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Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT, 

Media contact: (202) 691-5902 TUESDAY, AUG. 8, 2006. 

PRODUCTIVITY AND COSTS 

Second Quarter 2006, Preliminary 

 The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary 

productivity data—as measured by output per hour of all persons—for the second quarter of 

2006. The preliminary seasonally adjusted annual rates of productivity change in the second 

quarter were: 

 1.1 percent in the business sector and 

 1.1 percent in the nonfarm business sector. 

These rates of growth are lower than those in the previous quarter. As revised, productivity 

increased 4.5 percent in the business sector and 4.3 percent in the nonfarm business sector in the 

first quarter of 2006. 

 In manufacturing, the preliminary productivity changes in the second quarter were: 

3.0 percent in manufacturing, 

3.8 percent in durable goods manufacturing, and 

2.6 percent in nondurable goods manufacturing. 

Manufacturing productivity grew 3.0 percent in the second quarter as output increased 5.4 

percent and hours increased 2.3 percent (seasonally adjusted annual rates). Output and hours in 

manufacturing, which includes about 13 percent of U.S. business-sector employment, tend to 

vary more from quarter to quarter than data for the aggregate business and nonfarm business 

sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1 

through 5. 

Data in this release reflect the regular multi-year revisions to the national income and product 

accounts released by the Bureau of Economic Analysis of the U.S. Department of Commerce on 

July 28. The data also incorporate revised estimates of output in manufacturing and hours in all 

sectors. See Revised Measures, page 4. 
2 

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 (page 8). 

Table A. Productivity and costs: Preliminary second-quarter 2006 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 1.1 2.6 1.5 5.1 0.2 4.0 

Nonfarm business 1.1 2.5 1.4 5.4 0.4 4.2 

Manufacturing 3.0 5.4 2.3 1.7 -3.1 -1.2 

 Durable 3.8 7.8 3.9 1.6 -3.2 -2.1 

 Nondurable 2.6 2.2 -0.4 1.6 -3.2 -1.0 

 Percent change from same quarter a year ago 

Business 2.7 4.0 1.3 5.9 1.8 3.1 

Nonfarm business 2.4 3.9 1.5 5.7 1.7 3.2 

Manufacturing 3.8 5.8 1.9 3.6 -0.4 -0.2 

 Durable 6.0 8.8 2.6 3.8 -0.2 -2.1 

 Nondurable 1.1 2.0 0.8 3.1 -0.8 1.9 

Business 

 From the first quarter to the second quarter of 2006, business sector output per hour 

increased at a 1.1-percent annual rate. Output increased 2.6 percent and hours of all persons 

engaged in the sector rose 1.5 percent (seasonally adjusted annual rates). As revised, labor 

productivity grew 4.5 percent in the first quarter of 2006, as output increased 6.7 percent and 

hours increased 2.1 percent (tables 1 and B). 

 Hourly compensation increased 5.1 percent in the second quarter of 2006, less than the 

6.9 percent gain in the first quarter (seasonally adjusted annual rates). This measure of 

compensation includes wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Real hourly compensation, which takes into account changes in 

consumer prices, edged up 0.2 percent during the second quarter of 2006, after increasing 4.7 

percent during the first quarter. 
3 

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

increased 4.0 percent during the second quarter of 2006 after rising 2.3 percent in the previous 

quarter. The implicit price deflator for the business sector, which reflects changes in both unit 

labor costs and unit nonlabor payments, increased 3.1 percent in the second quarter and 2.7 

percent in the first quarter. 

Nonfarm Business 

 Productivity increased 1.1 percent in the nonfarm business sector during the second 

quarter of 2006, as output increased 2.5 percent and hours of all persons rose 1.4 percent 

(seasonally adjusted annual rates). Output per hour grew at a 4.3 percent annual rate in the first 

quarter of 2006, as output grew 6.7 percent and hours increased 2.3 percent (tables 2 and B). 

 Hourly compensation in the nonfarm business sector increased 5.4 percent in the second 

quarter of 2006, less than the 6.9-percent rise one quarter earlier. When the rise in consumer 

prices is taken into account, real hourly compensation rose 0.4 percent in the second quarter of 

2006 after increasing 4.7 percent in the first quarter. 

Unit labor costs increased 4.2 percent in the second quarter, and 2.5 percent in the first 

quarter, of 2006. The implicit price deflator for nonfarm business output grew 3.4 percent in the 

second quarter, following a 2.9-percent increase in the previous quarter. 

Manufacturing

 Productivity increased 3.0 percent in manufacturing, as output grew 5.4 percent and 

hours of all persons increased 2.3 percent (seasonally adjusted annual rates). In the first quarter 

of 2006, productivity rose 3.7 percent, reflecting a 5.8-percent increase in output and a 2.0-

percent rise in hours. In durable goods manufacturing, productivity rose 3.8 percent in the 

second quarter as output grew 7.8 percent and hours of all persons increased 3.9 percent. In 

nondurable goods industries, second-quarter productivity increased 2.6 percent as output rose 2.2 

percent and hours fell 0.4 percent (tables 3, 4, and 5). 

 Hourly compensation of all manufacturing workers rose 1.7 percent during the second 

quarter, reflecting similar growth in both manufacturing subsectors. When the increase in 

consumer prices is taken into account, the real hourly compensation of all manufacturing 

workers fell 3.1 percent in the second quarter, after increasing 3.0 percent one quarter earlier. 

 Unit labor costs in manufacturing declined 1.2 percent in the second quarter of 2006, 

reflecting decreases of 2.1 percent in durable goods industries and 1.0 percent in nondurable 

goods industries. 
4 

Revised Measures 

 Revised and previous measures for the first quarter of 2006 for the business, nonfarm 

business, and manufacturing sectors are compared in table B. In business and nonfarm business, 

output and productivity were revised upward from the numbers reported on June 1, while hours 

movements were revised down. In the manufacturing sector, productivity, output, and hours 

were all revised downward slightly. In all three sectors, hourly compensation increases were 

revised up for the first quarter of 2006. Unit labor costs were revised up in the business and 

nonfarm business sectors and also rose in manufacturing rather than falling as reported June 1. 

Table B. Previous and revised productivity and related measures 

Quarterly percent changes at seasonally adjusted annual rates 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

First quarter 2006 

Business: 

 Previous ....................... 3.9 6.4 2.4 5.4 3.3 1.5 

 Revised......................... 4.5 6.7 2.1 6.9 4.7 2.3 

Nonfarm business: 

 Previous ....................... 3.7 6.5 2.7 5.3 3.2 1.6 

 Revised......................... 4.3 6.7 2.3 6.9 4.7 2.5 

Manufacturing: 

 Previous ....................... 3.8 6.0 2.1 1.9 -0.2 -1.9 

 Revised......................... 3.7 5.8 2.0 5.2 3.0 1.4 

Table C presents previous and revised productivity and related measures for major 

sectors for the years 2003, 2004, and 2005. Output data for the business and nonfarm business 

sectors and the compensation series for all sectors incorporate the revised national income and 

product accounts data released by the Bureau of Economic Analysis, U.S. Department of 

Commerce, on July 28. These revisions affected productivity and costs data beginning with the 

first quarter of 2003. Revised quarterly data appear in tables 1 through 5 and appendix tables 1 

through 5. 

Hours data underlying the major sector measures were also revised, due to incorporation 

of information on employment by legal form of organization from the 2002 Economic Census. 

The proportion of employment in tax-exempt establishments is used to estimate the number of 

employees of non-profit institutions. Hours worked by these employees are excluded from hours 

measures for the business sectors. 
5 

Output and productivity growth in the business and nonfarm business sectors were 

revised downward in each year from 2003 to 2005. For 2004 and 2005, hourly compensation 

was revised down more than productivity in these sectors; increases in unit labor costs were 

smaller than shown in the June 1 release. In 2003, hourly compensation was not revised and the 

downward revisions to productivity led to increases in unit labor costs. 

Table C. Previous and revised productivity and related measures 

Annual percent changes 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Annual average 2005 

Business: 

 Previous ....................... 2.6 4.0 1.4 5.1 1.7 2.4 

 Revised......................... 2.3 3.7 1.4 4.4 1.0 2.1 

Nonfarm business: 

 Previous ....................... 2.7 4.2 1.4 5.1 1.7 2.3 

 Revised......................... 2.3 3.8 1.5 4.4 1.0 2.0 

Manufacturing: 

 Previous ....................... 5.0 3.9 -1.1 6.8 3.3 1.7 

 Revised......................... 4.1 3.0 -1.1 4.6 1.2 0.5 

Annual average 2004 

Business: 

 Previous ....................... 3.5 4.8 1.3 4.7 2.0 1.2 

 Revised......................... 3.1 4.4 1.3 3.8 1.1 0.7 

Nonfarm business: 

 Previous ....................... 3.4 4.8 1.3 4.6 1.8 1.1 

 Revised......................... 3.0 4.3 1.3 3.6 0.9 0.7 

Manufacturing: 

 Previous ....................... 5.5 5.0 -0.5 2.3 -0.4 -3.1 

 Revised......................... 1.9 1.3 -0.5 2.0 -0.7 0.1 

Annual average 2003 

Business: 

 Previous ....................... 4.1 3.4 -0.7 4.0 1.7 -0.1 

 Revised......................... 3.8 3.1 -0.7 4.0 1.7 0.2 

Nonfarm business: 

 Previous ....................... 3.9 3.3 -0.6 4.0 1.6 0.0 

 Revised......................... 3.7 3.1 -0.6 4.0 1.7 0.3 

Manufacturing: 

 Previous ....................... 5.6 0.5 -4.9 8.3 5.9 2.5 

 Revised......................... 6.2 1.0 -4.9 7.0 4.6 0.8 
6 

Output data for the manufacturing sector also were revised. Annual output indexes are 

constructed by BLS using data from the Bureau of the Census and the Bureau of Economic 

Analysis (BEA), both in the U.S. Department of Commerce, and BLS surveys. Output measures 

now incorporate information from the 2004 Annual Survey of Manufactures. Data for the 1998-

2002 period also incorporate revisions to information from the 2002 Economic Census for 

manufacturing. The BLS is now calculating intrasectoral transactions, subtracted to avoid 

double-counting, using BEA's 1997 input-output (I-O) table which was constructed using data 

collected on the North American Industry Classifications System (NAICS). Earlier estimates of 

intrasectoral transactions were estimated using I-O tables based on the Standard Industrial 

Classification (SIC) system. Revisions due to intrasectoral transactions affect all years of output 

data. Revised annual data appear in appendix tables 7 through 9. 

In the manufacturing sector, growth in output and productivity were revised down in both 

2004 and 2005. Because hourly compensation was revised down more than productivity in 

2005, the increase in unit labor costs was also revised downward. In 2004, a large downward 

revision to productivity eclipsed the downward revision in hourly compensation, and unit labor 

costs edged up 0.1 percent rather than falling 3.1 percent as reported June 1. In 2003, an upward 

revision in productivity combined with a downward revision in hourly compensation to yield a 

much smaller increase in unit labor costs than previously reported. For the entire 1987 to 2005 

period for which manufacturing data are available, the average annual rate of productivity 

growth was unchanged at 3.7 percent per year. The revisions did lead to changes in recent 

periods; productivity growth from 1995 to 2000 was revised up from 4.1 percent per year to 4.7 

percent per year, while the average rate of growth from 2000 to 2005 was revised down from 5.0 

percent to 4.1 percent. 

Revised Measures: Nonfinancial Corporations 

 Productivity and cost measures for the first quarter of 2006 for nonfinancial corporations 

also were revised to incorporate more recent information than was available in the June 1 release 

(table D). Increases in productivity and output were revised up to 7.2 percent and 9.0 percent, 

respectively, and the first quarter increase in employee hours was revised down to 1.7 percent 

(seasonally adjusted annual rates). Hourly compensation was revised up by less than 

productivity, and unit labor costs were revised to show a decline of 0.8 percent rather than the 

1.3-percent increase reported June 1. Unit profits in the first quarter were revised up from 13.1 

percent to 42.9 percent. 
7 

Table D. Nonfinancial corporations: Previous and revised productivity and cost measures 

Percent changes at easonally adjusted nnual ra es s a t

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

First quarter 2006 

Previous......... 3.7 5.8 2.0 5.0 2.9 1.3 13.1 3.2 

Revised.......... 7.2 9.0 1.7 6.3 4.1 -0.8 42.9 3.1 

Annual average 2005 

Previous......... 4.9 6.4 1.4 5.3 1.9 0.4 14.8 1.4 

Revised.......... 3.9 5.4 1.4 4.4 1.0 0.4 11.1 1.9 

Annual average 2004 

Previous......... 4.0 5.5 1.4 4.1 1.3 0.0 18.1 1.6 

Revised.......... 3.7 5.1 1.3 3.2 0.5 -0.4 26.2 1.6 

Annual average 2003 

Previous......... 4.3 2.8 -1.4 4.0 1.6 -0.3 18.9 1.3 

Revised.......... 3.6 2.1 -1.5 4.0 1.7 0.4 12.2 1.3 

Historical data for nonfinancial corporations also were revised due to incorporation of 

revised data on output and compensation from the national income and product accounts. In 

addition, information from the 2002 Economic Census on employment in corporations led to 

revisions of hours worked in the nonfinancial corporate sector. 

