TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,














 
 
Historical, technical                            USDL 96-189
  information: (202) 606-5606                    TRANSMISSION OF THIS
Current data:  (202) 606-7828                    MATERIAL IS EMBARGOED
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                                                 THURSDAY, MAY 16, 1996.
 
 
                           PRODUCTIVITY AND COSTS
                             First Quarter 1996
 
 
        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 first quarter of 1996.  The seasonally-adjusted annual rates
of productivity change in the first quarter were:
 
                    2.8 percent in the business sector, and
                    2.6 percent in the nonfarm business sector.
 
In both sectors, first-quarter productivity gains were larger than gains
recorded in the third and fourth quarters of 1995.
 
        In manufacturing, productivity changes in the first quarter were:
 
                    6.3 percent in manufacturing,
                    8.2 percent in durable goods manufacturing, and
                    3.8 percent in nondurable goods manufacturing.
 
        The productivity increase in manufacturing in the first quarter was the
largest since the first quarter of 1994.  Output and hours in manufacturing,
which includes about 18 percent of U.S. business-sector employment, tend to
vary more from quarter to quarter than data for the more aggregate business
and nonfarm business sectors.  First-quarter measures are summarized in
table A and appear in detail in tables 1 through 5.
 
        The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series and these measures are not directly comparable.  Output
measures for business and nonfarm business are based on measures of gross
domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors
of the Federal Reserve System.  See Technical Notes for further information on
data sources (page 5).
 
                                     -2-
 
------------------------------------------------------------------------------
Table A.  Productivity and costs:  First-quarter 1996 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------------
                                                 Real
                                         Hourly  hourly   Unit
                 Produc-                 compen- compen- labor
Sector           tivity  Output  Hours   sation  sation   costs
------------------------------------------------------------------------------
                     Percent change from preceding quarter
 
Business          2.8     4.0     1.1     3.0     -0.2     0.2
Nonfarm business  2.6     3.7     1.0     3.3      0.0     0.6
Manufacturing     6.3     2.8    -3.2    -0.8     -3.9    -6.6
Durable           8.2     5.7    -2.3    -3.2     -6.3   -10.6
Nondurable        3.8    -0.9    -4.6     3.1     -0.1    -0.6
------------------------------------------------------------------------------
                  Percent change from same quarter a year ago
 
Business          1.7     2.4     0.6     4.0      1.2     2.3
Nonfarm business  1.6     2.4     0.8     4.0      1.2     2.3
Manufacturing     4.7     1.2    -3.4     2.3     -0.5    -2.4
Durable           5.3     3.1    -2.2     1.1     -1.6    -4.0
Nondurable        4.1    -1.3    -5.2     3.9      1.1    -0.1
------------------------------------------------------------------------------
 
 
Business
 
        From the fourth quarter of 1995 to the first quarter of 1996, business
sector productivity increased at a 2.8 percent annual rate.  Output and hours
advanced 4.0 percent and 1.1 percent, respectively.   During the fourth
quarter of 1995, output had increased 0.7 percent, and hours of all persons
engaged in the sector increased 1.3 percent (seasonally adjusted annual
rates); productivity fell 0.5 percent (table 1).
 
        Hourly compensation increased 3.0 percent during the first quarter of
1996 and 3.1 percent in the fourth quarter 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 0.2 percent rate during the
first quarter.  Unit labor costs in the business sector had risen 3.7 percent
in the fourth quarter of 1995.  The 0.2 percent increase in the first quarter
of 1996 was the smallest since a 1.3 percent decline in the third quarter of
1994.
 
        Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), fell at a 0.2 percent
annual rate in the first quarter.  In the fourth quarter of 1995, real hourly
compensation had increased 0.7 percent.
 
       The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased 1.6 percent
in the first quarter, compared with a 0.8 percent increase during the fourth
quarter of 1995.
 
