Historical, technical                         USDL 97-399
  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
                                              THURSDAY, NOVEMBER 13, 1997.
                       
Internet address:      http://stats.bls.gov/lprhome.htm


                           PRODUCTIVITY AND COSTS
                             Third Quarter 1997


     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 1997.  The preliminary seasonally-adjusted
annual rates of productivity growth in the third quarter were:

               4.4 percent in the business sector, and
               4.5 percent in the nonfarm business sector.

In both the business and the nonfarm business sectors, productivity increases
in the third quarter were the largest recorded since the fourth quarter of
1992.

     In manufacturing, productivity increases in the third quarter were:

               9.8 percent in manufacturing,
              13.3 percent in durable goods manufacturing, and
               5.7 percent in nondurable goods manufacturing.

     The 9.8 percent rise in manufacturing productivity was the largest
recorded since the second quarter of 1982.  Output and hours in
manufacturing, which includes about 18 percent of U.S. business sector
employment, tend to vary more from quarter to quarter than data for the more
aggregate business and nonfarm business sectors.  Third-quarter measures are
summarized in table A and appear in detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect 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.


------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary third-quarter 1997 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            4.4       4.2      -0.2     4.6       2.5       0.2
Nonfarm business    4.5       4.3      -0.1     4.2       2.1      -0.3
Manufacturing       9.8       7.9      -1.7     3.6       1.5      -5.7
  Durable          13.3      12.5      -0.7     2.6       0.6      -9.4
  Nondurable        5.7       2.5      -3.1     5.0       2.9      -0.7
------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            2.6       4.8       2.2     3.9       1.6       1.2
Nonfarm business    2.5       4.8       2.3     3.8       1.6       1.3
Manufacturing       4.7       5.4       0.7     3.1       0.9      -1.5
  Durable           5.9       7.7       1.7     2.5       0.3      -3.2
  Nondurable        3.4       2.6      -0.8     4.0       1.8       0.6
------------------------------------------------------------------------


Business

     From the second quarter to the third quarter of 1997, business sector
productivity increased at a 4.4 percent annual rate.  Output rose 4.2
percent, while hours of all persons engaged in the sector fell 0.2 percent
(seasonally adjusted annual rates).  After revisions, second-quarter
productivity in the business sector rose 2.4 percent, as output increased 3.9
percent, and hours of all persons rose 1.5 percent (tables B and 1).

     Hourly compensation increased 4.6 percent during the third quarter of
1997 after rising 3.3 percent 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 both hourly
compensation and productivity, increased at a 0.2 percent annual rate during
the third quarter.  During the previous quarter, these costs had risen 0.9
percent.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), increased 2.5 percent
in the third quarter, slightly more than the 2.2-percent increase posted in
the previous quarter.  Real hourly compensation in the business sector has
now risen in three consecutive quarters.  The third-quarter increase in real
hourly compensation was the largest since a 5.0 percent increase was recorded
in the first quarter of 1992.

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, increased at a
1.0 percent annual rate in the third quarter, down from a 1.5 percent
increase during the second quarter of 1997.


Nonfarm business

     Productivity rose 4.5 percent in the nonfarm business sector during the
third quarter of 1997.  The third-quarter increase in labor productivity was
the largest in the nonfarm business sector since a 5.9-percent rise was
recorded in the fourth quarter of 1992.  The increase in labor productivity
in the third quarter occurred as output rose 4.3 percent and hours of all
persons fell slightly, by 0.1 percent.  Employment in the nonfarm business
sector rose 1.0 percent during the third quarter but average weekly hours
worked dropped 1.1 percent.  In the previous quarter, productivity had risen
2.4 percent as output grew 3.8 percent and hours increased 1.4 percent
(table 2).

     Hourly compensation increased at a 4.2 percent annual rate in the third
quarter and 3.3 percent one quarter earlier.  When the rise in the CPI-U is
taken into account, real hourly compensation rose at a 2.1 percent annual
rate during the July-September period.  Real hourly compensation had risen
2.2 percent during the second quarter and 2.1 percent in the first quarter of
1997.
   
