 1.0 percent (tables B and 1).

   Hourly compensation increased at an annual rate of 4.7 percent during the
third quarter of 1999, increasing at this rate or greater for nine
consecutive quarters.  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, increased
2.0 percent in the third quarter, after rising 1.5 percent in the second
quarter of 1999.

   Unit labor costs, which reflect changes in both hourly compensation and
productivity, increased at a 0.7 percent annual rate during the third
quarter.  During the previous quarter, these costs had risen 4.2 percent.
The implicit price deflator for the business sector increased at a 0.5
percent annual rate in the third quarter and at a 1.1 percent rate in the
second quarter of 1999.


Nonfarm business

   Productivity rose 4.2 percent in the nonfarm business sector during the
third quarter of 1999.  The increase in labor productivity in the third
quarter occurred as output rose 5.7 percent and hours of all persons grew by
1.5 percent.  In the previous quarter, productivity had risen 0.6 percent, as
output grew 1.8 percent and hours increased 1.3 percent (table 2).

   Hourly compensation increased at a 4.8 percent annual rate in both the
second and third quarters of 1999.  When the rise in consumer prices is taken
into account, real hourly compensation rose at a 2.2 percent annual rate
during the July-September period.  During the second quarter of 1999, real
hourly compensation had risen 1.2 percent.
   
   Unit labor costs increased 0.6 percent during the third quarter of 1999.
In the second quarter, unit labor costs in the nonfarm business sector rose
4.2 percent.  The implicit price deflator for nonfarm business output rose
0.7 percent in the third quarter.


Manufacturing

   Productivity increased 3.4 percent in manufacturing in the third quarter
of 1999, as output also rose 3.4 percent and hours of all persons were
unchanged (seasonally adjusted annual rates).  This marked the first time
that hours in manufacturing did not decline since the first quarter of 1998.
In the durable goods sector, third-quarter productivity rose by 3.6 percent,
as output increased 7.2 percent and hours of all persons rose 3.5 percent.
In the nondurable goods sector, labor productivity rose by 4.1 percent, as
hours fell faster than output.  Output dropped 1.2 percent, and hours of all
persons decreased 5.1 percent (tables 3, 4, and 5).

   Hourly compensation of manufacturing workers increased an average of 6.2
percent during the third quarter, after rising 5.8 percent in the previous
quarter (seasonally adjusted annual rates). In the third quarter, hourly
compensation grew 5.7 percent in durable goods and 6.3 percent in nondurable
goods.  When the increase in consumer prices is taken into account, real
hourly compensation in total manufacturing rose 3.5 percent in the third
quarter.

   Unit labor costs increased 2.7 percent in the third quarter of 1999.  The
rise in unit labor costs in the second quarter was 1.2 percent.


Revised Measures

   Current and previous measures for the second quarter of 1999 for the
business, nonfarm business, and manufacturing sectors are compared in table
B.  In the business and nonfarm business sectors, the quarterly movements in
output per hour and output are unchanged.  Hourly compensation and unit labor
costs are slightly lower than reported on Sept. 2, based on information then
available.  Productivity and output movements in the manufacturing sector
were revised slightly downward based on newer information from the Federal
Reserve Board's Indexes of Industrial Production.  Hourly compensation and
unit labor costs in manufacturing also were revised downward based on the
most recent information available.

------------------------------------------------------------------------
Table B. 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
------------------------------------------------------------------------                                                                
                             Second quarter 1999
Business:                                                       
  Previous          0.8      1.9      1.0     5.4      1.8       4.5
  Current           0.8      1.9      1.0     5.1      1.5       4.2
Nonfarm business:                                               
  Previous          0.6      1.8      1.2     5.1      1.5       4.5
  Current           0.6      1.8      1.3     4.8      1.2       4.2
Manufacturing:                                                  
  Previous          4.8      4.2     -0.6     6.1      2.5       1.3
  Current           4.5      4.0     -0.5     5.8      2.2       1.2
------------------------------------------------------------------------


Revised measures: Nonfinancial Corporations
   
   Second-quarter 1999 productivity and cost measures for nonfinancial
corporations also were revised to incorporate more recent information than
was available on Sept. 2.  Productivity and output were revised up, unit
labor costs were revised down, and hours growth was unchanged.  Productivity
grew at an annual rate of 3.2 percent, compared with the previously published
growth of 2.7 percent. Unit profits showed less of a decline than originally
reported (tables C and 6).
   
   
-----------------------------------------------------------------------------
Table C.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------                                                           
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------                                                                     
                            Second quarter 1999
Previous     2.7      3.7     1.0    5.1      1.5     2.3    -5.9     1.0
Current      3.2      4.2     1.0    4.8      1.3     1.6    -2.6     1.1
-----------------------------------------------------------------------------


Historical revisions
   
   The comprehensive revisions made to the National Income and Product
Accounts (NIPAs) for 1959 through second-quarter 1999 by the Bureau of
Economic Analysis, U.S. Department of Commerce on Oct. 28 are reflected in
the data in this news release.  As a result of these comprehensive revisions,
the productivity and cost measures included in this release incorporate new
information on current dollar output levels, prices, employee compensation,
and employment trends.  Appendix tables 1, 2, and 6 show revised annual
productivity and related indexes from 1959 forward for the business, nonfarm
business, and nonfinancial corporate sectors.  Currently, there is no
projected date for the availability of productivity and costs measures for
the 1947-58 period.  Appendix tables 3-5 show annual indexes for productivity
and related measures for the manufacturing sectors.  The annual productivity
measures for manufacturing are unaffected by the BEA revisions; appendix
tables 3-5 reflect historical revisions in hourly compensation measures and
unit labor costs.

   The long-term rates of productivity change for business, nonfarm
business, and nonfinancial corporations have been affected by the above
revisions.  The compound annual rate of growth of business output per hour
for 1979-98 is 1.7 percent (compared with 1.3 percent prior to the revision).
For the same period, output per hour grew at a 1.6 percent rate for nonfarm
business (up from 1.1 percent) and at a 2.3 percent rate for nonfinancial
corporations (up from 1.9 percent).