 
                                     -3-
 
Nonfarm business
 
        Productivity rose 2.6 percent in the nonfarm business sector in the
first quarter, slightly less than in the business sector as a whole.  Nonfarm
business output rose 3.7 percent, and hours of all persons increased 1.0
percent.  During the fourth quarter of 1995, productivity had fallen 1.0
percent in this sector, reflecting gains of 0.6 percent in output and 1.6
percent in hours (table 2).
 
        Hourly compensation increased at a 3.3 percent annual rate in the first
quarter, compared with a 2.8 percent increase one quarter earlier.  When the
rise in the CPI-U was taken into account, real hourly compensation was
unchanged; it had increased 0.4 percent in the fourth quarter.  Unit labor
costs rose 0.6 percent, considerably less than the 3.8 percent increase which
occurred in the fourth quarter of 1995.
 
        The implicit price deflator for nonfarm business output rose 1.4
percent in the first quarter, compared with a 0.7 percent rise one quarter
earlier.
 
Manufacturing
 
        Productivity increased at a 6.3 percent seasonally adjusted annual rate
in manufacturing in the first quarter of 1996, as output rose 2.8 percent and
hours of all persons dropped 3.2 percent (seasonally adjusted annual rates).
In the fourth quarter of 1995, productivity rose 3.0 percent as output rose
1.4 percent and hours decreased 1.5 percent (table 3).
 
       Hourly compensation of all manufacturing workers fell 0.8 percent
during the first quarter, the first decrease since a 0.6 percent decrease in
the second quarter of 1989.  Hourly compensation had risen 2.5 percent in the
fourth quarter of 1995.  The 0.8 percent decrease in the first quarter of 1996
reflects very different trends in the durable and nondurable manufacturing
sectors--in durable goods, hourly compensation dropped 3.2 percent in the first
quarter, and in nondurable goods hourly compensation rose 3.1 percent (tables
4 and 5).  The first quarter 1996 movements in hourly compensation for durable
and total manufacturing were affected by a  pension contribution made in 1995
by a large manufacturer.
 
Real hourly compensation in the manufacturing sector fell 3.9 percent
when the increase in consumer prices was taken into account.  Unit labor costs
dropped at a 6.6 percent annual rate in the first quarter of 1996, marking the
sixth consecutive quarter of decreases in the manufacturing sector.  These
costs had fallen 0.5 percent in the fourth quarter of 1995.
                                     -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
------------------------------------------------------------------------------
                                    Fourth quarter 1995
 Manufacturing:
 Previous        2.9     1.3     -1.5    2.5      0.1    -0.4
 Current         3.0     1.4     -1.5    2.5      0.1    -0.5
------------------------------------------------------------------------------
 
 
REVISED MEASURES
 
        Current and previous measures for the fourth quarter of 1995 for
manufacturing are compared in table B.  The quarterly movements differ from
those reported on April 10, based on information then available.  There were
no revisions to data for other sectors.
 
 
Next release date
 
        The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Tuesday, June 18, 1996.  First-quarter measures for nonfinancial
corporations and revised measures for business, nonfarm business, and
manufacturing will be released at that time.  This release will incorporate
the annual benchmark revision to the BLS establishment survey data and revised
seasonal factors.  It also will incorporate revised historical household survey
data.
 
        Planned release dates for productivity and costs measures for major
sectors of the U.S. economy for the remainder of 1996 are:
 
                -------------------------------------------------
                Reference period                Release date
 
                First quarter (revised)         June 18
                Second quarter                  August 14
                Second quarter (revised)        September 10
                Third quarter                   November 7
                Third quarter (revised)         December 5
                -------------------------------------------------
 
                                     -5-
 
                            TECHNICAL NOTES
 
Labor Hours: The primary source of hours and employment data is the BLS
Current Employment Statistics (CES) program, which provides monthly survey
data on total employment and average weekly paid hours of production and non-
supervisory workers in nonagricultural establishments. Jobs rather than
persons are counted. Weekly paid hours are adjusted to hours at work using the
BLS Hours at Work survey, conducted for this purpose.
        Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of Com-
merce and the CPS are used to measure labor input for government enterprises,
proprietors, and unpaid family workers.
 
Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 76 percent of
the value of GDP in 1992. Nonfarm business, which also excludes farming,
accounted for about 75 percent of GDP in 1992.
        Annual manufacturing indexes are constructed by deflating current-
dollar industry value of production data from the U.S. Bureau of the Census
with deflators from the BEA.  These deflators are based on data from the BLS
producer price program and other sources.  The industry shipments are
aggregated using annual weights, and intrasector transactions are removed.
Quarterly manufacturing output measures are based on the index of industrial
production prepared monthly by the Board of Governors of the Federal Reserve
System adjusted to be consistent with annual indexes of manufacturing sector
output prepared by BLS.  Durables include the following 2-digit SIC
industries: Primary metal industries; fabricated metal products; nonelectrical
machinery; industrial and commercial machinery and computer equipment;
electronic and other electrical equipment; transportation equipment;
instruments; lumber and lumber products; furniture and fixtures; stone, clay,
and glass and concrete products; and miscellaneous manufactures. Nondurables
include: Food and kindred products, tobacco products, textile mill products,
apparel products, paper and allied products, printing and publishing,
chemicals and chemical products, petroleum refining and related industries,
rubber and plastic products, and leather and leather products.
        Nonfinancial corporate output is an annual-weighted index constructed
by excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-oc-
cupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 52 percent of the value of GDP in 1992.
                                     -6-
 
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 ef-
fects of many influences, including changes in technology; capital investment;
level of output; utilization of capacity, energy, and materials; the
organization of production; managerial skill; and the characteristics and
effort of the work force.
 
        Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
TDD message referral phone number: 1-800-326-2577.
 
 Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
 and prices, seasonally adjusted
                                                            Real
    Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
    and        hour of                of all    tion per    tion per    labor    labor pay-  price
    quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
 ---------------------------------------------------------------------------------------------------------
                                          Indexes 1992=100
 
 1994       I     100.3      104.8     104.5     104.2        99.6     103.8       104.1       103.9
           II     100.7      106.5     105.8     104.5        99.3     103.9       105.4       104.4
          III     101.4      107.6     106.2     104.9        98.8     103.5       107.9       105.1
           IV     101.5      108.7     107.1     105.7        98.9     104.1       108.3       105.6
 
       ANNUAL     101.0      106.9     105.9     104.8        99.2     103.8       106.5       104.8
 
 1995       I     101.1      108.8     107.6     106.6        99.1     105.4       108.0       106.3
           II     101.9      108.9     106.9     108.0        99.6     106.0       108.4       106.9
          III     102.3      110.1     107.7     109.2       100.1     106.8       108.7       107.4
           IV     102.1      110.3     108.0     110.0       100.3     107.7       107.5       107.7
 
       ANNUAL     101.9      109.6     107.6     108.5        99.9     106.5       108.2       107.1
 
 1996       I     102.8      111.4     108.3     110.8       100.3     107.8       108.7       108.1
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I      -1.9        1.8       3.7       3.4         1.4       5.4        -2.8         2.4
           II       1.4        6.7       5.3       1.5        -1.0       0.1         4.9         1.8
          III       2.8        4.1       1.3       1.5        -2.2      -1.3        10.0         2.6
           IV       0.7        4.0       3.3       2.9         0.7       2.3         1.5         2.0
 
       ANNUAL       0.7        4.2       3.4       2.2        -0.4       1.4         3.5         2.2
 
 1995       I      -1.6        0.6       2.2       3.4         0.5       5.0        -1.0         2.8
           II       3.0        0.3      -2.5       5.6         2.1       2.5         1.2         2.1
          III       1.6        4.4       2.8       4.3         2.3       2.7         1.1         2.1
           IV      -0.5        0.7       1.3       3.1         0.7       3.7        -4.1         0.8
 
       ANNUAL       0.9        2.5       1.6       3.5         0.6       2.6         1.6         2.2
 
 1996       I       2.8        4.0       1.1       3.0        -0.2       0.2         4.3         1.6
 ---------------------------------------------------------------------------------------------------------
 
