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,
15
16

 
 
 
 
 
        Historical, technical                       USDL 94-431
          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. EDT
                                                    Wednesday, September 7,
        1994.
 
 
                              PRODUCTIVITY AND COSTS
                                Second Quarter 1994
                  Business, Nonfarm Business, Manufacturing, and
                             Nonfinancial Corporations
 
 
              The Bureau of Labor Statistics of the U.S. Department of
         Labor today reported revised productivity datajas measured by
         output per hour of all personsjfor the second quarter of 1994.
         The revised seasonally-adjusted annual rates of productivity
         change in the second quarter were:
 
                       -2.7 percent in the business sector, and
                       -2.5 percent in the nonfarm business sector.
 
         In the second, quarter output growth slowed while hours rose more
         rapidly than in the first quarter in both sectors; because hours
         increased more rapidly than output, productivity declined.
 
              In manufacturing, productivity changes in the second quarter
         were:
 
                        4.5 percent in manufacturing,
                        3.4 percent in durable goods manufacturing, and
                        6.1 percent in nondurable goods manufacturing.
 
              The productivity advance in manufacturing reflects a strong
         output gain in the nondurable goods industries. Output and hours
         in manufacturing, which includes about 20 percent of U.S.
         business-sector employment, tend to fluctuate more from quarter
         to quarter than in the business and nonfarm business sectors.
         Second-quarter measures are summarized in table A and appear in
         detail in tables 1 through 5; the differences between these
         measures and the preliminary second-quarter figures issued on
         August 9 are shown in table C.
 
              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
 
                                          2
 
 
         Federal Reserve System. See Technical Notes for further
         information on data sources (page 7).
 
              In nonfinancial corporations, productivity fell 1.3 percent
         in the second quarter, as output rose 4.8 percent and hours
         increased 6.2 percent (tables B and 6).
 
 
 
          Table A.  Productivity and costs:  Revised second-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         -2.7     2.9   5.8    0.3   -2.4    3.2
            Nonfarm business -2.5     2.7   5.4    0.8   -1.9    3.4
            Manufacturing     4.5     6.1   1.5   -1.6   -4.2   -5.8
            Durable           3.4     5.2   1.7   -2.5   -5.1   -5.7
            Nondurable        6.1     7.4   1.2   -0.2   -2.9   -5.9
 
            Percent change from same quarter a year ago
 
            Business          2.2     5.2   2.9    3.0    0.5    0.7
            Nonfarm business  2.3     5.2   2.8    3.0    0.6    0.7
            Manufacturing     5.4     6.3   0.8    2.6    0.1   -2.7
            Durable           6.6     8.2   1.5    2.4    0.0   -3.9
            Nondurable        3.6     3.5  -0.1    2.6    0.2   -0.9
 
 
 
       Business
 
            From the first quarter to the second quarter of 1994, business
       sector productivity decreased at a 2.7 percent annual rate, the
       largest decline since 1981 (when a 7.0 percent decline occurred in
       the fourth quarter). In the second quarter of 1994, output rose 2.9
       percent and hours of all persons engaged in the sector increased 5.8
       percent (seasonally adjusted annual rates). During the first quarter
       of 1994, productivity had risen 2.9 percent, as output and hours rose
       5.5 and 2.6 percent, respectively (table 1).
 
            Hourly compensation increased 0.3 percent during the second
       quarter of 1994, compared with a 6.2 percent rise in the first
       quarter. The second-quarter increase was the smallest since 1960
       (when a 0.9 percent decline occurred in the third 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 3.2 percent annual rate during the second quarter,
       nearly matching the 3.3 percent increase during the previous quarter.
 
                                          3
 
 
            Real hourly compensation, which takes into account changes in
       the Consumer Price Index for All Urban Consumers (CPI-U), declined at
       a 2.4 percent annual rate in the second quarter; it had risen 4.0
       percent in the first quarter of 1994. The second-quarter decline was
       the greatest in 5 years.
 
            The implicit price deflator for the business sector, which
       reflects changes in unit labor costs and unit nonlabor payments,
       increased 3.5 percent in the second quarter, compared with a 1.5
       percent increase during the first quarter of 1994.
 
