TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,

 
Historical, technical                    USDL 95-301
  information: (202) 606-5606            Transmission of this
Current data: (202) 606-7828             material is embargoed
Media contact: (202) 606-5902            until 10:00 A.M. EDT
                                         Tuesday, August 8, 1995.
 
 
                            PRODUCTIVITY AND COSTS
                              Second Quarter 1995
 
 
     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 second quarter of 1995.  The preliminary seasonally-adjusted
annual rates of productivity change in the second quarter were:
 
               3.0 percent in the business sector, and
               3.0 percent in the nonfarm business sector.
 
In both sectors, productivity and output increased while hours worked fell--
reflecting underlying increases in employment combined with large declines in
average weekly hours.
 
     In manufacturing, productivity changes in the second quarter were:
 
               2.1 percent in manufacturing,
               0.5 percent in durable goods manufacturing, and
               4.5 percent in nondurable goods manufacturing.
 
     Manufacturing productivity increased in the second quarter of 1995 as both
output and hours decreased, with the drop in hours being larger than the drop
in output.  This pattern also was true for both the durable and nondurable
goods subsectors.  Output and hours in manufacturing, which includes about 20
percent of U.S. business-sector employment, tend to vary more from quarter to
quarter than in the more aggregate business and nonfarm business sector
measures.
 
     Second-quarter results are summarized in table A and appear in detail in
tables 1 through 5.  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 (page 5).
 
 
                                        2
 
------------------------------------------------------------------------------
Table A.  Productivity and costs:  Preliminary second-quarter 1995 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          3.0     0.4  -2.5    3.8      0.4    0.8
  Nonfarm business  3.0     0.6  -2.4    3.6      0.2    0.6
  Manufacturing     2.1    -3.8  -5.8    0.3     -2.9   -1.8
    Durable         0.5    -3.9  -4.4   -2.6     -5.8   -3.1
    Nondurable      4.5    -3.7  -7.8    4.8      1.4    0.3
 
 
                     Percent change from same quarter a year ago
 
  Business          3.1     4.2   1.1    3.6      0.5    0.4
  Nonfarm business  3.1     4.2   1.1    3.6      0.5    0.4
  Manufacturing     3.2     3.7   0.5    2.8     -0.3   -0.4
    Durable         3.3     5.0   1.6    2.2     -0.8   -1.1
    Nondurable      2.8     1.7  -1.0    3.5      0.4    0.6
------------------------------------------------------------------------------
 
 
Business
 
     From the first to the second quarter of 1995, business sector productivity
increased at a 3.0 percent annual rate, as output rose 0.4 percent and hours of
all persons engaged in the sector fell 2.5 percent (table 1).  The 2.5 percent
second-quarter decrease in hours reflected an employment gain of 0.2 percent
and a 2.6 percent decline in average weekly hours--the biggest decline since a
3.3 percent decrease in the second quarter of 1980.  In the first quarter,
productivity had increased 2.1 percent as output increased 4.3 percent and
hours rose 2.2 percent.
 
     Hourly compensation increased 3.8 percent in both the first and second
quarters of 1995.  This measure includes wages and salaries, supplements,
employer contributions to employee benefit plans, and taxes.  Unit labor costs,
which reflect changes in hourly compensation and productivity, increased at a
0.8 percent annual rate during the second quarter, compared with a 1.7 percent
rise during the first quarter.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), increased at a 0.4 percent annual
rate in the second quarter, not much different from the 0.7 percent increase in
the first quarter of 1995.
 
 
                                        3
 
     The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased 0.9 percent
in the second quarter, compared with a 1.4 percent rise in the first quarter.
 