                     Percent change from corresponding quarter of previous year
 
 1994       I       0.2        3.3       3.1       2.5         0.0       2.3         1.9         2.2
           II       0.8        4.4       3.6       2.0        -0.4       1.2         3.5         2.0
          III       1.2        4.7       3.5       1.9        -1.0       0.6         5.4         2.3
           IV       0.7        4.2       3.4       2.3        -0.3       1.6         3.3         2.2
 
       ANNUAL       0.7        4.2       3.4       2.2        -0.4       1.4         3.5         2.2
 
 1995       I       0.8        3.8       3.0       2.3        -0.5       1.5         3.8         2.3
           II       1.2        2.3       1.1       3.3         0.3       2.1         2.9         2.4
          III       0.9        2.3       1.4       4.1         1.4       3.1         0.7         2.3
           IV       0.6        1.5       0.9       4.1         1.4       3.5        -0.7         2.0
 
       ANNUAL       0.9        2.5       1.6       3.5         0.6       2.6         1.6         2.2
 
 1996       I       1.7        2.4       0.6       4.0         1.2       2.3         0.6         1.7
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      May 16, 1996
 r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
 and prices, seasonally adjusted
                                                            Real
    Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
    and        hour of                of all    tion per    tion per    labor    labor pay-  price
    quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
 ---------------------------------------------------------------------------------------------------------
                                          Indexes 1992=100
 
 1994       I     100.0      104.8     104.8     103.7        99.2     103.7       104.3       103.9
           II     100.4      106.6     106.1     104.3        99.1     103.8       105.8       104.5
          III     101.1      107.7     106.5     104.6        98.4     103.4       108.6       105.3
           IV     101.3      108.8     107.4     105.4        98.7     104.1       108.9       105.7
 
       ANNUAL     100.7      106.9     106.2     104.5        98.9     103.8       106.9       104.9
 
 1995       I     101.0      109.0     107.9     106.4        98.9     105.3       108.7       106.5
           II     101.8      109.1     107.2     107.8        99.4     105.9       109.0       107.0
          III     102.2      110.4     108.0     108.9        99.9     106.6       109.2       107.5
           IV     102.0      110.6     108.4     109.7       100.0     107.6       107.9       107.7
 
       ANNUAL     101.8      109.8     107.9     108.2        99.6     106.3       108.7       107.2
 
 1996       I     102.6      111.6     108.7     110.6       100.0     107.7       108.6       108.1
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I      -2.5        0.9       3.5       3.3         1.2       5.9        -3.6         2.5
           II       1.9        6.8       4.8       2.1        -0.4       0.2         6.0         2.2
          III       2.6        4.2       1.6       1.2        -2.5      -1.4        11.0         2.9
           IV       0.9        4.2       3.3       3.3         1.0       2.4         0.9         1.8
 
       ANNUAL       0.5        4.0       3.4       2.2        -0.4       1.6         3.5         2.3
 
 1995       I      -1.1        0.8       1.9       3.7         0.8       4.9        -0.5         2.9
           II       3.0        0.5      -2.4       5.4         2.0       2.3         1.1         1.9
          III       1.7        4.7       2.9       4.3         2.2       2.5         0.7         1.8
           IV      -1.0        0.6       1.6       2.8         0.4       3.8        -4.9         0.7
 
       ANNUAL       1.1        2.7       1.6       3.6         0.7       2.5         1.6         2.2
 
 1996       I       2.6        3.7       1.0       3.3         0.0       0.6         2.9         1.4
 --------------------------------------------------------------------------------------------------------
 
                     Percent change from corresponding quarter of previous year
 
 1994       I      -0.2        3.2       3.3       2.3        -0.2       2.4         1.5         2.1
           II       0.8        4.3       3.5       2.1        -0.3       1.3         3.6         2.1
          III       0.9        4.3       3.4       1.9        -0.9       1.0         5.4         2.5
           IV       0.7        4.0       3.3       2.5        -0.2       1.8         3.4         2.3
 