For the year 2005, output and output per hour were revised down by 1.0 percent. Hourly 

compensation was revised down by a similar amount, and unit labor costs rose at the same 0.4 

percent rate reported previously. In 2004, the downward revision to hourly compensation was 

larger than that to productivity, and unit labor costs declined, rather than remaining unchanged, 

as reported June 1. And in 2003, a downward revision to productivity growth resulted in unit 

labor costs rising 0.4 percent, rather than falling. Revised data for nonfinancial corporations 

appear in table 6 and appendix table 6.

Next release date

 The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, 

Wednesday, Sept. 6, 2006. Revised second-quarter measures for business, nonfarm business, 

and manufacturing will be released at that time, along with preliminary measures for 

nonfinancial corporations. 
8 

TECHNICAL NOTES 

Labor Hours: Hours data for the labor productivity and cost measures include hours for all 

persons working in the sector—wage and salary workers, the self-employed and unpaid family 

workers. The primary source of hours and employment data is the BLS Current Employment 

Statistics (CES) program, which provides monthly survey data on the number of jobs held by 

wage and salary workers in nonfarm establishments. The CES also provides average weekly 

paid hours of production and nonsupervisory workers in these establishments. Weekly paid 

hours are adjusted to hours at work using data from the National Compensation Survey (NCS). 

The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The 

Office of Productivity and Technology estimates average weekly hours at work for 

nonproduction and supervisory workers using information from the Current Population Survey 

(CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid 

family workers. Estimates of labor input for government enterprises are derived from the CPS, 

the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of 

Economic Analysis (BEA) of the Department of Commerce. 

The CES measures jobs, counting a person who is employed by two or more 

establishments at each place of employment. In contrast, the CPS features measures of 

employment that count each person only once and classify each person according to his or her 

primary job; hours worked at all jobs by that person accrue to his or her primary job. However, 

the CPS also collects more detailed information on employment and hours worked at primary 

jobs and all other jobs, separately. The BLS productivity measures use the more detailed 

information on employment and hours to assign all hours worked to the correct industrial sector 

and avoid duplicating hours data from the CES. 

Output: Business sector output is an annual-weighted index constructed after excluding from 

gross domestic product (GDP) the following outputs: general government, nonprofit institutions, 

and private households (including owner-occupied housing). Corresponding exclusions also are 

made in labor inputs. Business output accounted for about 78 percent of the value of GDP in 

2000. Nonfarm business, which also excludes farming, accounted for about 77 percent of GDP in 

2000. 

Annual indexes for manufacturing and its durable and nondurable goods components are 

constructed by deflating current-dollar industry value of production data from the U.S. Bureau of 

the Census with deflators from the BLS. These deflators are based on data from the BLS 

producer price program and other sources. The industry shipments are aggregated using annual 

weights, and intrasector transactions are removed. Quarterly manufacturing output measures are 

based on the index of industrial production prepared monthly by the Board of Governors of the 

Federal Reserve System, adjusted to be consistent with annual indexes of manufacturing sector 

output prepared by BLS. Durables include the following 3-digit NAICS industries: wood 

product manufacturing; nonmetallic mineral product manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation 

equipment manufacturing; furniture and related product manufacturing; and miscellaneous 

manufacturing. Nondurables include: food manufacturing; beverage and tobacco product 

manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied 

product manufacturing; paper manufacturing; printing and related support activities; petroleum 

and coal products manufacturing; chemical manufacturing; and plastics and rubber products 

manufacturing. 

Nonfinancial corporate output is an annual-weighted index calculated on the basis of the 

costs incurred and the incomes earned from production. The output measure excludes the 

following outputs from GDP: general government; nonprofit institutions; private households; 

unincorporated business; and those corporations classified as offices of bank holding companies, 
9 

offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial 

corporations accounted for about 54 percent of the value of GDP in 2000. 

Productivity: These productivity measures describe the relationship between real output and the 

labor time involved in its production. They show the changes from period to period in the 

amount of goods and services produced per hour. Although these measures relate output to hours 

at work of all persons engaged in a sector, they do not measure the specific contribution of labor, 

capital, or any other factor of production. Rather, they reflect the joint effects of many 

influences, including changes in technology; capital investment; level of output; utilization of 

capacity, energy, and materials; the organization of production; managerial skill; and the 

characteristics and effort of the work force. 

Labor Compensation: Estimates of labor compensation by major sector, required for measures 

of hourly compensation and unit labor costs, are based primarily on employee compensation data 

from the NIPA, prepared by the BEA. The compensation of employees in general government, 

nonprofit institutions and private households are subtracted from compensation of domestic 

employees to derive employee compensation for the business sector. The labor compensation of 

proprietors cannot be explicitly identified and must be estimated. This is done by assuming that 

proprietors have the same hourly compensation as employees in the same sector. The quarterly 

labor productivity and cost measures do not contain estimates of compensation for unpaid family 

workers. 

Unit Labor Costs: The measures of unit labor costs in this release describe the relationship 

between compensation per hour and productivity, or real output per hour, and can be used as an 

indicator of inflationary pressure on producers. Increases in hourly compensation increase unit 

labor costs; labor productivity increases offset compensation increases and lower unit labor 

costs. 

Presentation of the data: The quarterly data in this release are presented in three ways; as 

index number series where 1992=100, as percent changes from the corresponding quarter of the 

previous year, and as percent changes from the previous quarter presented at a compound annual 

rate. Annual data are presented both as index number series and percent changes from the 

previous year. 

 The index numbers and rates of change reported in the productivity and costs news 

release are rounded to one decimal place. All percent changes in this release and on the BLS 

web site are calculated using index numbers to three decimal places. These index numbers are 

available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS 

Division of Major Sector Productivity. (Telephone 202-691-5606 or email 

DPRWEB@BLS.GOV) 

Information in this release will be made available to sensory-impaired individuals upon 

request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.
10 

 Table 1. Business sector: Productivity, hourly compensation, unit labor costs, 

 and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 2004 I r131.4 r151.7 r115.5 r154.4 r118.5 r117.5 r122.9 r119.5 

 II r132.8 r153.5 r115.6 r155.8 r118.3 r117.3 r126.2 r120.6 

 III r133.0 r154.8 r116.4 r157.5 r119.1 r118.5 r125.5 r121.1 

 IV r133.5 r155.8 r116.7 r160.1 r120.0 r119.9 r125.8 r122.1 

 ANNUAL r132.7 r154.0 r116.1 r157.0 r119.0 r118.3 r125.1 r120.8 

 2005 I r134.5 r157.4 r117.0 r161.6 r120.4 r120.1 r127.9 r123.0 

 II r134.9 r159.0 r117.9 r162.0 r119.5 r120.0 r130.0 r123.7 

 III r136.6 r160.9 r117.8 r165.2 r120.3 r121.0 r131.1 r124.7 

 IV r136.7 r161.7 r118.3 r166.5 r120.3 r121.8 r132.3 r125.7 

 ANNUAL r135.7 r159.8 r117.7 r163.8 r120.2 r120.7 r130.3 r124.3 

 2006 I r138.2 r164.3 r118.9 r169.3 r121.7 r122.5 r133.4 r126.6 

 II 138.6 165.4 119.3 171.5 121.7 123.7 133.9 127.5 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r3.2 r4.5 1.2 r2.1 r-1.5 r-1.1 r11.8 r3.6 

 II r4.5 r4.8 0.3 r3.5 r-0.5 r-0.9 r11.1 r3.6 

 III r0.5 r3.4 r2.9 r4.7 r2.5 r4.1 r-2.0 r1.7 

 IV r1.6 r2.6 r1.0 r6.7 r3.0 r5.0 r0.9 r3.4 

 ANNUAL r3.1 r4.4 1.3 r3.8 r1.1 r0.7 r5.8 r2.6 

 2005 I r3.1 r4.2 r1.0 r3.9 r1.5 r0.7 r6.7 r3.0 

 II r1.2 r4.1 r2.9 r0.8 r-2.9 r-0.4 r6.6 r2.3 

 III r5.0 r4.9 -0.1 r8.3 r2.7 r3.2 r3.6 r3.3 

 IV 0.2 1.8 1.6 r3.1 r-0.2 r2.9 r3.6 r3.2 

 ANNUAL r2.3 r3.7 1.4 r4.4 r1.0 r2.1 r4.2 r2.9 

 2006 I r4.5 r6.7 r2.1 r6.9 r4.7 r2.3 r3.3 r2.7 

 II 1.1 2.6 1.5 5.1 0.2 4.0 1.7 3.1 

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

 Percent change from corresponding quarter of previous year 

 2004 I r4.5 r5.1 0.6 r4.3 r2.4 r-0.1 r5.5 1.9 

 II r3.8 r5.2 r1.3 r3.3 r0.5 r-0.5 r8.1 2.7 

 III r1.7 r3.5 1.7 r3.3 r0.6 r1.6 r4.5 r2.7 

 IV r2.5 r3.8 1.3 r4.2 r0.9 r1.7 r5.3 r3.1 

 ANNUAL r3.1 r4.4 1.3 r3.8 r1.1 r0.7 r5.8 r2.6 

 2005 I r2.4 r3.8 r1.3 r4.7 r1.6 r2.2 r4.1 r2.9 

 II r1.6 r3.6 1.9 r4.0 r1.0 r2.3 r3.0 r2.6 

 III r2.7 r3.9 r1.2 r4.9 r1.1 r2.1 r4.4 r3.0 

 IV 2.4 3.7 1.3 r4.0 r0.3 r1.6 r5.1 3.0 

 ANNUAL r2.3 r3.7 1.4 r4.4 r1.0 r2.1 r4.2 r2.9 

 2006 I r2.7 r4.4 r1.6 r4.8 r1.1 r2.0 r4.3 r2.9 

 II 2.7 4.0 1.3 5.9 1.8 3.1 3.1 3.1 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
11 

 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, 

 and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 2004 I r130.5 r151.9 r116.4 r153.4 r117.8 r117.6 r123.6 r119.8 

 II r132.2 r153.9 r116.4 r154.8 r117.6 r117.2 r126.8 r120.7 

 III r132.2 r155.1 r117.3 r156.6 r118.3 r118.4 r126.6 r121.4 

 IV r132.4 r156.0 r117.8 r158.7 r118.9 r119.9 r127.0 r122.5 

 ANNUAL r131.8 r154.2 r117.0 r155.9 r118.2 r118.3 r126.0 r121.1 

 2005 I r133.5 r157.6 r118.0 r160.4 r119.5 r120.1 r129.4 r123.5 

 II r134.3 r159.4 r118.6 r161.0 r118.9 r119.9 r131.8 r124.3 

 III r135.8 r161.3 r118.8 r164.1 r119.5 r120.9 r133.1 r125.3 

 IV r135.8 r162.0 r119.3 r165.3 r119.4 r121.7 r134.3 r126.4 

 ANNUAL r134.9 r160.0 r118.7 r162.7 r119.3 r120.7 r132.2 r124.9 

 2006 I r137.2 r164.6 r120.0 r168.0 r120.8 r122.5 r135.4 r127.3 

 II 137.6 165.6 120.4 170.2 120.9 123.8 136.2 128.3 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r1.9 r3.6 1.7 r1.3 r-2.2 r-0.5 r10.8 3.6 