Nonfarm business
 
     Productivity rose 3.0 percent in the nonfarm business sector during the
second quarter of 1995, compared with a 2.5 percent increase in the first
quarter (table 2).  As in the more comprehensive business sector, the
productivity increase occurred because a small increase in output (0.6 percent)
was combined with a decline in the hours of all persons (2.4 percent).  In the
nonfarm business sector, employment increased 0.2 percent and average weekly
hours fell 2.6 percent.  This was the largest drop in average weekly hours
since the second quarter of 1980, when a 3.4 percent decline was recorded.
During the first quarter of 1995, output in the nonfarm business sector
increased 4.5 percent and hours increased 2.0 percent.
 
     Hourly compensation increased at a 3.6 percent annual rate in the second
quarter, compared with a 4.1 percent increase one quarter earlier.  When the
rise in the CPI-U is taken into account, real hourly compensation rose 0.2
percent in the second quarter of 1995 and 1.0 percent in the first quarter.
Unit labor costs grew 0.6 percent in the second quarter, a smaller increase
than the 1.6 percent of the previous quarter.
 
     The implicit price deflator for nonfarm business output rose 0.9 percent
in the second quarter and 1.3 percent in the first quarter of 1995.
 
 
Manufacturing
 
     Productivity increased 2.1 percent in manufacturing in the second quarter
of 1995 and has now increased in 20 straight quarters.  Manufacturing output
and hours, however, both fell in the second quarter--3.8 and 5.8 percent,
respectively (seasonally adjusted annual rates).  The decrease in manufacturing
output was the first since the first quarter of 1992.  Both the durable goods
and the nondurable goods sectors had second-quarter productivity gains.  The
gain recorded in the nondurable goods sector, 4.5 percent, was much higher than
that in the durable goods sector, 0.5 percent (tables 4 and 5).
 
     Hourly compensation of all manufacturing workers increased 0.3 percent
during the second quarter, a smaller gain than the 4.7 percent posted in the
first quarter.  Real hourly compensation fell 2.9 percent when the increase in
consumer prices is taken into account, compared with a 1.6 percent rise in the
previous period.
 
     Unit labor costs fell at a 1.8 percent annual rate in the second quarter
of 1995, the seventh decline in the last 10 quarters.  These costs had
increased 1.1 percent during the first quarter.
 
 
                                        4
-------------------------------------------------------------------------------
 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
 
 
                               First quarter 1995
 Business:
  Previous....  2.2    4.4     2.2   4.0   0.9     1.8
  Current.....  2.1    4.3     2.2   3.8   0.7     1.7
 
 Nonfarm business:
  Previous....  2.7    4.7     2.0   4.3   1.2     1.6
  Current.....  2.5    4.5     2.0   4.1   1.0     1.6
 
 Manufacturing:
  Previous....  3.4    5.1     1.6   4.7   1.6     1.3
  Current.....  3.5    5.2     1.6   4.7   1.6     1.1
 
 Nonfinancial corporations:
  Previous....  1.8    4.5     2.7   3.8   0.8     2.0
  Current.....  1.7    4.4     2.7   3.4   0.4     1.8
-------------------------------------------------------------------------------
 
 
Revised Measures
 
     Current and previous measures for the first quarter of 1995 for the
business, nonfarm business, manufacturing, and nonfinancial corporate sectors
are compared in table B.  Hourly compensation and real hourly compensation show
smaller increases in the business, nonfarm business, and nonfinancial corporate
sectors than were reported on June 14.
 
 
                               Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 a.m.
EDT, Thursday, September 7, 1995. Revised second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time, along with
measures for nonfinancial corporations.
 