       ANNUAL       0.5        4.0       3.4       2.2        -0.4       1.6         3.5         2.3
 
 1995       I       1.1        4.0       2.9       2.6        -0.3       1.5         4.2         2.4
           II       1.3        2.4       1.1       3.4         0.3       2.0         3.0         2.4
          III       1.1        2.6       1.4       4.2         1.5       3.0         0.5         2.1
           IV       0.7        1.7       1.0       4.1         1.3       3.4        -0.9         1.8
 
       ANNUAL       1.1        2.7       1.6       3.6         0.7       2.5         1.6         2.2
 
 1996       I       1.6        2.4       0.8       4.0         1.2       2.3        -0.1         1.5
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      May 16, 1996
 r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
                                                                             Real
      Year           Output per                  Hours       Compensa-       compensa-      Unit
      and            hour of                     of all      tion per        tion per       labor
      quarter        all persons     Output      persons     hour(1)         hour(2)        costs
 --------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1994       I            104.7        107.3        102.5        104.3            99.8         99.7
           II            106.1        109.5        103.2        104.7            99.5         98.7
          III            106.9        110.9        103.8        105.6            99.4         98.8
           IV            107.8        113.0        104.8        106.4            99.7         98.7
 
       ANNUAL            106.3        110.2        103.6        105.3            99.7         99.0
 
 1995       I            108.4        114.1        105.3        107.0            99.5         98.7
           II            109.5        113.5        103.7        107.9            99.5         98.6
          III            111.0        114.2        102.9        109.0           100.0         98.2
           IV            111.8        114.6        102.5        109.7           100.0         98.1
 
       ANNUAL            110.3        114.1        103.5        108.5            99.9         98.4
 
 1996       I            113.5        115.4        101.7        109.4            99.0         96.4
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              6.9          8.8          1.8          3.4             1.4         -3.2
           II              5.7          8.5          2.6          1.4            -1.1         -4.0
          III              3.0          5.1          2.1          3.6            -0.2          0.6
           IV              3.5          7.9          4.2          3.1             0.8         -0.4
 
       ANNUAL              4.2          6.5          2.2          2.8             0.3         -1.3
 
 1995       I              2.2          3.9          1.6          2.1            -0.8         -0.1
           II              4.0         -2.1         -5.9          3.5             0.1         -0.5
          III              5.7          2.6         -2.9          4.0             1.9         -1.6
           IV             r3.0         r1.4         -1.5          2.5             0.1        r-0.5
 
       ANNUAL              3.7          3.5         -0.2          3.1             0.2         -0.6
 
 1996       I              6.3          2.8         -3.2         -0.8            -3.9         -6.6
 --------------------------------------------------------------------------------------------------
 
                    Percent change from corresponding quarter of previous year
 
 1994       I              3.1          4.7          1.5          3.2             0.7          0.1
           II              4.4          6.5          2.0          2.7             0.3         -1.7
          III              4.7          7.1          2.2          2.9             0.0         -1.7
           IV              4.7          7.6          2.7          2.9             0.2         -1.8
 
       ANNUAL              4.2          6.5          2.2          2.8             0.3         -1.3
 
 1995       I              3.6          6.3          2.6          2.5            -0.3         -1.0
           II              3.2          3.6          0.4          3.1             0.0         -0.1
          III              3.8          3.0         -0.8          3.2             0.5         -0.7
           IV              3.7          1.4         -2.2          3.0             0.3         -0.7
 
       ANNUAL              3.7          3.5         -0.2          3.1             0.2         -0.6
 
 1996       I              4.7          1.2         -3.4          2.3            -0.5         -2.4
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                May 16, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
                                                                             Real
      Year           Output per                  Hours       Compensa-       compensa-      Unit
      and            hour of                     of all      tion per        tion per       labor
      quarter        all persons     Output      persons     hour(1)         hour(2)        costs
 --------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1994       I            106.8        110.4        103.3        104.2            99.6         97.5
           II            108.2        112.6        104.1        104.5            99.3         96.6
          III            109.4        114.8        104.9        105.4            99.2         96.3
           IV            110.6        117.5        106.3        106.0            99.2         95.9
 
