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                           PRODUCTIVITY AND COSTS
                       Preliminary Fourth-Quarter and
                          Annual Averages for 2001


     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 fourth quarter and for the full year 2001.  The seasonally
adjusted annual rates of productivity change in the fourth quarter and the
annual average changes were:

                                  Fourth  Annual averages
                                 quarter     2000-2001

     Business sector                3.4          1.8
     Nonfarm business sector        3.5          1.8
     
     In the fourth quarter, productivity advanced 3.4 percent in the business
sector as output declined 0.3 percent and hours worked fell 3.6 percent
(seasonally adjusted annual rates).  In the nonfarm business sector,
productivity rose 3.5 percent as output decreased 0.4 percent and hours
dropped 3.7 percent.  On an annual average basis, productivity in both the
business and nonfarm business sectors rose 1.8 percent in 2001.  This was the
smallest annual productivity gain since 1995, when output per hour increased
0.7 percent in business and 0.9 percent in nonfarm business.  Fourth-quarter
productivity and related measures are summarized in table A and annual
average data in table B.  Detailed information is presented in tables 1
through 5.

     In the manufacturing sector, increases in productivity were:

                                         Fourth  Annual averages
                                        quarter     2000-2001

     Manufacturing sector                  3.5          1.0
       Durable goods manufacturing         2.3          0.5
       Nondurable goods manufacturing      4.3          1.5
     
     Manufacturing productivity grew 3.5 percent in the fourth quarter,
reflecting a drop in output of 7.2 percent and a larger decline, 10.4
percent, in hours of all persons.  On an annual average basis,  output per
hour in the manufacturing sector posted a 1.0-percent  increase in 2001.
Output and hours in manufacturing, which includes about 16 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.

--------------------------------------------------------------------------
Table A. Productivity and costs:  Preliminary fourth-quarter 2001 measures
(Seasonally adjusted annual rates)
--------------------------------------------------------------------------                                                                  
                                                        Real      
                                              Hourly    hourly    Unit
                   Produc-                    compen-   compen-   labor
Sector             tivity    Output   Hours   sation    sation    costs
--------------------------------------------------------------------------
                      Percent change from preceding quarter

Business            3.4       -0.3     -3.6     2.3       2.7      -1.1
Nonfarm business    3.5       -0.4     -3.7     2.3       2.8      -1.1
Manufacturing       3.5       -7.2    -10.4     2.6       3.0      -0.9
  Durable           2.3      -10.3    -12.3     3.6       4.0       1.3
  Nondurable        4.3       -3.3     -7.3     1.4       1.8      -2.8
--------------------------------------------------------------------------
                      Percent change from same quarter a year ago

Business            1.5       -0.5     -2.0     4.0       2.1       2.4
Nonfarm business    1.6       -0.5     -2.1     3.9       2.0       2.2
Manufacturing       0.7       -6.4     -7.0     4.5       2.6       3.8
  Durable           0.0       -8.5     -8.5     5.1       3.2       5.1
  Nondurable        1.1       -3.6     -4.7     3.9       2.1       2.8
--------------------------------------------------------------------------

     
     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


                    THIRD-TO-FOURTH QUARTER CHANGES, 2001

Business

     Productivity in the business sector grew 3.4 percent in the fourth
quarter of 2001, reflecting a decline of 0.3 percent in output and a 3.6-
percent decrease in hours of all persons engaged in the sector (seasonally
adjusted annual rates).  Hours fell faster in the fourth quarter than at any
time since the first quarter of 1991, when they dropped 4.6 percent.  Revised
data for the third quarter of 2001 show that output per hour rose 0.7 percent
as output decreased 2.3 percent and hours declined 2.9 percent.

     Hourly compensation increased at a 2.3-percent annual rate in the fourth
quarter of 2001, following a 3.3-percent increase one quarter earlier. This
measure includes wages and salaries, supplements, employer contributions to
employee-benefit plans, and taxes.  Real hourly compensation, which takes
into account changes in consumer prices, grew at an annual rate of 2.7
percent during the fourth quarter of 2001.  This measure rose 2.6 percent in
the third quarter.
     
     The unit labor cost measure, which relates compensation to output,
decreased at a 1.1-percent annual rate during the fourth quarter.  During the
third quarter of 2001, unit labor costs had increased 2.6 percent.  The
implicit price deflator for business output, which reflects changes in both
unit labor costs and unit nonlabor payments, declined 1.5 percent in fourth-
quarter 2001.

Nonfarm business

     In the nonfarm business sector, productivity increased 3.5 percent in
the fourth quarter of 2001.  Output declined 0.4 percent and hours of all
persons--employees, proprietors, and unpaid family workers--fell 3.7 percent
(seasonally adjusted annual rates).  Productivity increased 1.1 percent in
the third quarter of 2001 (as revised), when output decreased 2.3 percent and
hours dropped 3.4 percent (table 2).

