TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,


 
 
 
 
 
 
 
 
 
 
Historical, technical                    USDL 94-549
  information: (202) 606-5606            Transmission of this
Current data:  (202) 606-7828            material is embargoed
Media contact: (202) 606-5902            until 10:00 A.M. EST
                                         Wednesday, November 9, 1994.
 
 
                              PRODUCTIVITY AND COSTS
                                Third Quarter 1994
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
preliminary productivity data-as measured by output per hour of all persons-for the
third quarter of 1994.  The preliminary seasonally-adjusted annual rates of
productivity growth in the third quarter were:
 
               3.1 percent in the business sector, and
               2.7 percent in the nonfarm business sector.
 
In both the business and the nonfarm business sectors, productivity increased in
the third quarter after having fallen in the second quarter.
 
     In manufacturing, productivity increases in the third quarter were:
 
               5.3 percent in manufacturing,
               6.4 percent in durable goods manufacturing, and
               3.3 percent in nondurable goods manufacturing.
 
     The third-quarter increase in productivity in the manufacturing sector was
slightly lower than that recorded in the second quarter.  In the nondurable goods
sector, third-quarter growth was less than half what it had been in the previous
quarter.  In the larger durable goods sector, however, productivity growth
accelerated in the third quarter.  Manufacturing includes nearly 20 percent of U.S.
business sector employment.  Third-quarter measures are summarized in table A and
appear in detail in tables 1 through 5.
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors of
the Federal Reserve System.  See Technical Notes for further information on data
sources (page 7).
 
 
                                          2
 
 
 
Table A.  Productivity and costs:  Preliminary third-quarter 1994 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          3.1     4.0   0.8    3.3      -0.3      0.2
   Nonfarm business  2.7     3.9   1.2    2.9      -0.7      0.1
   Manufacturing     5.3     7.1   1.7    3.1      -0.5     -2.1
   Durable           6.4     9.1   2.5    2.9      -0.7     -3.3
   Nondurable        3.3     4.1   0.7    3.2      -0.3     -0.1
 
 
                      Percent change from same quarter a year ago
 
   Business          2.4     5.4   3.0    3.0       0.2      0.6
   Nonfarm business  2.1     5.1   2.9    3.0       0.1      0.9
   Manufacturing     6.4     7.8   1.3    2.4      -0.5     -3.8
   Durable           7.9    10.0   2.0    2.3      -0.5     -5.2
   Nondurable        4.2     4.5   0.3    2.3      -0.5     -1.8
 
 
 
Business
 
     From the second quarter to the third quarter of 1994, business sector
productivity increased at a 3.1 percent annual rate.  Output rose 4.0 percent, and
hours of all persons engaged in the sector increased 0.8 percent (seasonally
adjusted annual rates).  The hours increase reflected an employment gain of 2.7
percent and a decline in average weekly hours worked of 1.8 percent.   After
revisions, second-quarter productivity declined 2.0 percent, as output and hours
rose by 3.7 and 5.9 percent, respectively (tables B and 1).
 
     Hourly compensation increased 3.3 percent during the third quarter of 1994,
compared with a 0.2 percent rise in the second quarter.  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 annual rate during the third quarter.
During the previous quarter, these costs had increased 2.3 percent.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), decreased 0.3 percent in the third
quarter; it had fallen 2.5 percent in the second quarter of 1994.
 
 
                                          3
 
 
     The implicit price deflator for the business sector, which reflects changes in
unit labor costs and unit nonlabor payments, increased at a 1.6 percent annual rate
in the third quarter, compared with a 3.5 percent increase during the second
quarter of 1994.
 
 
Nonfarm business
 
     Productivity rose 2.7 percent in the nonfarm business sector during the third
quarter of 1994 as output rose 3.9 percent and hours of all persons increased 1.2
percent.  During the second quarter of 1994, productivity had fallen 2.1 percent
(as revised) in the nonfarm business sector, reflecting gains of 3.2 percent in
output and 5.5 percent in hours (table 2).
 
     Hourly compensation increased at a 2.9 percent annual rate in the third
quarter, compared with a 0.7 percent increase one quarter earlier.  When the rise
in the CPI-U is taken into account, real hourly compensation fell at a 0.7 percent
annual rate in the third quarter.  This marks the fifth such decline in the last
seven quarters and the second consecutive quarter in which real hourly compensation
fell.  Unit labor costs increased 0.1 percent, compared with a 2.9 percent rise
during the second quarter of 1994.
 
     The implicit price deflator for nonfarm business output rose 1.9 percent in
the third quarter, compared with a 4.5 percent rise one quarter earlier.
 
