Internet address:    http://www.bls.gov/lpc/          USDL 07-1200
Historical, technical                                 TRANSMISSION OF THIS
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Media contact: (202) 691-5902                         TUESDAY, AUG. 7, 2007.



                           PRODUCTIVITY AND COSTS
                     Second Quarter 2007, Preliminary


   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 second quarter of 2007.  The preliminary seasonally adjusted 
annual rates of productivity change in the second quarter were:

                  2.6 percent in the business sector and
                  1.8 percent in the nonfarm business sector.

These rates of growth are higher than those for the first quarter of 2007, 
when productivity increased 0.2 percent in the business sector and 0.7 
percent in the nonfarm business sector.

   In manufacturing, the preliminary productivity changes in the second 
quarter were:

                  1.6 percent in manufacturing,
                  4.7 percent in durable goods manufacturing, and
                 -1.9 percent in nondurable goods manufacturing.

Productivity in the total manufacturing sector grew 1.6 percent in the second 
quarter of 2007, as output increased 3.5 percent and hours increased 1.8 
percent (seasonally adjusted annual rates).  Growth in output and 
productivity was concentrated in the durable goods subsector.  Output and 
hours in manufacturing, which includes about 12 percent of U.S. business-
sector employment, tend to vary more from quarter to quarter than data for 
the aggregate business and nonfarm business sectors.  Second-quarter measures 
are summarized in table A and appear in detail in tables 1 through 5.

==============================================================================
Data in this release reflect the regular multi-year revisions to the national 
income and product accounts released by the Bureau of Economic Analysis of 
the U.S. Department of Commerce on July 27.  The data also incorporate 
revised estimates of output in manufacturing and hours in all sectors.  See 
Revised Measures. 
==============================================================================

   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 second-quarter 2007 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                  2.6      3.8      1.1       5.3       -0.7       2.6
Nonfarm business          1.8      4.2      2.3       3.9       -2.0       2.1
Manufacturing             1.6      3.5      1.8       2.8       -3.0       1.2
  Durable                 4.7      6.2      1.5       1.5       -4.2      -3.0
  Nondurable             -1.9      0.3      2.3       5.4       -0.5       7.5
------------------------------------------------------------------------------  
                           Percent change from same quarter a year ago
                           
Business                  0.6      1.8      1.2       5.3        2.6       4.7
Nonfarm business          0.6      2.0      1.3       5.2        2.4       4.5
Manufacturing             2.9      1.7     -1.2       6.2        3.4       3.2
  Durable                 4.5      2.4     -2.0       6.9        4.1       2.3
  Nondurable              0.6      1.0      0.4       5.0        2.2       4.3
------------------------------------------------------------------------------


Business

   From the first quarter to the second quarter of 2007, business sector 
labor productivity increased at a 2.6-percent annual rate.  Output increased 
3.8 percent and hours of all persons engaged in the sector--employees, 
proprietors, and unpaid family workers--rose 1.1 percent (seasonally 
adjusted annual rates).  As revised, output per hour rose at the same 0.2 
percent annual rate as output in the first quarter of 2007, hours worked were 
unchanged from the previous quarter (tables 1 and B).

   Hourly compensation increased 5.3 percent in the second quarter of 2007, 
more than the 3.3 percent gain in the first quarter (seasonally adjusted 
annual rates).  This measure of compensation includes wages and salaries, 
supplements, employer contributions to employee benefit plans, and taxes.  
Real hourly compensation, which takes into account changes in consumer 
prices, fell 0.7 percent during the second quarter of 2007 as consumer prices 
increased  6.0 percent (seasonally adjusted annual rates).

   Unit labor costs, which reflect changes in both hourly compensation and 
productivity, increased 2.6 percent during the second quarter of 2007 after 
rising 3.1 percent in the previous quarter.  From the second quarter of 2006 
to the second quarter of 2007, these costs increased 4.7 percent--the largest 
four-quarter increase since unit labor costs increased 4.8 percent between 
the third quarter of 1999 and the third quarter of 2000.  The implicit price 
deflator for the business sector, which reflects changes in both unit labor 
costs and unit nonlabor payments, increased 2.5 percent in the second quarter 
and 4.1 percent in the first quarter. 