     Hourly compensation in the nonfarm business sector rose 2.3 percent in
the fourth quarter of 2001, following an increase of 3.7 percent in the third
quarter.  When the changes in consumer prices were taken into account, real
hourly compensation increased 2.8 percent during the fourth quarter of 2001
and 3.0 percent one quarter earlier.

     Unit labor costs decreased 1.1 percent in the fourth quarter, after
increasing 2.6 percent in the third quarter of 2001.  The implicit price
deflator for nonfarm business output declined 0.7 percent in the fourth
quarter of 2001, after increasing 1.7 percent one quarter earlier.

Manufacturing

     Manufacturing productivity grew at a 3.5-percent seasonally adjusted
annual rate in the fourth quarter of 2001 as output fell 7.2 percent and
hours fell further, 10.4 percent (table 3).  The  hours decline was the
largest since the second quarter of 1982, when hours dropped 11.0 percent.
In the third quarter, total manufacturing productivity increased 2.6 percent
(as revised), reflecting a 4.9-percent fall in output and a 7.3-percent
decrease in hours.  In durable goods manufacturing, productivity rose 2.3
percent in the fourth quarter as output fell 10.3 percent and hours dropped
12.3 percent (table 4).  Among nondurable goods manufacturers, productivity
rose 4.3 percent in the fourth quarter, reflecting a 3.3-percent decline in
output and a 7.3-percent drop in hours of all persons (table 5).

     Average hourly compensation of manufacturing workers increased 2.6
percent in the fourth quarter of 2001, reflecting increases in hourly
compensation of 3.6 percent in durable goods manufacturing and 1.4 percent in
nondurable goods manufacturing.  When the increase in consumer prices was
taken into account, real hourly compensation in total manufacturing rose 3.0
percent.

     Unit labor costs for the manufacturing sector declined 0.9 percent.  In
durable goods manufacturing, unit labor costs rose 1.3 percent.  By contrast,
unit labor costs of nondurable goods manufacturers fell 2.8 percent in the
fourth quarter of 2001.


                      ANNUAL AVERAGE CHANGES, 2000-2001

Business

     Business sector productivity increased 1.8 percent when the annual
average for 2001 was compared with the annual average for 2000 (table B).
Output increased 0.8 percent and hours of all persons engaged in the sector
decreased 1.0 percent.  Productivity had increased 3.4 percent in  2000, when
output grew 4.6 percent and hours increased 1.1 percent.

     Hourly compensation in the business sector increased 6.0 percent in
2001, following a 6.4-percent rise in 2000.  Real hourly compensation
increased 3.0 percent in both years.  Unit labor costs increased 4.0 percent
in 2001, compared with a 2.9-percent increase in the previous year.  The
implicit price deflator rose 1.8 percent in 2001 and 1.9 percent in 2000.


     
------------------------------------------------------------------------------     
 Table B. Annual average changes in productivity and related measures,
          1992-2001
------------------------------------------------------------------------------
        Measure     1992  1993  1994  1995  1996  1997  1998  1999  2000  2001
                       
 Business:                                                                  
  Productivity      3.9    0.5   1.3   0.7   2.8   2.3   2.7   2.5   3.4   1.8
  Output            3.7    3.1   4.9   3.1   4.4   5.2   4.9   4.6   4.6   0.8
  Hours            -0.2    2.6   3.5   2.4   1.6   2.9   2.2   2.0   1.1  -1.0
  Hourly            5.3    2.5   2.0   2.1   3.2   3.1   5.5   4.6   6.4   6.0
   compensation
  Real hourly       2.6   -0.1  -0.2  -0.4   0.4   0.9   4.0   2.4   3.0   3.0
   compensation
  Unit labor costs  1.4    1.9   0.7   1.4   0.4   0.8   2.8   2.0   2.9   4.0
------------------------------------------------------------------------------ 
 Nonfarm Business:                                                          
  Productivity      3.7    0.5   1.3   0.9   2.5   2.0   2.6   2.3   3.3   1.8
  Output            3.5    3.3   4.7   3.4   4.3   5.1   5.0   4.6   4.5   0.8
  Hours            -0.2    2.9   3.3   2.4   1.7   3.1   2.4   2.2   1.1  -0.9
  Hourly            5.3    2.2   2.1   2.1   3.1   3.0   5.4   4.4   6.5   5.8
   compensation
  Real hourly       2.6   -0.4  -0.1  -0.4   0.3   0.8   3.9   2.2   3.1   2.8
   compensation
  Unit labor costs  1.6    1.7   0.8   1.2   0.5   0.9   2.7   2.0   3.1   3.9
------------------------------------------------------------------------------ 
 Manufacturing:                                                             
  Productivity      5.3    1.9   3.0   3.8   3.5   4.3   5.4   4.5   6.1   1.0
  Output            4.8    3.3   5.3   4.3   3.1   6.1   5.1   3.7   4.6  -4.3
  Hours            -0.4    1.4   2.2   0.4  -0.4   1.8  -0.2  -0.8  -1.4  -5.3
  Hourly            4.6    2.7   2.8   2.1   1.4   1.9   5.4   4.0   7.0   7.3
   compensation
  Real hourly       1.9    0.2   0.6  -0.4  -1.3  -0.3   3.9   1.9   3.5   4.4
   compensation
  Unit labor costs -0.6    0.8  -0.2  -1.7  -2.1  -2.3   0.0  -0.5   0.9   6.2
------------------------------------------------------------------------------                    