 II r5.1 r5.2 0.1 r3.7 r-0.4 r-1.4 r10.6 r3.1 

 III r0.2 r3.2 r3.0 r4.5 r2.3 r4.3 r-0.6 r2.4 

 IV r0.4 r2.4 r2.0 r5.6 r2.0 r5.1 r1.3 r3.7 

 ANNUAL r3.0 r4.3 1.3 r3.6 r0.9 r0.7 r5.4 r2.4 

 2005 I r3.6 r4.2 r0.6 r4.3 r1.9 r0.7 r7.7 r3.3 

 II r2.3 4.4 r2.1 r1.6 r-2.0 r-0.7 r7.8 r2.5 

 III r4.4 r4.9 0.4 r7.8 r2.2 r3.3 r3.9 3.5 

 IV r-0.1 r1.8 1.8 r2.9 r-0.4 r3.0 r3.7 r3.3 

 ANNUAL r2.3 r3.8 r1.5 r4.4 r1.0 r2.0 r4.9 r3.1 

 2006 I r4.3 r6.7 r2.3 r6.9 r4.7 r2.5 r3.4 2.9 

 II 1.1 2.5 1.4 5.4 0.4 4.2 2.2 3.4 

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

 Percent change from corresponding quarter of previous year 

 2004 I r4.3 r5.1 r0.7 r4.2 r2.3 r-0.1 4.5 r1.6 

 II r4.1 r5.3 1.2 r3.4 r0.6 r-0.7 r7.3 r2.3 

 III r1.6 r3.4 1.7 r3.2 r0.4 r1.5 r4.2 r2.5 

 IV r1.9 r3.6 1.7 r3.8 r0.4 r1.8 r5.4 r3.2 

 ANNUAL r3.0 r4.3 1.3 r3.6 r0.9 r0.7 r5.4 r2.4 

 2005 I r2.3 r3.8 1.4 r4.5 r1.5 r2.2 r4.7 r3.1 

 II r1.6 r3.6 r1.9 r4.0 r1.0 r2.3 r4.0 r3.0 

 III r2.7 r4.0 r1.3 r4.8 r1.0 r2.1 r5.1 r3.3 

 IV 2.5 r3.8 1.2 r4.1 r0.4 r1.6 r5.7 3.2 

 ANNUAL r2.3 r3.8 r1.5 r4.4 r1.0 r2.0 r4.9 r3.1 

 2006 I r2.7 r4.4 1.7 r4.8 r1.1 r2.0 r4.7 r3.0 

 II 2.4 3.9 1.5 5.7 1.7 3.2 3.3 3.3 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
12 

 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2004 I r161.8 r138.1 85.4 r157.5 r120.8 r97.3 

 II r163.3 r138.9 85.0 r159.8 r121.4 r97.8 

 III r164.0 r139.3 84.9 r163.0 r123.2 r99.4 

 IV r166.1 r140.3 84.4 r165.5 r124.0 r99.6 

 ANNUAL r163.8 r139.1 84.9 r161.4 r122.3 r98.5 

 2005 I r168.1 r141.7 84.3 r166.1 r123.7 r98.8 

 II r169.7 r142.2 83.8 r167.8 r123.8 r98.9 

 III r171.2 r143.1 83.6 r170.7 r124.3 r99.7 

 IV r173.2 r146.3 84.5 r170.9 r123.4 r98.7 

 ANNUAL r170.5 r143.3 84.0 r168.8 r123.8 r99.0 

 2006 I r174.8 r148.4 r84.9 r173.0 r124.4 r99.0 

 II 176.1 150.4 85.4 173.8 123.4 98.7 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r-2.1 r0.1 2.2 r-10.6 r-13.7 r-8.7 

 II r3.9 r2.2 -1.6 r5.9 r1.8 r2.0 

 III r1.7 r1.2 -0.4 r8.3 r6.0 r6.5 

 IV r5.2 r2.8 -2.3 r6.3 r2.7 r1.0 

 ANNUAL r1.9 r1.3 -0.5 r2.0 r-0.7 r0.1 

 2005 I 4.8 4.2 -0.5 r1.5 r-0.8 r-3.2 

 II 3.9 1.2 -2.5 r4.0 r0.3 r0.2 

 III 3.7 2.6 -1.0 r7.1 r1.5 r3.2 

 IV 4.7 9.4 4.6 r0.5 r-2.7 r-4.0 

 ANNUAL r4.1 r3.0 -1.1 r4.6 r1.2 r0.5 

 2006 I r3.7 r5.8 r2.0 r5.2 r3.0 r1.4 

 II 3.0 5.4 2.3 1.7 -3.1 -1.2 

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

 Percent change from corresponding quarter of previous year 

 2004 I r2.4 r0.6 -1.8 r1.9 r0.0 r-0.5 

 II r2.3 r1.7 -0.6 r1.6 r-1.1 r-0.7 

 III r0.6 r1.5 0.9 r2.3 r-0.4 r1.7 

 IV r2.1 r1.6 -0.6 r2.2 r-1.1 r0.0 

 ANNUAL r1.9 r1.3 -0.5 r2.0 r-0.7 r0.1 

 2005 I r3.9 r2.6 -1.2 r5.5 r2.4 r1.5 

 II r3.9 r2.4 -1.5 r5.0 r2.0 r1.1 

 III r4.4 r2.7 -1.6 r4.7 r0.9 r0.3 

 IV r4.3 4.3 0.1 r3.2 r-0.5 r-1.0 

 ANNUAL r4.1 r3.0 -1.1 r4.6 r1.2 r0.5 

 2006 I 4.0 r4.7 0.7 r4.2 r0.5 r0.2 

 II 3.8 5.8 1.9 3.6 -0.4 -0.2 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
13 

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

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2004 I r184.0 r164.2 89.2 r153.6 r117.9 r83.5 

 II r185.0 r164.6 89.0 r156.4 r118.9 r84.6 

 III r185.5 r165.7 89.3 r159.8 r120.8 r86.1 

 IV r188.2 r167.3 88.9 r161.7 r121.2 r85.9 

 ANNUAL r185.7 r165.4 89.1 r157.9 r119.7 r85.0 

 2005 I r191.3 r170.1 88.9 r161.7 r120.5 r84.5 

 II r193.2 r171.1 88.6 r162.8 r120.2 r84.3 

 III r196.3 r174.0 88.7 r165.8 r120.8 r84.5 

 IV r201.0 r180.3 89.7 r165.8 r119.8 r82.5 

 ANNUAL r195.4 r173.9 89.0 r164.1 r120.3 r83.9 

 2006 I r202.9 r182.6 r90.0 r168.3 r121.0 r83.0 

 II 204.8 186.1 90.9 169.0 120.0 82.5 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r-3.9 r0.1 4.2 r-16.1 r-19.0 r-12.7 

 II r2.1 r0.8 -1.2 r7.5 r3.3 r5.3 

 III r1.1 r2.7 1.5 r8.9 r6.6 r7.6 

 IV r6.0 r4.0 -1.9 r5.0 r1.4 r-1.0 

 ANNUAL r1.1 r1.8 0.6 r0.7 r-1.9 r-0.4 

 2005 I r6.6 6.8 0.1 r0.0 r-2.3 r-6.3 

 II 4.0 2.6 -1.4 r2.8 r-1.0 r-1.2 

 III 6.5 7.0 0.4 r7.5 r1.9 r0.9 

 IV 9.9 15.2 4.8 r0.0 r-3.2 r-9.0 

 ANNUAL r5.3 r5.1 -0.1 r3.9 r0.5 r-1.3 

 2006 I r3.8 r5.3 r1.4 r6.1 r3.9 r2.2 

 II 3.8 7.8 3.9 1.6 -3.2 -2.1 

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

 Percent change from corresponding quarter of previous year 

 2004 I r2.2 r1.3 -1.0 0.4 -1.4 r-1.8 

 II r1.8 r2.2 0.4 r0.5 r-2.3 r-1.3 

 III r-0.7 r1.8 2.5 1.2 -1.5 r1.9 

 IV r1.3 r1.9 0.6 r0.8 r-2.5 r-0.5 

 ANNUAL r1.1 r1.8 0.6 r0.7 r-1.9 r-0.4 

 2005 I r3.9 r3.5 -0.4 r5.3 r2.2 r1.3 

 II r4.4 r4.0 -0.4 r4.1 r1.1 r-0.3 

 III r5.8 r5.1 -0.7 r3.8 r0.0 r-1.9 

 IV 6.8 7.8 1.0 r2.5 r-1.2 r-4.0 

 ANNUAL r5.3 r5.1 -0.1 r3.9 r0.5 r-1.3 

 2006 I 6.0 7.4 1.3 r4.1 r0.4 r-1.9 

 II 6.0 8.8 2.6 3.8 -0.2 -2.1 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
14 

 Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 

 seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2004 I r139.4 r110.9 79.6 r163.0 r125.1 r116.9 

 II r141.6 r112.0 79.1 r164.2 r124.8 r116.0 

 III r142.7 r111.9 78.4 r166.9 r126.2 r117.0 

 IV r144.2 r112.2 77.8 r170.5 r127.8 r118.2 

 ANNUAL r142.0 r111.8 78.7 r166.1 r125.9 r117.0 

 2005 I r145.2 r112.5 77.5 r172.3 r128.4 r118.7 

 II r146.7 r112.4 76.6 r175.0 r129.1 r119.3 

 III r147.0 r111.6 75.9 r177.5 r129.3 r120.8 

 IV r146.3 r112.2 76.7 r178.1 r128.7 r121.8 

 ANNUAL r146.3 r112.2 76.7 r175.7 r128.9 r120.1 

 2006 I r147.4 r114.0 r77.3 r179.7 r129.1 r121.9 

 II 148.4 114.6 77.2 180.4 128.1 121.6 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r1.2 r0.1 -1.1 r0.3 r-3.2 r-0.8 

 II r6.5 r4.0 -2.3 r3.1 r-0.9 r-3.2 

 III r3.2 r-0.6 -3.6 r6.8 r4.5 r3.5 

 IV r4.4 r1.4 -2.8 r8.8 r5.1 r4.3 

 ANNUAL r3.3 r0.8 -2.4 4.2 1.5 r0.9 

 2005 I 2.7 0.9 -1.7 r4.3 r1.9 r1.5 

 II 4.2 -0.4 -4.4 r6.3 r2.5 r2.0 

 III 0.7 -2.8 -3.5 r5.9 r0.4 r5.2 

 IV -1.9 2.3 4.2 r1.4 r-1.9 r3.3 

 ANNUAL r3.0 r0.4 -2.6 r5.8 r2.3 r2.6 

 2006 I r3.2 r6.4 r3.1 r3.6 r1.4 r0.3 

 II 2.6 2.2 -0.4 1.6 -3.2 -1.0 

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

 Percent change from corresponding quarter of previous year 

 2004 I r2.9 r-0.3 -3.1 r4.6 r2.7 r1.6 

 II r3.4 r1.2 -2.2 r3.6 r0.8 r0.2 

 III r3.0 r1.2 -1.7 r4.0 r1.2 r0.9 

 IV r3.8 r1.2 -2.5 r4.7 r1.3 r0.9 

 ANNUAL r3.3 r0.8 -2.4 4.2 1.5 r0.9 

 2005 I r4.2 r1.4 -2.6 r5.7 r2.6 r1.5 

 II r3.6 r0.3 -3.2 r6.5 r3.5 r2.8 

 III r3.0 r-0.3 -3.1 r6.3 r2.5 r3.2 

 IV 1.4 0.0 -1.4 r4.5 r0.7 r3.0 

 ANNUAL r3.0 r0.4 -2.6 r5.8 r2.3 r2.6 

 2006 I r1.5 r1.3 r-0.2 r4.3 r0.6 r2.7 

 II 1.1 2.0 0.8 3.1 -0.8 1.9 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
15 

 Table 6. Nonfinancial corporate sector: 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 

 2004 I r137.6 r159.6 r116.1 r151.8 r116.5 r110.4 r109.1 r110.0 r131.2 r111.9 

 II r138.6 r161.1 r116.2 r153.2 r116.4 r110.5 r109.3 r110.2 r139.2 r112.8 

 III r140.5 r164.0 r116.8 r155.0 r117.1 r110.3 r109.2 r110.0 r142.3 r112.9 

 IV r141.0 r165.3 r117.2 r157.1 r117.7 r111.4 r109.3 r110.8 r142.4 r113.7 

 ANNUAL r139.4 r162.5 r116.6 r154.3 r116.9 r110.7 r109.2 r110.3 r138.8 112.8 

 2005 I r142.8 r167.5 r117.4 r158.6 r118.2 r111.1 r110.3 r110.9 r148.5 r114.2 

 II r144.5 r170.6 r118.1 r159.3 r117.6 r110.2 r110.2 r110.2 r159.0 r114.6 

 III r145.6 r172.3 r118.3 r162.4 r118.3 r111.6 r112.6 r111.9 r149.9 r115.3 

 IV r146.7 r174.7 r119.1 r163.6 r118.2 r111.5 r110.5 r111.3 r159.6 r115.6 

 ANNUAL r144.9 r171.3 r118.2 r161.0 r118.1 r111.1 r110.9 r111.1 r154.3 r114.9 

 2006 I r149.3 r178.5 r119.6 r166.1 r119.4 r111.3 r109.3 r110.8 r174.5 r116.5 

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

 Percent change from previous quarter at annual rate(5) 