 
       Nonfarm business
 
            Productivity fell 2.5 percent in the nonfarm business sector
       during the second quarter of 1994 as output rose 2.7 percent and
       hours of all persons increased 5.4 percent. This was the largest
       productivity decline since 1989 (when it declined 3.7 percent in the
       first quarter), and the gain in hours was the largest since the
       second quarter of 1988 (when they rose 6.1 percent). During the first
       quarter of 1994, productivity had increased 2.9 percent in the
       nonfarm business sector, reflecting gains of 5.2 percent in output
       and 2.3 percent in hours (table 2).
 
            Hourly compensation increased at a 0.8 percent annual rate in
       the second quarter, compared with a 6.1 percent increase one quarter
       earlier. The second-quarter increase was the smallest since 1988
       (when it rose 0.6 percent in the first quarter). When the rise in the
       CPI-U is taken into account, real hourly compensation fell 1.9
       percent in the second quarter. Unit labor costs rose 3.4 percent,
       compared with a 3.1 percent rise during the first quarter of 1994.
 
            The implicit price deflator for nonfarm business output rose 4.4
       percent in the second quarter, compared with a 1.2 percent rise one
       quarter earlier.
 
 
       Manufacturing
 
            Productivity increased at a 4.5 percent seasonally adjusted
       annual rate in manufacturing in the second quarter of 1994, as output
       rose 6.1 percent and hours of all persons increased 1.5 percent
       (seasonally adjusted annual rates). Productivity grew strongly in
       nondurable goods industries while posting a smaller gain among
       durable goods producers (tables 4 and 5).
 
            Hourly compensation of all manufacturing workers declined 1.6
       percent during the second quarter, compared with a 3.8 percent gain
       during the January-March period. The second-quarter decline was the
       largest in this series (which begins with data for 1977). Real hourly
       compensation fell 4.2 percent in the second quarter when the increase
       in consumer prices is taken into account. During the first quarter,
       real hourly compensation had gone up 1.7 percent (seasonally adjusted
       annual rates).
 
 
                                          4
 
 
 
            Unit labor costs fell at a 5.8 percent annual rate in the second
       quarter of 1994, the third decline in succession. These costs had
       decreased 2.8 percent during the first quarter of 1994. The index of
       unit labor costs in the second quarter (at 111.0) was at its lowest
       point since 1990 (when it reached 110.2 in the third quarter).
 
 
       Nonfinancial corporations
 
            Preliminary second-quarter 1994 measures of productivity and
       costs also were announced today for nonfinancial corporations (tables
       B and 6). Productivity declined 1.3 percent in the second quarter, as
       output rose 4.8 percent and hours increased 6.2 percent (seasonally
       adjusted annual rates). The increase in hours was the largest since
       1984 (when they rose 7.5 percent in the first quarter). In the first
       quarter of 1994, productivity had increased 3.3 percent. Nonfinancial
       corporations include all corporations doing business in the United
       States, except banks, stock and commodity brokers, and finance and
       insurance agencies.
 
            Hourly compensation did not increase in the second quarter. In
       real terms, when the rise in the CPI-U is taken into account, real
       hourly compensation declined 2.7 percent (table 6). This was the
       largest decrease since 1989 (when it fell 5.0 percent in the second
       quarter).
 
 
       Table B.  Nonfinancial corporations: Preliminary second-quarter
       productivity and cost measures
       (Seasonally adjusted annual rates)
 
                                              Real
                                      Hourly  hourly Unit          Implicit
                Produc-               compen- compen-labor   Unit   price
       Period   tivity Output  Hours  sation  sation costs profits deflator
 
                                Percent change from preceding quarter
 
       1994 II -1.3    4.8     6.2    0.0    -2.7    1.4    22.1    1.8
 
                                  Percent change from preceding year
 
       1994 II  2.7    6.1     3.3    2.2    -0.2   -0.5    15.0    0.9
 
 
 
              Unit labor costs for nonfinancial corporations increased 1.4
         percent in the second quarter, compared with a 1.8 percent rise
         in the first quarter of 1994. Unit nonlabor costs fell 5.0
         percent, and unit profits rose 22.1 percent. During the first
         quarter, unit nonlabor costs had increased 6.6 percent while unit
         profits fell 4.9 percent (annual rates). The implicit price
 
 
                                          5
 
 
         deflator for nonfinancial corporate output rose 1.8 percent in
         the second quarter.
 