   This release also incorporates the Consumer Price Index research series
using current methods (CPI-U-RS) into its measure of real hourly
compensation.  Information on this series is available in "CPI research
series using current methods, 1978-98," Monthly Labor Review, June 1999.  As
a result of this change and the historical revisions to the compensation
data, growth trends in real hourly compensation in all sectors have
increased.  The compound annual rate of growth in real hourly compensation
for the business and nonfarm business sectors for 1979-98 is 0.8 percent
(compared with a rise of 0.4 percent in both sectors prior to the revisions).
In nonfinancial corporations, real hourly compensation grew 0.5 percent for
the 1979-98 period (up from 0.1 percent).  The trend for manufacturing for
the 1979-98 period is 0.7 percent (up from 0.4 percent); durable goods
manufacturing grew 0.6 percent (up from 0.2 percent), and nondurable goods
manufacturing grew 0.9 percent (up from 0.7 percent).
                                      
                                      
                              Next release date
   
   The next release of Productivity and Costs is scheduled for 8:30 AM EST,
Tuesday, Dec. 7, 1999.  Third-quarter measures for nonfinancial corporations
and revised third-quarter measures for business, nonfarm business, and
manufacturing will be released at that time.
TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and costs 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.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours are
adjusted to hours at work using the BLS Hours at Work survey, conducted for
this purpose.
	Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of
Commerce and the CPS are used to measure labor input for government
enterprises, proprietors, and unpaid family workers.

Output: Business sector output is an 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 77 percent of
the value of GDP in 1996. Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
	Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BEA.   These deflators are based on data from the BLS producer price program
and other sources.  The industry shipments are aggregated using annual
weights, and intrasector transactions are removed.  Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS.  Durables include the following 2-digit SIC industries: Primary metal
industries; fabricated metal products; nonelectrical machinery; industrial and
commercial machinery and computer equipment; electronic and other electrical
equipment; transportation equipment; instruments; lumber and lumber products;
furniture and fixtures; stone, clay, and glass and concrete products; and
miscellaneous manufactures. Nondurables include: Food and kindred products,
tobacco products, textile mill products, apparel products, paper and allied
products, printing and publishing, chemicals and chemical products, petroleum
refining and related industries, rubber and plastic products, and leather and
leather products.
	Nonfinancial corporate output is an annual-weighted index constructed
by excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-
occupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 54 percent of the value of GDP in 1996.

Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.

	Information in this release will be made available to sensory-
impaired individuals upon request. Voice phone: 202-606-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

  1997       I    r106.3     r120.0     112.9    r112.5      r100.1     r105.9      r114.5     r109.1
            II    r107.1     r121.8     113.7    r113.2      r100.4     r105.7      r115.9     r109.5
           III    r108.1     r123.2     114.0    r114.6      r101.2     r106.0      r116.0     r109.7
            IV    r108.4     r124.4     114.7    r116.4      r102.4     r107.4      r114.1     r109.9

        ANNUAL    r107.5     r122.3     113.8    r114.2      r101.1     r106.2      r115.1     r109.5

  1998       I    r109.7     r126.9     115.7    r117.8      r103.4     r107.5      r114.2     r110.0
            II    r109.8     r127.5     116.1    r119.4      r104.4     r108.8      r112.6     r110.2
           III    r110.7     r128.9     116.4    r121.2      r105.6     r109.5      r112.1     r110.4
            IV    r111.9     r131.2     117.2    r122.7      r106.5     r109.6      r112.1     r110.5

        ANNUAL    r110.5     r128.6    r116.4    r120.3      r105.1     r108.8      r112.7     r110.3

  1999       I    r112.7     r132.5     117.5    r124.2      r107.4     r110.2      r112.1     r110.9
            II    r113.0     r133.1     117.8    r125.7      r107.8     r111.3      r110.9     r111.2
           III     114.1      134.9     118.2     127.2       108.4      111.5       111.0      111.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I      r1.3       r5.8       4.4      r3.4         1.0       r2.1        r2.4       r2.2
            II      r3.4       r6.2       2.7      r2.6        r1.5      r-0.7        r4.9        1.4
           III      r3.6       r4.8       1.1      r4.8        r3.0       r1.1        r0.2       r0.8
            IV      r1.2       r3.9      r2.7      r6.7        r4.8       r5.4       r-6.2       r0.7

        ANNUAL      r2.2       r5.4       3.1      r3.7        r1.5       r1.5        r1.4       r1.5

  1998       I      r4.6       r8.1      r3.4      r4.9        r4.2       r0.3        r0.4       r0.4
            II      r0.6       r2.2       1.6      r5.5        r3.9       r4.9       r-5.6       r0.8
           III      r3.4       r4.4       0.9      r6.1        r4.7       r2.6       r-1.9       r0.9
            IV       4.3       r7.2      r2.8      r4.9        r3.3       r0.6       r-0.1       r0.4

        ANNUAL      r2.8       r5.1       2.2      r5.3        r3.9       r2.4       r-2.1       r0.7

  1999       I      r3.0       r3.9       0.9      r4.9         3.6       r1.9        r0.2       r1.3
            II       0.8        1.9       1.0      r5.1        r1.5       r4.2       r-4.1       r1.1
           III       4.0        5.4       1.4       4.7         2.0        0.7         0.3        0.5
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I      r2.1       r5.5       3.4      r3.6        r0.8       r1.5        r1.7       r1.6
            II      r1.7       r5.1       3.3       3.2        r1.0       r1.4        r1.7       r1.5
           III      r2.6       r5.7       3.0      r3.5        r1.4       r0.9         2.1       r1.4
            IV      r2.4       r5.2       2.7      r4.4        r2.6       r1.9        r0.2       r1.3

        ANNUAL      r2.2       r5.4       3.1      r3.7        r1.5       r1.5        r1.4       r1.5

  1998       I      r3.2       r5.8      r2.5      r4.7        r3.4        1.5       r-0.3       r0.8
            II      r2.5       r4.7      r2.2      r5.5        r4.0       r2.9       r-2.8       r0.7
           III      r2.4       r4.6       2.1      r5.8        r4.4       r3.3       r-3.4       r0.7
            IV      r3.2       r5.5       2.2      r5.4        r4.0       r2.1       r-1.8       r0.6

        ANNUAL      r2.8       r5.1       2.2      r5.3        r3.9       r2.4       r-2.1       r0.7

  1999       I      r2.8       r4.4       1.6      r5.4        r3.8       r2.5       r-1.9       r0.8
            II      r2.9       r4.3       1.4      r5.3        r3.2       r2.3       r-1.5       r0.9
           III       3.0        4.6       1.6       4.9         2.6        1.9        -0.9        0.8
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       November 12, 1999
  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

  1997       I    r106.1     r120.2     113.3    r112.2       r99.8     r105.7      r115.0     r109.1
            II    r106.9     r122.0     114.1    r112.9      r100.1     r105.6      r116.6     r109.6
           III    r107.8     r123.4    r114.5    r114.1      r100.8     r105.8      r117.0     r109.9
            IV    r108.1     r124.6     115.3    r115.9      r101.9     r107.2      r115.3     r110.1