-------------------------------------------------------------------------------
NOTE:   The BLS  plans  to  switch  to  annually-weighted  output  indexes  for
computations underlying  its regular  Productivity  and  Costs  news  releases,
beginning in  late 1995  or early  1996.   These output indexes are designed to
eliminate a  source of  bias in  aggregate measures  and to  reduce the size of
future  historical  revisions  to  these  measures.    A  statement  containing
information  about   these  changes  can  be  obtained  from  the  Division  of
Productivity Research (202-606-5606).
-------------------------------------------------------------------------------
 
 
                                        5
 
                                TECHNICAL NOTES
 
 
Labor Input:  The  primary  source  of  and miscellaneous  manufactures.  Non-
hours and  employment data  is the BLS  durables  include:  Food  and  kindred
Current  Employment  Statistics  (CES)  products,  tobacco  products,  textile
program, which provides monthly survey  mill products  apparel products, paper
data on  total employment  and average  and  allied   products,  printing  and
weekly hours  of production  and  non-  publishing,  chemicals   and  chemical
supervisory workers in nonagricultural  products,   petroleum   refining   and
establishments.   Jobs   rather   than  related industries, rubber and plastic
persons are  counted. Weekly hours are  products,    leather    and    leather
adjusted  to   the   hours   at   work  products. Manufacturing  accounted for
definition using the BLS Hours at Work  about  19  percent  of  GDP  in  1992.
survey, conducted for this purpose.     Quarterly     manufacturing     output
     Data   from   the   BLS   Current  measures are  based on  the  index  of
Population Survey  (CPS) are  used for  industrial production prepared monthly
farm labor; in the nonfarm sector, the  by  the  Board  of  Governors  of  the
National Income  and Product  Accounts  Federal Reserve System adjusted by BLS
(NIPA) prepared  by the Bureau of Eco-  to annual  manufacturing output levels
nomic Analysis  of the  Department  of  (gross product  originating) from  the
Commerce  and  the  CPS  are  used  to  National Income  and Product  Accounts
measure  labor  input  for  government  prepared by  the  Bureau  of  Economic
enterprises,  proprietors  and  unpaid  Analysis of  the  U.S.  Department  of
family workers.                         Commerce.
                                             Nonfinancial corporate  output is
Output: Business  output is  equal  to  equal to GDP in constant 1987 dollars,
gross  domestic   product   (GDP)   in  less   the    output   of    nonprofit
constant 1987  dollars,  less  general  institutions, output of paid employees
government,   output    of   nonprofit  of private households, rental value of
institutions, output of paid employees  owner-occupied              dwellings,
of private households, rental value of  unincorporated business, the output of
owner-occupied dwellings, and the sta-  corporations engaged  in banking,  fi-
tistical discrepancy  in computing the  nance, stock  and  commodity  trading,
NIPA.  Corresponding   exclusions  are  and credit and insurance agencies, and
also made  in labor  inputs.  Business  the   statistical    discrepancy    in
output was  about 78 percent of GDP in  computing   the   NIPA.   Nonfinancial
1992. Nonfarm business, which also ex-  corporations accounted  for  about  56
cludes farming,  was about  77 percent  percent of GDP in 1992.
of GDP in 1992.
     Total manufacturing  measures are  Productivity: These  productivity mea-
computed by  summing  series  prepared  sures   describe    the   relationship
for the  durable and  nondurable goods  between real output and the labor time
sectors.    Durables    include    the  involved in  its production. They show
following  2-digit   SIC   industries:  the changes  from period  to period in
Primary metal  industries;  fabricated  the amount  of goods and services pro-
metal     products;      nonelectrical  duced   per   hour.   Although   these
machinery; industrial  and  commercial  measures relate  output  to  hours  at
machinery  and   computer   equipment;  work  of  all  persons  engaged  in  a
electronic   and    other   electrical  sector,  they   do  not   measure  the
equipment;  transportation  equipment;  specific   contribution    of   labor,
instruments; lumber  and lumber  prod-  capital,  or   any  other   factor  of
ucts; furniture  and fixtures;  stone,  production. Rather,  they reflect  the
clay, and glass and concrete products;  joint  effects   of  many  influences,
 
 
                                        6
including   changes   in   technology;
capital investment;  level of  output;
utilization of  capacity, energy,  and
materials; the organization of produc-
tion;  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 1982=100
 