 
Manufacturing
 
     Productivity increased 5.3 percent in manufacturing in the third quarter of
1994, as output rose 7.1 percent and hours of all persons rose 1.7 percent
(seasonally adjusted annual rates).  The hours increase reflected an increase in
employment of 1.9 percent (the largest increase since 4.3 percent in the fourth
quarter of 1987) and a decline in average weekly hours of 0.1 percent (the first
decrease since the first quarter of 1991 when average weekly hours fell 2.5
percent).   Productivity grew more in the durable goods industries than among
nondurable goods producers.  Output and hours rose in both the durable and the
nondurable goods sectors, but the increases in the durable goods sector were higher
(tables 3, 4, and 5).  Employment increased by 2.8 percent in the durable goods
sector and 0.7 percent in the nondurable goods sector.  Average weekly hours were
unchanged in the nondurable goods sector, but declined by 0.3 percent in the
durable goods sector.
 
     Hourly compensation of all manufacturing workers increased 3.1 percent during
the third quarter, compared with a 1.4 percent decline during the second quarter
(seasonally adjusted annual rates).  Real hourly compensation fell 0.5 percent in
the third quarter when the increase in the CPI-U is taken into account.  During the
second quarter, real hourly compensation also had  declined.
 
     Unit labor costs fell at a 2.1 percent annual rate in the third quarter of
1994.  These costs had decreased 6.8 percent during the second quarter of 1994 and
have now declined for four consecutive quarters.
 
 
                                          4
 
 
Revised Measures
 
     Current and previous measures for the second quarter of 1994 for the business,
nonfarm business, and manufacturing sectors are compared in table B. The quarterly
movements differ from those reported on September 7 based on information then
available.
 
 
 
    Table B. Previous and revised productivity and related measures
    Quarterly percent changes at seasonally adjusted annual rates
 
 
                                                                 Real
                                                      Hourly     hourly   Unit
                      Produc-                         compen-    compen-  labor
      Sector          tivity     Output       Hours   sation     sation   costs
 
 
                                      Second quarter 1994
    Business:
     Previous . . . . -2.7        2.9        5.8       0.3       -2.4      3.2
     Current . . . . .-2.0        3.7        5.9       0.2       -2.5      2.3
 
    Nonfarm business:
     Previous . . . . -2.5        2.7        5.4       0.8       -1.9      3.4
     Current . . . . .-2.1        3.2        5.5       0.7       -2.0      2.9
 
    Manufacturing:
     Previous. . . . . 4.5        6.1        1.5      -1.6       -4.2     -5.8
     Current . . . . . 5.7        7.3        1.5      -1.4       -4.1     -6.8
 
 
 
 
     The productivity and cost measures also were revised to reflect the results of
the 1993 Hours at Work Survey (HWS), which are now available.  This survey is used
to adjust the number of hours for which private nonfarm employees are paid, as
reported in the BLS Current Establishment Survey, to hours at the workplace.  For
1993, these new results show that hours of all persons increased slightly more than
had originally been reported.  In the business and nonfarm business sectors, hours
were revised up by  0.1 percentage point-to increases of 2.2 percent in business
and  2.5 percent in nonfarm business.  In the manufacturing sector, hours of all
persons were revised up by 0.3 percentage points, to a 0.8 percent rate of
increase.
 
 
                                          5
 
 
Revised measures: Nonfinancial Corporations
 
     Productivity and cost measures for the second quarter for nonfinancial
corporations, which were revised to incorporate the most recent information, were
somewhat different from the preliminary results announced on September 7.
Productivity fell at an annual rate of 1.4 percent compared with the previously
announced decline of 1.3 percent (table C).
 
 
Table C.  Nonfinancial corporations: Previous and revised productivity and related
measures
Quarterly percent changes at seasonally adjusted annual rates
 
                                       Real
                               Hourly  hourly  Unit              Implicit
         Produc-               compen- compen- labor  Unit       price
Period   tivity Output  Hours  sation  sation  costs  profits    deflator
 
                                   Second quarter 1994
 
Previous  -1.3    4.8    6.2    0.0    -2.7     1.4    22.1       1.8
Current   -1.4    4.8    6.4   -0.1    -2.7     1.4    20.7       1.8
 
                                 Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 AM EST,
Wednesday, December 7, 1994. Revised third-quarter measures will be released at
that time.  This release also will include revised productivity and output measures
for the manufacturing sectors, incorporating both new gross product originating
data for 1990-92, recently made available by the Bureau of Economic Analysis, U.S.
Department of Commerce, and revised Indexes of Production from the Federal Reserve
Board beginning in January 1991.
 