        ANNUAL    r107.2     r122.5     114.3    r113.8      r100.7     r106.1      r115.9     r109.7

  1998       I    r109.3     r127.1     116.3    r117.2      r102.9     r107.3      r115.8     r110.4
            II    r109.5     r127.9    r116.8    r118.8      r103.9     r108.5      r114.1     r110.5
           III    r110.4     r129.3     117.1    r120.6      r105.1     r109.3      r113.1     r110.7
            IV    r111.5     r131.6     118.0    r122.0      r105.9     r109.4      r112.7     r110.6

        ANNUAL    r110.2     r129.0    r117.1    r119.7      r104.5     r108.6      r113.9     r110.5

  1999       I    r112.2     r132.9    r118.4    r123.3      r106.6     r109.8      r113.1     r111.0
            II    r112.4     r133.5     118.7    r124.7      r106.9     r111.0      r112.2     r111.4
           III     113.6      135.3     119.2     126.2       107.5      111.1       112.4      111.6
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I      r0.9       r5.5       4.5      r3.6         1.2       r2.7        r2.2       r2.5
            II      r3.3       r6.2       2.8      r2.6        r1.5      r-0.6        r5.7       r1.7
           III      r3.3       r4.6      r1.3      r4.4        r2.6       r1.0        r1.3       r1.1
            IV      r1.2       r4.1       2.9      r6.4        r4.5       r5.1       r-5.7       r0.8

        ANNUAL      r2.0       r5.3      r3.3      r3.6        r1.4       r1.6        r1.9       r1.7

  1998       I      r4.4       r8.3       3.7      r4.8        r4.1       r0.4        r1.8       r0.9
            II      r0.9       r2.4       1.4      r5.6        r3.9       r4.6       r-5.8       r0.5
           III      r3.1       r4.4       1.2      r6.2        r4.7       r3.0       r-3.2       r0.6
            IV       4.1       r7.3       3.1      r4.6        r2.9       r0.5       r-1.6      r-0.3

        ANNUAL      r2.8       r5.2       2.4      r5.2        r3.8       r2.4       r-1.8       r0.8

  1999       I      r2.7       r4.0       1.3      r4.2        r2.8       r1.4        r1.5       r1.5
            II       0.6        1.8      r1.3      r4.8        r1.2       r4.2       r-3.1       r1.4
           III       4.2        5.7       1.5       4.8         2.2        0.6         0.9        0.7
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I      r1.8       r5.4       3.6      r3.5        r0.7       r1.7        r1.8       r1.7
            II      r1.5       r5.1      r3.5      r3.1        r1.0       r1.6        r2.2       r1.8
           III      r2.3       r5.5       3.1      r3.5        r1.4       r1.1        r2.9       r1.8
            IV      r2.2       r5.1      r2.9      r4.2        r2.4       r2.0        r0.8       r1.5

        ANNUAL      r2.0       r5.3      r3.3      r3.6        r1.4       r1.6        r1.9       r1.7

  1998       I      r3.0       r5.8      r2.7      r4.5        r3.2        1.5        r0.7       r1.2
            II      r2.4       r4.8       2.3      r5.3        r3.8       r2.8       r-2.2       r0.9
           III      r2.4       r4.8       2.3      r5.7        r4.3       r3.3       r-3.3       r0.7
            IV      r3.1       r5.6      r2.4      r5.3        r3.9       r2.1       r-2.3       r0.5

        ANNUAL      r2.8       r5.2       2.4      r5.2        r3.8       r2.4       r-1.8       r0.8

  1999       I       2.7        4.5       1.7      r5.1        r3.6       r2.4       r-2.3        0.6
            II      r2.6       r4.4       1.7      r4.9        r2.9       r2.3       r-1.6       r0.8
           III       2.9        4.7       1.8       4.6         2.3        1.7        -0.6        0.8
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       November 12, 1999
  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

  1997       I            116.7        122.5        105.0       r111.8          r99.5         r95.8
            II            118.0        124.5        105.5       r112.6           99.9         r95.4
           III            120.4        126.8        105.3       r113.6         r100.3         r94.4
            IV            121.6        129.1        106.2       r115.5         r101.5         r95.0

        ANNUAL            119.2        125.7        105.5       r113.4         r100.4         r95.1

  1998       I            122.1        129.9        106.4       r117.0         r102.7         r95.9
            II            123.2        130.7        106.1       r118.6         r103.7         r96.3
           III            124.6        130.8        105.0       r120.6         r105.1         r96.8
            IV            126.2        132.4        104.9        121.4         r105.4          96.2

        ANNUAL            124.0        130.9        105.6       r119.4         r104.3         r96.3

  1999       I            128.2        132.9        103.7       r122.8         r106.2         r95.8
            II           r129.6        134.2        103.5       r124.5         r106.8         r96.1
           III            130.7        135.3        103.5        126.4          107.7          96.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.1          7.2          3.0         r5.5           r3.0          r1.3
            II              4.7          6.6          1.8         r2.9           r1.8         r-1.7
           III              8.4          7.7         -0.6         r3.6           r1.8         r-4.4
            IV              4.1          7.5          3.3         r6.8           r4.9          r2.6

        ANNUAL              4.7          6.5          1.8         r3.7           r1.5         r-0.9

  1998       I              1.5          2.4          0.9         r5.4           r4.7          r3.9
            II              3.7          2.5         -1.2         r5.4           r3.8          r1.7
           III              4.8          0.4         -4.1         r6.9           r5.4          r2.0
            IV              5.3          4.8         -0.5         r2.9           r1.2         r-2.3

        ANNUAL              4.0          4.2          0.1         r5.3           r3.9          r1.2

  1999       I              6.3          1.6         -4.5         r4.5           r3.1         r-1.8
            II             r4.5         r4.0        r-0.5         r5.8           r2.2          r1.2
           III              3.4          3.4          0.0          6.2            3.5           2.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.2          6.7          2.4         r3.1           r0.3         r-1.1
            II              4.2          5.9          1.6         r3.3           r1.2         r-0.9
           III              5.0          6.3          1.2         r3.7            1.6         r-1.3
            IV              5.3          7.3          1.9         r4.7           r2.9         r-0.6

        ANNUAL              4.7          6.5          1.8         r3.7           r1.5         r-0.9