 
         Revised Measures
 
              Current and previous measures for the second quarter of 1994
         for the business, nonfarm business, and manufacturing sectors are
         compared in table C. The quarterly movements differ from those
         reported on August 9 based on information then available. In the
         business and nonfarm business sectors, the growth in output
         (which is based on information from the national income and
         product accounts prepared by the U.S. Department of Commerce) was
         revised downward. On the other hand, manufacturing output (which
         is based on information from the Federal Reserve Board), was
         revised upward.
 
 
 
              Table C. Previous and revised productivity and related
              measures
              Quarterly percent change at seasonally adjusted annual
              rate
 
                                                        Real
                                                 Hourly hourly  Unit
                             Produc-             compen-compen- labor
                 Sector      tivity Output Hours sation sation  costs
 
                                     Second quarter 1994
              Business:
               Previous....  -1.4   4.3     5.8   0.3  -2.4     1.8
               Current.....  -2.7   2.9     5.8   0.3  -2.4     3.2
 
              Nonfarm business:
               Previous....  -1.2   4.1     5.4   0.8  -1.9     2.0
               Current.....  -2.5   2.7     5.4   0.8  -1.9     3.4
 
              Manufacturing:
               Previous....   3.8   5.3     1.5  -1.7  -4.3    -5.2
               Current.....   4.5   6.1     1.5  -1.6  -4.2    -5.8
 
 
 
 
 
                                 Next release date
 
              The next release of Productivity and Costs is scheduled for
         10:00 AM EDT, Wednesday, November 9, 1994. Second-quarter
         measures for nonfinancial corporations and preliminary third-
         quarter measures for business, nonfarm business, and
         manufacturing will be released at that time.
 
 
                                          6
 
 
 
 
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                                          7
 
 
                                 TECHNICAL NOTES
 
 
      Labor Input:  The primary  source   metal   products;   nonelectrical
      of hours  and employment  data is   machinery;     industrial     and
      the   BLS    Current   Employment   commercial machinery and computer
      Statistics (CES)  program,  which   equipment; electronic  and  other
      provides monthly  survey data  on   electrical             equipment;
      total  employment   and   average   transportation         equipment;
      weekly hours  of  production  and   instruments;  lumber  and  lumber
      nonsupervisory     workers     in   products; furniture and fixtures;
      nonagricultural   establishments.   stone,  clay,   and   glass   and
      Jobs  rather   than  persons  are   concrete products;  and miscella-
      counted.   Weekly    hours    are   neous  manufactures.  Nondurables
      adjusted to  the  hours  at  work   include:   Food    and    kindred
      definition using the BLS Hours at   products,    tobacco    products,
      Work survey,  conducted for  this   textile  mill   products  apparel
      purpose.                            products,   paper    and   allied
           Data from  the  BLS  Current   products,      printing       and
      Population Survey  (CPS) are used   publishing,     chemicals     and
      for farm  labor; in  the  nonfarm   chemical   products,    petroleum
      sector, the  National Income  and   refining and  related industries,
      Product Accounts  (NIPA) prepared   rubber  and   plastic   products,
      by   the   Bureau   of   Economic   leather  and   leather  products.
      Analysis  of  the  Department  of   Manufacturing accounted for about
      Commerce and  the CPS are used to   19  percent   of  GDP   in  1992.
      measure    labor     input    for   Quarterly  manufacturing   output
      government           enterprises,   measures are  based on  the index
      proprietors  and   unpaid  family   of industrial production prepared
      workers.                            monthly by the Board of Governors
                                          of  the  Federal  Reserve  System
      Output: Business  output is equal   adjusted by  BLS to  annual manu-
      to gross  domestic product  (GDP)   facturing  output  levels  (gross
      in constant  1987  dollars,  less   product originating) from the Na-
      general  government,   output  of   tional   Income    and    Product
      nonprofit institutions, output of   Accounts prepared  by the  Bureau
      paid   employees    of    private   of Economic  Analysis of the U.S.
      households,   rental   value   of   Department of Commerce.
      owner-occupied dwellings, and the        Nonfinancial       corporate
      statistical    discrepancy     in   output  is   equal  to   GDP   in
      computing the NIPA. Corresponding   constant 1987  dollars, less  the
      exclusions are also made in labor   output of nonprofit institutions,
      inputs. Business output was about   output  of   paid  employees   of
      78  percent   of  GDP   in  1992.   private households,  rental value
      Nonfarm business,  which also ex-   of   owner-occupied    dwellings,
      cludes farming, was about 77 per-   unincorporated   business,    the
      cent of GDP in 1992.                output of corporations engaged in
           Total manufacturing measures   banking,   finance,   stock   and
      are computed  by  summing  series   commodity trading, and credit and
      prepared  for   the  durable  and   insurance   agencies,   and   the
      nondurable     goods     sectors.   statistical    discrepancy     in
      Durables include the following 2-   computing the  NIPA. Nonfinancial
      digit  SIC   industries:  Primary   corporations accounted  for about
      metal   industries;    fabricated   56 percent of GDP in 1992.
 