 1993       I     116.2      138.1     118.9     158.7       107.0     136.6       149.5       140.8
           II     116.3      139.6     120.0     159.9       107.0     137.5       149.6       141.4
          III     117.0      140.9     120.5     160.6       107.0     137.3       150.5       141.6
           IV     118.4      143.9     121.5     161.3       106.6     136.2       154.0       142.1
 
       ANNUAL     117.0      140.6     120.2     160.1       106.9     136.9       150.9       141.5
 
 1994       I     118.9      145.8     122.6     163.3       107.4     137.3       153.4       142.6
           II     118.5      147.2     124.2     163.6       106.9     138.1       155.6       143.8
          III     119.5      148.8     124.6     164.9       106.8     138.0       157.8       144.5
           IV     120.7      151.6     125.6     166.4       107.2     137.8       159.0       144.8
 
       ANNUAL    r119.4      148.4    r124.2    r164.5      r107.1    r137.8      r156.4       143.9
 
 1995       I    r121.3     r153.2     126.3    r167.9      r107.3     138.4      r159.3       145.3
           II     122.2      153.4     125.5     169.5       107.4     138.7       159.8       145.6
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1993       I      -2.1        0.6       2.7       2.5        -0.6       4.6        -1.9         2.3
           II       0.6        4.2       3.6       3.1         0.1       2.5         0.3         1.7
          III       2.2        4.0       1.7       1.8         0.1      -0.4         2.4         0.6
           IV       5.0        8.6       3.5       1.7        -1.5      -3.2         9.6         1.2
 
       ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
 1994       I       1.8        5.5       3.6       5.1         2.9       3.2        -1.6         1.5
           II      -1.4        3.7       5.2       0.9        -1.7       2.3         5.9         3.5
          III       3.2        4.5       1.3       3.1        -0.4      -0.1         5.8         2.0
           IV       4.3        7.8       3.3       3.6         1.3      -0.7         3.1         0.7
 
       ANNUAL      r2.1        5.5      r3.4      r2.8        r0.2       0.7         3.6         1.7
 
 1995       I      r2.1       r4.3       2.2      r3.8        r0.7      r1.7        r0.9        r1.4
           II       3.0        0.4      -2.5       3.8         0.4       0.8         1.2         0.9
 ---------------------------------------------------------------------------------------------------------
 
 
 
 
 
                     Percent change from corresponding quarter of previous year
 
 1993       I       1.5        3.3       1.8       4.3         1.1       2.7         0.7         2.0
           II       1.3        3.8       2.5       3.9         0.8       2.6         0.6         1.9
          III       1.0        3.6       2.6       3.0         0.2       2.0         3.2         2.4
           IV       1.4        4.3       2.9       2.3        -0.5       0.8         2.5         1.4
 
       ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
 1994       I       2.4        5.6       3.1       2.9         0.4       0.5         2.6         1.2
           II       1.9        5.4       3.5       2.3        -0.1       0.4         4.0         1.7
          III       2.1        5.6       3.4       2.7        -0.2       0.5         4.8         2.0
           IV       2.0        5.4       3.4       3.2         0.5       1.2         3.2         1.9
 
       ANNUAL      r2.1        5.5      r3.4      r2.8        r0.2       0.7         3.6         1.7
 
 1995       I      r2.0        5.1       3.0      r2.8         0.0       0.8        r3.9         1.9
           II       3.1        4.2       1.1       3.6         0.5       0.4         2.7         1.2
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      August 8, 1995
 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 1982=100
 
 1993       I     114.3      138.3     120.9     157.2       105.9     137.4       151.5       142.0
           II     114.5      139.9     122.2     158.1       105.8     138.1       151.8       142.5
          III     115.3      141.5     122.8     158.7       105.7     137.7       153.6       142.8
           IV     116.5      144.3     123.8     159.3       105.3     136.8       156.3       143.1
 