 
                                            6
 
 
 
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                                            7
 
 
                                 TECHNICAL NOTES
 
 
 
      Labor Input:  The primary  source   Durables include the following 2-
      of hours  and employment  data is   digit  SIC   industries:  Primary
      the   BLS    Current   Employment   metal   industries;    fabricated
      Statistics (CES)  program,  which   metal   products;   nonelectrical
      provides monthly  survey data  on   machinery;     industrial     and
      total  employment   and   average   commercial machinery and computer
      weekly hours  of  production  and   equipment; electronic  and  other
      nonsupervisory     workers     in   electrical             equipment;
      nonagricultural   establishments.   transportation         equipment;
      Jobs  rather   than  persons  are   instruments;  lumber  and  lumber
      counted.   Weekly    hours    are   products; furniture and fixtures;
      adjusted to  the  hours  at  work   stone,  clay,   and   glass   and
      definition using the BLS Hours at   concrete products;  and miscella-
      Work survey,  conducted for  this   neous  manufactures.  Nondurables
      purpose.                            include:   Food    and    kindred
           Data from  the  BLS  Current   products,    tobacco    products,
      Population Survey  (CPS) are used   textile  mill  products,  apparel
      for farm  labor; in  the  nonfarm   products,   paper    and   allied
      sector, the  National Income  and   products,      printing       and
      Product Accounts  (NIPA) prepared   publishing,     chemicals     and
      by   the   Bureau   of   Economic   chemical   products,    petroleum
      Analysis  of  the  Department  of   refining and  related industries,
      Commerce and  the CPS are used to   rubber  and   plastic   products,
      measure    labor     input    for   leather  and   leather  products.
      government           enterprises,   Manufacturing accounted for about
      proprietors  and   unpaid  family   19  percent   of  GDP   in  1992.
      workers.                            Quarterly  manufacturing   output
                                          measures are  based on  the index
      Output: Business sector output is   of industrial production prepared
      equal to  gross domestic  product   monthly by the Board of Governors
      (GDP) in  constant 1987  dollars,   of  the  Federal  Reserve  System
      less general  government,  output   adjusted by  BLS to  annual manu-
      of nonprofit institutions, output   facturing  output  levels  (gross
      of  paid   employees  of  private   product originating) from the Na-
      households,   rental   value   of   tional   Income    and    Product
      owner-occupied dwellings, and the   Accounts prepared  by the  Bureau
      statistical    discrepancy     in   of Economic  Analysis of the U.S.
      computing the NIPA. Corresponding   Department of Commerce.
      exclusions are also made in labor
      inputs. Business output was about
      78  percent   of  GDP   in  1992.
      Nonfarm business,  which also ex-
      cludes farming, was about 77 per-
      cent of GDP in 1992.
           Total manufacturing measures
      are computed  by  summing  series
      prepared  for   the  durable  and
      nondurable     goods     sectors.
 
 
                                            8
 
           Nonfinancial       corporate
      output  is   equal  to   GDP   in
      constant 1987  dollars, less  the
      output of nonprofit institutions,
      output  of   paid  employees   of
      private households,  rental value
      of   owner-occupied    dwellings,
      unincorporated   business,    the
      output of corporations engaged in
      banking,   finance,   stock   and
      commodity trading, and credit and
      insurance   agencies,   and   the
      statistical    discrepancy     in
      computing the  NIPA. Nonfinancial
      corporations accounted  for about
      56 percent of GDP in 1992.
 
      Productivity: These  productivity
      measures       describe       the
      relationship between  real output
      and the  labor time  involved  in
      its  production.  They  show  the
      changes from  period to period in
      the amount  of goods and services
      produced per hour. Although these
      measures relate  output to  hours
      at work of all persons engaged in
      a sector, they do not measure the
      specific contribution  of  labor,
      capital, or  any other  factor of
      production. Rather,  they reflect
      the   joint   effects   of   many
      influences, including  changes in
      technology;  capital  investment;
      level of  output; utilization  of
      capacity, energy,  and materials;
      the organization  of  production;
      managerial   skill;    and    the
      characteristics and effort of the
      work force.
 
           Information in  this release
      will   be   made   available   to
      sensory-impaired individuals upon
      request.  Voice  phone:  202-606-
      STAT;  TDD  phone:  202-606-5897;
      TDD   message    referral   phone
      number: 1-800-326-2577.
 
 
 
 
 
 
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
     and prices, seasonally adjusted
                                                                Real
        Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
        and        hour of                of all    tion per    tion per    labor    labor pay-  price
        quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
     ---------------------------------------------------------------------------------------------------------
                                              Indexes 1982=100
 
     1992       I     114.5      133.7     116.8     152.2       105.9     133.0       148.4       138.0
               II     114.8      134.4     117.1     153.7      r106.1     133.9       148.8       138.8
              III     115.9      136.1     117.4     156.0       106.8     134.7       145.8       138.3
               IV     116.8      137.9     118.1    r157.7      r107.1     135.1       150.2       140.1
 
           ANNUAL     115.5      135.5     117.4     154.9       106.6     134.2       148.3       138.8
 
     1993       I    r116.2      138.1    r118.9    r158.8      r107.0     136.6       149.5       140.8
               II    r116.4      139.6    r119.9    r160.0      r107.0     137.5       149.6       141.4
              III    r117.3      140.9    r120.1    r161.2      r107.3     137.4      r150.4       141.6
               IV    r119.0      143.9    r121.0    r162.1      r107.2     136.3       153.8       142.1
 
           ANNUAL    r117.2      140.6    r120.0    r160.5      r107.2     136.9      r150.9       141.5
 