 
                                          8
 
 
                                          influences, including  changes in
      Productivity: These  productivity   technology;  capital  investment;
      measures       describe       the   level of  output; utilization  of
      relationship between  real output   capacity, energy,  and materials;
      and the  labor time  involved  in   the organization  of  production;
      its  production.  They  show  the   managerial   skill;    and    the
      changes from  period to period in   characteristics and effort of the
      the amount  of goods and services   work force.
      produced per hour. Although these
      measures relate  output to  hours        Information in  this release
      at work of all persons engaged in   will   be   made   available   to
      a sector, they do not measure the   sensory-impaired individuals upon
      specific contribution  of  labor,   request.  Voice  phone:  202-606-
      capital, or  any other  factor of   STAT;  TDD  phone:  202-606-5897;
      production. Rather,  they reflect   TDD   message    referral   phone
      the   joint   effects   of   many   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       106.0     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     157.8       107.2     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     116.3      138.1     118.8     158.9       107.1     136.6       149.5       140.8
                II     116.5      139.6     119.8     160.1       107.1     137.5       149.6       141.4
               III     117.4      140.9     120.0     161.3       107.5     137.4       150.3       141.6
                IV     119.1      143.9     120.8     162.3       107.3     136.3       153.8       142.1
 
            ANNUAL     117.3      140.6     119.9     160.6       107.3     136.9       150.8       141.5
 
      1994       I     119.9      145.8     121.6     164.8       108.4     137.4       153.1       142.6
                II    r119.1     r146.9     123.3     164.9       107.7    r138.5      r154.7       143.8
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       5.4        3.4      -1.9       5.8         3.1       0.3         9.1         3.3
                II       1.2        2.2       1.1       4.0         0.7       2.8         1.0         2.2
               III       3.8        4.9       1.1       6.2         3.0       2.4        -7.7        -1.3
                IV       3.3        5.6       2.2       4.6         1.3       1.2        12.6         5.1
 
            ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
      1993       I      -1.8        0.6       2.4       2.8        -0.2       4.6        -2.0         2.3
                II       0.7        4.2       3.5       3.2         0.1       2.5         0.3         1.7
               III       3.4        4.0       0.6       3.1         1.2      -0.3         2.1         0.6
                IV       5.7        8.6       2.8       2.4        -0.5      -3.1         9.4         1.2
 
            ANNUAL       1.6        3.8       2.1       3.7         0.7       2.1         1.7         1.9
 
      1994       I       2.9        5.5       2.6       6.2         4.0       3.3        -1.7         1.5
                II     r-2.7       r2.9       5.8       0.3        -2.4      r3.2        r4.1         3.5
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.7        1.7      -1.0       4.9         2.0       2.1         3.2         2.5
                II       2.5        2.0      -0.5       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       1.6        3.3       1.7       4.4         1.2       2.8         0.7         2.0
                II       1.5        3.8       2.3       4.2         1.0       2.7         0.5         1.9
               III       1.4        3.6       2.2       3.4         0.6       2.0         3.1         2.4
                IV       2.0        4.3       2.3       2.9         0.1       0.9         2.4         1.4
 