   Unit labor costs fell 0.3 percent during the third quarter of 1997.  This
decrease was the first decline in these costs since the second quarter of
1994.  In the second quarter of 1997, unit labor costs in the nonfarm
business sector rose 0.9 percent.  The implicit price deflator for nonfarm
business output rose 1.1 percent in the third quarter, a somewhat smaller
increase than the 1.4-percent rise posted in the previous quarter.


Manufacturing

     Productivity increased 9.8 percent in manufacturing in the third quarter
of 1997, as output rose 7.9 percent but hours of all persons fell 1.7 percent
(seasonally adjusted annual rates).  In the durable goods sector, third-
quarter productivity soared to a 13.3-percent annual rate of growth as output
increased 12.5 percent and hours fell 0.7 percent.  Labor productivity also
increased in the nondurable goods sector during the third quarter, 5.7
percent, as output rose 2.5 percent and hours of all persons dropped 3.1
percent.  In the second quarter of 1997, manufacturing productivity had risen
2.8 percent (as revised) as output increased 3.9 percent and hours rose 1.1
percent (tables 3, 4, and 5).

     Hourly compensation of manufacturing workers increased an average of 3.6
percent during the third quarter after rising 2.6 percent in the previous
quarter (seasonally adjusted annual rates). In the third quarter, hourly
compensation grew 2.6 percent in durable goods and 5.0 percent in nondurable
goods.  When the increase in the CPI-U is taken into account, real hourly
compensation in total manufacturing rose 1.5 percent in both the second and
third quarters.

     Unit labor costs fell 5.7 percent in the third quarter of 1997 and 0.2
percent in the second quarter.  The drop in unit labor costs during the third
quarter in durable goods, 9.4 percent, was considerably larger than the drop
in these costs in nondurable goods, 0.7 percent.


--------------------------------------------------------------------
Table B. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
--------------------------------------------------------------------                                                          
                                                     Real      
                                            Hourly   hourly    Unit
                   Produc-                  compen-  compen-   labor
Sector             tivity   Output   Hours  sation   sation    costs
--------------------------------------------------------------------                                                               
                             Second quarter 1997
Business:                                                      
  Previous          2.7      4.3      1.5     3.2      2.1      0.4
  Current           2.4      3.9      1.5     3.3      2.2      0.9
Nonfarm business:                                              
  Previous          2.7      4.2      1.5     3.2      2.1      0.5
  Current           2.4      3.8      1.4     3.3      2.2      0.9
Manufacturing:                                                 
  Previous          2.4      3.6      1.1     2.6      1.5      0.1
  Current           2.8      3.9      1.1     2.6      1.5     -0.2
--------------------------------------------------------------------


Revised Measures

     Current and previous measures for the second quarter of 1997 for the
business, nonfarm business, and manufacturing sectors are compared in
table B.  In the business and nonfarm business sectors, the quarterly
movements in output per hour and output are slightly lower, and unit labor
costs correspondingly higher, than those reported on September 9 based on
information then available.  Productivity and output movements in the
manufacturing sector were revised upward and unit labor costs revised
downward, based on newer information from the Federal Reserve Board's Indexes
of Industrial Production.


-----------------------------------------------------------------------------
Table C.  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
-----------------------------------------------------------------------------                                                                     
                            Second quarter 1997
Previous     3.2      5.5     2.2    3.2      2.1     0.0    4.0      0.5
Current      2.5      4.7     2.2    3.3      2.2     0.8    3.2      1.1
-----------------------------------------------------------------------------


Revised measures: Nonfinancial Corporations
   
    Second quarter 1997 productivity and cost measures for nonfinancial
corporations also were revised to incorporate more recent information than
was available on September 9.  Productivity, output, and unit profits were
revised downward, while unit labor costs and the implicit price deflator were
revised upward (tables C and 6).
                                      
                                      
                              Next release date
   
   The next release of  Productivity and Costs is scheduled for 10:00 AM
EST, Thursday, December 4, 1997.  Third-quarter measures for nonfinancial
corporations and revised third-quarter measures for business, nonfarm
business, and manufacturing will be released at that time.