     1994       I    r119.8      145.8    r121.7    r164.6      r108.3     137.4      r153.2       142.6
               II    r119.2     r147.2    r123.5    r164.7      r107.6    r138.2      r155.3       143.8
              III     120.1      148.6     123.7     166.0       107.5     138.2       156.9       144.4
     ---------------------------------------------------------------------------------------------------------
                          Percent change from previous quarter at annual rate(5)
 
     1992       I      r5.5        3.4      -1.9       5.8         3.1       0.3         9.1         3.3
               II      r1.1        2.2       1.1       4.0         0.7       2.8         1.0         2.2
              III      r3.7        4.9      r1.2      r6.1         3.0       2.4        -7.7        -1.3
               IV      r3.2        5.6      r2.3      r4.4        r1.2       1.2       r12.7         5.1
 
           ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
     1993       I     r-1.9        0.6      r2.5      r2.6       r-0.4       4.6        -2.0         2.3
               II      r0.6        4.2      r3.6      r3.1        r0.0       2.5         0.3         1.7
              III      r3.3        4.0      r0.7      r3.0        r1.1      -0.3         2.1         0.6
               IV       5.7        8.6       2.8       2.4       r-0.6      -3.1         9.4         1.2
 
           ANNUAL      r1.5        3.8      r2.2      r3.6        r0.6      r2.0         1.7         1.9
 
     1994       I       2.9        5.5      r2.5      r6.3        r4.1       3.3        -1.7         1.5
               II     r-2.0       r3.7      r5.9      r0.2       r-2.5      r2.3        r5.8         3.5
              III       3.1        4.0       0.8       3.3        -0.3       0.2         4.1         1.6
 
 
 
 
 
     ---------------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
     1992       I      r2.8        1.7     r-1.1       4.9         2.0       2.1         3.2         2.5
               II       2.5        2.0     r-0.6       4.9         1.7       2.3         2.5         2.4
              III       3.1        3.0      -0.2       5.3         2.2       2.1         0.3         1.5
               IV       3.4        4.0       0.6       5.1         2.0       1.7         3.5         2.3
 
           ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
     1993       I      r1.5        3.3      r1.8      r4.3        r1.1       2.8         0.7         2.0
               II      r1.4        3.8      r2.4      r4.1        r0.9       2.7        r0.6         1.9
              III      r1.3        3.6      r2.3      r3.3        r0.5       2.0         3.1         2.4
               IV      r1.9        4.3      r2.4      r2.8        r0.0       0.9         2.4         1.4
 
           ANNUAL      r1.5        3.8      r2.2      r3.6        r0.6      r2.0         1.7         1.9
 
     1994       I       3.1        5.6       2.4       3.7        r1.1       0.6         2.5         1.2
               II      r2.4       r5.4      r3.0       3.0         0.5      r0.5        r3.8         1.7
              III       2.4        5.4       3.0       3.0         0.2       0.6         4.3         1.9
     ---------------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                      Nov. 9, 1994
     r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
     and prices, seasonally adjusted
                                                                Real
        Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
        and        hour of                of all    tion per    tion per    labor    labor pay-  price
        quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
     ---------------------------------------------------------------------------------------------------------
                                              Indexes 1982=100
 
     1992       I     112.6      133.6    r118.6     150.9      r105.0     134.0       149.5       139.0
               II     113.1      134.4     118.8     152.6       105.3     134.9       150.4       139.9
              III     113.9      135.9     119.3     154.7       106.0     135.9       147.0       139.5
               IV     115.0      137.9    r120.0    r156.4       106.3     136.1       152.1       141.2
 
           ANNUAL     113.7      135.5     119.2     153.7       105.7     135.2       149.7       139.9
 
     1993       I    r114.4      138.3    r120.9    r157.2      r106.0     137.5       151.5       142.0
               II    r114.5      139.9    r122.1    r158.2      r105.8     138.1       151.8       142.5
              III    r115.6      141.5    r122.4    r159.3      r106.1     137.7      r153.5       142.8
               IV    r117.0      144.3    r123.3    r160.2      r105.9     136.9       156.1       143.1
 
           ANNUAL    r115.4      141.0    r122.2    r158.7      r106.0     137.5      r153.3       142.6
 
     1994       I    r117.9      146.1    r124.0    r162.6      r106.9     137.9      r155.3       143.5
               II     117.2     r147.3    r125.6    r162.9      r106.4    r138.9      r158.1       145.1
              III     118.0      148.7     126.0     164.0       106.2     139.0       160.1       145.8
     ---------------------------------------------------------------------------------------------------------
                          Percent change from previous quarter at annual rate(5)
 
     1992       I       4.2        2.4     r-1.8       5.7         3.0       1.4         6.5         3.2
               II       1.9        2.5       0.6       4.6         1.2       2.6         2.3         2.5
              III       2.8        4.4      r1.6       5.8        r2.6      r2.9        -8.6        -1.2
               IV      r3.8        6.2      r2.3      r4.5        r1.2       0.6       r14.4         5.1
 
           ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
     1993       I     r-2.0        1.0      r3.0      r2.1       r-0.9      r4.1       r-1.4         2.2
               II      r0.4        4.7      r4.3      r2.4       r-0.7       2.0        r0.8         1.6
              III      r4.0        4.9      r0.9       2.8        r0.9      -1.2         4.4         0.7
               IV       4.9        7.9       2.9       2.4        -0.6      -2.4         7.1         0.8
 
           ANNUAL      r1.5        4.1      r2.5      r3.3        r0.2       1.7        r2.4         1.9
 
     1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
               II     r-2.1       r3.2      r5.5      r0.7       r-2.0      r2.9        r7.5        r4.5
              III       2.7        3.9       1.2       2.9        -0.7       0.1         5.2         1.9
 
 
 
 
 
     ---------------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
     1992       I       2.4        1.4      -1.0      r4.9         2.0       2.4         2.8         2.5
               II       2.4        1.8     r-0.6       5.0         1.8       2.5         2.8         2.6
              III       2.7        2.6      -0.1       5.3         2.1       2.6         0.0         1.7
               IV       3.2        3.8      r0.7      r5.1         2.0       1.9         3.3         2.4
 
           ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
     1993       I      r1.6        3.5      r1.9      r4.2        r1.0       2.6         1.3         2.1
               II      r1.2        4.0      r2.8      r3.7        r0.5       2.4         0.9         1.9
              III      r1.5        4.2      r2.6      r2.9        r0.1       1.4        r4.4         2.4
               IV      r1.8        4.6       2.7      r2.4       r-0.3       0.6        r2.7         1.3
 
           ANNUAL      r1.5        4.1      r2.5      r3.3        r0.2       1.7        r2.4         1.9
 
     1994       I      r3.0        5.7      r2.6       3.4         0.9      r0.3         2.5         1.1
               II      r2.4       r5.3       2.8       3.0        r0.5      r0.6        r4.2         1.8
              III       2.1        5.1       2.9       3.0         0.1       0.9         4.3         2.1
     ---------------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                      Nov. 9, 1994
     r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
     seasonally adjusted
                                                                                 Real
          Year           Output per                  Hours       Compensa-       compensa-      Unit
          and            hour of                     of all      tion per        tion per       labor
          quarter        all persons     Output      persons     hour(1)         hour(2)        costs
     --------------------------------------------------------------------------------------------------
                                                Indexes 1982=100
 
     1992       I           r127.3        129.6       r101.8       r145.2          r101.0        114.1
               II            128.6        131.5       r102.2       r146.8          r101.3        114.1
              III            129.1        131.8        102.1        148.4           101.6        114.9
               IV           r130.7        133.9       r102.5       r150.7          r102.4        115.3
 
           ANNUAL            129.1        131.7        102.0        147.9           101.7        114.6
 
     1993       I           r131.9        136.0       r103.1       r150.0          r101.1        113.7
               II           r133.3        137.1       r102.8       r152.1          r101.8        114.1
              III           r134.1        137.9       r102.8       r153.6          r102.3        114.5
               IV           r136.7        140.9       r103.0       r155.1          r102.5        113.5
 
           ANNUAL           r134.1        138.0       r102.9       r152.8          r102.0        114.0
 
     1994       I           r139.0        143.6       r103.3       r156.6          r103.0        112.7
               II           r140.9       r146.1       r103.7       r156.1          r101.9       r110.7
              III            142.8        148.6        104.1        157.2           101.8        110.2
     --------------------------------------------------------------------------------------------------
                            Percent change from previous quarter at annual rate(5)
 
     1992       I             r3.3          1.1        r-2.1         r1.5           r-1.1         -1.8
               II              4.4          6.1          1.7         r4.5             1.2          0.2
              III             r1.5          1.0        r-0.5         r4.3            r1.2          2.8
               IV             r5.1          6.6         r1.4         r6.5            r3.2          1.3
 
           ANNUAL              3.7          3.1         -0.6          4.2             1.2          0.5
 
     1993       I             r3.5          6.1         r2.6        r-2.0           r-4.9         -5.3
               II             r4.6          3.5        r-1.1         r6.0            r2.8          1.3
              III             r2.4          2.4         r0.0         r3.9            r2.0          1.5
               IV             r7.8          8.7         r0.9         r3.9            r0.9         -3.6
 
           ANNUAL             r3.9          4.8         r0.8         r3.3            r0.3         -0.6
 
     1994       I             r6.9          8.0         r1.0         r4.0            r1.8         -2.8
               II             r5.7         r7.3          1.5        r-1.4           r-4.1        r-6.8
              III              5.3          7.1          1.7          3.1            -0.5         -2.1
 
 
 
 
 
     --------------------------------------------------------------------------------------------------
                        Percent change from corresponding quarter of previous year
 