       ANNUAL            108.7        113.8        104.7        105.0            99.4         96.6
 
 1995       I            111.8        119.5        106.9        106.4            98.9         95.2
           II            112.5        119.0        105.7        107.0            98.7         95.1
          III            114.3        120.4        105.3        108.1            99.1         94.5
           IV            115.4        121.5        105.2        108.4            98.9         93.9
 
       ANNUAL            113.7        120.1        105.7        107.6            99.1         94.7
 
 1996       I            117.7        123.2        104.6        107.5            97.3         91.3
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              7.6         11.0          3.1          3.4             1.3         -4.0
           II              5.2          8.6          3.2          1.2            -1.4         -3.8
          III              4.5          7.8          3.2          3.4            -0.4         -1.0
           IV              4.3          9.9          5.4          2.4             0.2         -1.8
 
       ANNUAL              5.2          8.5          3.2          2.7             0.1         -2.3
 
 1995       I              4.5          7.0          2.3          1.4            -1.5         -3.0
           II              2.7         -1.9         -4.4          2.5            -0.9         -0.2
          III              6.6          5.1         -1.5          4.0             1.9         -2.5
           IV              3.9          3.6         -0.4          1.3            -1.0         -2.5
 
       ANNUAL              4.6          5.5          0.9          2.5            -0.3         -2.0
 
 1996       I              8.2          5.7         -2.3         -3.2            -6.3        -10.6
 --------------------------------------------------------------------------------------------------
 
                    Percent change from corresponding quarter of previous year
 
 1994       I              4.4          6.8          2.3          3.2             0.7         -1.2
           II              5.2          8.4          3.0          2.7             0.2         -2.4
          III              6.2          9.5          3.2          2.9             0.0         -3.1
           IV              5.4          9.3          3.7          2.6            -0.1         -2.7
 
       ANNUAL              5.2          8.5          3.2          2.7             0.1         -2.3
 
 1995       I              4.6          8.3          3.5          2.1            -0.8         -2.4
           II              4.0          5.6          1.5          2.4            -0.6         -1.5
          III              4.5          4.9          0.4          2.6            -0.1         -1.9
           IV              4.4          3.4         -1.0          2.3            -0.4         -2.0
 
       ANNUAL              4.6          5.5          0.9          2.5            -0.3         -2.0
 
 1996       I              5.3          3.1         -2.2          1.1            -1.6         -4.0
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                May 16, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
                                                                             Real
      Year           Output per                  Hours       Compensa-       compensa-      Unit
      and            hour of                     of all      tion per        tion per       labor
      quarter        all persons     Output      persons     hour(1)         hour(2)        costs
 --------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1994       I            102.7        104.3        101.5        104.4            99.8        101.6
           II            104.3        106.3        102.0        104.9            99.6        100.6
          III            104.6        106.9        102.2        105.8            99.6        101.2
           IV            105.3        108.3        102.8        106.8           100.0        101.5
 
       ANNUAL            104.2        106.5        102.2        105.5            99.8        101.2
 
 1995       I            105.3        108.4        103.0        107.6           100.1        102.3
           II            106.8        107.8        100.9        108.9           100.4        102.0
          III            108.0        107.7         99.6        109.9           100.8        101.7
           IV           r108.5       r107.3         98.8        111.0           101.2       r102.3
 
       ANNUAL            107.2        107.8        100.5        109.4           100.8        102.1
 
 1996       I            109.6        107.0         97.7        111.9           101.2        102.1
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              6.3          6.4          0.1          3.2             1.1         -3.0
           II              6.0          8.1          1.9          1.7            -0.9         -4.1
          III              1.3          2.0          0.7          3.7            -0.1          2.3
           IV              2.7          5.4          2.6          3.9             1.6          1.2
 