                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. Weekly paid hours are adjusted to hours at  work  using
 the BLS Hours at Work survey, conducted for this purpose.
       Data  from  the BLS Current Population Survey (CPS) are used  for  farm
 labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
 prepared  by the Bureau of Economic Analysis (BEA) of the Department  of Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes are constructed by deflating current-dollar
 industry  value  of production data from the U.S. Bureau of the  Census  with
 deflators  from  the BEA.  These deflators are based on  data  from  the  BLS
 producer  price  program  and  other sources.   The  industry  shipments  are
 aggregated  using annual weights, and intrasector transactions  are  removed.
 Quarterly  manufacturing output measures are based on the index of industrial
 production prepared monthly by the Board of Governors of the Federal  Reserve
 System  adjusted to be consistent with annual indexes of manufacturing sector
 output  prepared  by  BLS.   Durables  include  the  following  2-digit   SIC
 industries:   Primary  metal  industries;  fabricated  metal  products;  non-
 electrical  machinery;  industrial  and  commercial  machinery  and  computer
 equipment;   electronic   and  other  electrical  equipment;   transportation
 equipment;  instruments; lumber and lumber products; furniture and  fixtures;
 stone, clay, and glass and concrete products; and miscellaneous manufactures.
 Nondurables  include:  Food and kindred products, tobacco  products,  textile
 mill  products,  apparel  products, paper and allied products,  printing  and
 publishing,  chemicals and chemical products, petroleum refining and  related
 industries, rubber and plastic products, and leather and leather products.
      Nonfinancial corporate output is an annual-weighted index constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 52 percent of the value of GDP in 1992.
 
 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 1992=100

  1995       I     100.2      108.7     108.5     105.8        98.3      105.6       108.3      106.5
            II     100.4      108.7     108.3     106.6        98.3      106.1       108.4      107.0
           III     100.6      109.8     109.2     107.3        98.4      106.7       108.8      107.4
            IV     101.1      110.7     109.5     108.1        98.6      107.0       109.2      107.8

        ANNUAL     100.5      109.5     108.9     106.9        98.4      106.3       108.7      107.2

  1996       I     101.6      111.4     109.6     108.9        98.4      107.1       110.6      108.4
            II     102.3      113.2     110.7     110.1        98.8      107.7       111.1      108.9
           III     102.0      113.5     111.3     111.0        98.9      108.8       110.8      109.6
            IV     102.5      115.0     112.2     111.9        98.9      109.2       111.4      110.0

        ANNUAL     102.0      113.3     111.0     110.4        98.7      108.2       111.0      109.2

  1997       I     102.9      116.6     113.3     113.1        99.4      109.9       111.8      110.6
            II    r103.5     r117.8     113.7     114.0        99.9     r110.1       112.5     r111.0
           III     104.6      119.0     113.7     115.3       100.5      110.2       113.2      111.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I      -2.1        0.8       2.9       2.6        -0.2        4.8        -0.2        2.9
            II       0.9        0.2      -0.7       3.2         0.1        2.3         0.4        1.6
           III       0.7        4.2       3.5       2.6         0.5        1.9         1.4        1.7
            IV       2.0        3.0       1.0       3.2         0.7        1.2         1.5        1.3

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I       2.2        2.8       0.6       2.7        -0.6        0.5         5.3        2.3
            II       2.5        6.6       4.0       4.7         1.3        2.2         1.9        2.1
           III      -1.1        0.9       2.0       3.3         0.6        4.4        -1.0        2.4
            IV       1.9        5.4       3.4       3.3        -0.1        1.4         2.2        1.7

        ANNUAL       1.5        3.5       2.0       3.3         0.3        1.8         2.2        1.9

  1997       I       1.8        5.9       4.0       4.4         1.9        2.5         1.1        2.0
            II      r2.4       r3.9       1.5      r3.3        r2.2       r0.9        r2.7       r1.5
           III       4.4        4.2      -0.2       4.6         2.5        0.2         2.4        1.0
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I      -0.5        3.3       3.8       1.7        -1.2        2.2         3.2        2.6
            II      -0.3        1.7       2.1       2.5        -0.5        2.8         1.7        2.4
           III       0.0        2.4       2.3       2.7         0.1        2.7         1.3        2.2
            IV       0.4        2.0       1.7       2.9         0.3        2.5         0.8        1.9