     1992       I             r3.8          2.5         -1.2         r4.0            r1.1          0.2
               II             r4.0          3.8         -0.1          4.0            r0.9          0.0
              III             r2.9          2.3         -0.6          4.2             1.1          1.2
               IV             r3.6          3.7         r0.1         r4.2            r1.1          0.6
 
           ANNUAL              3.7          3.1         -0.6          4.2             1.2          0.5
 
     1993       I             r3.6          4.9         r1.3         r3.3            r0.1         -0.3
               II             r3.7          4.3         r0.6         r3.6            r0.5          0.0
              III             r3.9          4.6         r0.7         r3.5            r0.7         -0.3
               IV             r4.6          5.2         r0.6         r2.9            r0.2         -1.6
 
           ANNUAL             r3.9          4.8         r0.8         r3.3            r0.3         -0.6
 
     1994       I             r5.4          5.6         r0.2         r4.4            r1.9         -0.9
               II             r5.7         r6.6          0.8          2.6             0.1        r-2.9
              III              6.4          7.8          1.3          2.4            -0.5         -3.8
     --------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                Nov. 9, 1994
     r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
     seasonally adjusted
                                                                                 Real
          Year           Output per                  Hours       Compensa-       compensa-      Unit
          and            hour of                     of all      tion per        tion per       labor
          quarter        all persons     Output      persons     hour(1)         hour(2)        costs
     --------------------------------------------------------------------------------------------------
                                                Indexes 1982=100
 
     1992       I           r137.0        136.1        r99.4       r143.1           r99.5        104.4
               II           r139.2        138.5         99.5       r144.9          r100.0        104.1
              III            139.9        138.8         99.3        146.4           100.2        104.6
               IV           r142.5        142.1        r99.7       r149.2          r101.4        104.7
 
           ANNUAL            139.8        138.9         99.3        146.1           100.5        104.5
 
     1993       I           r144.7        145.2       r100.4       r147.4           r99.4        101.9
               II           r146.9        146.7        r99.9       r149.4          r100.0        101.7
              III           r147.9        148.0       r100.1       r150.7          r100.3        101.9
               IV           r152.3        153.1       r100.5       r152.3          r100.7        100.0
 
           ANNUAL           r148.0        148.3       r100.1       r150.1          r100.2        101.4
 
     1994       I           r155.2        156.8       r101.0       r154.0          r101.2         99.2
               II           r157.0       r159.3       r101.4       r153.1          r100.0        r97.5
              III            159.5        162.8        102.1        154.2            99.8         96.6
     --------------------------------------------------------------------------------------------------
                            Percent change from previous quarter at annual rate(5)
 
     1992       I             r2.0         -0.3        r-2.2         r0.9           r-1.7         -1.1
               II             r6.7          7.2          0.4          5.2            r1.8         -1.5
              III             r1.8          1.0        r-0.8         r4.1            r1.0          2.3
               IV             r7.9          9.7         r1.6         r8.1            r4.7          0.2
 
           ANNUAL              5.0          3.4         -1.5          4.5             1.5         -0.4
 
     1993       I             r6.1          9.0         r2.8        r-4.8           r-7.6        -10.3
               II             r6.3          4.4        r-1.9         r5.6            r2.5        r-0.7
              III             r2.6          3.5         r0.8         r3.4            r1.5         r0.7
               IV             12.5         14.4         r1.7          4.4            r1.3         -7.2
 
           ANNUAL             r5.9          6.7         r0.8         r2.8           r-0.2        r-3.0
 
     1994       I             r8.0         10.2         r2.0         r4.4            r2.3         -3.3
               II             r4.8         r6.5          1.7        r-2.3           r-4.9        r-6.7
              III              6.4          9.1          2.5          2.9            -0.7         -3.3
 
 
 
 
 
     --------------------------------------------------------------------------------------------------
                        Percent change from corresponding quarter of previous year
 
     1992       I             r5.1          2.9        r-2.1         r4.0            r1.1         -1.1
               II             r5.7          4.2        r-1.4         r4.4            r1.3         -1.2
              III              4.0          2.4         -1.5          4.6             1.5          0.6
               IV             r4.6          4.3        r-0.2         r4.5            r1.4          0.0
 
           ANNUAL              5.0          3.4         -1.5          4.5             1.5         -0.4
 
     1993       I             r5.6          6.7         r1.0         r3.0           r-0.1         -2.4
               II             r5.5          6.0         r0.4         r3.1            r0.0         -2.2
              III             r5.7          6.6         r0.8         r2.9            r0.1         -2.6
               IV             r6.8          7.7         r0.8         r2.1           r-0.7        r-4.5
 
           ANNUAL             r5.9          6.7         r0.8         r2.8           r-0.2        r-3.0
 
     1994       I             r7.3          8.0         r0.7         r4.4            r1.9        r-2.7
               II             r6.9         r8.6         r1.6          2.4             0.0        r-4.2
              III              7.9         10.0          2.0          2.3            -0.5         -5.2
     --------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                Nov. 9, 1994
     r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
     seasonally adjusted
                                                                                 Real
          Year           Output per                  Hours       Compensa-       compensa-      Unit
          and            hour of                     of all      tion per        tion per       labor
          quarter        all persons     Output      persons     hour(1)         hour(2)        costs
     --------------------------------------------------------------------------------------------------
                                                Indexes 1982=100
 