Nonfarm business

     Productivity increased 1.8 percent in the nonfarm business sector during
2001, reflecting a 0.8-percent rise in output and a 0.9-percent decline in
hours.  During 2000, productivity had increased 3.3 percent in nonfarm
business, as output grew 4.5 percent and hours of all persons increased 1.1
percent.
     
     In 2001, hourly compensation increased 5.8 percent, following a 6.5
percent rise in 2000. When the increase in consumer prices was taken into
account, real hourly compensation rose 2.8 percent in 2001 and 3.1 percent in
2000.  Unit labor costs in the nonfarm business sector rose 3.9 percent in
2001, compared with a 3.1-percent increase one year earlier.  The implicit
price deflator for nonfarm business rose 1.7 percent in 2001 and 2.0 percent
in 2000.


Manufacturing

     In manufacturing, labor productivity rose 1.0 percent in 2001, compared
with a 6.1 percent increase in 2000.  The small increase in 2001 occurred
when output fell 4.3 percent and hours of all persons fell 5.3 percent (table
B).  There was a 0.5-percent increase in durable goods manufacturing
productivity, where output fell 5.4 percent and hours fell 5.9 percent. A
somewhat larger increase in productivity of 1.5 percent was posted in
nondurable goods manufacturing, reflecting an output decrease of 2.9 percent
and a drop of 4.4 percent in hours of all persons.

     Hourly compensation of manufacturing workers increased 7.3 percent in
2001, following a 7.0-percent increase in 2000.  Taking into account the rise
in consumer prices, real hourly compensation in manufacturing rose 4.4
percent in 2001 and 3.5 percent in 2000.

     Unit labor costs in manufacturing grew 6.2 percent in 2001.  This was
the largest annual increase since 1981, when these costs rose 8.9 percent.
Unit labor costs in durable goods manufacturing increased 7.4 percent in
2001, compared with a 4.8 percent rise in unit labor costs in nondurable
goods manufacturing.
     
Revised Measures

     Current and previous measures for the third quarter of 2001 for the
business, nonfarm business, and manufacturing sectors are compared in table
C.  In the business and nonfarm business sectors, output and productivity
measures were lower than those published on Dec. 6; unit labor costs were
higher.  Output and productivity growth in the manufacturing sector were
slightly higher than the figures published on Dec. 6.

-------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
-------------------------------------------------------------------------                                                                 
                                                       Real      
                                              Hourly   hourly    Unit
                   Produc-                    compen-  compen-   labor
Sector             tivity    Output   Hours   sation   sation    costs
-------------------------------------------------------------------------                                                                 
                             Third quarter 2001
Business:                                                        
  Previous         1.1       -1.9     -2.9    3.5      2.8       2.4
  Current          0.7       -2.3     -2.9    3.3      2.6       2.6
Nonfarm business:                                                
  Previous         1.5       -2.0     -3.4    3.8      3.1       2.3
  Current          1.1       -2.3     -3.4    3.7      3.0       2.6
Manufacturing:                                                   
  Previous         2.5       -5.0     -7.4    3.6      2.9       1.1
  Current          2.6       -4.9     -7.3    3.5      2.8       0.8
-------------------------------------------------------------------------

Revised measures: Nonfinancial Corporations

     Revised productivity and output measures for the third quarter for
nonfinancial corporations also were announced today.  Output decreased more
and productivity increased less than reported on Dec. 6.  The downward
revision to productivity led to faster growth in unit labor costs than
previously reported (table D).

-----------------------------------------------------------------------------
Table D.  Nonfinancial corporations:  Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------
                                                                     
                            Third quarter 2001

Previous     2.4     -1.3    -3.6    4.9      4.2     2.5    -25.7    1.5
Current      0.9     -2.6    -3.5    4.7      4.0     3.8    -26.1    2.8
-----------------------------------------------------------------------------

                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 A.M.
EST, Thursday, March 7, 2002.  Revised fourth-quarter and annual average
measures for business, nonfarm business, and manufacturing will be released
at that time.