  1998       I              4.6          6.0          1.4         r4.7           r3.3          r0.0
            II              4.4          5.0          0.6         r5.3           r3.8          r0.9
           III              3.5          3.2         -0.3         r6.1           r4.7          r2.5
            IV              3.8          2.5         -1.2         r5.1           r3.8          r1.3

        ANNUAL              4.0          4.2          0.1         r5.3           r3.9          r1.2

  1999       I              5.0          2.3         -2.6         r4.9           r3.4         r-0.1
            II             r5.2          2.7         -2.4         r5.0           r3.0         r-0.2
           III              4.9          3.4         -1.4          4.8            2.5          -0.1
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 12, 1999
  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

  1997       I            125.0        136.9        109.5       r109.4          r97.3         r87.5
            II            127.3        140.3        110.2       r110.2           97.7         r86.5
           III            131.0        144.6        110.4       r110.9          r98.0         r84.7
            IV            133.4        148.3        111.2       r113.2          r99.5         r84.8

        ANNUAL            129.2        142.5        110.3       r110.9          r98.2         r85.8

  1998       I            133.8        149.6        111.8       r114.7         r100.7         r85.7
            II            135.8        151.3        111.4       r116.2         r101.6          85.6
           III            138.7        153.1        110.4       r118.3         r103.0         r85.3
            IV            141.6        156.3        110.4       r118.9         r103.2         r84.0

        ANNUAL            137.5        152.6        111.0       r117.0         r102.2         r85.1

  1999       I            144.6        157.1        108.7       r120.3         r104.0         r83.2
            II           r147.5        159.8       r108.4       r122.1         r104.7         r82.8
           III            148.8        162.6        109.3        123.9          105.5          83.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.4         10.4          5.8         r5.6           r3.1          r1.1
            II              7.6         10.4          2.6         r2.8           r1.6         r-4.5
           III             12.1         12.8          0.6         r2.8           r1.1         r-8.3
            IV              7.4         10.7          3.0         r8.3           r6.3          r0.8

        ANNUAL              6.3          9.4          2.9         r3.3           r1.1         r-2.8

  1998       I              1.3          3.5          2.2         r5.5           r4.8          r4.2
            II              6.1          4.6         -1.4         r5.5           r3.8         r-0.6
           III              8.8          4.8         -3.7         r7.2           r5.7         r-1.4
            IV              8.6          8.6          0.0         r2.2           r0.6         r-5.9

        ANNUAL              6.4          7.0          0.6         r5.5           r4.1         r-0.8

  1999       I              8.6          2.1         -6.0         r4.6           r3.2         r-3.7
            II             r8.4         r7.2         -1.1         r6.5           r2.8         r-1.8
           III              3.6          7.2          3.5          5.7            3.0           2.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              5.3          9.3          3.8         r2.3          r-0.4         r-2.8
            II              5.3          8.1          2.6         r2.9           r0.7         r-2.3
           III              6.8          9.3          2.3         r3.2           r1.1         r-3.4
            IV              7.8         11.1          3.0         r4.8           r3.0         r-2.8

        ANNUAL              6.3          9.4          2.9         r3.3           r1.1         r-2.8

  1998       I              7.0          9.3          2.1          4.8           r3.4         r-2.1
            II              6.6          7.8          1.1         r5.5           r4.0         r-1.1
           III              5.9          5.9          0.0         r6.6           r5.2          r0.7
            IV              6.1          5.4         -0.7         r5.1           r3.7         r-1.0

        ANNUAL              6.4          7.0          0.6         r5.5           r4.1         r-0.8

  1999       I              8.0          5.0         -2.8         r4.8           r3.3         r-2.9
            II              8.6          5.6         -2.7         r5.1           r3.1         r-3.2
           III              7.3          6.2         -1.0          4.7            2.4          -2.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 12, 1999
  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

  1997       I            109.8        108.8         99.0       r114.8          102.1        r104.5
            II            110.2        109.3         99.2       r115.7         r102.6        r105.0
           III            111.3        109.7         98.6       r117.0         r103.3        r105.1
            IV            111.3        110.7         99.5       r118.2         r104.0        r106.2

        ANNUAL            110.7        109.6         99.1       r116.4         r103.0        r105.2

  1998       I            111.8        111.0         99.3       r119.7         r105.1        r107.0
            II            112.0        111.0         99.1       r121.3         r106.1        r108.3
           III            112.0        109.6         97.9       r123.1         r107.3        r109.9
            IV            112.5        109.7         97.5       r124.3         r107.9        r110.5

        ANNUAL            112.1        110.3         98.4       r122.1         r106.6        r108.9

  1999       I            113.3        109.9         97.0       r125.7         r108.7        r111.0
            II           r113.2       r109.9         97.1       r127.2         r109.1        r112.4
           III            114.3        109.6         95.8        129.2          110.1         113.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.3          3.4         -0.9         r4.8           r2.3          r0.5
            II              1.3          1.9          0.7         r3.1           r1.9          r1.8
           III              4.2          1.7         -2.4         r4.6           r2.9          r0.4
            IV             -0.1          3.6          3.7         r4.4           r2.5          r4.5

        ANNUAL              3.0          3.1          0.1         r4.1           r1.9          r1.1

  1998       I              2.0          1.1         -0.9         r5.0           r4.3          r3.0
            II              0.7         -0.2         -0.9         r5.4           r3.8          r4.8
           III              0.1         -4.7         -4.7         r6.2           r4.8          r6.2
            IV              1.5          0.2         -1.3         r3.9           r2.2          r2.3

        ANNUAL              1.3          0.6         -0.6         r4.9           r3.5          r3.6

  1999       I              3.0          0.8         -2.1         r4.6           r3.2          r1.5
            II            r-0.4        r-0.1         r0.3         r4.9           r1.3           5.3
           III              4.1         -1.2         -5.1          6.3            3.6           2.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.3          3.7          0.4         r4.0           r1.2          r0.7
            II              3.2          3.4          0.2         r3.9           r1.7          r0.7
           III              3.1          2.6         -0.5         r4.2           r2.1          r1.1
            IV              2.4          2.6          0.2         r4.2           r2.4          r1.8

        ANNUAL              3.0          3.1          0.1         r4.1           r1.9          r1.1

  1998       I              1.8          2.1          0.2         r4.3           r2.9          r2.4
            II              1.7          1.5         -0.1         r4.9           r3.4          r3.2
           III              0.6         -0.1         -0.7         r5.3           r3.9          r4.6
            IV              1.1         -0.9         -2.0          5.1           r3.8           4.0

        ANNUAL              1.3          0.6         -0.6         r4.9           r3.5          r3.6