            ANNUAL       1.6        3.8       2.1       3.7         0.7       2.1         1.7         1.9
 
      1994       I       3.1        5.6       2.4       3.7         1.2       0.6         2.5         1.2
                II      r2.2       r5.2       2.9       3.0         0.5      r0.7        r3.4         1.7
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      Sept. 7, 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     118.7     150.9       104.9     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     119.9     156.5       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     114.5      138.3     120.8     157.4       106.1     137.5       151.5       142.0
                II     114.6      139.9     122.0     158.3       105.9     138.1       151.8       142.5
               III     115.8      141.5     122.3     159.4       106.2     137.7       153.4       142.8
                IV     117.2      144.3     123.1     160.4       106.0     136.9       156.1       143.1
 
            ANNUAL     115.5      141.0     122.1     158.8       106.1     137.5       153.2       142.6
 
      1994       I     118.0      146.1     123.8     162.8       107.0     137.9       155.2       143.5
                II    r117.2     r147.1     125.5     163.1       106.5    r139.1      r157.6      r145.1
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       4.2        2.4      -1.7       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       1.5       5.8         2.7       3.0        -8.6        -1.2
                IV       3.9        6.2       2.2       4.6         1.3       0.6        14.3         5.1
 
            ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
      1993       I      -1.8        1.0       2.9       2.2        -0.8       4.2        -1.5         2.2
                II       0.5        4.7       4.2       2.5        -0.6       2.0         0.7         1.6
               III       4.1        4.9       0.8       2.8         1.0      -1.2         4.4         0.7
                IV       4.9        7.9       2.9       2.4        -0.6      -2.4         7.1         0.8
 
            ANNUAL       1.6        4.1       2.4       3.4         0.4       1.7         2.3         1.9
 
      1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
                II     r-2.5       r2.7       5.4       0.8        -1.9      r3.4        r6.3        r4.4
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.4        1.4      -1.0       4.8         2.0       2.4         2.8         2.5
                II       2.4        1.8      -0.5       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       0.6       5.2         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       1.7        3.5       1.8       4.3         1.1       2.6         1.3         2.1
                II       1.3        4.0       2.7       3.8         0.6       2.4         0.9         1.9
               III       1.6        4.2       2.5       3.0         0.2       1.4         4.3         2.4
                IV       1.9        4.6       2.7       2.5        -0.2       0.6         2.6         1.3
 
            ANNUAL       1.6        4.1       2.4       3.4         0.4       1.7         2.3         1.9
 
      1994       I       3.1        5.7       2.5       3.4         0.9       0.4         2.5         1.1
                II      r2.3       r5.2       2.8       3.0         0.6      r0.7        r3.9         1.8
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      Sept. 7, 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            127.2        129.6        101.9        145.1           100.9        114.1
                II            128.6        131.5        102.3        146.7           101.2        114.1
               III            129.1        131.8        102.1        148.4           101.6        114.9
                IV            130.9        133.9        102.4        150.9           102.5        115.3
 
            ANNUAL            129.1        131.7        102.0        147.9           101.7        114.6
 
      1993       I            132.2        136.0        102.9        150.3           101.3        113.7
                II            133.8        137.1        102.5        152.6           102.1        114.1
               III            134.6        137.9        102.5        154.2           102.7        114.5
                IV            137.2        140.9        102.7        155.7           102.9        113.5
 
            ANNUAL            134.5        138.0        102.6        153.3           102.4        114.0
 
      1994       I            139.5        143.6        102.9        157.2           103.4        112.7
                II           r141.0       r145.7        103.3       r156.6          r102.3       r111.0
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              3.2          1.1         -2.0          1.3            -1.3         -1.8
                II              4.4          6.1          1.7          4.6             1.2          0.2
               III              1.7          1.0         -0.7          4.5             1.4          2.8
                IV              5.5          6.6          1.1          6.9             3.5          1.3
 