       ANNUAL              3.2          4.1          0.9          2.8             0.2         -0.4
 
 1995       I             -0.1          0.6          0.7          3.1             0.2          3.2
           II              5.9         -2.5         -7.9          4.8             1.3         -1.1
          III              4.8         -0.3         -4.9          3.7             1.6         -1.1
           IV             r1.9        r-1.4         -3.2          4.1             1.7         r2.2
 
       ANNUAL              2.9         r1.3         -1.6          3.8             0.9         r0.8
 
 1996       I              3.8         -0.9         -4.6          3.1            -0.1         -0.6
 --------------------------------------------------------------------------------------------------
 
                    Percent change from corresponding quarter of previous year
 
 1994       I              1.9          2.4          0.5          3.0             0.5          1.1
           II              3.7          4.4          0.7          2.5             0.1         -1.2
          III              3.2          4.3          1.0          2.7            -0.2         -0.5
           IV              4.1          5.4          1.3          3.1             0.4         -0.9
 
       ANNUAL              3.2          4.1          0.9          2.8             0.2         -0.4
 
 1995       I              2.5          4.0          1.5          3.1             0.2          0.6
           II              2.4          1.3         -1.1          3.9             0.8          1.4
          III              3.3          0.7         -2.5          3.9             1.2          0.6
           IV             r3.1        r-0.9         -3.9          3.9             1.2         r0.8
 
       ANNUAL              2.9         r1.3         -1.6          3.8             0.9         r0.8
 
 1996       I              4.1         -1.3         -5.2          3.9             1.1         -0.1
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                May 16, 1996
 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 1992=100
 
 1993       I    100.1     101.3    101.1    101.4      99.4     101.3    100.7    101.1    102.9    101.2
           II    101.0     102.9    101.9    101.9      99.2     100.9    100.0    100.7    111.5    101.5
          III    101.5     104.2    102.6    102.5      99.3     100.9     99.8    100.6    115.6    101.8
           IV    102.4     106.1    103.6    102.8      98.7     100.4     99.2    100.1    128.5    102.3
 
       ANNUAL    101.3     103.6    102.2    102.2      99.2     100.9     99.9    100.6    114.8    101.7
 
 1994       I    102.4     107.2    104.7    103.3      98.8     100.9    102.3    101.3    120.8    102.8
           II    102.6     108.9    106.2    103.8      98.6     101.2     98.7    100.5    134.5    103.1
          III    102.6     109.6    106.9    104.2      98.0     101.6     99.3    100.9    136.5    103.7
           IV    103.2     111.6    108.1    105.2      98.5     101.9     98.2    100.9    141.3    104.0
 
       ANNUAL    102.7     109.3    106.4    104.2      98.6     101.4     99.6    100.9    133.4    103.4
 
 1995       I    102.3     111.3    108.8    105.6      98.1     103.2    100.0    102.3    131.0    104.5
           II    103.2     111.8    108.3    107.0      98.6     103.7    101.2    103.0    130.5    105.1
          III    104.7     113.9    108.8    108.1      99.1     103.3     99.9    102.3    142.3    105.4
           IV    105.2     114.9    109.2    108.9      99.3     103.5    100.2    102.6    140.7    105.5
 
       ANNUAL    103.9     113.0    108.7    107.5      99.0     103.4    100.3    102.6    136.2    105.2
 ----------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
 1993       I     -4.8      -2.9      2.0      0.8      -2.1       5.8      7.8      6.4    -24.5      3.4
           II      3.6       6.6      2.9      2.2      -0.7      -1.4     -2.7     -1.7     38.0      1.0
          III      2.1       5.0      2.8      2.2       0.3       0.1     -1.0     -0.2     15.4      1.1
           IV      3.2       7.5      4.1      1.0      -2.1      -2.1     -2.2     -2.2     52.4      1.9
 