  1999       I              1.3         -1.0         -2.3         r5.0           r3.5          r3.7
            II             r1.0        r-1.0         -2.0         r4.9            2.9           3.8
           III              2.0         -0.1         -2.1          4.9            2.6           2.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 12, 1999
  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

  1997       I   r110.1   r125.5    r114.0   r111.2     r98.9    r101.0    r99.8   r100.7   r155.6   r105.3
            II   r110.7   r127.5    r115.1   r112.0     r99.3    r101.1    r99.9   r100.8   r156.2   r105.4
           III   r112.4   r130.2    r115.8   r113.3    r100.0    r100.7    r99.2   r100.3   r161.1   r105.4
            IV   r113.2   r132.3     116.9    115.1    r101.2    r101.6    r98.6   r100.8   r155.3   r105.3

        ANNUAL   r111.7   r128.9     115.4   r113.0    r100.0    r101.1    r99.4   r100.6   r157.1   r105.3

  1998       I   r114.2   r134.6     117.8   r116.4    r102.2    r101.9    r98.0   r100.8   r153.7   r105.2
            II   r115.3   r136.3     118.1   r118.0    r103.2    r102.3    r98.2   r101.2   r150.1   r105.2
           III   r117.0   r138.7     118.6   r119.8    r104.4    r102.4    r98.0   r101.2   r152.6   r105.5
            IV   r117.9   r140.6     119.3   r121.3    r105.3    r102.9    r99.2   r101.8   r145.3   r105.5

        ANNUAL   r116.2   r137.5     118.4   r119.0    r103.9    r102.4    r98.4   r101.3   r150.4   r105.3

  1999       I   r119.1   r142.6     119.7   r122.7    r106.1    r103.0    r98.4   r101.7   r149.5   r105.7
            II   r120.0   r144.1     120.0   r124.2    r106.5    r103.4    r98.8    102.1   r148.5   r106.0
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1997       I     r1.8     r6.1       4.3     r3.6      r1.2      r1.8    r-0.3     r1.2     r4.6      1.6
            II     r2.3     r6.4       4.0     r2.7      r1.5      r0.3     r0.5     r0.4     r1.6     r0.5
           III     r6.3     r8.9       2.5     r4.7      r2.9     r-1.5    r-2.6     -1.8    r13.0    r-0.1
            IV     r2.8     r6.4       3.5     r6.5      r4.6      r3.6    r-2.5     r1.9   r-13.6    r-0.2

        ANNUAL     r3.0     r6.6      r3.5     r3.6      r1.4      r0.6    r-0.7     r0.2     r3.7      0.6

  1998       I     r3.7     r7.1      r3.3     r4.8      r4.1      r1.1    r-2.6     r0.0    r-4.1    r-0.5
            II     r3.9     r5.1      r1.2     r5.7      r4.1      r1.7     r0.9     r1.5    r-9.1     r0.2
           III     r5.9     r7.5       1.5     r6.3      r4.8      r0.4    r-0.7     r0.1     r6.8     r0.9
            IV     r3.2     r5.6       2.3     r4.9      r3.3      r1.7     r4.9     r2.6   r-17.8    r-0.1

        ANNUAL     r4.0     r6.7       2.6     r5.3      r3.9      r1.3     -1.0      0.6    r-4.3     r0.0

  1999       I     r4.1     r5.7       1.6     r4.7      r3.3      r0.6    r-3.4    r-0.5    r12.0     r0.8
            II     r3.2     r4.2       1.0     r4.8      r1.3      r1.6     r1.8     r1.6    r-2.6     r1.1
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1997       I     r2.6     r6.2       3.5     r3.5      r0.7      r0.8    r-0.6     r0.4     r4.0      0.8
            II     r2.5     r6.2      r3.5      3.1      r0.9      r0.6    r-0.2     r0.4     r3.4      0.7
           III     r3.6     r7.2       3.5     r3.5      r1.4     r-0.1    r-0.6    r-0.3     r6.4     r0.6
            IV     r3.3     r7.0       3.6     r4.3      r2.5      r1.0    r-1.2     r0.4     r0.9     r0.5

        ANNUAL     r3.0     r6.6      r3.5     r3.6      r1.4      r0.6    r-0.7     r0.2     r3.7      0.6

  1998       I     r3.8     r7.2       3.3     r4.6      r3.3      r0.8    r-1.8     r0.1    r-1.2     -0.1
            II     r4.1     r6.9       2.6     r5.4      r3.9       1.2     -1.7     r0.4    r-3.9     -0.1
           III     r4.0     r6.5      r2.4     r5.8      r4.4      r1.7    r-1.2     r0.9    r-5.3     r0.1
            IV     r4.1     r6.3      r2.1     r5.4      r4.1      r1.2     r0.6     r1.1    r-6.5     r0.1

        ANNUAL     r4.0     r6.7       2.6     r5.3      r3.9      r1.3     -1.0      0.6    r-4.3     r0.0

  1999       I     r4.3     r6.0      r1.7     r5.4      r3.9      r1.1     r0.4     r0.9    r-2.8     r0.5
            II     r4.1     r5.7       1.6     r5.2      r3.2      r1.1     r0.6     r0.9    r-1.1     r0.7
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        November 12, 1999
  r=revised                                                               Source: Bureau of Labor Statistics


 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)
  -------------------------------------------------------------------------------------------------------
       1959        47.2       31.5      66.7       13.1       58.5      27.7         25.8       27.0

       1960        48.0       32.1      66.7       13.6       59.9      28.4         25.5       27.3
       1961        49.8       32.7      65.7       14.2       61.7      28.5         25.9       27.5
       1962        52.1       34.8      66.8       14.8       63.9      28.4         26.7       27.8
       1963        54.1       36.4      67.2       15.4       65.3      28.4         27.3       28.0
       1964        56.6       38.7      68.3       16.1       67.8      28.5         27.8       28.3

       1965        58.6       41.4      70.6       16.8       69.3      28.6         29.0       28.7
       1966        61.0       44.2      72.5       17.9       71.8      29.3         29.7       29.4
       1967        62.3       45.0      72.3       18.9       73.7      30.3         30.2       30.3
       1968        64.5       47.3      73.4       20.4       76.5      31.7         31.0       31.4
       1969        64.8       48.8      75.2       21.9       77.6      33.7         31.3       32.8