 2004 I r2.9 r5.6 2.7 r-0.5 r-3.9 r-3.3 r-3.6 r-3.4 r53.5 r1.2 

 II r3.1 r3.6 r0.5 r3.7 r-0.3 r0.6 r1.1 r0.7 r27.1 r3.3 

 III r5.5 r7.6 2.0 r4.7 r2.5 r-0.8 r-0.5 r-0.7 r9.2 r0.4 

 IV r1.6 r3.2 1.5 r5.6 r2.0 r4.0 r0.3 r3.0 r0.2 r2.7 

 ANNUAL r3.7 r5.1 r1.3 r3.2 r0.5 r-0.4 r-1.8 r-0.8 r26.2 1.6 

 2005 I r5.0 r5.5 r0.5 r4.0 r1.6 r-1.0 r3.6 r0.2 r18.1 r2.1 

 II r4.9 r7.4 2.4 r1.6 r-2.1 r-3.2 r-0.1 r-2.4 r31.5 r1.2 

 III r3.0 r4.1 1.0 r8.2 r2.6 r5.0 r9.1 r6.1 r-21.0 r2.4 

 IV r3.2 r5.8 r2.6 r3.0 r-0.3 r-0.1 r-7.4 r-2.1 r28.5 r1.1 

 ANNUAL r3.9 r5.4 1.4 r4.4 r1.0 0.4 r1.5 r0.7 r11.1 r1.9 

 2006 I r7.2 r9.0 r1.7 r6.3 r4.1 r-0.8 r-4.4 r-1.8 r42.9 r3.1 

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

 Percent change from corresponding quarter of previous year 

 2004 I r4.3 r4.9 r0.6 r3.8 r2.0 r-0.4 r-3.3 r-1.2 r27.3 r1.2 

 II r3.7 r5.0 r1.2 r2.9 r0.1 r-0.8 r-1.6 r-1.0 r31.5 r1.8 

 III r3.5 5.3 1.8 r2.8 r0.0 r-0.7 r-1.5 r-0.9 r26.1 1.5 

 IV r3.3 r5.0 1.7 r3.4 r0.0 r0.1 r-0.7 -0.1 r20.9 r1.9 

 ANNUAL r3.7 r5.1 r1.3 r3.2 r0.5 r-0.4 r-1.8 r-0.8 r26.2 1.6 

 2005 I r3.8 r5.0 1.1 r4.5 r1.5 r0.7 r1.1 r0.8 r13.2 r2.1 

 II r4.3 r5.9 1.6 r4.0 r1.0 r-0.3 r0.8 r0.0 r14.2 r1.6 

 III r3.6 r5.0 r1.4 r4.8 r1.0 r1.1 r3.1 r1.7 r5.3 r2.1 

 IV r4.0 r5.7 1.6 r4.2 r0.4 r0.1 r1.1 r0.4 r12.0 r1.7 

 ANNUAL r3.9 r5.4 1.4 r4.4 r1.0 0.4 r1.5 r0.7 r11.1 r1.9 

 2006 I r4.6 r6.6 r1.9 r4.7 r1.0 r0.2 r-0.9 r-0.1 r17.5 r1.9 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 

 
16 

SOURCES: Output data are from the Bureau of Economic Analysis and the Census Bureau of 

the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; 

and the Federal Reserve Board. Compensation and hours data are from the Bureau of Labor 

Statistics and the Bureau of Economic Analysis. 

RELIABILITY: Productivity and cost measures are regularly revised as more complete 

information becomes available. The measures are first published within 40 days of the close of 

the reference period; revisions appear 30 days later, and second revisions after an additional 60 

days. In the business sector, the third publication (second revision) of a quarterly index of output 

per hour of all persons has differed from the initial value by between –1.4 and +1.3 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 first quarter of 2006. 

Footnotes, Tables 1-6

(1) Wages and salaries of employees plus employers' contributions for social insurance and 

private benefit plans. Except for nonfinancial corporations, where there are no selfemployed, data also include an estimate of wages, salaries, and supplemental payments 

for the self-employed. 

(2) The change for recent quarters is based on the Consumer Price Index for all urban consumers 

(CPI-U). The trend from 1978-2005 is based on the Consumer Price Index research series 

(CPI-U-RS). 

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production 

and imports less subsidies, net interest and miscellaneous payments, business current 

transfer payments, rental income of persons, and the current surplus of government 

enterprises. 

(4) Current dollar output divided by the output index. 

(5) Quarterly changes: Percent change compounded at annual rate from the original data rather 

than index numbers. Annual changes: Percent change between annual average levels. 

(6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports 

less subsidies, net interest and miscellaneous payments, and business current transfer 

payments. 

(7) Total unit costs are the sum of unit labor and nonlabor costs. 

(8) Unit profits include corporate profits before tax with inventory valuation and capital 

consumption adjustments. 

 
17 

Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, 

seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 2001 I r117.2 141.1 r120.4 r139.0 r113.1 r118.6 r106.4 114.1 

 II r118.8 141.4 r119.1 r140.0 r113.2 r117.9 r109.9 114.9 

 III r119.3 140.3 r117.7 r140.8 r113.5 r118.0 r110.4 115.2 

 IV r121.1 141.0 r116.3 r141.8 r114.4 r117.0 r113.1 115.6 

 ANNUAL r119.1 141.0 r118.4 r140.4 r113.5 r117.9 r110.0 114.9 

 2002 I r122.8 141.9 r115.5 r143.8 r115.6 r117.1 r113.2 115.6 

 II r123.4 142.6 r115.5 r145.5 r116.1 r117.9 r112.6 115.9 

 III r124.8 143.8 r115.2 r146.1 r116.0 r117.1 r114.7 116.2 

 IV r124.8 144.0 r115.4 r146.2 r115.3 r117.1 r116.0 116.7 

 ANNUAL r124.0 143.1 r115.4 r145.4 r115.7 r117.3 r114.1 116.1 

 2003 I r125.8 r144.4 r114.8 r148.0 r115.7 r117.7 r116.5 r117.3 

 II r128.0 r146.0 r114.1 r150.8 r117.8 r117.8 r116.7 r117.4 

 III r130.8 r149.7 r114.5 r152.5 r118.4 r116.6 r120.2 r118.0 

 IV r130.3 r150.1 r115.2 r153.6 r118.9 r117.9 r119.5 r118.5 

 ANNUAL r128.7 r147.5 r114.6 r151.2 r117.7 r117.5 r118.3 r117.8 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.6 -1.1 -0.5 6.8 2.9 7.5 -5.7 2.7 

 II r5.5 0.8 -4.4 r2.9 r0.1 -2.5 13.8 3.0 

 III 1.6 -3.1 -4.6 r2.2 r1.1 0.5 1.8 1.0 

 IV r6.5 1.8 r-4.4 r2.9 r3.3 -3.3 10.0 1.3 

 ANNUAL r2.6 0.3 r-2.2 4.2 r1.4 1.6 r2.5 2.0 

 2002 I r5.7 2.6 r-2.9 r5.8 r4.3 0.1 0.3 0.2 

 II 1.9 2.1 r0.1 4.7 r1.7 2.7 -1.9 1.0 

 III r4.7 3.6 r-1.0 r1.9 r-0.4 -2.6 7.8 1.0 

 IV 0.0 0.5 r0.5 r0.1 r-2.2 0.1 4.5 1.7 

 ANNUAL r4.1 1.5 r-2.5 r3.6 r2.0 -0.5 3.8 1.0 

 2003 I r3.0 r1.1 -1.9 r5.1 r1.2 r2.1 r1.7 r1.9 

 II r7.3 r4.6 -2.5 r7.7 r7.5 r0.4 r0.8 0.6 

 III r8.9 r10.4 1.3 r4.6 r2.1 r-4.0 r12.2 r1.8 

 IV r-1.4 r1.1 2.5 r2.9 r1.8 r4.3 r-2.1 r1.8 

 ANNUAL r3.8 r3.1 -0.7 4.0 1.7 r0.2 r3.6 r1.5 

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

 Percent change from corresponding quarter of previous year 

 2001 I 2.6 1.8 r-0.8 4.8 r1.4 2.1 1.1 1.8 

 II 2.0 0.2 r-1.8 r5.1 1.7 3.0 0.4 2.1 

 III 2.7 -0.4 r-3.0 r3.7 r1.0 0.9 3.9 2.0 

 IV r3.2 -0.4 r-3.5 r3.7 1.8 0.5 4.7 2.0 

 ANNUAL r2.6 0.3 r-2.2 4.2 r1.4 1.6 r2.5 2.0 

 2002 I r4.8 0.5 r-4.1 r3.4 r2.2 -1.3 6.3 1.3 

 II r3.9 0.8 r-3.0 r3.9 r2.6 0.0 r2.4 0.9 

 III r4.7 2.5 r-2.1 r3.8 r2.2 -0.8 3.9 0.9 

 IV 3.0 2.2 -0.8 r3.1 0.8 0.1 2.6 1.0 

 ANNUAL r4.1 1.5 r-2.5 r3.6 r2.0 -0.5 3.8 1.0 

 2003 I r2.4 r1.8 -0.6 r3.0 r0.1 r0.6 r3.0 1.4 

 II r3.7 r2.4 -1.2 3.7 1.5 r0.0 r3.7 1.3 

 III r4.7 r4.0 -0.7 r4.4 r2.1 r-0.4 r4.7 r1.5 

 IV r4.4 r4.2 -0.2 r5.1 r3.1 r0.7 r3.0 r1.5 

 ANNUAL r3.8 r3.1 -0.7 4.0 1.7 r0.2 r3.6 r1.5 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
18 

Appendix table 1 continued. Business sector: Revised productivity, hourly compensation, unit labor costs, 

and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 1998 I r108.5 126.5 r116.6 r117.6 r103.7 r108.3 r111.5 109.5 

 II r108.7 127.4 r117.2 r119.1 r104.8 r109.6 r109.4 109.5 

 III r110.0 129.0 r117.3 r121.0 r106.0 r110.0 r109.3 109.7 

 IV r110.6 131.5 r118.8 r121.8 r106.2 r110.1 r109.7 109.9 

 ANNUAL r109.5 128.6 r117.5 r119.9 r105.2 r109.5 r110.0 109.7 

 1999 I r111.8 132.7 r118.6 r124.3 r108.0 r111.2 r108.8 110.3 

 II r112.0 133.9 r119.5 r124.7 r107.6 r111.3 r109.1 110.5 

 III r112.8 135.7 r120.3 r125.8 r107.7 r111.5 r109.7 110.8 

 IV r114.6 138.5 r120.8 r128.2 r108.9 r111.8 r110.0 111.1 

 ANNUAL r112.8 135.2 r119.8 r125.8 r108.0 r111.5 r109.4 110.7 

 2000 I r114.2 138.6 r121.4 r132.6 r111.6 r116.1 r105.3 112.1 

 II r116.4 141.1 r121.2 r133.2 r111.2 r114.4 r109.5 112.6 

 III r116.1 140.8 r121.3 r135.8 r112.3 r116.9 r106.3 112.9 

 IV r117.4 141.5 r120.6 r136.7 r112.3 r116.5 r108.0 113.3 

 ANNUAL r116.1 140.5 r121.0 r134.7 r112.0 r116.0 r107.2 112.7 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I 3.0 5.2 2.1 7.6 r7.0 4.5 -5.7 0.5 