       ANNUAL      1.3       3.6      2.2      2.2      -0.8       0.9     -0.1      0.6     14.8      1.7
 
 1994       I      0.1       4.2      4.1      2.2       0.2       2.2     13.2      5.0    -21.8      2.2
           II      0.9       6.8      5.9      1.8      -0.7       0.9    -13.4     -3.2     53.6      1.2
          III     -0.2       2.5      2.7      1.4      -2.3       1.5      2.3      1.7      6.3      2.2
           IV      2.6       7.5      4.8      4.0       1.7       1.4     -4.4     -0.2     14.8      1.3
 
       ANNUAL      1.4       5.5      4.1      1.9      -0.6       0.5     -0.3      0.3     16.2      1.7
 
 1995       I     -3.5      -1.1      2.5      1.4      -1.4       5.1      7.9      5.9    -26.1      2.1
           II      3.7       1.6     -2.0      5.6       2.1       1.9      4.7      2.6     -1.6      2.2
          III      5.7       7.8      2.0      4.1       2.0      -1.5     -5.2     -2.5     41.4      1.1
           IV      2.3       3.8      1.5      3.2       0.8       0.9      1.5      1.1     -4.4      0.5
 
       ANNUAL      1.2       3.3      2.1      3.2       0.3       2.0      0.7      1.7      2.1      1.7
 ----------------------------------------------------------------------------------------------------------
 
                           Percent change from corresponding quarter of previous year
 
 1993       I      1.0       2.7      1.7      2.9      -0.3       1.8      0.3      1.4      5.6      1.7
           II      1.6       3.7      2.0      2.3      -0.7       0.7      0.2      0.6     13.8      1.6
          III      1.4       4.0      2.6      1.8      -0.9       0.5     -1.2      0.0     23.2      1.7
           IV      1.0       4.0      2.9      1.5      -1.1       0.6      0.4      0.5     16.3      1.8
 
       ANNUAL      1.3       3.6      2.2      2.2      -0.8       0.9     -0.1      0.6     14.8      1.7
 
 1994       I      2.2       5.8      3.5      1.9      -0.6      -0.3      1.6      0.2     17.4      1.5
           II      1.6       5.9      4.2      1.8      -0.6       0.3     -1.3     -0.2     20.6      1.6
          III      1.0       5.2      4.2      1.6      -1.2       0.6     -0.5      0.3     18.1      1.9
           IV      0.8       5.2      4.4      2.4      -0.3       1.5     -1.0      0.8     10.0      1.7
 
       ANNUAL      1.4       5.5      4.1      1.9      -0.6       0.5     -0.3      0.3     16.2      1.7
 
 1995       I     -0.1       3.9      4.0      2.2      -0.7       2.2     -2.2      1.0      8.4      1.7
           II      0.6       2.6      2.0      3.1       0.0       2.5      2.5      2.5     -3.0      1.9
          III      2.0       3.9      1.8      3.8       1.1       1.7      0.6      1.4      4.2      1.7
           IV      2.0       3.0      1.0      3.6       0.9       1.6      2.1      1.7     -0.4      1.5
 
       ANNUAL      1.2       3.3      2.1      3.2       0.3       2.0      0.7      1.7      2.1      1.7
 ----------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                        May 16, 1996
 r=revised                                                               Source: Bureau of Labor Statistics
 
SOURCES:  Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department of Commerce; the
Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board.  Compensation and hours data are from the
Bureau of Labor Statistics  and the Bureau of Economic Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more complete information becomes available.  The
measures are first published 30 days after the close of the reference period; revisions appear 30 days later, and second revisions
after an additional 60 days.
 
 
 
Footnotes, Tables 1-6
 
(1)  Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans.  Except for
     nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and
     supplemental payments for the self-employed.
 
(2)  Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers.
 
(3)  Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect
     taxes.
 
(4)  Current dollar output divided by the output index.
 
(5)  Quarterly changes:  Percent change compounded at annual rate from the original data rather than index numbers.  Annual
     changes:  Percent change between annual average levels.
 
(6)  Unit nonlabor 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 unit labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital consumption adjustments.