       ANNUAL     115.2      141.0     122.4     158.3       105.7     137.5       153.4       142.6
 
 1994       I     117.0      146.1     124.9     161.2       106.0     137.8       155.5       143.5
           II     116.6      147.3     126.3     161.8       105.7     138.8       158.3       145.1
          III     117.3      148.8     126.8     162.9       105.5     138.8       160.9       145.9
           IV     118.6      151.6     127.9     164.4       105.9     138.7       161.8       146.1
 
       ANNUAL    r117.4      148.5    r126.5    r162.6      r105.9    r138.5      r159.2       145.2
 
 1995       I    r119.3     r153.3     128.5    r166.1       106.2     139.2      r162.1      r146.6
           II     120.2      153.5     127.7     167.6       106.2     139.4       162.6       146.9
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1993       I      -2.2        1.0       3.2       1.9        -1.1       4.1        -1.4         2.2
           II       0.4        4.7       4.2       2.4        -0.6       2.0         0.8         1.6
          III       2.9        4.9       1.9       1.5        -0.2      -1.3         4.7         0.7
           IV       4.2        7.9       3.5       1.6        -1.6      -2.5         7.3         0.8
 
       ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
 1994       I       1.7        5.2       3.4       4.9         2.7       3.1        -2.1         1.2
           II      -1.4        3.2       4.7       1.4        -1.2       2.8         7.6         4.5
          III       2.7        4.3       1.6       2.7        -0.8       0.0         6.7         2.3
           IV       4.3        7.7       3.3       3.8         1.5      -0.4         2.2         0.5
 
       ANNUAL      r1.9        5.3      r3.3      r2.7        r0.1       0.8        r3.8         1.8
 
 1995       I      r2.5       r4.5       2.0      r4.1        r1.0       1.6        r0.7        r1.3
           II       3.0        0.6      -2.4       3.6         0.2       0.6         1.3         0.9
 ---------------------------------------------------------------------------------------------------------
 
 
 
 
                     Percent change from corresponding quarter of previous year
 
 1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
           II       1.1        4.0       2.9       3.5         0.4       2.4         1.0         1.9
          III       1.2        4.2       2.9       2.6        -0.2       1.3         4.4         2.4
           IV       1.3        4.6       3.2       1.9        -0.9       0.5         2.8         1.3
 
       ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
 1994       I       2.3        5.7       3.3       2.6         0.1       0.3         2.6         1.1
           II       1.8        5.3       3.4       2.3        -0.1       0.5         4.3         1.8
          III       1.8        5.2       3.3       2.6        -0.2       0.8         4.8         2.2
           IV       1.8        5.1       3.3       3.2         0.6       1.4         3.5         2.1
 
       ANNUAL      r1.9        5.3      r3.3      r2.7        r0.1       0.8        r3.8         1.8
 
 1995       I       2.0       r4.9       2.9       3.0        r0.1       1.0        r4.3        r2.1
           II       3.1        4.2       1.1       3.6         0.5       0.4         2.7         1.2
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      August 8, 1995
 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 1982=100
 
 1993       I            130.8        134.8        103.0        149.9           101.0        114.6
           II            131.3        135.6        103.2        151.7           101.5        115.5
          III            132.1        136.8        103.6        152.5           101.6        115.4
           IV            133.6        139.3        104.2        153.3           101.4        114.7
 
       ANNUAL            132.0        136.6        103.5        152.0           101.5        115.1
 
 1994       I            135.4        141.8        104.7        154.3           101.4        113.9
           II            136.8        144.3        105.4        153.6           100.3        112.2
          III            138.0        146.3        106.0        154.5           100.0        111.9
           IV            139.3        149.2        107.1        155.9           100.4        112.0
 