            ANNUAL              3.7          3.1         -0.6          4.2             1.2          0.5
 
      1993       I              4.0          6.1          2.0         -1.5            -4.4         -5.3
                II              5.0          3.5         -1.4          6.3             3.1          1.3
               III              2.6          2.4         -0.2          4.1             2.2          1.5
                IV              7.9          8.7          0.8          4.0             1.0         -3.6
 
            ANNUAL              4.2          4.8          0.5          3.6             0.6         -0.6
 
      1994       I              6.8          8.0          1.1          3.8             1.7         -2.8
                II             r4.5         r6.1          1.5        r-1.6           r-4.2        r-5.8
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1992       I              3.7          2.5         -1.2          3.9             1.0          0.2
                II              3.9          3.8         -0.1          4.0             0.8          0.0
               III              3.0          2.3         -0.6          4.2             1.1          1.2
                IV              3.7          3.7          0.0          4.3             1.2          0.6
 
            ANNUAL              3.7          3.1         -0.6          4.2             1.2          0.5
 
      1993       I              3.9          4.9          1.0          3.6             0.4         -0.3
                II              4.0          4.3          0.2          4.0             0.9          0.0
               III              4.3          4.6          0.4          3.9             1.1         -0.3
                IV              4.8          5.2          0.3          3.2             0.5         -1.6
 
            ANNUAL              4.2          4.8          0.5          3.6             0.6         -0.6
 
      1994       I              5.5          5.6          0.1          4.6             2.0         -0.9
                II             r5.4         r6.3          0.8         r2.6             0.1        r-2.7
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                Sept. 7, 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            136.9        136.1         99.5        142.9            99.4        104.4
                II            139.1        138.5         99.5        144.8            99.9        104.1
               III            139.9        138.8         99.3        146.4           100.2        104.6
                IV            142.8        142.1         99.5        149.5           101.5        104.7
 
            ANNUAL            139.8        138.9         99.3        146.1           100.5        104.5
 
      1993       I            145.2        145.2        100.0        148.0            99.8        101.9
                II            147.7        146.7         99.4        150.2           100.5        101.7
               III            148.8        148.0         99.5        151.6           101.0        101.9
                IV            153.2        153.1         99.9        153.3           101.3        100.0
 
            ANNUAL            148.8        148.3         99.6        150.9           100.8        101.4
 
      1994       I            156.1        156.8        100.5        154.9           101.8         99.2
                II           r157.4       r158.8        100.9       r153.9           100.5         97.8
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              1.8         -0.3         -2.0          0.7            -1.9         -1.1
                II              6.8          7.2          0.4          5.2             1.9         -1.5
               III              2.1          1.0         -1.1          4.5             1.4          2.3
                IV              8.5          9.7          1.0          8.7             5.3          0.2
 
            ANNUAL              5.0          3.4         -1.5          4.5             1.5         -0.4
 
      1993       I              7.0          9.0          1.9         -4.0            -6.8        -10.3
                II              7.0          4.4         -2.5          6.3             3.1         -0.6
               III              3.0          3.5          0.5          3.7             1.8          0.8
                IV             12.5         14.4          1.6          4.4             1.4         -7.2
 
            ANNUAL              6.5          6.7          0.3          3.3             0.3         -2.9
 
      1994       I              7.7         10.2          2.3          4.2             2.0         -3.3
                II             r3.4         r5.2          1.7        r-2.5           r-5.1        r-5.7
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1992       I              5.0          2.9         -2.0          3.9             1.0         -1.1
                II              5.6          4.2         -1.3          4.3             1.2         -1.2
               III              4.0          2.4         -1.5          4.6             1.5          0.6
                IV              4.8          4.3         -0.4          4.8             1.6          0.0
 
            ANNUAL              5.0          3.4         -1.5          4.5             1.5         -0.4
 
      1993       I              6.1          6.7          0.5          3.5             0.3         -2.4
                II              6.1          6.0         -0.2          3.8             0.6         -2.2
               III              6.4          6.6          0.2          3.6             0.7         -2.6
                IV              7.3          7.7          0.4          2.5            -0.2         -4.4
 