       1970        66.2       48.8      73.7       23.5       79.0      35.6         32.0       34.3
       1971        68.8       50.5      73.4       25.0       80.5      36.4         34.9       35.8
       1972        71.0       53.8      75.8       26.6       82.9      37.5         36.4       37.1
       1973        73.1       57.5      78.5       28.9       84.7      39.5         38.4       39.1
       1974        72.2       56.8      78.6       31.7       83.7      43.8         40.6       42.6

       1975        74.8       56.3      75.2       34.9       84.5      46.7         46.7       46.7
       1976        77.2       59.9      77.6       38.0       87.0      49.2         49.4       49.3
       1977        78.4       63.2      80.6       41.0       88.1      52.3         52.5       52.4
       1978        79.5       67.2      84.6       44.7       89.7      56.2         55.7       56.0
       1979        79.7       69.7      87.4       49.0       90.0      61.5         59.0       60.6

       1980        79.8       69.1      86.7       54.3       89.7      68.1         62.1       65.9
       1981        81.4       71.0      87.3       59.5       89.8      73.1         69.8       71.9
       1982        81.2       69.1      85.1       63.9       91.1      78.8         70.8       75.8
       1983        84.0       72.6      86.5       66.6       91.2      79.3         77.1       78.5
       1984        86.4       79.0      91.5       69.5       91.5      80.5         81.1       80.7

       1985        88.1       82.4      93.5       72.9       92.8      82.8         82.9       82.8
       1986        90.7       85.4      94.2       76.7       95.9      84.6         83.4       84.1
       1987        91.3       88.6      97.0       79.7       96.3      87.3         84.1       86.1
       1988        92.4       92.4     100.0       83.4       97.3      90.3         86.2       88.8
       1989        93.3       95.6     102.5       85.7       95.8      91.9         92.5       92.1

       1990        94.5       97.0     102.6       90.6       96.4      95.9         94.6       95.4
       1991        95.9       96.1     100.3       94.9       97.4      99.0         97.4       98.4
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.1      102.7     102.6      102.4       99.9     102.3        102.9      102.5
       1994       101.4      107.7     106.2      104.5       99.7     103.0        106.9      104.4

       1995       102.2      111.1     108.8      106.7       99.1     104.4        109.8      106.4
       1996       105.2      116.1     110.4      110.1       99.6     104.7        113.5      107.9
       1997       107.5      122.3     113.8      114.2      101.1     106.2        115.1      109.5
       1998       110.5      128.6     116.4      120.3      105.1     108.8        112.7      110.3
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     November 12, 1999
                                                                       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)
  -------------------------------------------------------------------------------------------------------
       1959        50.5       31.2      61.8       13.7       61.1      27.0         25.5       26.5

       1960        51.2       31.7      62.0       14.3       62.8      27.9         24.9       26.8
       1961        52.8       32.4      61.3       14.7       64.3      27.9         25.4       27.0
       1962        55.2       34.6      62.6       15.4       66.2      27.8         26.3       27.3
       1963        57.2       36.2      63.3       15.9       67.6      27.8         26.9       27.5
       1964        59.6       38.6      64.8       16.6       69.9      27.9         27.6       27.8

       1965        61.4       41.3      67.3       17.2       71.0      28.0         28.6       28.2
       1966        63.6       44.3      69.7       18.2       73.0      28.6         29.3       28.9
       1967        64.6       45.1      69.7       19.2       75.0      29.7         29.8       29.8
       1968        66.9       47.5      70.9       20.7       77.6      31.0         30.8       30.9
       1969        67.1       48.9      73.0       22.2       78.6      33.0         30.9       32.3

       1970        68.0       48.9      71.8       23.7       79.7      34.9         31.7       33.7
       1971        70.7       50.6      71.6       25.3       81.3      35.7         34.5       35.3
       1972        73.0       54.0      74.0       26.9       83.8      36.8         35.5       36.4
       1973        75.2       57.8      76.9       29.1       85.3      38.7         36.0       37.7
       1974        74.3       57.2      77.0       31.9       84.4      43.0         38.6       41.4

       1975        76.4       56.3      73.7       35.2       85.2      46.0         45.1       45.7
       1976        78.9       60.1      76.1       38.2       87.5      48.4         48.3       48.4
       1977        80.0       63.4      79.2       41.3       88.8      51.6         51.5       51.6
       1978        81.3       67.6      83.2       45.0       90.5      55.4         54.2       55.0
       1979        81.3       70.0      86.2       49.3       90.6      60.7         57.2       59.4

       1980        81.3       69.5      85.5       54.7       90.3      67.2         61.1       65.0
       1981        82.4       71.0      86.1       60.0       90.6      72.8         68.3       71.1
       1982        82.0       68.9      83.9       64.4       91.8      78.5         69.9       75.4
       1983        85.6       73.2      85.5       67.2       91.9      78.5         76.9       77.9
       1984        87.4       79.3      90.7       70.0       92.1      80.1         80.0       80.1

       1985        88.6       82.3      93.0       73.3       93.2      82.7         82.3       82.6
       1986        91.3       85.5      93.7       77.1       96.3      84.4         83.1       83.9
       1987        91.7       88.7      96.7       80.0       96.6      87.2         83.7       85.9
       1988        92.9       92.8      99.8       83.6       97.4      89.9         85.9       88.5
       1989        93.5       95.8     102.4       85.8       95.8      91.7         91.9       91.8

       1990        94.6       97.1     102.7       90.5       96.3      95.7         94.2       95.1
       1991        96.1       96.3     100.2       94.9       97.4      98.8         97.5       98.3
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.1      103.0     102.9      102.1       99.6     102.1        103.4      102.6
       1994       101.4      107.8     106.3      104.3       99.5     102.9        107.4      104.5

       1995       102.4      111.5     108.9      106.5       98.9     104.0        110.8      106.5
       1996       105.2      116.4     110.7      109.8       99.3     104.4        113.8      107.8
       1997       107.2      122.5     114.3      113.8      100.7     106.1        115.9      109.7
       1998       110.2      129.0     117.1      119.7      104.5     108.6        113.9      110.5
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     November 12, 1999
                                                                       Source: Bureau of Labor Statistics


 Appendix table 3. Manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1959              41.2         38.1         92.5         14.3            63.8         34.6

       1960              42.1         38.7         92.1         14.9            65.4         35.3
       1961              43.1         38.7         89.7         15.3            66.6         35.5
       1962              44.5         41.5         93.4         15.9            68.5         35.7
       1963              46.0         43.4         94.4         16.4            69.6         35.6
       1964              47.7         46.0         96.4         17.0            71.6         35.7