Nonfarm Business

   Productivity increased 1.8 percent in the nonfarm business sector during 
the second quarter of 2007 as output grew 4.2 percent and hours of all 
persons increased 2.3 percent (seasonally adjusted annual rates).  Revised 
results for first-quarter 2007 show that productivity increased 0.7 percent, 
output rose 0.3 percent, and hours declined 0.3 percent (tables 2 and B).  
Nonfarm business output per hour had increased at an average annual rate of 
2.7 percent from 2000 through 2006.

   Hourly compensation in the nonfarm business sector increased 3.9 percent 
in the second quarter of 2007, similar to a 3.7-percent rise one quarter 
earlier.  When the 6.0-percent rise in consumer prices is taken into account, 
real hourly compensation fell 2.0 percent in the second quarter of 2007.  It 
had fallen 0.2 percent in the first quarter. 

   Unit labor costs increased 2.1 percent in the second quarter of 2007 and 
3.0 percent in the first quarter.  As in the total business sector, unit 
labor costs increased more from the second quarter of 2006 to the second 
quarter of 2007, 4.5 percent, than during any four-quarter period since 
third-quarter 1999 to third-quarter 2000, when they increased 5.0 percent.  
The implicit price deflator for nonfarm business output grew 2.4 percent in 
the second quarter, following a 3.6-percent increase in the previous quarter.


Manufacturing

   Productivity increased 1.6 percent in manufacturing, as output grew 3.5 
percent and hours of all persons increased 1.8 percent (seasonally adjusted 
annual rates).  All of the second-quarter productivity improvement occurred 
in durable goods industries, where productivity rose 4.7 percent, output grew 
6.2 percent, and hours of all persons increased 1.5 percent.  In nondurable 
goods industries, second-quarter productivity fell 1.9 percent reflecting 
increases in output of 0.3 percent and in hours of 2.3 percent.  In the first 
quarter of 2007, total manufacturing productivity rose 1.7 percent, 
reflecting a 0.9-percent increase in output and a 0.8-percent decline in 
hours (tables 3, 4, and 5).  

   Hourly compensation of all manufacturing workers grew 2.8 percent during 
the second quarter of 2007, reflecting very different growth in the 
manufacturing subsectors.  In durable goods industries, hourly compensation 
rose 1.5 percent, while in non-durable goods industries compensation per hour 
grew faster, 5.4 percent.  When the increase in consumer prices is taken into 
account, the real hourly compensation of all manufacturing workers fell 3.0 
percent in the second quarter after increasing 2.8 percent one quarter 
earlier.

   Unit labor costs in manufacturing rose 1.2 percent in the second quarter 
of 2007, showing the combined effect of a 3.0 percent decline in durable 
goods industries and a 7.5 percent increase in nondurable goods industries.


Revised Measures

   Revised and previous measures for the first quarter of 2007 for the 
business, nonfarm business, and manufacturing sectors are compared in table 
B.  In all sectors, productivity growth was revised down, reflecting both 
smaller increases in output and smaller declines in hours than previously 
reported.  In business and nonfarm business, upward revisions to hourly 
compensation  combined with the smaller productivity gains to produce upward 
revisions to unit labor costs.  In manufacturing, hourly compensation 
increased slightly less than reported June 6, so the upward revision to unit 
labor costs was due solely to the downward revision in productivity growth.