                                      
                               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.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours
are adjusted to hours at work using the BLS Hours at Work survey, conducted
for this purpose.
     Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of 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 77 percent of
the value of GDP in 1996. Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
     Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BEA.  These deflators are based on data from the BLS producer price program
and other sources.  The industry shipments are aggregated using annual
weights, and intrasector transactions are removed.  Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS.  Durables include the following 2-digit SIC industries: Primary metal
industries; fabricated metal products; nonelectrical machinery; industrial
and commercial machinery and computer equipment; electronic and other
electrical equipment; transportation equipment; instruments; lumber and
lumber products; furniture and fixtures; stone, clay, and glass and concrete
products; and miscellaneous manufactures. Nondurables include: Food and
kindred products, tobacco products, textile mill products, apparel products,
paper and allied products, printing and publishing, chemicals and chemical
products, petroleum refining and related industries, rubber and plastic
products, and leather and leather products.
     Nonfinancial corporate output is an annual-weighted index constructed by
excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-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 53 percent of the value of GDP in 1996.

Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.

     Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5200; Federal Relay Service
number: 1-800-877-8339.


  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

  1999       I     112.7      132.4     117.4     123.1       106.6      109.2       114.5      111.2
            II     112.4      132.9     118.2     124.4       106.9      110.7       112.6      111.4
           III     113.3      134.6     118.8     126.1       107.5      111.3       112.3      111.7
            IV     115.3      137.8     119.5     127.3       107.7      110.4       114.8      112.0

        ANNUAL     113.4      134.4     118.5     125.2       107.3      110.4       113.6      111.6

  2000       I     115.3      138.6     120.2     129.3       108.4      112.2       114.2      112.9
            II     117.5      140.8     119.8     132.1       110.0      112.5       115.1      113.5
           III     117.8      141.2     119.9     134.3       110.8      114.0       113.8      113.9
            IV     118.7      141.9     119.5     137.4       112.5      115.8       112.0      114.4

        ANNUAL     117.3      140.6     119.8     133.3       110.5      113.6       113.8      113.7

  2001       I     118.6      142.3     119.9     139.1       112.8      117.3       111.7      115.2
            II     119.3      142.1     119.1     140.9       113.4      118.1       111.5      115.7
           III    r119.5     r141.2     118.2     142.1      r114.1     r118.9       111.7      116.2
            IV     120.5      141.1     117.1     142.9       114.9      118.6       111.0      115.8

        ANNUAL     119.5      141.7     118.6     141.2       113.8      118.2       111.5      115.7

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       3.0        3.5       0.5       4.5         2.9        1.5         0.9        1.3
            II      -1.1        1.6       2.7       4.3         1.4        5.4        -6.4        0.8
           III       3.1        5.1       1.9       5.3         2.3        2.2        -1.2        0.9
            IV       7.4        9.9       2.3       4.0         0.7       -3.2         9.0        1.2

        ANNUAL       2.5        4.6       2.0       4.6         2.4        2.0        -0.8        0.9

  2000       I      -0.1        2.2       2.3       6.5         2.4        6.6        -2.1        3.2
            II       7.7        6.5      -1.1       9.0         5.9        1.3         3.5        2.1
           III       1.2        1.3       0.1       6.8         3.1        5.5        -4.5        1.7
            IV       3.0        1.8      -1.1       9.5         6.4        6.3        -6.1        1.6

        ANNUAL       3.4        4.6       1.1       6.4         3.0        2.9         0.2        1.9

  2001       I      -0.2        1.2       1.4       5.1         0.9        5.3        -1.3        2.9
            II       2.2       -0.7      -2.8       5.2         2.1        3.0        -0.6        1.7
           III      r0.7      r-2.3      -2.9      r3.3        r2.6       r2.6        r0.6       r1.9
            IV       3.4       -0.3      -3.6       2.3         2.7       -1.1        -2.3       -1.5

        ANNUAL       1.8        0.8      -1.0       6.0         3.0        4.0        -2.0        1.8

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.5        4.5       1.9       4.7         3.1        2.2        -1.4        0.8
            II       2.2        4.4       2.1       4.4         2.5        2.2        -1.2        0.9
           III       2.3        4.6       2.2       4.6         2.2        2.2        -1.2        0.9
            IV       3.0        5.0       1.9       4.5         1.8        1.4         0.5        1.1

        ANNUAL       2.5        4.6       2.0       4.6         2.4        2.0        -0.8        0.9

  2000       I       2.3        4.7       2.3       5.0         1.7        2.7        -0.3        1.5
            II       4.5        5.9       1.4       6.2         2.8        1.6         2.2        1.9
           III       4.0        4.9       0.9       6.6         3.0        2.5         1.3        2.1
            IV       2.9        3.0       0.0       7.9         4.4        4.9        -2.4        2.1

        ANNUAL       3.4        4.6       1.1       6.4         3.0        2.9         0.2        1.9

  2001       I       2.9        2.7      -0.2       7.6         4.1        4.6        -2.2        2.1
            II       1.6        0.9      -0.6       6.6         3.1        5.0        -3.2        2.0
           III      r1.4       r0.0      -1.4       5.8         3.0       r4.3        -1.9        2.0
            IV       1.5       -0.5      -2.0       4.0         2.1        2.4        -0.9        1.2