 II 0.7 2.8 2.0 5.4 4.2 4.6 -7.2 0.0 

 III r4.8 5.3 r0.5 6.5 r4.6 1.7 -0.4 0.9 

 IV r2.4 7.8 5.3 r2.5 0.8 0.1 1.7 0.7 

 ANNUAL 2.8 4.8 2.0 6.1 4.6 3.2 -3.4 0.6 

 1999 I r4.5 3.7 r-0.7 r8.7 r7.1 4.1 -3.5 1.2 

 II 0.7 3.8 r3.1 1.3 -1.6 0.6 1.0 0.8 

 III r2.7 5.4 r2.6 r3.4 r0.4 0.7 2.2 1.3 

 IV r6.7 8.4 r1.6 r7.8 r4.7 1.0 1.2 1.1 

 ANNUAL r3.1 5.1 r2.0 r4.9 r2.8 1.8 -0.5 0.9 

 2000 I r-1.5 0.3 r1.8 r14.5 10.2 16.2 -16.1 3.4 

 II r8.0 7.5 r-0.5 1.8 r-1.3 -5.7 16.9 1.8 

 III -1.0 -0.8 r0.2 7.9 r4.1 9.0 -11.2 1.3 

 IV r4.4 2.0 r-2.3 r2.9 r0.0 -1.5 6.8 1.4 

 ANNUAL r2.9 3.9 r1.0 r7.1 r3.6 r4.1 r-2.0 1.8 

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

 Percent change from corresponding quarter of previous year 

 1998 I 3.5 5.5 1.9 r5.8 4.3 2.1 -1.4 0.8 

 II 2.4 4.4 1.9 6.3 4.8 3.8 -4.3 0.7 

 III 2.6 4.2 r1.5 6.8 5.3 4.1 r-4.9 0.6 

 IV 2.7 5.2 2.5 r5.5 4.1 2.7 -3.0 0.5 

 ANNUAL 2.8 4.8 2.0 6.1 4.6 3.2 -3.4 0.6 

 1999 I r3.1 4.9 1.8 r5.8 4.1 2.6 -2.4 0.7 

 II r3.1 5.1 r2.0 r4.7 r2.7 1.6 -0.3 0.9 

 III 2.5 5.2 2.6 3.9 r1.6 1.4 0.3 1.0 

 IV r3.6 5.3 1.7 r5.3 r2.6 1.6 0.2 1.1 

 ANNUAL r3.1 5.1 r2.0 r4.9 r2.8 1.8 -0.5 0.9 

 2000 I r2.1 4.5 r2.3 6.6 r3.3 4.4 -3.2 1.6 

 II r3.9 5.4 r1.4 r6.8 r3.4 2.8 0.4 1.9 

 III r3.0 3.8 0.8 7.9 4.3 4.8 -3.1 1.9 

 IV r2.4 2.2 r-0.2 r6.7 3.1 r4.2 -1.8 2.0 

 ANNUAL r2.9 3.9 r1.0 r7.1 r3.6 r4.1 r-2.0 1.8 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
19 

Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and 

prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 2001 I r116.7 141.4 r121.2 r138.3 r112.5 r118.5 r108.0 114.6 

 II r118.3 141.9 r119.9 r139.1 r112.4 r117.6 r111.7 115.4 

 III r118.8 140.8 r118.5 r139.8 r112.7 r117.7 r112.0 115.6 

 IV r120.6 141.2 r117.1 r141.0 r113.7 r116.8 r114.7 116.0 

 ANNUAL r118.6 141.3 r119.2 r139.5 r112.8 r117.7 r111.6 115.4 

 2002 I r122.7 142.5 r116.1 r143.1 r115.1 r116.7 r115.0 116.0 

 II r123.0 143.0 r116.3 r144.7 r115.5 r117.7 r114.8 116.6 

 III r124.2 144.1 r116.0 r145.3 r115.3 r117.0 r116.6 116.9 

 IV r124.2 144.1 r116.0 r145.4 r114.7 r117.1 r117.7 117.3 

 ANNUAL r123.5 143.4 r116.1 r144.6 r115.1 r117.1 r116.0 116.7 

 2003 I r125.1 r144.6 r115.5 r147.3 r115.1 r117.7 r118.2 r117.9 

 II r127.0 r146.1 r115.1 r149.7 r117.0 r117.9 r118.1 r118.0 

 III r130.1 r150.0 r115.3 r151.7 r117.8 r116.6 r121.5 r118.4 

 IV r129.9 r150.6 r115.9 r152.9 r118.4 r117.7 r120.5 r118.7 

 ANNUAL r128.0 r147.8 r115.4 r150.4 r117.1 r117.5 r119.6 r118.3 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.5 -1.1 -0.6 6.7 2.8 7.3 -5.7 2.5 

 II 5.6 1.2 r-4.2 r2.4 r-0.4 -3.1 14.4 2.7 

 III r1.8 -2.9 r-4.6 r2.2 1.0 0.4 1.3 0.7 

 IV r6.3 1.2 r-4.8 r3.3 r3.6 -2.9 r9.7 1.5 

 ANNUAL r2.5 0.4 -2.0 r4.0 r1.2 r1.5 2.6 1.9 

 2002 I r7.0 3.5 r-3.2 r6.3 r4.8 r-0.6 1.1 0.0 

 II 0.9 1.4 0.5 r4.5 1.4 3.5 -0.7 2.0 

 III r4.1 3.1 r-0.9 r1.8 r-0.4 -2.2 r6.5 0.9 

 IV r0.0 0.1 0.1 0.3 -2.0 0.3 3.8 1.6 

 ANNUAL 4.1 1.5 r-2.6 r3.7 2.0 -0.5 4.0 1.1 

 2003 I r3.0 r1.2 -1.7 r5.1 r1.2 r2.1 1.8 r2.0 

 II r6.0 r4.3 r-1.6 r6.9 r6.7 r0.8 r-0.4 0.4 

 III r10.3 r11.0 0.6 r5.4 r2.9 r-4.4 r11.7 r1.3 

 IV r-0.6 r1.6 2.2 r3.2 r2.1 r3.8 r-3.2 r1.1 

 ANNUAL r3.7 r3.1 -0.6 4.0 r1.7 r0.3 r3.1 1.3 

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

 Percent change from corresponding quarter of previous year 

 2001 I 2.4 1.9 -0.5 4.5 r1.1 r2.1 r1.2 1.8 

 II r2.0 0.4 -1.6 r4.9 r1.5 2.8 0.6 2.0 

 III r2.7 -0.2 r-2.8 r3.4 0.7 0.7 4.0 1.8 

 IV r3.3 -0.4 r-3.6 r3.6 r1.8 r0.4 r4.6 1.9 

 ANNUAL r2.5 0.4 -2.0 r4.0 r1.2 r1.5 2.6 1.9 

 2002 I 5.1 0.7 r-4.2 r3.5 r2.2 -1.6 6.5 1.2 

 II 3.9 0.8 r-3.1 r4.0 r2.7 0.1 2.8 1.0 

 III r4.5 2.3 r-2.1 r3.9 r2.3 -0.6 4.1 1.1 

 IV 2.9 2.0 r-0.9 r3.2 r0.9 0.2 2.7 1.1 

 ANNUAL 4.1 1.5 r-2.6 r3.7 2.0 -0.5 4.0 1.1 

 2003 I r2.0 r1.5 -0.5 r2.9 r0.0 0.9 2.8 1.6 

 II r3.3 r2.2 -1.0 3.5 1.3 r0.2 r2.9 1.2 

 III r4.8 r4.1 r-0.6 r4.4 2.1 r-0.4 r4.2 r1.3 

 IV r4.6 r4.5 -0.1 r5.2 r3.2 r0.5 r2.3 r1.2 

 ANNUAL r3.7 r3.1 -0.6 4.0 r1.7 r0.3 r3.1 1.3 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
20 

Appendix table 2 continued. Nonfarm business sector: Revised productivity, hourly compensation, unit labor 

costs, and prices, seasonally adjusted 

 Real 

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

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

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

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

 Indexes 1992=100 

 1998 I r108.4 126.8 r117.0 r117.2 r103.4 r108.2 r112.4 109.7 

 II r108.7 127.7 r117.5 r118.8 r104.5 r109.3 r110.5 109.8 

 III r109.9 129.4 r117.7 r120.8 r105.7 r109.9 r110.4 110.1 

 IV r110.5 131.8 r119.3 r121.4 r105.9 r109.9 r110.7 110.2 

 ANNUAL r109.4 128.9 r117.9 r119.6 r104.9 r109.3 r111.0 109.9 

 1999 I r111.5 133.0 r119.3 r123.7 r107.4 r110.9 r109.8 110.5 

 II r111.7 134.3 r120.2 r124.1 r107.0 r111.1 r110.7 111.0 

 III r112.4 136.1 r121.0 r125.2 r107.1 r111.3 r111.4 111.3 

 IV r114.4 138.9 r121.4 r127.8 r108.5 r111.7 r111.8 111.7 

 ANNUAL r112.5 135.6 r120.5 r125.2 r107.5 r111.3 r110.9 111.1 

 2000 I r113.9 138.8 r121.9 r132.3 r111.3 r116.1 r106.6 112.6 

 II r116.0 141.4 r121.9 r132.6 r110.8 r114.4 r111.0 113.1 

 III r115.7 141.1 r121.9 r135.2 r111.9 r116.9 r107.8 113.5 

 IV r116.8 141.8 r121.4 r136.0 r111.8 r116.4 r109.6 113.9 

 ANNUAL r115.7 140.8 r121.7 r134.2 r111.5 r116.0 r108.7 113.3 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r3.2 5.6 r2.3 r7.8 r7.1 4.4 -5.8 0.4 

 II 1.2 2.9 1.7 r5.7 4.5 4.4 -6.6 0.1 

 III r4.5 5.3 r0.7 6.6 r4.7 2.1 -0.4 1.1 

 IV 2.1 7.9 r5.6 2.1 r0.5 0.0 1.1 0.4 

 ANNUAL r2.8 5.0 r2.1 r6.0 4.5 3.1 -3.1 0.7 

 1999 I r3.7 3.7 r0.0 r7.8 r6.1 3.9 r-3.1 1.3 

 II 0.7 3.7 3.0 1.4 -1.5 0.7 3.1 1.6 

 III r2.8 5.6 r2.8 r3.5 r0.4 r0.7 2.7 1.4 

 IV r7.2 8.4 1.2 8.5 r5.4 1.3 1.5 1.4 

 ANNUAL r2.9 5.2 r2.2 r4.7 r2.6 1.8 0.0 1.1 

 2000 I r-1.7 -0.1 r1.6 r14.9 r10.6 16.9 -17.2 3.3 

 II 7.4 7.5 0.1 1.1 -2.0 -5.9 17.3 1.8 

 III r-0.9 -0.8 0.1 r8.1 r4.2 9.1 -11.1 1.4 

 IV r4.0 2.2 r-1.7 r2.4 r-0.5 -1.6 6.9 1.3 

 ANNUAL 2.8 3.8 r1.0 r7.2 r3.7 4.2 -2.0 1.9 

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

 Percent change from corresponding quarter of previous year 

 1998 I 3.3 5.6 2.2 5.5 r4.1 2.1 -0.8 1.0 

 II 2.4 4.5 2.1 6.1 4.6 3.7 -4.0 0.7 

 III 2.6 4.4 1.7 6.8 5.3 4.1 -4.6 0.7 

 IV r2.8 5.4 2.6 5.5 r4.2 2.7 -3.0 0.5 

 ANNUAL r2.8 5.0 r2.1 r6.0 4.5 3.1 -3.1 0.7 

 1999 I r2.9 4.9 2.0 5.5 r3.9 2.6 -2.3 0.7 

 II r2.8 5.1 r2.3 4.4 r2.4 1.6 0.2 1.1 

 III 2.3 5.2 r2.8 r3.7 r1.3 1.3 r0.9 1.2 

 IV r3.6 5.3 r1.7 5.2 2.5 1.6 r1.0 1.4 

 ANNUAL r2.9 5.2 r2.2 r4.7 r2.6 1.8 0.0 1.1 

 2000 I r2.2 4.4 r2.1 6.9 r3.6 4.7 -2.9 1.9 

 II 3.8 5.3 r1.4 r6.9 r3.5 2.9 0.3 2.0 

 III r2.9 3.6 r0.7 8.0 r4.5 5.0 r-3.3 2.0 

 IV r2.1 2.1 r0.0 r6.5 r3.0 4.3 -2.0 2.0 

 ANNUAL 2.8 3.8 r1.0 r7.2 r3.7 4.2 -2.0 1.9 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
21 

 

Appendix table 3. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs, 

seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2001 I r139.7 r140.1 100.3 138.1 112.4 r98.8 

 II r140.7 r137.9 98.0 137.4 111.0 r97.6 

 III r141.4 r135.5 95.8 137.0 110.4 r96.9 

 IV r144.5 r133.6 92.5 139.0 112.1 r96.2 

 ANNUAL r141.5 r136.8 96.6 137.9 111.5 r97.4 

 2002 I r147.9 r134.3 90.8 144.6 116.2 r97.7 

 II r150.5 r136.0 90.4 147.6 117.8 r98.1 

 III r152.9 r136.9 89.5 149.1 118.3 r97.5 

 IV r154.5 r136.5 88.4 150.2 118.5 r97.2 

 ANNUAL r151.4 r135.9 89.8 147.8 117.7 r97.6 

 2003 I r158.0 r137.4 86.9 r154.6 r120.8 r97.8 

 II r159.7 r136.5 85.5 r157.2 r122.8 r98.5 

 III r163.0 r137.2 84.2 r159.4 r123.7 r97.7 

 IV r162.6 r138.1 84.9 r162.0 r125.4 r99.6 

 ANNUAL r160.8 r137.3 85.4 r158.2 r123.2 r98.4 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-1.2 r-7.7 -6.6 4.1 0.2 r5.4 