            ANNUAL              6.5          6.7          0.3          3.3             0.3         -2.9
 
      1994       I              7.5          8.0          0.5          4.7             2.1         -2.6
                II             r6.6         r8.2          1.5          2.4            r0.0         -3.9
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                Sept. 7, 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        154.3           104.8        132.4
 
            ANNUAL            116.1        122.9        105.9        152.0           104.5        131.0
 
      1993       I            116.5        124.6        107.0        155.2           104.7        133.3
                II            117.2        125.3        107.0        157.7           105.5        134.6
               III            117.7        125.6        106.7        159.6           106.3        135.5
                IV            118.1        125.9        106.6        160.8           106.3        136.1
 
            ANNUAL            117.4        125.4        106.8        158.3           105.7        134.9
 
      1994       I            119.6        127.4        106.5        162.0           106.5        135.4
                II           r121.4       r129.7        106.8       r161.9           105.8       r133.4
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              5.2          3.1         -2.0          2.4            -0.2         -2.7
                II              1.3          4.8          3.5          3.8             0.5          2.6
               III              1.1          0.9         -0.2          4.7             1.5          3.6
                IV              1.4          2.5          1.1          4.2             0.9          2.7
 
            ANNUAL              2.0          2.6          0.6          4.0             0.9          1.9
 
      1993       I             -0.1          2.1          2.2          2.5            -0.5          2.6
                II              2.3          2.2         -0.1          6.6             3.4          4.2
               III              2.0          0.9         -1.1          4.7             2.7          2.6
                IV              1.3          1.0         -0.3          3.1             0.1          1.8
 
            ANNUAL              1.2          2.0          0.8          4.2             1.1          3.0
 
      1994       I              5.2          4.7         -0.4          3.1             0.9         -2.0
                II             r6.1         r7.4         r1.2        r-0.2           r-2.9        r-5.9
      --------------------------------------------------------------------------------------------------
                         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             0.5          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          1.6          3.8             0.6          2.9
                II              1.2          1.9          0.8          4.5             1.3          3.3
               III              1.4          1.9          0.5          4.5             1.6          3.0
                IV              1.4          1.5          0.2          4.2             1.4          2.8
 
            ANNUAL              1.2          2.0          0.8          4.2             1.1          3.0
 
      1994       I              2.7          2.2         -0.5          4.4             1.8          1.6
                II             r3.6         r3.5        r-0.1         r2.6             0.2        r-0.9
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                Sept. 7, 1994
      r=revised                                                       Source: Bureau of Labor Statistics
 
      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    116.7     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    121.4     145.9    120.2    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    156.0     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     103.9     126.2    116.6    123.5    218.2    129.4
                II    124.7     154.8    124.2    157.9     103.2     126.7    115.2    123.4    229.3    129.9
      ----------------------------------------------------------------------------------------------------------
                                   Percent change from previous quarter at annual rate(5)
 
      1992       I      1.2       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      0.2      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      2.4      -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      1.4      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       2.9       1.8      6.6      3.1     -4.9      2.2
                II     -1.3       4.8      6.2      0.0      -2.7       1.4     -5.0     -0.4     22.1      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      4.7       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      4.3       1.1       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      -0.2      -0.4     -2.7     -1.0     18.5      0.6
                IV      2.9       5.2      2.2      1.9      -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      -0.2      -0.5     -0.5     -0.5     15.0      0.9
      ----------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                        Sept. 7, 1994
      r=revised                                                               Source: Bureau of Labor Statistics
 
 
                                          15
 
 
 
         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 second published 30 days after the close of the
         reference period; revisions appear about 35 days later, and third
         revisions after an additional 60 days. In the business sector,
         the probability is 0.95 that the third publication (third
         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 second 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)  Quarterly manufacturing output measures are based on the
              index of industrial production prepared monthly by the Board
              of Governors of the Federal Reserve adjusted by BLS to
              annual manufacturing output levels (gross product
              originating) from the National Income and Product Accounts
              prepared by the Bureau of Economic Analysis of the U.S.
              Department of Commerce.
 
         (7)  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.
 
 
                                          16
 
 
         (8)  Total unit cost is the sum of labor and nonlabor costs.
 
         (9)  Unit profits include corporate profits with inventory
              valuation and capital consumption adjustments.