------------------------------------------------------------------------------
Table B. Previous and revised productivity and related measures
Quarterly percent changes at seasonally adjusted annual rates
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------

                                    First quarter 2007
Business:                  
  Previous                0.5      0.4     -0.1       2.5      -1.4        1.9
  Revised                 0.2      0.2      0.0       3.3      -0.5        3.1
  
Nonfarm business:                               
  Previous                1.0      0.6     -0.4       2.8      -1.0        1.8
  Revised                 0.7      0.3     -0.3       3.7      -0.2        3.0
  
Manufacturing:                            
  Previous                2.4      1.2     -1.1       6.9       3.0        4.5
  Revised                 1.7      0.9     -0.8       6.8       2.8        5.0
------------------------------------------------------------------------------

   Table C presents previous and revised productivity and related measures 
for major sectors for the years 2004, 2005, and 2006.  Output data for the 
business and nonfarm business sectors, and the compensation series for all 
sectors, incorporate the revised national income and product accounts data 
released by the Bureau of Economic Analysis, U.S. Department of Commerce, on 
July 27.  Revisions for these sectors go back to the second quarter of 2001.

   Output and productivity growth in the business and nonfarm business 
sectors were revised downward in each year from 2004 to 2006.  The 1.0-
percent productivity gains in 2006 are small compared to recent years.  
Productivity had increased at average annual rates of 3.1 percent in business 
and 3.0 percent in nonfarm business from 2000 through 2005.  Hourly 
compensation was revised down more than productivity in these sectors for the 
year 2006, resulting in smaller increases in unit labor costs than reported 
in the June 6 release.

------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Annual percent changes 
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------

                                    Annual average 2006
Business:                  
  Previous                1.7       3.8      2.1      5.0        1.6       3.2
  Revised                 1.0       3.1      2.1      3.9        0.6       2.9
  
Nonfarm business:                      
  Previous                1.6       3.8      2.1      5.0        1.6       3.3
  Revised                 1.0       3.2      2.2      3.9        0.6       2.9
  
Manufacturing:                   
  Previous                4.0       5.0      1.0      4.1        0.7       0.1
  Revised                 4.0       4.9      0.9      2.5       -0.8      -1.5

                                    Annual average 2005
Business:                     
  Previous                2.1       3.7      1.6      4.2        0.8       2.0
  Revised                 2.0       3.6      1.6      4.0        0.6       2.0
  
Nonfarm business:                      
  Previous                2.1       3.8      1.6      4.1        0.8       2.0
  Revised                 1.9       3.6      1.6      4.0        0.7       2.0
  
Manufacturing:                   
  Previous                4.8       3.6     -1.1      4.7        1.3      -0.1
  Revised                 4.8       3.5     -1.2      4.2        0.8      -0.6

                                    Annual average 2004
Business:                     
  Previous                3.1       4.4      1.3      3.8        1.1       0.7
  Revised                 2.9       4.2      1.3      3.7        1.1       0.9
  
Nonfarm business:                      
  Previous                2.9       4.3      1.4      3.6        0.9       0.7
  Revised                 2.7       4.1      1.4      3.6        0.9       0.9
  
Manufacturing:                   
  Previous                1.8       1.3     -0.5      2.0       -0.7       0.2
  Revised                 2.1       1.8     -0.3      2.0       -0.6      -0.1
------------------------------------------------------------------------------

   Output data for the manufacturing sector also were revised.  Annual 
output indexes are constructed by BLS using data from the Bureau of the 
Census and the Bureau of Economic Analysis (BEA), both in the U.S. Department 
of Commerce, together with information on price changes, primarily from the 
Bureau of Labor Statistics.

   This release also reports revised data on hours at work and related 
measures for the manufacturing, durable manufacturing, and nondurable 
manufacturing sectors.  The hours revision reflects extension of the 
methodology, already used in the business sectors, which utilizes information 
on employment and hours by primary and secondary job of self-employed and 
unpaid family workers from the BLS Current Population Survey. (See 
Construction of Employment and Hours for Self-employed and other Nonfarm 
workers and for all Farm workers, using Current Population Survey data for 
primary and secondary jobs," on the productivity and costs home page, 
http://www.bls.gov/lpc/home.htm .)