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I       1.4        2.5       1.1       2.9         0.2        1.5         2.1        1.7
            II       1.8        4.2       2.3       3.3         0.5        1.5         2.5        1.8
           III       1.4        3.3       1.9       3.5         0.5        2.1         1.9        2.0
            IV       1.4        3.9       2.5       3.5         0.3        2.1         2.1        2.1

        ANNUAL       1.5        3.5       2.0       3.3         0.3        1.8         2.2        1.9

  1997       I       1.3        4.7       3.4       3.9         0.9        2.6         1.1        2.0
            II       1.3       r4.0       2.7       3.5        r1.2       r2.3         1.2       r1.9
           III       2.6        4.8       2.2       3.9         1.6        1.2         2.1        1.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       November 13, 1997 
  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

  1995       I     100.3      108.9     108.5     105.6        98.2      105.3       109.5      106.8
            II     100.5      108.9     108.4     106.4        98.1      105.8       109.6      107.2
           III     100.8      110.2     109.3     107.1        98.3      106.3       109.7      107.5
            IV     101.2      111.0     109.7     107.9        98.4      106.6       109.8      107.8

        ANNUAL     100.7      109.8     109.0     106.7        98.3      106.0       109.7      107.3

  1996       I     101.7      111.7     109.8     108.7        98.3      106.9       111.1      108.4
            II     102.2      113.5     111.0     109.8        98.5      107.4       111.4      108.8
           III     102.0      113.8     111.6     110.6        98.6      108.5       111.0      109.4
            IV     102.4      115.3     112.6     111.5        98.5      108.9       111.6      109.8

        ANNUAL     102.0      113.6     111.3     110.1        98.4      107.9       111.3      109.1

  1997       I     102.8      116.9     113.8     112.8        99.1      109.7       111.9      110.5
            II    r103.4     r118.0     114.2     113.7        99.6     r110.0      r112.5     r110.9
           III     104.5      119.3     114.1     114.9       100.1      109.9       113.5      111.2
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I      -1.6        1.2       2.9       2.6        -0.2        4.2         1.3        3.1
            II       0.8        0.2      -0.6       3.1        -0.1        2.3         0.2        1.5
           III       1.1        4.6       3.5       2.7         0.6        1.6         0.5        1.2
            IV       1.6        3.0       1.4       2.9         0.5        1.3         0.3        1.0

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I       1.9        2.6       0.6       2.8        -0.5        0.9         4.8        2.3
            II       2.2        6.8       4.4       4.4         1.0        2.1         1.1        1.7
           III      -1.0        1.0       2.1       2.9         0.2        3.9        -1.3        2.0
            IV       1.8        5.4       3.6       3.3        -0.1        1.5         2.0        1.7

        ANNUAL       1.3        3.5       2.2       3.1         0.2        1.8         1.5        1.7

  1997       I       1.4        5.6       4.2       4.5         2.1        3.1         1.0        2.4
            II      r2.4       r3.8      r1.4      r3.3        r2.2       r0.9        r2.3       r1.4
           III       4.5        4.3      -0.1       4.2         2.1       -0.3         3.5        1.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I      -0.2        3.5       3.7       1.8        -1.1        2.0         4.3        2.8
            II      -0.2        1.9       2.1       2.4        -0.6        2.6         2.4        2.6
           III       0.4        2.7       2.3       2.8         0.1        2.4         1.5        2.1
            IV       0.4        2.2       1.8       2.8         0.2        2.4         0.6        1.7

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I       1.3        2.6       1.2       2.9         0.1        1.5         1.4        1.5
            II       1.7        4.2       2.5       3.2         0.4        1.5         1.7        1.6
           III       1.2        3.3       2.1       3.3         0.3        2.1         1.2        1.7
            IV       1.2        3.9       2.7       3.3         0.2        2.1         1.6        1.9

        ANNUAL       1.3        3.5       2.2       3.1         0.2        1.8         1.5        1.7

  1997       I       1.1        4.7       3.6       3.8         0.8        2.7         0.7        1.9
            II      r1.1       r4.0       2.8       3.5         1.1       r2.4        r1.0       r1.9
           III       2.5        4.8       2.3       3.8         1.6        1.3         2.2        1.6
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       November 13, 1997
  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