        ANNUAL       1.8        0.8      -1.0       6.0         3.0        4.0        -2.0        1.8

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 6, 2002
  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

  1999       I     112.2      132.8     118.3     122.2       105.8      109.0       116.0      111.5
            II     111.8      133.2     119.2     123.5       106.1      110.5       114.2      111.8
           III     112.7      134.9     119.7     125.1       106.8      111.1       114.0      112.1
            IV     114.8      138.1     120.3     126.6       107.1      110.2       116.5      112.5

        ANNUAL     112.9      134.8     119.4     124.4       106.5      110.2       115.2      112.0

  2000       I     114.8      138.8     120.9     128.7       107.9      112.1       115.9      113.5
            II     116.7      141.0     120.8     131.2       109.2      112.5       116.7      114.0
           III     117.2      141.4     120.7     133.6       110.2      114.0       115.3      114.5
            IV     117.8      142.1     120.6     136.5       111.8      115.8       113.4      114.9

        ANNUAL     116.6      140.8     120.8     132.5       109.8      113.6       115.3      114.2

  2001       I     117.8      142.5     121.0     138.1       112.0      117.2       113.1      115.7
            II     118.4      142.4     120.2     139.7       112.4      118.0       112.9      116.1
           III    r118.7     r141.5     119.2     141.0      r113.2      118.7       112.9      116.6
            IV     119.8      141.4     118.1     141.8       114.0      118.4       112.9      116.4

        ANNUAL     118.7      142.0     119.6     140.1       112.9      118.1       113.0      116.2

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       2.3        3.5       1.1       3.6         2.0        1.3         1.9        1.5
            II      -1.3        1.4       2.8       4.2         1.4        5.6        -5.9        1.2
           III       3.2        5.3       2.0       5.5         2.4        2.2        -0.9        1.0
            IV       7.8        9.8       1.9       4.7         1.4       -2.9         9.0        1.4

        ANNUAL       2.3        4.6       2.2       4.4         2.2        2.0        -0.4        1.1

  2000       I       0.0        2.0       2.0       6.9         2.8        6.9        -1.8        3.5
            II       6.7        6.5      -0.2       8.1         5.0        1.3         2.5        1.7
           III       1.6        1.2      -0.5       7.4         3.7        5.7        -4.4        1.8
            IV       2.3        1.8      -0.5       8.9         5.8        6.4        -6.6        1.5

        ANNUAL       3.3        4.5       1.1       6.5         3.1        3.1         0.1        2.0

  2001       I      -0.1        1.4       1.4       4.9         0.7        5.0        -1.2        2.7
            II       2.1       -0.4      -2.4       4.7         1.6        2.6        -0.5        1.5
           III      r1.1      r-2.3      -3.4      r3.7        r3.0       r2.6        r0.0       r1.7
            IV       3.5       -0.4      -3.7       2.3         2.8       -1.1         0.1       -0.7

        ANNUAL       1.8        0.8      -0.9       5.8         2.8        3.9        -2.1        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.3        4.5       2.1       4.5         2.9        2.1        -1.1        0.9
            II       1.9        4.3       2.4       4.2         2.2        2.3        -0.9        1.1
           III       2.1        4.6       2.4       4.3         1.9        2.1        -0.8        1.0
            IV       2.9        4.9       1.9       4.5         1.8        1.5         0.9        1.3

        ANNUAL       2.3        4.6       2.2       4.4         2.2        2.0        -0.4        1.1

  2000       I       2.4        4.6       2.2       5.3         2.0        2.9         0.0        1.8
            II       4.4        5.9       1.4       6.3         2.9        1.8         2.1        1.9
           III       4.0        4.8       0.8       6.7         3.2        2.7         1.2        2.1
            IV       2.6        2.8       0.2       7.8         4.3        5.0        -2.6        2.2

        ANNUAL       3.3        4.5       1.1       6.5         3.1        3.1         0.1        2.0

  2001       I       2.6        2.7       0.1       7.3         3.8        4.6        -2.5        2.0
            II       1.5        1.0      -0.5       6.5         2.9        4.9        -3.2        1.9
           III      r1.3       r0.1     r-1.2      r5.5         2.8        4.1        -2.1        1.8
            IV       1.6       -0.5      -2.1       3.9         2.0        2.2        -0.4        1.3

        ANNUAL       1.8        0.8      -0.9       5.8         2.8        3.9        -2.1        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 6, 2002
  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

  1999       I            127.6        133.1        104.3        119.8          103.7          93.9
            II            128.3        134.2        104.5        121.2          104.2          94.4
           III            129.6        135.6        104.6        123.0          104.9          94.9
            IV            132.7        137.8        103.8        124.5          105.4          93.8

        ANNUAL            129.6        135.2        104.3        122.1          104.6          94.3

  2000       I            135.2        139.9        103.5        126.3          105.9          93.4
            II            137.2        142.3        103.8        128.6          107.0          93.8
           III            138.3        142.5        103.0        131.9          108.8          95.4
            IV            139.2        141.1        101.3        135.9          111.3          97.6