     1992       I            115.4        121.5        105.3        149.5           104.0        129.5
               II            115.8        122.9        106.2        151.0           104.2        130.4
              III            116.1        123.2        106.1        152.7           104.6        131.5
               IV            116.5        124.0        106.4       r154.2           104.8        132.4
 
           ANNUAL           r116.0        122.9        105.9        152.0           104.5        131.0
 
     1993       I            116.5        124.6        107.0        155.2          r104.6        133.3
               II           r117.1        125.3        107.0        157.7           105.5        134.6
              III            117.7        125.6        106.7       r159.5          r106.2        135.5
               IV            118.1        125.9        106.6       r160.7          r106.2        136.1
 
           ANNUAL           r117.3        125.4        106.8        158.3           105.7        134.9
 
     1994       I           r119.5        127.4        106.5       r161.9           106.5        135.4
               II           r121.6       r130.0       r106.9        161.9          r105.7       r133.1
              III            122.6        131.3        107.1        163.2           105.6        133.1
     --------------------------------------------------------------------------------------------------
                            Percent change from previous quarter at annual rate(5)
 
     1992       I              5.2          3.1         -2.0          2.4           r-0.3         -2.7
               II              1.3          4.8         r3.4         r3.9             0.5          2.6
              III             r1.0          0.9         -0.2         r4.6             1.5          3.6
               IV              1.4          2.5          1.1         r4.1            r0.8          2.7
 
           ANNUAL              2.0          2.6          0.6          4.0             0.9          1.9
 
     1993       I            r-0.2          2.1         r2.3         r2.4           r-0.6          2.6
               II              2.3          2.2         -0.1          6.6             3.4          4.2
              III              2.0          0.9         -1.1         r4.6             2.7          2.6
               IV             r1.2          1.0         -0.3          3.1             0.1          1.8
 
           ANNUAL             r1.1          2.0         r0.9         r4.1             1.1          3.0
 
     1994       I              5.2          4.7         -0.4          3.1             0.9         -2.0
               II             r7.1         r8.5         r1.3        r-0.1           r-2.8        r-6.7
              III              3.3          4.1          0.7          3.2            -0.3         -0.1
 
 
 
 
 
     --------------------------------------------------------------------------------------------------
                        Percent change from corresponding quarter of previous year
 
     1992       I              2.0          2.0          0.0          4.1             1.2          2.0
               II              1.7          3.3          1.6          3.7            r0.6          1.9
              III              1.5          2.2          0.7          3.8             0.7          2.2
               IV              2.2          2.8          0.6          3.8             0.7          1.5
 
           ANNUAL              2.0          2.6          0.6          4.0             0.9          1.9
 
     1993       I              0.9          2.6         r1.7          3.8             0.6          2.9
               II             r1.1          1.9          0.8         r4.4             1.3          3.3
              III              1.4          1.9         r0.6         r4.4             1.6          3.0
               IV             r1.3          1.5          0.2          4.2             1.4          2.8
 
           ANNUAL             r1.1          2.0         r0.9         r4.1             1.1          3.0
 
     1994       I              2.7          2.2        r-0.4         r4.3             1.8          1.6
               II             r3.8         r3.7         -0.1         r2.7             0.2        r-1.1
              III              4.2          4.5          0.3          2.3            -0.5         -1.8
     --------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                Nov. 9, 1994
     r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
 
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
     and prices, seasonally adjusted
 
                   Output                      Hourly    Real                Unit     Total    Unit   Implicit
         Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
         and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
         quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
     ----------------------------------------------------------------------------------------------------------
                                                Indexes 1982=100
 
     1992       I   r116.8     137.3    117.6    147.7     102.7     126.5    119.3    124.5    170.4    127.3
               II    117.6     138.8    118.1    149.4     103.1     127.1    118.0    124.5    175.6    127.6
              III    119.1     140.7    118.1    151.5     103.7     127.2    119.0    124.9    171.0    127.7
               IV    120.6     143.4    118.9    153.1     104.0     127.0    115.7    123.8    191.2    127.9
 
           ANNUAL    118.5     140.0    118.2    150.4     103.5     126.9    118.0    124.4    177.2    127.7
 
     1993       I    120.0     143.3    119.4    154.0     103.8     128.3    116.8    125.0    183.7    128.7
               II   r121.3     145.9   r120.3    154.5     103.4     127.3    115.8    124.1    199.4    128.7
              III    122.7     148.1    120.7    155.4     103.5     126.7    115.8    123.6    202.5    128.5
               IV    124.1     150.9    121.6   r155.9     103.1     125.7    114.8    122.6    220.9    128.7
 