  1995       I            106.7        112.3        105.2        107.2           99.6         100.5
            II            107.6        111.9        104.0        108.2           99.8         100.5
           III            108.8        112.7        103.6        109.2          100.2         100.4
            IV            109.2        113.0        103.4        110.1          100.4         100.8

        ANNUAL            108.1        112.5        104.1        108.7          100.1         100.6

  1996       I            110.3        113.3        102.7        110.8          100.2         100.4
            II            111.0        115.0        103.7        112.1          100.5         101.0
           III            112.4        116.4        103.6        112.9          100.6         100.4
            IV            113.5        117.7        103.7        113.5          100.3         100.0

        ANNUAL            111.7        115.6        103.5        112.2          100.3         100.5

  1997       I            114.2        119.2        104.4        114.7          100.8         100.4
            II           r115.0       r120.4        104.7        115.4          101.1        r100.4
           III            117.7        122.7        104.2        116.5          101.5          98.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              3.8          4.4          0.6          2.1           -0.6          -1.6
            II              3.5         -1.2         -4.5          3.8            0.7           0.3
           III              4.3          2.7         -1.5          3.9            1.7          -0.4
            IV              1.7          1.0         -0.7          3.2            0.7           1.4

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I              4.0          1.1         -2.7          2.5           -0.8          -1.4
            II              2.4          6.3          3.8          4.7            1.3           2.2
           III              5.5          5.0         -0.5          3.2            0.5          -2.2
            IV              3.7          4.3          0.6          1.9           -1.4          -1.7

        ANNUAL              3.3          2.8         -0.5          3.2            0.2          -0.1

  1997       I              2.5          5.4          2.8          4.4            2.0           1.8
            II             r2.8         r3.9          1.1          2.6            1.5         r-0.2
           III              9.8          7.9         -1.7          3.6            1.5          -5.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              2.9          5.7          2.8          2.0           -0.9          -0.9
            II              2.7          3.5          0.9          2.8           -0.2           0.1
           III              3.4          3.1         -0.3          3.1            0.5          -0.3
            IV              3.3          1.7         -1.6          3.3            0.6          -0.1

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I              3.4          0.9         -2.4          3.3            0.6           0.0
            II              3.1          2.8         -0.3          3.6            0.7           0.5
           III              3.4          3.3         -0.1          3.4            0.4           0.0
            IV              3.9          4.1          0.3          3.1           -0.1          -0.8

        ANNUAL              3.3          2.8         -0.5          3.2            0.2          -0.1

  1997       I              3.5          5.2          1.7          3.5            0.6           0.0
            II             r3.6         r4.7          1.0          3.0            0.6         r-0.6
           III              4.7          5.4          0.7          3.1            0.9          -1.5
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 13, 1997
  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

  1995       I            110.8        118.4        106.9        107.1           99.5          96.7
            II            111.3        118.0        106.0        107.9           99.5          96.9
           III            112.8        119.5        106.0        108.8           99.8          96.4
            IV            113.5        120.5        106.2        109.3           99.7          96.4

        ANNUAL            112.1        119.1        106.3        108.2           99.7          96.6

  1996       I            115.1        121.6        105.6        109.8           99.3          95.3
            II            116.3        124.7        107.2        111.1           99.6          95.5
           III            118.0        126.5        107.2        111.8           99.6          94.7
            IV            118.7        127.4        107.4        111.9           98.9          94.3

        ANNUAL            116.9        125.0        107.0        111.0           99.2          95.0

  1997       I            119.5        129.9        108.7        113.2           99.5          94.7
            II           r121.1       r132.3        109.2        113.8           99.7         r93.9
           III            125.0        136.2        109.0        114.5           99.9          91.6
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              5.7          6.7          0.9          2.3           -0.4          -3.2
            II              2.1         -1.4         -3.4          3.0           -0.1           1.0
           III              5.4          5.3         -0.1          3.4            1.2          -1.9
            IV              2.4          3.4          0.9          2.1           -0.3          -0.3