 II r3.0 r-6.0 -8.7 -2.1 -4.8 r-4.9 

 III r1.8 r-7.0 -8.6 -1.0 -2.0 r-2.7 

 IV 9.2 r-5.4 -13.3 5.9 6.3 -3.0 

 ANNUAL r1.5 r-5.1 -6.5 2.3 -0.5 r0.8 

 2002 I r9.8 r2.2 -6.9 17.1 15.4 r6.6 

 II r7.0 r5.2 -1.7 8.6 5.4 r1.5 

 III r6.5 r2.4 -3.9 4.1 1.8 r-2.3 

 IV r4.5 r-0.9 -5.2 3.1 0.7 r-1.3 

 ANNUAL r7.0 r-0.6 -7.1 7.3 5.6 r0.2 

 2003 I r9.3 r2.4 -6.4 r12.1 r7.9 r2.5 

 II r4.2 r-2.3 -6.3 r7.0 r6.8 r2.7 

 III r8.6 r2.1 -6.0 r5.6 r3.0 r-2.8 

 IV r-0.9 r2.5 3.5 r6.7 r5.5 r7.7 

 ANNUAL r6.2 r1.0 -4.9 r7.0 r4.6 r0.8 

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

 Percent change from corresponding quarter of previous year 

 2001 I r1.0 r-2.8 -3.7 3.7 0.2 r2.7 

 II r0.9 r-5.0 -5.9 3.6 0.3 r2.7 

 III r1.7 r-6.1 -7.7 0.8 -1.8 r-0.9 

 IV r3.1 r-6.5 -9.3 1.7 -0.2 r-1.4 

 ANNUAL r1.5 r-5.1 -6.5 2.3 -0.5 r0.8 

 2002 I r5.9 r-4.1 -9.4 4.7 3.4 r-1.1 

 II r6.9 r-1.4 -7.7 7.5 6.1 r0.5 

 III r8.1 r1.0 -6.6 8.8 7.1 r0.6 

 IV r7.0 r2.2 -4.4 8.1 5.7 r1.0 

 ANNUAL r7.0 r-0.6 -7.1 7.3 5.6 r0.2 

 2003 I r6.8 r2.2 -4.3 r6.9 r3.9 r0.1 

 II r6.1 r0.4 -5.4 r6.5 r4.3 r0.4 

 III r6.7 r0.3 -6.0 r6.9 r4.6 r0.2 

 IV r5.2 r1.1 -3.9 r7.8 r5.8 2.4 

 ANNUAL r6.2 r1.0 -4.9 r7.0 r4.6 r0.8 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
22 

Appendix table 3 continued. Manufacturing sector: Revised productivity, hourly compensation, and unit labor 

costs, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 1998 I r125.9 r134.2 106.5 116.6 102.8 r92.5 

 II r126.7 r134.4 106.1 118.3 104.0 r93.3 

 III r129.1 r135.1 104.7 120.0 105.0 r92.9 

 IV r130.0 r137.3 105.6 120.2 104.9 r92.5 

 ANNUAL r127.9 r135.3 105.7 118.8 104.2 r92.8 

 1999 I r131.9 r138.5 105.0 121.3 105.4 r91.9 

 II r132.9 r139.7 105.1 122.1 105.3 r91.9 

 III r133.0 r140.4 105.6 123.5 105.7 r92.9 

 IV r136.4 r142.7 104.6 126.8 107.7 r92.9 

 ANNUAL r133.6 r140.3 105.1 123.4 106.0 r92.4 

 2000 I r138.4 r144.1 104.1 133.2 112.1 r96.3 

 II r139.4 r145.2 104.1 132.5 110.7 r95.0 

 III r139.0 r144.2 103.8 135.9 112.4 r97.8 

 IV r140.1 r142.9 102.0 136.7 112.3 r97.6 

 ANNUAL r139.4 r144.1 103.4 134.7 112.0 r96.7 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I 5.2 4.6 -0.5 7.6 6.9 r2.3 

 II r2.4 r0.6 -1.8 6.0 4.8 r3.5 

 III r7.7 r2.3 -5.0 5.9 3.9 r-1.7 

 IV r3.0 r6.7 3.6 0.9 -0.7 r-2.0 

 ANNUAL r5.5 r5.2 -0.3 5.8 4.3 r0.3 

 1999 I r6.1 r3.5 -2.4 3.6 2.0 r-2.4 

 II r2.9 r3.4 0.5 2.6 -0.3 r-0.3 

 III r0.3 r2.0 1.7 4.7 1.6 r4.4 

 IV r10.8 r6.8 -3.6 11.2 7.9 r0.4 

 ANNUAL r4.4 r3.8 -0.6 3.9 1.8 r-0.5 

 2000 I r5.8 r3.8 -1.9 21.8 17.3 r15.1 

 II r3.1 r3.1 0.0 -2.1 -5.1 r-5.0 

 III r-1.3 r-2.6 -1.4 10.6 6.6 r12.0 

 IV r3.4 r-3.5 -6.7 2.4 -0.4 r-0.9 

 ANNUAL r4.4 r2.7 -1.6 9.2 5.6 r4.6 

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

 Percent change from corresponding quarter of previous year 

 1998 I r6.6 r7.2 0.6 5.8 4.4 r-0.7 

 II r5.7 r5.9 0.2 6.0 4.6 r0.4 

 III r5.4 r4.3 -1.0 6.4 4.9 r1.0 

 IV r4.5 r3.5 -1.0 5.1 3.7 r0.5 

 ANNUAL r5.5 r5.2 -0.3 5.8 4.3 r0.3 

 1999 I r4.8 r3.3 -1.4 4.1 2.5 r-0.7 

 II r4.9 r4.0 -0.9 3.2 1.2 r-1.6 

 III r3.0 r3.9 0.8 2.9 0.6 r-0.1 

 IV r4.9 r3.9 -1.0 5.5 2.8 r0.5 

 ANNUAL r4.4 r3.8 -0.6 3.9 1.8 r-0.5 

 2000 I r4.9 4.0 -0.8 9.8 6.4 r4.7 

 II r4.9 r3.9 -0.9 8.5 5.1 r3.5 

 III r4.5 r2.7 -1.7 10.0 6.4 r5.3 

 IV r2.7 r0.1 -2.5 7.8 4.2 r5.0 

 ANNUAL r4.4 r2.7 -1.6 9.2 5.6 r4.6 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
23 

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

 unit labor costs, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2001 I r156.9 r167.2 106.6 136.3 110.9 r86.9 

 II r157.8 r163.9 103.9 135.8 109.8 r86.0 

 III r158.6 r159.7 100.7 135.5 109.2 r85.5 

 IV r161.4 r155.9 96.6 137.9 111.3 r85.5 

 ANNUAL r158.6 r161.7 101.9 136.4 110.3 r86.0 

 2002 I r165.9 r157.1 94.7 141.9 114.1 r85.5 

 II r169.2 r159.7 94.4 145.0 115.7 r85.7 

 III r172.7 r161.3 93.4 146.0 115.9 r84.6 

 IV r176.1 r161.4 91.7 147.3 116.2 r83.7 

 ANNUAL r170.9 r159.9 93.5 145.0 115.5 r84.8 

 2003 I r180.0 r162.2 90.1 r153.1 r119.6 r85.0 

 II r181.8 r161.0 88.6 r155.7 r121.6 r85.7 

 III r186.8 r162.8 87.1 r157.9 r122.6 r84.5 

 IV r185.9 r164.2 88.3 r160.5 r124.3 r86.4 

 ANNUAL r183.6 r162.6 88.5 r156.8 r122.0 r85.4 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-2.5 r-9.7 -7.4 2.5 -1.3 r5.1 

 II r2.5 r-7.6 -9.8 -1.3 -4.1 r-3.7 

 III r1.9 r-9.9 -11.6 -0.8 -1.9 r-2.7 

 IV r7.2 r-9.1 -15.2 7.2 7.6 r0.0 

 ANNUAL r0.5 r-6.7 -7.2 1.6 -1.2 r1.0 

 2002 I r11.8 r3.0 -7.9 12.1 10.5 r0.2 

 II r8.2 r7.0 -1.1 9.0 5.8 r0.7 

 III r8.4 r3.9 -4.2 2.9 0.7 r-5.1 

 IV r8.1 r0.3 -7.2 3.7 1.3 r-4.1 

 ANNUAL r7.8 r-1.1 -8.3 6.4 4.7 r-1.3 

 2003 I r9.2 r2.0 -6.6 r16.5 r12.2 r6.7 

 II r3.9 r-2.8 -6.5 6.9 6.7 r2.9 

 III r11.6 r4.4 -6.5 r5.8 r3.3 r-5.2 

 IV r-2.0 r3.5 5.6 r6.9 r5.7 r9.1 

 ANNUAL r7.4 r1.7 -5.3 r8.1 r5.7 r0.7 

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

 Percent change from corresponding quarter of previous year 

 2001 I r0.0 r-3.3 -3.3 2.2 -1.2 r2.2 

 II r-0.1 r-6.2 -6.1 3.0 -0.3 r3.1 

 III r0.6 r-8.1 -8.6 -0.1 -2.7 r-0.7 

 IV r2.2 r-9.1 -11.1 1.8 0.0 r-0.4 

 ANNUAL r0.5 r-6.7 -7.2 1.6 -1.2 r1.0 

 2002 I r5.8 r-6.1 -11.2 4.1 2.9 r-1.6 

 II r7.2 r-2.5 -9.1 6.7 5.4 r-0.5 

 III r8.9 r1.0 -7.3 7.7 6.1 r-1.1 

 IV r9.1 r3.5 -5.1 6.8 4.5 r-2.1 

 ANNUAL r7.8 r-1.1 -8.3 6.4 4.7 r-1.3 

 2003 I r8.5 r3.3 -4.8 r7.9 r4.9 r-0.5 

 II r7.4 r0.8 -6.1 r7.4 r5.1 r0.0 

 III r8.2 r0.9 -6.7 r8.1 r5.8 r0.0 

 IV r5.5 r1.7 -3.6 r9.0 r6.9 r3.2 

 ANNUAL r7.4 r1.7 -5.3 r8.1 r5.7 r0.7 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
24 

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

 unit labor costs, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 1998 I r137.0 r152.9 111.6 115.1 101.5 r84.0 

 II r138.2 r153.4 111.0 116.8 102.7 r84.5 

 III r141.6 r155.7 109.9 118.1 103.4 r83.4 

 IV r144.6 r160.9 111.2 118.5 103.4 r82.0 

 ANNUAL r140.4 r155.7 111.0 117.1 102.7 r83.4 

 1999 I r147.7 r162.5 110.0 120.0 104.2 r81.2 

 II r150.0 r165.0 110.0 121.0 104.4 r80.7 

 III r150.2 r167.5 111.6 122.4 104.8 r81.5 

 IV r153.2 r169.6 110.7 126.2 107.2 r82.4 

 ANNUAL r150.3 r166.2 110.6 122.4 105.2 r81.4 

 2000 I r156.9 r172.9 110.2 133.4 112.3 r85.0 

 II r157.9 r174.8 110.7 131.9 110.1 r83.5 

 III r157.6 r173.7 110.2 135.7 112.3 r86.1 

 IV r157.9 r171.5 108.6 135.4 111.3 r85.8 

 ANNUAL r157.7 r173.2 109.8 134.2 111.6 r85.1 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r6.3 r7.4 1.1 8.7 8.0 r2.3 

 II r3.6 1.3 -2.2 5.9 4.7 r2.2 

 III r10.3 r6.1 -3.8 4.5 2.6 r-5.2 

 IV r8.7 r13.9 4.8 1.6 -0.1 r-6.5 

 ANNUAL r7.8 r8.3 0.4 5.9 4.4 r-1.8 

 1999 I r8.9 r4.3 -4.2 5.0 3.3 r-3.6 

 II r6.2 r6.3 0.0 3.6 0.7 r-2.4 

 III r0.5 r6.2 5.6 4.6 1.5 r4.1 

 IV r8.3 r4.9 -3.1 12.9 9.6 r4.2 

 ANNUAL r7.1 r6.7 -0.3 4.5 2.4 r-2.4 

 2000 I r9.9 r8.1 -1.7 25.0 20.3 r13.7 

 II r2.7 r4.4 1.6 -4.5 -7.5 r-7.0 

 III r-0.8 r-2.4 -1.6 12.1 8.1 r13.0 

 IV r0.7 r-4.9 -5.6 -0.7 -3.5 r-1.4 

 ANNUAL r5.0 r4.2 -0.7 9.7 6.1 r4.5 

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

 Percent change from corresponding quarter of previous year 

 1998 I r8.8 r10.5 1.5 5.9 4.5 r-2.7 

 II r7.6 r8.5 0.9 6.1 4.6 r-1.4 

 III r7.9 r7.3 -0.5 6.5 5.0 r-1.3 

 IV r7.2 r7.1 -0.1 5.1 3.8 r-1.9 

 ANNUAL r7.8 r8.3 0.4 5.9 4.4 r-1.8 

 1999 I r7.8 r6.3 -1.4 4.2 2.6 r-3.3 

 II r8.5 r7.6 -0.9 3.7 1.6 r-4.5 

 III r6.0 r7.6 1.5 3.7 1.4 r-2.2 

 IV r5.9 r5.4 -0.5 6.5 3.7 r0.5 

 ANNUAL r7.1 r6.7 -0.3 4.5 2.4 r-2.4 

 2000 I r6.2 r6.4 0.2 11.2 7.7 r4.7 

 II r5.3 r5.9 0.6 8.9 5.5 r3.5 

 III r4.9 r3.7 -1.2 10.9 7.2 r5.6 

 IV r3.0 r1.2 -1.8 7.4 3.8 r4.2 

 ANNUAL r5.0 r4.2 -0.7 9.7 6.1 r4.5 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
25 