       ANNUAL            137.4        145.4        105.8        154.5           100.6        112.5
 
 1995       I           r140.5       r151.1        107.5        157.7           100.8        112.3
           II            141.2        149.6        105.9        157.9           100.1        111.8
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1993       I              5.4          7.8          2.2         -2.1            -5.0         -7.1
           II              1.5          2.3          0.8          4.9             1.8          3.3
          III              2.5          3.8          1.2          2.0             0.4         -0.4
           IV              4.7          7.4          2.6          2.3            -0.9         -2.3
 
       ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
 1994       I              5.4          7.5          2.0          2.4             0.3         -2.8
           II              4.3          7.2          2.8         -1.8            -4.2         -5.8
          III              3.4          5.7          2.2          2.4            -1.2         -1.0
           IV              3.7          8.1          4.2          3.8             1.5          0.1
 
       ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
 1995       I             r3.5         r5.2          1.6          4.7             1.6         r1.1
           II              2.1         -3.8         -5.8          0.3            -2.9         -1.8
 --------------------------------------------------------------------------------------------------
 
 
 
 
                    Percent change from corresponding quarter of previous year
 
 1993       I              3.6          4.9          1.3          3.3             0.1         -0.3
           II              3.8          4.7          0.9          3.3             0.2         -0.5
          III              3.5          5.0          1.4          2.8             0.0         -0.7
           IV              3.5          5.3          1.7          1.7            -1.0         -1.7
 
       ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
 1994       I              3.5          5.2          1.6          2.9             0.4         -0.6
           II              4.2          6.4          2.1          1.2            -1.1         -2.9
          III              4.5          6.9          2.4          1.3            -1.5         -3.0
           IV              4.2          7.1          2.8          1.7            -0.9         -2.4
 
       ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
 1995       I              3.7          6.5          2.7         r2.2            -0.6         -1.4
           II              3.2          3.7          0.5          2.8            -0.3         -0.4
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                August 8, 1995
 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 1982=100
 
 1993       I            143.0        143.4        100.3        147.4            99.3        103.1
           II            144.2        144.8        100.4        148.8            99.6        103.2
          III            145.2        146.7        101.1        149.2            99.4        102.8
           IV            148.2        151.0        101.9        150.2            99.3        101.3
 
       ANNUAL            145.3        146.5        100.8        149.0            99.5        102.6
 
 1994       I            150.3        154.4        102.7        151.2            99.4        100.6
           II            151.7        157.1        103.6        150.0            98.0         98.9
          III            153.3        160.1        104.4        150.7            97.6         98.3
           IV            154.9        163.9        105.8        152.4            98.2         98.4
 
       ANNUAL            152.6        158.9        104.1        151.0            98.3         99.0
 
 1995       I            156.5       r166.6        106.4       r154.3           r98.6        r98.6
           II            156.7        164.9        105.2        153.3            97.2         97.8
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1993       I              9.0         11.7          2.5         -4.9            -7.7        -12.7
           II              3.6          4.1          0.4          4.0             0.9          0.3
          III              2.7          5.4          2.7          1.1            -0.6         -1.5
           IV              8.5         12.1          3.3          2.6            -0.7         -5.4
 
       ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
 1994       I              5.9          9.5          3.4          2.7             0.5         -3.1
           II              3.6          7.1          3.4         -3.1            -5.6         -6.5
          III              4.4          7.8          3.3          2.1            -1.5         -2.3
           IV              4.1          9.7          5.4          4.5             2.2          0.4
 
       ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
 1995       I             r4.4         r6.8          2.3         r5.1            r2.0         r0.7
           II              0.5         -3.9         -4.4         -2.6            -5.8         -3.1
 --------------------------------------------------------------------------------------------------
 
 
 
 
                    Percent change from corresponding quarter of previous year
 
 1993       I              5.9          7.0          1.0          3.0            -0.2         -2.7
           II              6.1          7.0          0.9          2.7            -0.4         -3.2
          III              5.7          7.5          1.8          2.0            -0.8         -3.5
           IV              5.9          8.3          2.2          0.6            -2.0         -5.0
 
       ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
 1994       I              5.2          7.7          2.4          2.6             0.1         -2.5
           II              5.1          8.5          3.2          0.8            -1.6         -4.2
          III              5.6          9.1          3.3          1.0            -1.8         -4.3
           IV              4.5          8.5          3.8          1.5            -1.1         -2.9
 
       ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
 1995       I              4.1          7.8          3.6          2.1           r-0.8        r-2.0
           II              3.3          5.0          1.6          2.2            -0.8         -1.1
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                August 8, 1995
 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 1982=100
 
 1993       I            116.2        124.2        106.9        155.1           104.5        133.5
           II            115.8        124.2        107.3        157.5           105.4        136.0
          III            116.4        124.6        107.1        158.7           105.8        136.4
           IV            116.2        124.9        107.5        159.4           105.4        137.2
 
       ANNUAL            116.1        124.5        107.2        157.7           105.3        135.8
 
 1994       I            117.4        126.3        107.5        160.1           105.3        136.4
           II            119.0        128.6        108.1        160.2           104.7        134.7
          III            119.5        129.4        108.3        161.3           104.5        135.0
           IV            120.4        131.2        109.0        162.3           104.5        134.8
 
       ANNUAL            119.0        128.9        108.2        161.0           104.8        135.2
 
 1995       I            121.0        132.1        109.1       r163.9           104.7        135.4
           II            122.3        130.8        106.9        165.8           105.1        135.5
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1993       I              0.7          2.6          1.9          2.3            -0.7          1.6
           II             -1.3         -0.1          1.2          6.3             3.2          7.7
          III              2.1          1.4         -0.7          3.2             1.5          1.1
           IV             -0.7          0.9          1.5          1.8            -1.5          2.5
 
       ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
 1994       I              4.4          4.6          0.1          1.8            -0.4         -2.6
           II              5.4          7.4          1.9          0.3            -2.2         -4.8
          III              1.8          2.5          0.7          2.6            -0.9          0.8
           IV              2.9          5.6          2.6          2.5             0.3         -0.4
 
       ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
 1995       I              2.1          2.8          0.7         r3.9            r0.8         r1.8
           II              4.5         -3.7         -7.8          4.8             1.4          0.3
 --------------------------------------------------------------------------------------------------
 
 
 
 
                    Percent change from corresponding quarter of previous year
 
 1993       I              0.5          2.2          1.6          3.8             0.6          3.2
           II              0.7          1.7          1.0          4.3             1.1          3.6
          III              0.6          1.6          1.0          4.0             1.1          3.3
           IV              0.2          1.2          1.0          3.4             0.6          3.2
 
       ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
 1994       I              1.1          1.7          0.6          3.2             0.7          2.1
           II              2.8          3.5          0.7          1.7            -0.6         -1.0
          III              2.7          3.8          1.1          1.6            -1.2         -1.1
           IV              3.6          5.0          1.3          1.8            -0.8         -1.8
 
       ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
 1995       I              3.0          4.6          1.5          2.3           r-0.5         -0.7
           II              2.8          1.7         -1.0          3.5             0.4          0.6
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                August 8, 1995
 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    cost     fits   deflator
     quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
 ----------------------------------------------------------------------------------------------------------
                                            Indexes 1982=100
 
 1993       I    119.9     143.3    119.5    153.9     103.7     128.3    116.8    125.0    183.7    128.7
           II    121.2     145.9    120.4    154.4     103.3     127.3    115.8    124.1    199.4    128.7
          III    122.2     148.1    121.2    154.8     103.1     126.7    115.8    123.6    202.5    128.5
           IV    123.4     150.9    122.3    155.0     102.5     125.7    114.8    122.6    220.9    128.7
 