           ANNUAL    122.0     147.0    120.5    154.9     103.5     127.0    115.8    123.8    201.9    128.6
 
     1994       I    125.1     153.0    122.3    157.9    r103.8     126.2    116.6    123.5    218.2    129.4
               II   r124.6     154.8    124.2    157.9    r103.1     126.7    115.2    123.4   r228.7    129.9
     ----------------------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
     1992       I     r1.3       0.9     -0.4      3.9       1.2       2.6     -2.6      1.2     14.8      2.2
               II      2.9       4.7      1.7      4.7       1.3       1.7     -4.4      0.0     12.8      1.0
              III      5.2       5.5     r0.3      5.7       2.5       0.4      3.5      1.2    -10.0      0.2
               IV      5.1       8.0      2.7      4.3       1.0      -0.8    -10.4     -3.5     56.4      0.7
 
           ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
     1993       I     -1.9      -0.3      1.7     r2.3      -0.7       4.4      3.6      4.2    -14.9      2.3
               II      4.5       7.5      2.8      1.4      -1.7      -3.0     -3.3     -3.1     38.9      0.2
              III      4.5       6.0     r1.5      2.2       0.4      -2.1      0.0     -1.6      6.5     -0.8
               IV      4.7       7.8      3.0      1.4      -1.5      -3.1     -3.4     -3.2     41.5      0.6
 
           ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
     1994       I      3.3       5.8      2.5      5.1      r3.0       1.8      6.6      3.1     -4.9      2.2
               II    r-1.4       4.8     r6.4    r-0.1      -2.7       1.4    r-4.8    r-0.3    r20.7      1.8
 
 
 
 
 
     ----------------------------------------------------------------------------------------------------------
                               Percent change from corresponding quarter of previous year
 
     1992       I      2.4       1.7     -0.7      4.3       1.4       1.8     -1.2      1.0      5.2      1.3
               II      2.6       2.7      0.2      4.5       1.3       1.9     -2.1      0.8      5.0      1.1
              III      3.3       3.5      0.3      4.9       1.7       1.6     -1.5      0.7      3.7      0.9
               IV      3.6       4.7      1.1     r4.6       1.5       1.0     -3.6     -0.3     16.2      1.1
 
           ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
     1993       I      2.8       4.4      1.6     r4.2      r1.0       1.4     -2.1      0.5      7.8      1.1
               II      3.2       5.1      1.9      3.4       0.3       0.2     -1.8     -0.3     13.6      0.8
              III      3.0       5.2      2.2      2.6     r-0.3      -0.4     -2.7     -1.0     18.5      0.6
               IV      2.9       5.2      2.2     r1.8      -0.9      -1.0     -0.8     -1.0     15.5      0.6
 
           ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
     1994       I      4.2       6.8      2.4      2.5       0.0      -1.6     -0.1     -1.2     18.8      0.5
               II      2.7       6.1      3.3      2.2     r-0.3      -0.5     -0.5     -0.5    r14.7      0.9
     ----------------------------------------------------------------------------------------------------------
     See footnotes following table 6.                                        Nov. 9, 1994
     r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
 
 
         SOURCE:  Output data from the Bureau of Economic Analysis, U.S.
         Department of Commerce, and the Federal Reserve Board.
         Compensation and hours data from the Bureau of Labor Statistics,
         U.S. Department of Labor, and the Bureau of Economic Analysis.
 
         RELIABILITY:  Productivity and cost measures are regularly
         revised as more complete information becomes available.  The
         measures are first published 30 days after the close of the
         reference period; revisions appear about 35 days later, and
         second revisions after an additional 60 days.  In the business
         sector, the probability is 0.95 that the third publication
         (second revision) of a quarterly index of output per hour of all
         persons will differ from the initial value by between -2.0 and
         +2.0 index points.  This interval is based on the performance of
         this measure between the third quarter of 1976 and the fourth
         quarter of 1992.
 
 
                               Footnotes, Tables 1-6
 
         (1)  Wages and salaries of employees plus employers'
              contributions for social insurance and private benefit
              plans.  Except for nonfinancial corporations, where there
              are no self-employed, data also include an estimate of
              wages, salaries, and supplemental payments for the self-
              employed.
 
         (2)  Compensation per hour adjusted for changes in the Consumer
              Price Index for All Urban Consumers.
 
         (3)  Unit nonlabor payments include profits, capital consumption
              allowances, interest, rental income of persons, and indirect
              taxes.
 
         (4)  Current dollar gross product divided by constant dollar
              gross product.
 
         (5)  Quarterly changes:  Percent change compounded at annual rate
              from the original data rather than index numbers.  Annual
              changes:  Percent change between annual average levels.
 
         (6)  Unit nonlabor cost includes capital consumption allowances,
              interest, rental income of persons, and indirect taxes.  For
              nonfinancial corporations, rental income of persons is zero
              by definition.
 
         (7)  Total unit cost is the sum of labor and nonlabor costs.
 
         (8)  Unit profits include corporate profits with inventory
              valuation and capital consumption adjustments.