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

 unit labor costs, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 2001 I r123.1 r111.8 90.8 139.2 113.3 r113.1 

 II r124.0 r110.6 89.2 138.0 111.6 r111.3 

 III r124.0 r109.7 88.5 137.9 111.2 r111.3 

 IV r127.2 r109.7 86.2 139.3 112.4 r109.6 

 ANNUAL r124.5 r110.5 88.7 138.6 112.1 r111.3 

 2002 I r129.5 r110.1 85.1 148.1 119.1 r114.4 

 II r131.4 r111.0 84.5 150.9 120.4 r114.8 

 III r132.8 r111.2 83.8 153.3 121.6 r115.4 

 IV r132.5 r110.5 83.4 154.2 121.7 r116.4 

 ANNUAL r131.5 r110.7 84.2 151.6 120.7 r115.3 

 2003 I r135.4 r111.2 82.1 r155.8 r121.8 r115.0 

 II r136.9 r110.7 80.9 r158.5 r123.8 r115.8 

 III r138.5 r110.5 79.8 r160.6 r124.6 r115.9 

 IV r139.0 r110.9 79.8 r162.8 r126.1 r117.2 

 ANNUAL r137.5 r110.8 80.6 r159.4 r124.1 r116.0 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r-0.3 r-5.5 -5.2 7.9 3.9 r8.2 

 II r2.8 r-4.2 -6.8 -3.4 -6.0 r-6.0 

 III r0.0 r-3.2 -3.2 -0.3 -1.4 r-0.3 

 IV r10.8 r-0.3 -10.0 4.1 4.5 r-6.0 

 ANNUAL r2.2 -3.2 -5.4 4.0 1.2 r1.8 

 2002 I r7.4 r1.8 -5.3 27.6 25.9 r18.8 

 II r6.1 r3.2 -2.7 7.7 4.5 r1.5 

 III r4.2 r0.6 -3.4 6.5 4.2 r2.2 

 IV r-0.8 r-2.5 -1.7 2.5 0.1 r3.3 

 ANNUAL r5.6 r0.2 -5.1 9.4 7.6 r3.5 

 2003 I r9.2 r2.6 -6.0 r4.2 r0.3 r-4.6 

 II r4.4 r-1.8 -6.0 r7.2 r7.0 r2.6 

 III r4.9 r-0.7 -5.3 r5.2 r2.7 r0.3 

 IV r1.3 r1.4 0.1 r5.8 r4.7 r4.5 

 ANNUAL r4.5 r0.1 -4.2 r5.2 r2.8 r0.6 

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

 Percent change from corresponding quarter of previous year 

 2001 I r2.2 r-2.3 -4.4 6.7 3.2 r4.4 

 II r1.9 r-3.7 -5.4 5.1 1.7 r3.2 

 III r2.4 r-3.7 -5.9 3.1 0.5 r0.7 

 IV 3.2 -3.3 -6.3 2.0 0.2 -1.2 

 ANNUAL r2.2 -3.2 -5.4 4.0 1.2 r1.8 

 2002 I r5.2 r-1.5 -6.3 6.4 5.1 r1.2 

 II r6.0 r0.4 -5.3 9.3 7.9 r3.1 

 III r7.1 r1.3 -5.4 11.1 9.4 r3.8 

 IV r4.2 r0.8 -3.3 10.7 8.2 r6.2 

 ANNUAL r5.6 r0.2 -5.1 9.4 7.6 r3.5 

 2003 I r4.6 r1.0 -3.5 r5.2 r2.3 r0.6 

 II r4.2 r-0.3 -4.3 r5.1 r2.8 r0.9 

 III r4.3 r-0.6 -4.8 r4.7 r2.5 r0.4 

 IV r4.9 r0.4 -4.3 r5.6 r3.6 r0.7 

 ANNUAL r4.5 r0.1 -4.2 r5.2 r2.8 r0.6 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
26 

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

 and unit labor costs, seasonally adjusted 

 Real 

 Year Output per Hours Compensa- compensa- Unit 

 and hour of of all tion per tion per labor 

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

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

 Indexes 1992=100 

 1998 I r115.5 r114.2 98.9 117.8 103.9 r102.0 

 II r115.7 r114.2 98.7 119.6 105.2 r103.4 

 III r117.1 r113.4 96.9 122.0 106.8 r104.2 

 IV r115.8 r112.6 97.3 121.8 106.3 r105.2 

 ANNUAL r116.0 r113.6 97.9 120.3 105.5 r103.7 

 1999 I r116.3 r113.4 97.5 122.3 106.2 r105.1 

 II r115.9 r113.3 97.8 122.5 105.6 r105.7 

 III r116.2 r112.3 96.6 123.6 105.8 r106.4 

 IV r120.3 r114.9 95.6 125.9 107.0 r104.7 

 ANNUAL r117.2 r113.5 96.9 123.6 106.2 r105.5 

 2000 I r120.4 r114.5 95.0 130.5 109.8 r108.3 

 II r121.7 r114.9 94.4 131.4 109.7 r107.9 

 III r121.1 r114.0 94.1 133.7 110.7 r110.4 

 IV r123.2 r113.4 92.0 136.6 112.2 r110.9 

 ANNUAL r121.8 r114.2 93.7 133.2 110.8 r109.4 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r4.1 r0.8 -3.2 5.0 4.4 r0.9 

 II r0.7 r-0.3 -1.0 6.4 5.2 r5.7 

 III r4.7 r-2.7 -7.1 8.2 6.2 r3.2 

 IV r-4.2 r-2.6 1.6 -0.5 -2.1 r3.8 

 ANNUAL r2.6 r1.1 -1.5 5.5 4.0 r2.8 

 1999 I r1.8 r2.7 0.9 1.4 -0.2 -0.4 

 II r-1.6 r-0.4 1.2 0.8 -2.1 r2.4 

 III r1.2 r-3.4 -4.5 3.8 0.7 r2.5 

 IV r14.7 r9.7 -4.3 7.6 4.5 r-6.2 

 ANNUAL r1.0 r-0.1 -1.1 2.7 0.6 r1.7 

 2000 I r0.6 r-1.6 -2.2 15.4 11.1 r14.6 

 II 4.3 1.4 -2.8 2.7 -0.4 -1.5 

 III r-2.1 r-3.1 -1.0 7.4 3.5 r9.7 

 IV r7.3 r-1.9 -8.5 8.9 5.9 r1.5 

 ANNUAL r4.0 0.6 -3.2 7.8 4.3 r3.7 

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

 Percent change from corresponding quarter of previous year 

 1998 I r3.8 r2.9 -0.9 5.4 4.0 r1.5 

 II r3.3 r2.4 -0.9 5.7 4.2 r2.4 

 III r2.2 r0.3 -1.8 6.1 4.6 r3.8 

 IV r1.3 r-1.2 -2.5 4.7 3.3 r3.4 

 ANNUAL r2.6 r1.1 -1.5 5.5 4.0 r2.8 

 1999 I r0.7 r-0.8 -1.5 3.8 2.2 r3.0 

 II r0.1 r-0.8 -0.9 2.4 0.4 r2.2 

 III r-0.7 r-1.0 -0.2 1.3 -0.9 r2.1 

 IV r3.8 r2.0 -1.7 3.3 0.7 r-0.5 

 ANNUAL r1.0 r-0.1 -1.1 2.7 0.6 r1.7 

 2000 I r3.5 r0.9 -2.5 6.7 3.4 r3.1 

 II r5.1 r1.4 -3.5 7.3 3.9 r2.1 

 III r4.2 r1.5 -2.6 8.2 4.6 r3.8 

 IV 2.5 -1.3 -3.7 8.5 4.9 5.9 

 ANNUAL r4.0 0.6 -3.2 7.8 4.3 r3.7 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
27 

Appendix table 6. Nonfinancial corporate sector: Revised productivity, hourly compensation, unit labor 

costs, unit profits, and prices, seasonally adjusted 

 

 Output Hourly Real Unit Total Unit Implicit 

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

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

 2001 I r123.7 151.9 r122.8 r136.7 r111.2 110.5 109.2 110.2 87.4 108.1 

 II r124.6 151.1 r121.3 r138.0 r111.5 110.8 111.6 111.0 86.9 108.9 

 III r124.9 149.4 r119.6 r139.2 r112.2 111.5 114.1 112.2 79.0 109.2 

 IV r125.7 148.2 r117.9 r140.7 r113.5 111.9 115.7 113.0 75.5 109.6 

 ANNUAL r124.7 150.2 r120.4 r138.6 r112.1 111.2 112.6 111.6 82.2 108.9 

 2002 I r127.3 149.3 r117.2 r141.6 r113.9 111.2 113.0 111.7 85.8 109.4 

 II r129.4 151.3 r117.0 r143.5 r114.5 111.0 110.7 110.9 94.5 109.4 

 III r130.6 152.2 r116.5 r144.5 r114.6 110.6 110.0 110.5 100.3 109.5 

 IV r131.7 153.0 r116.2 r144.9 r114.3 110.1 109.6 110.0 111.2 110.1 

 ANNUAL r129.7 151.5 r116.7 r143.6 r114.3 110.7 110.8 110.7 98.0 109.6 

 2003 I r131.9 r152.1 r115.3 r146.2 r114.2 r110.8 r112.7 r111.3 r103.0 r110.6 

 II r133.6 r153.4 r114.8 r148.8 r116.2 r111.4 r111.2 r111.3 r105.9 r110.8 

 III r135.7 r155.7 r114.7 r150.8 r117.1 r111.1 r110.8 r111.0 r112.9 r111.2 

 IV r136.6 r157.5 r115.3 r152.0 r117.7 r111.3 r110.0 r110.9 r117.8 r111.6 

 ANNUAL r134.5 r154.7 r115.0 r149.4 r116.3 r111.1 r111.2 r111.2 r110.0 r111.0 

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

 Percent change from previous quarter at annual rate(5) 