       1965              48.8         49.8        102.0         17.4            72.0         35.7
       1966              49.3         53.6        108.6         18.2            73.2         36.9
       1967              51.1         55.2        108.0         19.2            74.9         37.6
       1968              52.9         57.9        109.6         20.7            77.3         39.1
       1969              53.8         59.6        110.9         22.2            78.7         41.2

       1970              54.4         56.8        104.4         23.7            79.7         43.6
       1971              58.2         58.5        100.5         25.2            81.0         43.3
       1972              60.7         63.7        105.1         26.5            82.5         43.6
       1973              61.9         68.3        110.4         28.5            83.6         46.0
       1974              61.6         66.5        107.9         31.6            83.6         51.3

       1975              64.7         62.9         97.2         35.5            85.8         54.8
       1976              67.4         68.6        101.9         38.4            88.0         57.1
       1977              70.1         74.3        106.1         41.8            89.8         59.7
       1978              70.7         78.2        110.6         45.2            90.8         63.9
       1979              70.2         79.1        112.7         49.6            91.1         70.7

       1980              70.4         75.7        107.5         55.6            91.8         78.9
       1981              71.1         76.0        107.0         61.1            92.2         85.9
       1982              74.7         73.1         97.9         67.0            95.5         89.7
       1983              77.1         76.3         98.9         68.8            94.2         89.3
       1984              79.8         84.0        105.3         71.2            93.7         89.3

       1985              82.8         86.6        104.6         75.1            95.5         90.7
       1986              86.5         89.1        103.0         78.5            98.1         90.7
       1987              88.8         92.1        103.8         80.7            97.5         90.9
       1988              90.5         96.5        106.6         84.0            97.9         92.8
       1989              90.7         97.1        107.1         86.6            96.8         95.5

       1990              93.0         97.5        104.8         90.8            96.6         97.6
       1991              95.1         95.5        100.4         95.6            98.0        100.4
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             102.2        103.6        101.4        102.7           100.2        100.5
       1994             105.3        109.1        103.6        105.6           100.8        100.3

       1995             109.4        113.8        104.0        107.9           100.2         98.6
       1996             113.8        118.0        103.7        109.3            98.9         96.0
       1997             119.2        125.7        105.5        113.4           100.4         95.1
       1998             124.0        130.9        105.6        119.4           104.3         96.3
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             November 12, 1999
                                                               Source: Bureau of Labor Statistics


 Appendix table 4. Durable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1959              38.0         34.7         91.4         14.4            64.4         37.9

       1960              38.4         35.1         91.3         15.0            65.9         39.0
       1961              39.0         34.2         87.8         15.4            67.1         39.5
       1962              40.9         37.9         92.7         16.0            69.1         39.2
       1963              42.7         40.3         94.3         16.5            70.1         38.6
       1964              44.2         42.9         97.0         17.1            72.0         38.8

       1965              46.4         48.3        104.1         17.4            72.1         37.6
       1966              47.1         53.3        113.1         18.2            73.2         38.6
       1967              48.0         54.0        112.3         19.2            74.7         39.9
       1968              50.2         57.2        113.9         20.6            77.3         41.1
       1969              50.9         58.9        115.6         22.1            78.6         43.5

       1970              50.6         53.9        106.5         23.8            79.7         47.0
       1971              54.9         55.5        101.1         25.4            81.6         46.2
       1972              57.6         61.6        107.0         26.6            83.0         46.3
       1973              59.9         69.1        115.2         28.6            83.8         47.6
       1974              58.2         66.0        113.3         31.6            83.5         54.3

       1975              60.2         60.0         99.7         35.7            86.4         59.3
       1976              63.7         66.4        104.3         38.8            88.8         60.9
       1977              66.8         73.5        110.0         42.1            90.5         63.0
       1978              67.7         78.9        116.5         45.3            91.0         66.9
       1979              67.8         81.5        120.1         49.7            91.2         73.3

       1980              67.8         76.7        113.1         55.9            92.4         82.4
       1981              68.5         76.9        112.3         61.5            93.0         89.8
       1982              71.4         71.8        100.6         67.5            96.3         94.7
       1983              75.3         76.2        101.2         69.1            94.6         91.7
       1984              79.7         87.8        110.2         71.0            93.5         89.2

       1985              82.0         90.4        110.2         74.8            95.1         91.1
       1986              86.4         92.7        107.3         78.5            98.1         90.8
       1987              89.1         95.4        107.1         80.9            97.7         90.8
       1988              91.0        100.9        110.8         83.7            97.6         91.9
       1989              91.2        101.2        110.9         86.3            96.4         94.6

       1990              93.0         99.8        107.3         90.3            96.1         97.1
       1991              94.3         95.5        101.3         95.3            97.7        101.0
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             104.2        105.7        101.5        102.9           100.3         98.8
       1994             109.3        114.4        104.7        105.6           100.8         96.7

       1995             114.8        121.9        106.2        107.5            99.9         93.7
       1996             121.5        130.2        107.2        107.4            97.1         88.3
       1997             129.2        142.5        110.3        110.9            98.2         85.8
       1998             137.5        152.6        111.0        117.0           102.2         85.1
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             November 12, 1999
                                                               Source: Bureau of Labor Statistics


 Appendix table 5. Nondurable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1959              46.0         43.2         93.9         14.1            63.2         30.7

       1960              47.2         44.0         93.2         14.7            64.8         31.2
       1961              48.5         44.8         92.3         15.2            66.3         31.4
       1962              49.5         46.8         94.4         15.7            67.8         31.7
       1963              51.2         48.3         94.4         16.2            69.0         31.7
       1964              53.3         50.9         95.5         16.9            71.0         31.7

       1965              53.3         52.8         99.1         17.3            71.4         32.4
       1966              53.7         55.2        102.7         18.0            72.5         33.6
       1967              56.6         57.8        102.3         19.1            74.4         33.7
       1968              58.1         60.3        103.8         20.5            76.7         35.3
       1969              59.6         62.3        104.6         22.0            78.1         36.9

       1970              61.2         62.1        101.5         23.6            79.2         38.5
       1971              64.1         64.0         99.8         24.9            79.9         38.8
       1972              67.1         68.8        102.5         26.1            81.2         38.8
       1973              67.5         70.2        104.0         28.1            82.5         41.6
       1974              69.3         69.9        100.9         31.3            82.8         45.2

       1975              72.0         67.6         93.9         34.9            84.4         48.4
       1976              73.8         72.8         98.7         37.7            86.2         51.1
       1977              76.5         77.2        100.9         40.9            87.9         53.5
       1978              77.4         79.4        102.6         44.4            89.2         57.4
       1979              76.4         78.5        102.8         48.7            89.4         63.7