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I              6.0          3.7         -2.2          1.6           -1.7          -4.2
            II              4.0         10.3          6.1          4.8            1.4           0.8
           III              6.2          6.0         -0.2          2.7            0.0          -3.4
            IV              2.1          2.8          0.7          0.5           -2.7          -1.6

        ANNUAL              4.3          5.0          0.7          2.5           -0.4          -1.7

  1997       I              3.0          8.3          5.2          4.7            2.3           1.7
            II             r5.5         r7.4          1.8          2.0            0.9         r-3.3
           III             13.3         12.5         -0.7          2.6            0.6          -9.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              4.1          8.0          3.7          1.7           -1.1          -2.3
            II              3.4          5.4          1.9          2.5           -0.6          -0.9
           III              3.9          4.7          0.7          2.8            0.2          -1.1
            IV              3.9          3.4         -0.4          2.7            0.1          -1.1

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I              4.0          2.7         -1.2          2.5           -0.2          -1.4
            II              4.4          5.6          1.2          3.0            0.1          -1.4
           III              4.6          5.8          1.1          2.8           -0.2          -1.8
            IV              4.6          5.7          1.1          2.4           -0.8          -2.1

        ANNUAL              4.3          5.0          0.7          2.5           -0.4          -1.7

  1997       I              3.8          6.8          2.9          3.2            0.2          -0.6
            II             r4.2         r6.1          1.9          2.5            0.1         r-1.7
           III              5.9          7.7          1.7          2.5            0.3          -3.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 13, 1997
  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

  1995       I            102.9        105.9        103.0        107.0           99.5         104.1
            II            104.1        105.6        101.4        108.3           99.9         104.0
           III            105.0        105.5        100.5        109.5          100.4         104.3
            IV            105.3        105.0         99.7        110.7          100.9         105.1

        ANNUAL            104.4        105.5        101.1        108.9          100.3         104.4

  1996       I            105.8        104.5         98.8        111.7          101.1         105.7
            II            106.0        104.9         99.0        112.8          101.2         106.4
           III            107.2        105.9         98.7        113.9          101.5         106.3
            IV            108.7        107.4         98.8        115.1          101.8         106.0

        ANNUAL            106.8        105.7         99.0        113.3          101.3         106.1

  1997       I            109.4        108.0         98.7        116.1          102.0         106.1
            II           r109.4       r108.0         98.7        117.1          102.6         107.1
           III            110.9        108.6         97.9        118.5          103.3         106.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              1.3          1.4          0.1          1.7           -1.0           0.5
            II              5.1         -1.3         -6.0          4.7            1.6          -0.3
           III              3.3         -0.4         -3.5          4.4            2.3           1.1
            IV              1.2         -1.8         -3.0          4.6            2.1           3.3

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I              1.7         -1.9         -3.5          3.8            0.5           2.1
            II              1.0          1.6          0.5          4.0            0.6           2.9
           III              4.6          3.7         -0.9          3.9            1.2          -0.6
            IV              5.5          5.9          0.4          4.3            0.9          -1.1

        ANNUAL              2.3          0.2         -2.1          4.0            1.0           1.7

  1997       I              2.7          2.1         -0.6          3.4            1.0           0.7
            II             r0.0         r0.0         r0.0         r3.4           r2.3          r3.5
           III              5.7          2.5         -3.1          5.0            2.9          -0.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              1.6          3.2          1.6          2.1           -0.7           0.5
            II              1.8          1.3         -0.5          3.0            0.0           1.2
           III              2.8          1.0         -1.8          3.4            0.7           0.5
            IV              2.7         -0.5         -3.1          3.9            1.2           1.1

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I              2.8         -1.3         -4.0          4.4            1.6           1.5
            II              1.8         -0.6         -2.4          4.2            1.3           2.4
           III              2.1          0.4         -1.7          4.1            1.1           1.9
            IV              3.2          2.3         -0.9          4.0            0.8           0.8

        ANNUAL              2.3          0.2         -2.1          4.0            1.0           1.7

  1997       I              3.4          3.3         -0.1          3.9            0.9           0.5
            II             r3.2          2.9        r-0.3         r3.8           r1.4           0.6
           III              3.4          2.6         -0.8          4.0            1.8           0.6
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                November 13, 1997
  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