 2001 I r1.5 -1.1 r-2.5 r3.5 r-0.4 1.9 10.5 4.1 -34.1 0.6 

 II r2.9 -2.2 r-5.0 r3.9 r1.0 0.9 9.2 3.1 -2.5 2.7 

 III r1.0 -4.4 r-5.3 r3.6 r2.5 2.6 8.9 4.3 -31.8 1.3 

 IV r2.7 -3.0 r-5.6 r4.4 r4.8 1.6 5.9 2.8 -16.3 1.4 

 ANNUAL r1.8 -0.9 r-2.7 r4.3 r1.4 2.4 8.1 3.9 -24.3 1.3 

 2002 I r5.3 2.9 r-2.3 r2.6 r1.2 -2.6 -9.0 -4.4 66.8 -0.8 

 II r6.5 5.6 r-0.8 r5.4 r2.4 -0.9 -7.9 -2.9 46.9 0.1 

 III r3.9 2.3 r-1.5 r2.6 r0.3 -1.2 -2.4 -1.6 27.0 0.5 

 IV r3.3 2.0 r-1.2 r1.3 r-1.0 -1.9 -1.6 -1.8 50.9 1.9 

 ANNUAL r4.0 0.9 r-3.1 r3.6 r2.0 -0.4 -1.6 -0.7 19.2 0.6 

 2003 I r0.8 r-2.2 r-3.0 r3.5 r-0.4 2.6 r11.8 r5.0 r-26.2 r1.9 

 II r5.2 r3.4 r-1.8 r7.4 r7.2 r2.1 r-5.4 r0.0 r11.5 r0.9 

 III r6.4 r6.1 r-0.3 r5.5 r2.9 r-0.9 r-1.2 r-1.0 r29.3 r1.4 

 IV 2.5 r4.6 r2.0 r3.1 r2.0 r0.6 r-2.8 r-0.3 r18.5 r1.3 

 ANNUAL r3.6 r2.1 r-1.5 4.0 r1.7 r0.4 r0.3 r0.4 r12.2 1.3 

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

 Percent change from corresponding quarter of previous year 

 2001 I r2.0 1.1 r-0.8 r4.7 r1.2 2.6 7.2 3.8 -23.7 1.2 

 II r2.1 0.0 r-2.1 r5.0 r1.6 2.8 7.8 4.1 -25.0 1.3 

 III r1.6 -2.0 r-3.5 r3.9 r1.2 2.3 8.8 4.0 -26.5 1.3 

 IV r2.0 -2.7 r-4.6 r3.8 r2.0 1.8 8.6 3.6 -22.2 1.5 

 ANNUAL r1.8 -0.9 r-2.7 r4.3 r1.4 2.4 8.1 3.9 -24.3 1.3 

 2002 I r3.0 -1.7 r-4.6 r3.6 r2.4 0.6 3.5 1.4 -1.9 1.2 

 II r3.8 0.2 r-3.5 r4.0 r2.7 0.2 -0.8 -0.1 8.7 0.5 

 III r4.6 1.9 r-2.6 r3.8 r2.2 -0.8 -3.5 -1.5 27.0 0.3 

 IV r4.7 3.2 r-1.5 r3.0 r0.7 -1.7 -5.3 -2.7 47.2 0.4 

 ANNUAL r4.0 0.9 r-3.1 r3.6 r2.0 -0.4 -1.6 -0.7 19.2 0.6 

 2003 I 3.6 r1.9 r-1.6 3.2 r0.3 -0.4 r-0.3 r-0.3 r20.1 r1.1 

 II r3.3 r1.4 r-1.9 3.7 1.5 r0.4 r0.4 r0.4 r12.1 1.3 

 III r3.9 r2.3 r-1.6 r4.4 r2.1 r0.5 0.7 r0.5 r12.6 r1.5 

 IV r3.7 r2.9 r-0.8 r4.9 r2.9 r1.1 r0.4 r0.9 r6.0 r1.4 

 ANNUAL r3.6 r2.1 r-1.5 4.0 r1.7 r0.4 r0.3 r0.4 r12.2 1.3 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
28 

Appendix table 6 continued. Nonfinancial corporate sector: Revised productivity, hourly compensation, unit 

labor costs, unit profits, and prices, seasonally adjusted 

 

 Output Hourly Real Unit Total Unit Implicit 

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

 and employee Employee sation compen- labor labor costs fits deflator 

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

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

 Indexes 1992=100 

 1998 I r111.9 132.9 r118.7 r116.2 r102.5 103.8 99.1 102.5 139.7 105.9 

 II r113.1 134.7 r119.1 r117.7 r103.5 104.0 99.1 102.7 136.6 105.8 

 III r114.8 137.0 r119.4 r119.4 r104.6 104.0 99.1 102.7 139.8 106.0 

 IV r114.8 138.6 r120.8 r120.0 r104.7 104.6 100.5 103.5 132.2 106.1 

 ANNUAL r113.7 135.8 r119.5 r118.3 r103.8 104.1 99.5 102.9 137.0 105.9 

 1999 I r117.0 141.6 r121.1 r123.1 r106.9 105.2 99.2 103.6 133.3 106.3 

 II r117.6 143.2 r121.8 r123.4 r106.4 104.9 99.7 103.5 133.6 106.2 

 III r117.7 144.4 r122.7 r124.1 r106.2 105.5 101.0 104.3 126.2 106.2 

 IV r119.1 146.9 r123.3 r125.9 r107.0 105.7 101.5 104.6 123.4 106.3 

 ANNUAL r117.9 144.0 r122.2 r124.1 r106.6 105.3 100.4 104.0 129.1 106.2 

 2000 I r121.3 150.3 r123.9 r130.6 r109.9 107.7 101.9 106.1 114.6 106.9 

 II r122.0 151.1 r123.9 r131.4 r109.7 107.7 103.5 106.6 115.9 107.4 

 III r122.9 152.4 r124.0 r134.0 r110.8 109.0 104.8 107.9 107.4 107.8 

 IV r123.2 152.3 r123.6 r135.5 r111.3 110.0 106.5 109.1 97.0 108.0 

 ANNUAL r122.4 151.5 r123.7 r133.0 r110.5 108.6 104.2 107.4 108.7 107.5 

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

 Percent change from previous quarter at annual rate(5) 

 1998 I r2.3 4.2 r1.9 r9.3 r8.6 6.8 -0.2 5.0 -30.8 -0.3 

 II r4.2 5.6 r1.4 r5.2 r4.0 1.0 0.0 0.7 -8.5 -0.4 

 III r6.2 7.1 r0.9 r6.0 r4.1 -0.2 0.0 -0.1 9.6 1.0 

 IV r-0.1 4.6 r4.8 r2.0 r0.4 2.2 5.8 3.1 -19.9 0.2 

 ANNUAL r3.4 5.7 r2.2 r5.9 r4.4 2.4 -0.2 1.7 -11.2 0.0 

 1999 I r7.8 8.9 r1.0 r10.6 r8.9 2.6 -5.4 0.5 3.5 0.8 

 II r2.2 4.7 r2.4 r0.9 r-1.9 -1.3 2.3 -0.4 0.7 -0.2 

 III r0.3 3.2 r2.9 r2.5 r-0.6 2.2 5.1 2.9 -20.4 0.1 

 IV r4.9 7.2 r2.2 r6.0 r2.9 1.0 2.2 1.3 -8.6 0.2 

 ANNUAL r3.7 6.0 r2.3 r4.9 r2.7 1.2 0.9 1.1 -5.8 0.3 

 2000 I r7.4 9.5 r1.9 r15.6 r11.3 7.6 1.4 5.9 -25.5 2.3 

 II r2.4 2.3 r-0.2 r2.6 r-0.6 0.1 6.6 1.8 4.7 2.1 

 III r3.0 3.4 r0.4 r8.0 r4.1 4.9 5.0 4.9 -26.2 1.5 

 IV r1.0 -0.2 r-1.1 r4.7 r1.8 3.7 6.7 4.5 -33.4 0.6 

 ANNUAL r3.9 5.2 r1.3 r7.1 r3.7 3.1 3.8 3.3 -15.8 1.2 

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

 Percent change from corresponding quarter of previous year 

 1998 I r3.2 6.0 r2.7 r5.3 r3.8 2.0 -1.1 1.2 -8.5 -0.1 

 II r3.5 5.9 r2.2 r6.1 r4.6 2.4 -0.8 1.6 -10.7 0.0 

 III r3.8 5.7 r1.8 r6.7 r5.2 2.8 -0.6 1.9 -11.8 0.1 

 IV r3.1 5.4 r2.2 r5.6 r4.2 2.4 1.4 2.1 -13.7 0.1 

 ANNUAL r3.4 5.7 r2.2 r5.9 r4.4 2.4 -0.2 1.7 -11.2 0.0 

 1999 I r4.5 6.5 r2.0 r5.9 r4.3 1.4 0.0 1.0 -4.5 0.4 

 II r4.0 6.3 r2.2 r4.8 r2.8 0.8 0.6 0.8 -2.2 0.4 

 III r2.5 5.3 r2.8 r4.0 r1.6 1.4 1.9 1.5 -9.7 0.2 

 IV r3.8 6.0 r2.1 r4.9 r2.2 1.1 1.0 1.1 -6.7 0.2 

 ANNUAL r3.7 6.0 r2.3 r4.9 r2.7 1.2 0.9 1.1 -5.8 0.3 

 2000 I r3.7 6.1 r2.4 r6.1 r2.8 2.3 2.8 2.4 -14.1 0.6 

 II r3.8 5.5 r1.7 r6.5 r3.2 2.7 3.8 3.0 -13.2 1.1 

 III r4.4 5.6 r1.1 r7.9 r4.3 3.3 3.8 3.5 -14.9 1.5 

 IV r3.4 3.7 r0.3 r7.6 r4.0 4.0 4.9 4.3 -21.3 1.6 

 ANNUAL r3.9 5.2 r1.3 r7.1 r3.7 3.1 3.8 3.3 -15.8 1.2 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 
29 

 Appendix table 7. 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 

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

 1987 r89.2 r92.5 103.8 81.3 98.0 r91.2 

 1988 r91.0 r97.4 107.0 84.1 97.8 r92.4 

 1989 r92.0 r99.0 107.6 86.6 96.6 r94.2 

 1990 r93.9 r98.6 105.0 90.5 96.1 r96.3 

 1991 r96.3 r96.8 100.5 95.6 98.0 r99.2 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r102.5 r103.9 101.4 102.0 99.5 r99.6 

 1994 r106.1 r110.0 103.8 105.3 100.6 r99.3 

 1995 r110.7 r115.8 104.6 107.3 100.1 r96.9 

 1996 r115.0 r119.8 104.2 109.3 99.3 r95.1 

 1997 r121.2 r128.6 106.0 112.2 99.8 r92.6 

 1998 r127.9 r135.3 105.7 118.8 104.2 r92.8 

 1999 r133.6 r140.3 105.1 123.4 106.0 r92.4 

 2000 r139.4 r144.1 103.4 134.7 112.0 r96.7 

 2001 r141.5 r136.8 96.6 137.9 111.5 r97.4 

 2002 r151.4 r135.9 89.8 147.8 117.7 r97.6 

 2003 r160.8 r137.3 85.4 r158.2 r123.2 r98.4 

 2004 r163.8 r139.1 84.9 r161.4 r122.3 r98.5 

 2005 r170.5 r143.3 84.0 r168.8 r123.8 r99.0 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics
30 

 Appendix table 8. 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 

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

 1987 r88.5 r94.3 106.5 81.3 97.9 r91.8 

 1988 r90.5 r100.1 110.6 83.6 97.2 r92.4 

 1989 r91.1 r101.1 111.0 85.9 95.8 r94.3 

 1990 r92.9 r99.8 107.4 89.5 95.0 r96.3 

 1991 r94.6 r96.0 101.4 94.9 97.3 r100.3 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r103.9 r105.4 101.4 101.9 99.4 r98.1 

 1994 r109.0 r114.2 104.7 105.4 100.7 r96.7 

 1995 r115.6 r123.2 106.6 106.7 99.5 r92.3 

 1996 r121.9 r130.8 107.3 108.1 98.2 r88.6 

 1997 r130.2 r143.8 110.5 110.6 98.4 r85.0 

 1998 r140.4 r155.7 111.0 117.1 102.7 r83.4 

 1999 r150.3 r166.2 110.6 122.4 105.2 r81.4 

 2000 r157.7 r173.2 109.8 134.2 111.6 r85.1 

 2001 r158.6 r161.7 101.9 136.4 110.3 r86.0 

 2002 r170.9 r159.9 93.5 145.0 115.5 r84.8 

 2003 r183.6 r162.6 88.5 r156.8 r122.0 r85.4 

 2004 r185.7 r165.4 89.1 r157.9 r119.7 r85.0 

 2005 r195.4 r173.9 89.0 r164.1 r120.3 r83.9 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics 

 Appendix table 9. 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 

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

 1987 r91.5 r91.2 99.7 80.8 97.4 r88.3 

 1988 r93.3 r94.7 101.5 84.2 98.0 r90.3 

 1989 r94.2 r96.7 102.7 87.1 97.2 r92.6 

 1990 r96.0 r97.3 101.4 91.7 97.4 r95.5 

 1991 r98.2 r97.4 99.2 96.5 98.9 r98.3 

 1992 100.0 100.0 100.0 100.0 100.0 100.0 

 1993 r101.0 r102.4 101.4 102.3 99.8 r101.3 

 1994 r103.3 r105.7 102.3 104.7 100.1 r101.4 

 1995 r106.0 r107.7 101.6 107.8 100.6 r101.6 

 1996 r108.4 r107.9 99.5 110.8 100.7 r102.2 

 1997 r113.0 r112.4 99.4 114.1 101.5 r100.9 

 1998 r116.0 r113.6 97.9 120.3 105.5 r103.7 

 1999 r117.2 r113.5 96.9 123.6 106.2 r105.5 

 2000 r121.8 r114.2 93.7 133.2 110.8 r109.4 

 2001 r124.5 r110.5 88.7 138.6 112.1 r111.3 

 2002 r131.5 r110.7 84.2 151.6 120.7 r115.3 

 2003 r137.5 r110.8 80.6 r159.4 r124.1 r116.0 

 2004 r142.0 r111.8 78.7 r166.1 r125.9 r117.0 

 2005 r146.3 r112.2 76.7 r175.7 r128.9 r120.1 

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

 See footnotes following Table 6. August 8, 2006 

 r=revised Source: Bureau of Labor Statistics