       1980              76.1         76.2        100.1         54.3            89.7         71.3
       1981              76.5         76.4         99.9         59.5            89.9         77.8
       1982              79.9         75.5         94.4         65.6            93.5         82.0
       1983              80.8         77.5         95.9         68.0            93.1         84.1
       1984              82.4         81.4         98.8         70.7            93.0         85.8

       1985              86.0         83.6         97.1         74.7            95.0         86.8
       1986              88.7         86.3         97.3         77.7            97.1         87.6
       1987              90.5         90.0         99.4         79.8            96.4         88.2
       1988              91.9         92.8        100.9         83.7            97.5         91.0
       1989              91.7         93.4        101.9         86.5            96.7         94.4

       1990              93.8         95.2        101.4         91.0            96.9         97.0
       1991              95.8         95.2         99.3         95.8            98.3        100.0
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             100.4        101.6        101.2        102.5            99.9        102.1
       1994             102.0        104.2        102.1        105.4           100.6        103.3

       1995             104.9        106.1        101.1        107.9           100.3        102.9
       1996             107.5        106.4         99.0        111.8           101.2        104.1
       1997             110.7        109.6         99.1        116.4           103.0        105.2
       1998             112.1        110.3         98.4        122.1           106.6        108.9
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             November 12, 1999
                                                               Source: Bureau of Labor Statistics


 Appendix table 6. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, 
 unit profits, and prices
 Indexes 1992=100
               Output                      Hourly    Real                Unit     Total     Unit  Implicit
               per all-                    compen-   hourly     Unit     non-     unit      pro-  price
               employee           Employee sation    compen     labor    labor    costs     fits  deflator
      Year     hour       Output  hours     (1)      sation(2)  costs    costs(6) (7)       (8)     (4)
  --------------------------------------------------------------------------------------------------------
      1959       51.6      26.9     52.1     15.0      67.0      29.0     26.0     28.1     58.4     30.7

      1960       52.6      27.8     52.9     15.6      68.6      29.7     26.8     28.9     53.2     30.9
      1961       54.3      28.5     52.4     16.1      70.2      29.7     27.3     29.0     53.2     31.0
      1962       56.5      30.8     54.4     16.7      72.2      29.6     26.9     28.8     57.9     31.3
      1963       58.5      32.6     55.7     17.3      73.5      29.5     26.7     28.7     61.3     31.4
      1964       60.8      34.8     57.2     18.0      75.8      29.6     26.6     28.8     63.8     31.7

      1965       62.2      37.6     60.5     18.5      76.7      29.8     26.4     28.8     68.9     32.2
      1966       63.0      40.2     63.9     19.5      78.6      31.0     26.3     29.7     68.8     32.9
      1967       63.9      41.3     64.5     20.6      80.4      32.3     27.9     31.0     64.3     33.8
      1968       66.0      43.8     66.4     22.2      83.0      33.6     29.4     32.4     64.2     35.1
      1969       66.0      45.5     69.0     23.7      84.0      35.9     31.6     34.7     57.9     36.6

      1970       66.3      45.1     68.0     25.3      85.1      38.2     35.4     37.4     47.1     38.2
      1971       69.1      46.9     67.9     26.9      86.6      39.0     37.1     38.5     53.3     39.7
      1972       70.8      50.5     71.4     28.5      88.7      40.2     37.2     39.3     57.5     40.9
      1973       71.3      53.4     74.9     30.7      90.0      43.0     38.7     41.8     59.2     43.3
      1974       69.7      52.5     75.3     33.6      88.8      48.2     44.4     47.2     52.4     47.6

      1975       72.4      51.6     71.3     37.0      89.5      51.1     50.2     50.8     68.4     52.3
      1976       74.6      55.6     74.6     40.0      91.6      53.7     50.1     52.6     77.4     54.7
      1977       76.3      59.6     78.1     43.2      92.8      56.6     51.7     55.2     85.1     57.7
      1978       76.9      63.5     82.6     47.0      94.3      61.1     54.4     59.2     88.5     61.6
      1979       75.8      65.0     85.8     51.3      94.2      67.7     60.1     65.6     82.8     67.0

      1980       76.9      65.4     85.1     56.6      93.6      73.7     69.4     72.5     72.6     72.5
      1981       79.4      68.5     86.2     61.8      93.4      77.9     78.5     78.1     85.9     78.7
      1982       81.0      67.8     83.7     66.3      94.4      81.8     85.1     82.7     77.1     82.2
      1983       83.6      70.9     84.8     68.7      94.1      82.3     84.7     82.9     94.1     83.9
      1984       86.6      78.2     90.3     71.7      94.3      82.8     83.7     83.1    111.3     85.4

      1985       88.3      81.6     92.5     75.0      95.5      85.0     85.1     85.0    107.0     86.8
      1986       90.7      84.1     92.7     78.8      98.5      86.9     87.5     87.1     89.7     87.3
      1987       92.6      88.7     95.8     81.7      98.7      88.2     87.3     87.9    100.3     89.0
      1988       94.7      93.8     99.1     84.8      98.9      89.6     89.1     89.5    110.3     91.2
      1989       93.8      95.7    102.0     87.0      97.2      92.7     95.9     93.6     99.0     94.1

      1990       94.9      97.1    102.4     91.4      97.2      96.4     99.0     97.1     95.5     97.0
      1991       96.9      96.4     99.6     95.5      98.0      98.6    102.9     99.8     94.0     99.3
      1992      100.0     100.0    100.0    100.0     100.0     100.0    100.0    100.0    100.0    100.0
      1993      101.5     103.8    102.3    102.1      99.5     100.6     99.6    100.3    112.5    101.3
      1994      104.3     110.8    106.2    104.3      99.5     100.0    100.2    100.0    130.5    102.6

      1995      105.6     115.7    109.6    106.2      98.6     100.5    100.9    100.6    137.5    103.7
      1996      108.4     120.9    111.5    109.0      98.6     100.5    100.1    100.4    151.5    104.7
      1997      111.7     128.9    115.4    113.0     100.0     101.1     99.4    100.6    157.1    105.3
      1998      116.2     137.5    118.4    119.0     103.9     102.4     98.4    101.3    150.4    105.3
  --------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                      November 12, 1999
                                                                        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
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 -1.9
and +2.6 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 second quarter of 1999.


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)  The change for recent quarters is based on the Consumer Price Index for
     all urban consumers (CPI-U).  The trend from 1978-1998 is based on the
     Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.