        ANNUAL            137.5        141.5        102.9        130.7          108.3          95.1

  2001       I            138.3        138.5        100.1        137.9          111.8          99.7
            II            138.1        136.3         98.7        140.0          112.6         101.3
           III            139.0       r134.6         96.8        141.2          113.4        r101.5
            IV            140.2        132.1         94.2        142.1          114.2         101.3

        ANNUAL            138.9        135.4         97.5        140.2          113.0         101.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              5.6          3.2         -2.3          2.4            0.9          -3.0
            II              2.4          3.1          0.7          4.8            1.9           2.4
           III              3.9          4.4          0.4          6.0            2.9           2.0
            IV             10.1          6.7         -3.1          5.2            1.9          -4.5

        ANNUAL              4.5          3.7         -0.8          4.0            1.9          -0.5

  2000       I              7.6          6.3         -1.2          5.9            1.8          -1.6
            II              6.1          7.1          0.9          7.5            4.5           1.4
           III              3.3          0.4         -2.8         10.6            6.8           7.1
            IV              2.8         -4.0         -6.6         12.7            9.5           9.7

        ANNUAL              6.1          4.6         -1.4          7.0            3.5           0.9

  2001       I             -2.7         -7.1         -4.5          6.0            1.7           8.9
            II             -0.5         -6.2         -5.7          6.1            2.9           6.7
           III             r2.6        r-4.9        r-7.3         r3.5           r2.8          r0.8
            IV              3.5         -7.2        -10.4          2.6            3.0          -0.9

        ANNUAL              1.0         -4.3         -5.3          7.3            4.4           6.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              4.7          3.2         -1.4          3.8            2.2          -0.9
            II              4.3          3.3         -0.9          3.5            1.6          -0.7
           III              3.7          3.8          0.1          4.1            1.7           0.4
            IV              5.5          4.3         -1.1          4.6            1.9          -0.8

        ANNUAL              4.5          3.7         -0.8          4.0            1.9          -0.5

  2000       I              6.0          5.1         -0.8          5.5            2.1          -0.5
            II              6.9          6.1         -0.7          6.1            2.8          -0.7
           III              6.7          5.1         -1.5          7.3            3.7           0.5
            IV              4.9          2.3         -2.4          9.1            5.6           4.0

        ANNUAL              6.1          4.6         -1.4          7.0            3.5           0.9

  2001       I              2.3         -1.0         -3.3          9.2            5.6           6.7
            II              0.7         -4.3         -4.9          8.8            5.2           8.1
           III              0.5        r-5.5         -6.0          7.0            4.2           6.5
            IV              0.7         -6.4         -7.0          4.5            2.6           3.8

        ANNUAL              1.0         -4.3         -5.3          7.3            4.4           6.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2002
  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

  1999       I            140.7        154.5        109.8        117.6          101.8          83.6
            II            142.1        156.1        109.9        119.3          102.6          84.0
           III            143.9        159.4        110.7        121.1          103.3          84.1
            IV            147.3        161.8        109.8        122.7          103.9          83.3

        ANNUAL            143.5        157.9        110.1        120.2          103.0          83.8

  2000       I            152.0        166.7        109.7        124.4          104.3          81.8
            II            155.0        171.0        110.3        126.7          105.4          81.7
           III            156.4        171.6        109.7        130.1          107.3          83.2
            IV            156.9        169.5        108.0        134.6          110.2          85.7

        ANNUAL            155.1        169.7        109.4        128.9          106.9          83.1

  2001       I            155.2        165.2        106.5        136.6          110.7          88.0
            II            155.2        162.5        104.7        138.7          111.6          89.3
           III           r156.0       r159.3        102.1        140.2          112.6         r89.8
            IV            156.9        155.0         98.8        141.4          113.7          90.1

        ANNUAL            155.8        160.5        103.0        139.2          112.2          89.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              8.3          4.0         -4.0          3.8            2.2          -4.1
            II              4.0          4.4          0.3          5.9            2.9           1.7
           III              5.2          8.5          3.1          6.1            3.0           0.8
            IV              9.7          6.2         -3.2          5.5            2.2          -3.8

        ANNUAL              6.9          6.1         -0.8          4.7            2.5          -2.1

  2000       I             13.5         12.8         -0.6          5.6            1.5          -7.0
            II              8.2         10.7          2.3          7.7            4.6          -0.5
           III              3.7          1.4         -2.2         11.2            7.4           7.3
            IV              1.3         -4.8         -6.0         14.3           11.1          12.9

        ANNUAL              8.1          7.4         -0.6          7.3            3.8          -0.8

  2001       I             -4.3         -9.7         -5.6          6.1            1.9          10.9
            II              0.0         -6.5         -6.6          6.3            3.1           6.2
           III             r2.0        r-7.6         -9.4         r4.3           r3.6          r2.3
            IV              2.3        -10.3        -12.3          3.6            4.0           1.3