  1995       I    103.0    112.3     109.1    105.2      97.8     102.2     99.8    101.6    135.2    104.6
            II    103.5    112.9     109.1    106.0      97.7     102.4    100.1    101.8    134.9    104.8
           III    104.7    114.9     109.7    106.6      97.8     101.9     99.0    101.1    145.5    105.1
            IV    105.2    115.9     110.2    107.3      97.8     102.0     99.1    101.2    147.3    105.4

        ANNUAL    104.1    114.0     109.5    106.3      97.9     102.1     99.5    101.4    140.8    105.0

  1996       I    105.6    116.5     110.4    107.8      97.5     102.1     99.2    101.4    152.5    106.0
            II    106.4    118.7     111.5    109.0      97.8     102.4     98.4    101.4    154.7    106.2
           III    107.0    120.0     112.1    109.9      97.9     102.7     98.1    101.5    156.0    106.4
            IV    107.6    121.5     113.0    110.7      97.8     102.9     97.4    101.5    156.4    106.5

        ANNUAL    106.6    119.2     111.8    109.4      97.8     102.6     98.3    101.4    154.9    106.3

  1997       I    108.1    123.3     114.1    111.9      98.3     103.5     97.0    101.8    157.9    106.9
            II   r108.7   r124.7     114.7    112.8      98.8    r103.7    r97.1   r102.0   r159.1   r107.2
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1995       I     -3.1      0.0       3.2      2.4      -0.4       5.6      2.8      4.9    -18.1      1.8
            II      1.9      2.0       0.1      3.0      -0.1       1.0      1.0      1.0     -0.8      0.8
           III      4.8      7.2       2.3      2.5       0.4      -2.2     -4.2     -2.7     35.4      1.3
            IV      2.1      3.8       1.7      2.5       0.1       0.4      0.4      0.4      4.9      1.0

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      1.3      2.0       0.7      2.0      -1.2       0.7      0.6      0.7     15.0      2.4
            II      3.3      7.6       4.2      4.4       1.0       1.1     -3.1      0.0      5.8      0.7
           III      2.3      4.3       2.0      3.4       0.7       1.1     -1.4      0.5      3.5      0.9
            IV      2.0      5.2       3.2      2.9      -0.4       0.9     -2.8      0.0      1.0      0.1

        ANNUAL      2.4      4.5       2.1      2.9      -0.1       0.4     -1.2      0.0     10.0      1.2

  1997       I      1.9      6.1       4.1      4.3       1.9       2.3     -1.8      1.3      3.8      1.6
            II     r2.5     r4.7       2.2     r3.3      r2.2      r0.8     r0.5     r0.7     r3.2     r1.1
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1995       I     -0.6      3.9       4.6      1.6      -1.3       2.2     -1.7      1.2      6.6      1.8
            II      0.4      3.5       3.0      2.2      -0.8       1.8      1.3      1.7      1.9      1.7
           III      1.5      4.3       2.7      2.5      -0.1       1.0     -0.5      0.6      6.7      1.3
            IV      1.4      3.2       1.8      2.6       0.0       1.2      0.0      0.9      3.6      1.2

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      2.5      3.7       1.2      2.5      -0.2       0.0     -0.6     -0.2     12.8      1.4
            II      2.9      5.1       2.2      2.9       0.0       0.0     -1.6     -0.4     14.6      1.3
           III      2.3      4.4       2.1      3.1       0.1       0.8     -0.9      0.4      7.2      1.2
            IV      2.2      4.8       2.5      3.2       0.0       1.0     -1.7      0.3      6.2      1.0

        ANNUAL      2.4      4.5       2.1      2.9      -0.1       0.4     -1.2      0.0     10.0      1.2

  1997       I      2.4      5.8       3.3      3.8       0.8       1.3     -2.3      0.4      3.5      0.8
            II     r2.2     r5.1      r2.8      3.5       1.1      r1.3    r-1.4     r0.6     r2.9     r0.9
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        November 13, 1997
  r=revised                                                               Source: Bureau of Labor Statistics





SOURCES:  Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and
hours data are from the Bureau of Labor Statistics  and the Bureau of
Economic Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor 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.