       ANNUAL    121.8     147.0    120.8    154.6     103.3     127.0    115.8    123.8    201.9    128.6
 
 1994       I    124.0     153.0    123.4    156.5     102.9     126.2    116.6    123.5    218.2    129.4
           II    123.8     154.8    125.1    156.8     102.4     126.7    115.2    123.4    228.7    129.9
          III    124.3     156.5    125.9    157.9     102.3     127.1    116.2    124.0    228.8    130.5
           IV    125.3     159.6    127.4    159.1     102.5     127.0    115.9    123.8    230.3    130.4
 
       ANNUAL   r124.4     156.0   r125.4   r157.7    r102.7     126.7    116.0    123.7    226.5    130.0
 
 1995       I   r125.8     161.4    128.2   r160.5    r102.6    r127.5   r116.0   r124.2   r224.0   r130.4
 ----------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
 1993       I     -2.2      -0.3      2.0      2.0      -1.0       4.4      3.6      4.2    -14.9      2.3
           II      4.6       7.5      2.8      1.4      -1.5      -3.0     -3.3     -3.1     38.9      0.2
          III      3.2       6.0      2.7      1.0      -0.7      -2.1      0.0     -1.6      6.5     -0.8
           IV      3.9       7.8      3.8      0.6      -2.6      -3.1     -3.4     -3.2     41.5      0.6
 
       ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
 1994       I      2.0       5.8      3.7      3.9       1.7       1.8      6.6      3.1     -4.9      2.2
           II     -0.8       4.8      5.6      0.6      -1.9       1.4     -4.8     -0.3     20.7      1.8
          III      1.6       4.2      2.5      2.9      -0.7       1.2      3.5      1.8      0.3      1.7
           IV      3.4       8.4      4.8      3.2       0.9      -0.3     -1.1     -0.5      2.5     -0.2
 
       ANNUAL     r2.2       6.1     r3.8     r2.0     r-0.6      -0.2      0.2     -0.1     12.2      1.1
 
 1995       I     r1.7      r4.4      2.7     r3.4      r0.4      r1.8     r0.5     r1.4   r-10.4     r0.1
 ----------------------------------------------------------------------------------------------------------
 
 
 
 
                           Percent change from corresponding quarter of previous year
 
 1993       I      2.7       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
           II      3.0       5.1      2.0      3.3       0.1       0.2     -1.8     -0.3     13.6      0.8
          III      2.6       5.2      2.5      2.2      -0.6      -0.4     -2.7     -1.0     18.5      0.6
           IV      2.3       5.2      2.8      1.3      -1.4      -1.0     -0.8     -1.0     15.5      0.6
 
       ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
 1994       I      3.4       6.8      3.3      1.7      -0.8      -1.6     -0.1     -1.2     18.8      0.5
           II      2.1       6.1      4.0      1.5      -0.9      -0.5     -0.5     -0.5     14.7      0.9
          III      1.7       5.7      3.9      2.0      -0.9       0.3      0.4      0.3     13.0      1.6
           IV      1.6       5.8      4.2      2.6       0.0       1.0      1.0      1.0      4.2      1.4
 
       ANNUAL     r2.2       6.1     r3.8     r2.0     r-0.6      -0.2      0.2     -0.1     12.2      1.1
 
 1995       I      1.5      r5.4      3.9     r2.5     r-0.3      r1.0     -0.5     r0.6     r2.7     r0.8
 ----------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                        August 8, 1995
 r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
 
SOURCE:  Output data from the Bureau of Economic Analysis, U.S. Department of
Commerce, and the Federal Reserve Board.  Compensation and hours data from the
Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of
Economic Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are second published 30
days after the close of the reference period; revisions appear about 35 days
later, and third revisions after an additional 60 days.  In the business
sector, the probability is 0.95 that the third publication (third revision) of
a quarterly index of output per hour of all persons will differ from the
initial value by between -2.0 and +2.0 index points.  This interval is based on
the performance of this measure between the second quarter of 1976 and the
fourth quarter of 1993.
 
 
                             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 gross product divided by constant dollar gross product.
 
(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 cost includes 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 cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.