        ANNUAL              0.5         -5.4         -5.9          7.9            5.0           7.4

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              7.6          6.0         -1.5          4.2            2.6          -3.2
            II              7.3          6.1         -1.0          4.3            2.3          -2.8
           III              6.1          6.6          0.5          4.9            2.6          -1.1
            IV              6.8          5.7         -1.0          5.3            2.6          -1.4

        ANNUAL              6.9          6.1         -0.8          4.7            2.5          -2.1

  2000       I              8.0          7.9         -0.1          5.7            2.4          -2.1
            II              9.1          9.5          0.4          6.2            2.8          -2.7
           III              8.7          7.7         -0.9          7.5            3.9          -1.1
            IV              6.5          4.8         -1.7          9.6            6.1           2.9

        ANNUAL              8.1          7.4         -0.6          7.3            3.8          -0.8

  2001       I              2.1         -0.9         -2.9          9.8            6.2           7.5
            II              0.1         -5.0         -5.1          9.4            5.8           9.3
           III             -0.3         -7.2         -6.9          7.7            4.9          r8.0
            IV              0.0         -8.5         -8.5          5.1            3.2           5.1

        ANNUAL              0.5         -5.4         -5.9          7.9            5.0           7.4

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2002
  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

  1999       I            116.6        113.2         97.1        122.0          105.6         104.7
            II            116.6        113.6         97.4        123.0          105.7         105.5
           III            117.4        113.4         96.6        124.6          106.3         106.1
            IV            120.5        115.4         95.8        126.0          106.6         104.6

        ANNUAL            117.8        113.9         96.7        123.9          106.1         105.2

  2000       I            120.6        115.0         95.3        127.9          107.2         106.1
            II            121.7        115.7         95.1        130.1          108.3         106.9
           III            122.6        115.4         94.2        133.1          109.8         108.6
            IV            124.0        114.6         92.4        136.2          111.5         109.8

        ANNUAL            122.2        115.2         94.2        131.8          109.2         107.8

  2001       I            123.8        113.5         91.7        138.2          112.0         111.7
            II            123.3        111.8         90.7        140.2          112.8         113.7
           III            124.1       r111.4        r89.8       r141.1         r113.3        r113.7
            IV            125.4        110.5         88.1        141.6          113.8         112.9

        ANNUAL            124.1        111.8         90.1        140.2          113.0         113.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I              1.8          2.2          0.4          0.5           -1.1          -1.3
            II              0.2          1.4          1.3          3.2            0.3           3.0
           III              2.9         -0.6         -3.4          5.2            2.2           2.3
            IV             10.7          7.4         -3.0          4.8            1.5          -5.3

        ANNUAL              1.6          0.7         -0.9          2.8            0.7           1.2

  2000       I              0.5         -1.6         -2.1          6.3            2.2           5.7
            II              3.6          2.5         -1.1          6.9            3.9           3.2
           III              2.9         -0.9         -3.7          9.4            5.7           6.3
            IV              4.8         -2.9         -7.4          9.7            6.6           4.7

        ANNUAL              3.8          1.1         -2.6          6.4            2.9           2.5

  2001       I             -0.9         -3.7         -2.8          5.9            1.7           6.9
            II             -1.6         -5.9         -4.4          5.9            2.8           7.6
           III             r2.7        r-1.5        r-4.1         r2.6           r1.9         r-0.1
            IV              4.3         -3.3         -7.3          1.4            1.8          -2.8

        ANNUAL              1.5         -2.9         -4.4          6.4            3.5           4.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I              1.2         -0.1         -1.4          3.1            1.5           1.8
            II              0.6          0.0         -0.6          2.3            0.4           1.7
           III              0.8          0.3         -0.5          2.5            0.2           1.6
            IV              3.8          2.6         -1.2          3.4            0.7          -0.4

        ANNUAL              1.6          0.7         -0.9          2.8            0.7           1.2

  2000       I              3.5          1.6         -1.8          4.9            1.5           1.3
            II              4.4          1.9         -2.4          5.8            2.4           1.4
           III              4.4          1.8         -2.5          6.8            3.3           2.4
            IV              3.0         -0.7         -3.6          8.1            4.6           5.0

        ANNUAL              3.8          1.1         -2.6          6.4            2.9           2.5

  2001       I              2.6         -1.3         -3.8          8.0            4.5           5.3
            II              1.3         -3.3         -4.6          7.7            4.2           6.4
           III              1.2         -3.5         -4.7         r6.0           r3.2          r4.7
            IV              1.1         -3.6         -4.7          3.9            2.1           2.8

        ANNUAL              1.5         -2.9         -4.4          6.4            3.5           4.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2002
  r=revised                                                       Source: Bureau of Labor Statistics
_


  Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I    114.5    139.5     121.9    119.1     103.1     104.1    102.8    103.7    141.6    106.9
            II    114.7    140.8     122.7    120.4     103.5     104.9    103.4    104.5    135.4    107.1
           III    115.4    142.5     123.4    121.9     104.0     105.6    105.0    105.4    128.0    107.4
            IV    116.4    144.8     124.3    123.2     104.2     105.8    105.1    105.6    131.3    107.8

        ANNUAL    115.3    141.9     123.1    121.2     103.8     105.1    104.1    104.8    134.0    107.3

  2000       I    117.2    146.6     125.1    125.0     104.8     106.6    106.2    106.5    135.1    108.9
            II    118.8    148.7     125.1    127.6     106.1     107.4    106.5    107.1    139.3    109.8
           III    119.6    149.7     125.2    129.7     107.0     108.5    107.1    108.1    135.8    110.5
            IV    119.8    149.8     125.1    132.7     108.7     110.8    107.8    110.0    120.5    110.9

        ANNUAL    118.8    148.7     125.1    128.8     106.7     108.3    106.9    107.9    132.6    110.0

  2001       I    119.9    150.1     125.1    134.5     109.1     112.2    109.3    111.4    111.1    111.4
            II    120.9    150.4     124.4    136.5     109.9     112.9    111.2    112.5    107.4    112.0
           III   r121.2   r149.4     123.3   r138.1    r110.9    r114.0   r114.2   r114.0    r99.6   r112.8
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1999       I      4.5      6.8       2.2      4.3       2.7      -0.2     -1.7     -0.6     11.6      0.7
            II      0.8      3.6       2.8      4.2       1.4       3.4      2.4      3.1    -16.4      0.8
           III      2.4      4.9       2.5      5.2       2.1       2.7      6.1      3.6    -20.0      0.8
            IV      3.5      6.5       2.9      4.2       0.9       0.7      0.7      0.7     10.5      1.7

        ANNUAL      3.1      5.6       2.4      4.5       2.3       1.3      1.9      1.4     -5.4      0.7

  2000       I      2.8      5.3       2.5      6.0       2.0       3.2      4.1      3.4     12.2      4.3
            II      5.6      5.7       0.1      8.4       5.4       2.7      1.1      2.3     13.0      3.4
           III      2.6      2.8       0.2      7.0       3.3       4.3      2.4      3.8     -9.8      2.2
            IV      0.7      0.3      -0.3      9.6       6.5       8.9      2.6      7.2    -38.0      1.6

        ANNUAL      3.1      4.8       1.7      6.3       2.8       3.1      2.7      3.0     -1.0      2.5

  2001       I      0.5      0.7       0.2      5.5       1.3       5.0      5.8      5.2    -27.8      1.8
            II      3.3      0.8      -2.4      6.1       2.9       2.7      7.0      3.8    -12.6      2.3
           III     r0.9    r-2.6     r-3.5     r4.7      r4.0      r3.8    r11.2     r5.7   r-26.1     r2.8
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1999       I      4.2      6.3       2.1      4.6       3.1       0.4      1.1      0.6     -1.6      0.4
            II      3.2      5.8       2.5      4.3       2.3       1.1      1.5      1.2     -3.6      0.7
           III      2.4      5.1       2.6      4.4       2.0       2.0      3.1      2.3    -11.6      0.7
            IV      2.8      5.5       2.6      4.5       1.8       1.6      1.8      1.7     -4.7      1.0

        ANNUAL      3.1      5.6       2.4      4.5       2.3       1.3      1.9      1.4     -5.4      0.7

  2000       I      2.4      5.1       2.7      4.9       1.6       2.5      3.3      2.7     -4.6      1.9
            II      3.6      5.6       2.0      6.0       2.6       2.3      3.0      2.5      2.9      2.5
           III      3.6      5.1       1.4      6.4       2.9       2.7      2.0      2.5      6.0      2.9
            IV      2.9      3.5       0.6      7.8       4.3       4.7      2.5      4.1     -8.2      2.9

        ANNUAL      3.1      4.8       1.7      6.3       2.8       3.1      2.7      3.0     -1.0      2.5

  2001       I      2.3      2.3       0.0      7.6       4.1       5.2      2.9      4.6    -17.8      2.2
            II      1.8      1.2      -0.6      7.0       3.5       5.2      4.4      5.0    -22.9      2.0
           III     r1.3    r-0.2      -1.5      6.5       3.7      r5.1     r6.6     r5.5   r-26.7     r2.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        February 6, 2002
  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 
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 
-1.5 and +1.7 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 third quarter of 2001.  



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 consumer prices.  The 
change for recent quarters is based on the Consumer Price Index for all 
urban consumers (CPI-U).  The trend from 1978-2000 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances, 
interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the 
original data rather than index numbers.  Annual changes:  Percent 
change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest, 
rental income of persons, and indirect taxes.  For nonfinancial 
corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and 
capital consumption adjustments.