   Manufacturing productivity grew 4.8 percent in 2005 and 4.0 percent in 
2006, the same as reported June 6.  Hourly compensation and unit labor costs 
were revised down in both years.  For 2004, productivity was revised up to 
2.1 percent, as an upward revision to output was partially offset by an 
upward revision to hours.  Because hourly compensation was not revised for 
2004, the larger increase in productivity implied a downward revision to unit 
labor costs.  The average annual rate of productivity growth in manufacturing 
for the 2000 to 2006 period was unchanged at 4.2 percent per year.

   Revised quarterly series appear in tables 1-5 and appendix tables 1-5.  
Complete annual series for the manufacturing sectors appear in appendix 
tables 7 through 9.  Links to tables showing the full historical revisions 
including the quarterly measures will be posted on the productivity and costs 
home page, http://www.bls.gov/lpc/home.htm .


Revised Measures: Nonfinancial Corporations 

   Productivity and costs measures for the first quarter of 2007 for 
nonfinancial corporations also were revised (table D).  Increases in 
productivity and output were revised down to 0.2 percent and 0.4 percent, 
respectively (seasonally adjusted annual rates).  Hourly compensation was 
revised down by more than productivity, and unit labor costs increased 3.6 
percent, rather than 4.1 percent as reported June 6.  The change in unit 
profits in the first quarter of 2007 was revised up from 6.8 percent to 12.4 
percent.  

------------------------------------------------------------------------------
Table D.  Nonfinancial corporations: Previous and revised productivity and 
cost measures
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
------------------------------------------------------------------------------

                              First quarter 2007

Previous   0.6    0.7      0.1      4.7      0.8      4.1      6.8      3.7
Revised    0.2    0.4      0.2      3.8     -0.1      3.6     12.4      3.9

                              Annual average 2006

Previou    2.5    4.8      2.2      4.8      1.4      2.2     12.2      2.7
Revised    1.3    3.5      2.2      3.5      0.2      2.2      5.0      2.2

                              Annual average 2005

Previous   2.3    4.0      1.6      4.1      0.8      1.8     12.6      3.3
Revised    1.1    2.7      1.6      3.8      0.5      2.7      7.0      3.3

                              Annual average 2004
   
Previous   3.1    4.5      1.4      3.2      0.5      0.1     26.9      2.1
Revised    3.5    4.9      1.4      3.0      0.3     -0.5     32.0      2.1
------------------------------------------------------------------------------

   Historical data for nonfinancial corporations also were revised due to 
incorporation of revised data on output and compensation from the national 
income and product accounts.

   For the year 2006, output and output per hour were revised down, hourly 
compensation was revised down by a similar amount, and unit labor costs 
remained unchanged.  In 2005, the downward revision to productivity was 
larger than that to hourly compensation, and unit labor costs increased more 
than reported June 6.  The rates of productivity growth in 2005 and 2006, 1.1 
percent and 1.3 percent, respectively, are smaller than the 3.3-percent 
average annual growth rate from 2000 to 2004.  In the year 2004, productivity 
growth was revised up along with output.  Unit labor costs fell 0.5 percent 
rather than rising 0.1 percent.  Revised data for nonfinancial corporations 
appear in table 6 and appendix table 6.

                              Next release date
                              
   The next release of Productivity and Costs is scheduled for 8:30 a.m. 
EDT, Thursday, Sept. 6, 2007.  Revised second-quarter measures for business, 
nonfarm business, and manufacturing will be released at that time, along with 
preliminary measures for nonfinancial corporations.



				TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include 
hours for all persons working in the sector-wage and salary workers, the 
self-employed and unpaid family workers.  The primary source of hours and em-
ployment data is the BLS Current Employment Statistics (CES) program, which 
provides monthly survey data on the number of jobs held by wage and salary 
workers in nonfarm establishments.  The CES also provides average weekly paid 
hours of production and nonsupervisory workers in these establishments.  
Weekly paid hours are adjusted to hours at work using data from the National 
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this 
purpose, was used for earlier years.  The Office of Productivity and 
Technology estimates average weekly hours at work for nonproduction and 
supervisory workers using information from the Current Population Survey 
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and 
nonfarm unpaid family workers.  Estimates of labor input for government 
enterprises are derived from the CPS, the CES, and the National Income and 
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of 
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is an annual-weighted index constructed after 
excluding from gross domestic product (GDP) the following outputs: general 
government, nonprofit institutions, and private households (including owner-
occupied housing). Corresponding exclusions also are made in labor inputs. 
Business output accounted for about 78 percent of the value of GDP in 2000. 
Nonfarm business, which also excludes farming, accounted for about 77 percent 
of GDP in 2000.
      Annual indexes for manufacturing and its durable and nondurable goods 
components are constructed by deflating current-dollar industry value of 
production data from the U.S. Bureau of the Census with deflators from the 
BLS.  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 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery manufac-
turing; computer and electronic product manufacturing; electrical equipment 
and appliance manufacturing; transportation equipment manufacturing; 
furniture and related product manufacturing; and miscellaneous manufacturing. 
Nondurables include: food manufacturing; beverage and tobacco product 
manufacturing; textile mills; textile product mills; apparel manufacturing; 
leather and allied product manufacturing; paper manufacturing; printing and 
related support activities; petroleum and coal products manufacturing; 
chemical manufacturing; and plastics and rubber products manufacturing.
      Nonfinancial corporate output is an annual-weighted index calculated on 
the basis of the costs incurred and the incomes earned from production.  The 
output measure excludes the following outputs from GDP: general government; 
nonprofit institutions; private households; unincorporated business; and 
those corporations classified as offices of bank holding companies, offices 
of other holding companies, or offices in the finance and insurance sector. 
Nonfinancial corporations accounted for about 54 percent of the value of GDP 
in 2000.
      
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.

Labor Compensation: Estimates of labor compensation by major sector, required 
for measures of hourly compensation and unit labor costs, are based primarily 
on employee compensation data from the NIPA, prepared by the BEA.   The 
compensation of employees in general government, nonprofit institutions and 
private households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor compensation 
of proprietors cannot be explicitly identified and must be estimated.   This 
is done by assuming that proprietors have the same hourly compensation as 
employees in the same sector.  The quarterly labor productivity and cost 
measures do not contain estimates of compensation for unpaid family workers.  
        
Unit Labor Costs:  The measures of unit labor costs in this release describe 
the relationship between compensation per hour and productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on 
producers.  Increases in hourly compensation increase unit labor costs; labor 
productivity increases offset compensation increases and lower unit labor 
costs. 

Presentation of the data:  The quarterly data in this release are presented 
in three ways; as index number series where 1992=100, as percent changes from 
the corresponding quarter of the previous year, and as percent changes from 
the previous quarter presented at a compound annual rate.  Annual data are 
presented both as index number series and percent changes from the previous 
year.  
	The index numbers and rates of change reported in the productivity and 
costs news release are rounded to one decimal place.  All percent changes in 
this release and on the BLS web site are calculated using index numbers to 
three decimal places.  These index numbers are available at the BLS web site, 
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major 
Sector Productivity.  (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)
        
Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5606; Federal Relay Service 
number: 1-800-877-8339.




Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted

                                                           Real
   Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
   and        hour of                of all    tion per    tion per    labor    labor pay-  price
   quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

2005       I    r134.4     r157.2    r117.0    r161.4      r120.3     r120.1      r128.2     r123.1
          II    r134.3     r158.5    r118.0    r161.7      r119.4     r120.4      r129.8     r123.9
         III    r135.9     r160.6    r118.2    r164.2      r119.6     r120.8      r132.0     r125.0
          IV    r135.5     r161.0    r118.8    r165.4      r119.4     r122.0      r133.0     r126.1

      ANNUAL    r135.0     r159.3    r118.0    r163.2      r119.7     r120.9      r130.8     r124.5

2006       I    r136.4     r163.2    r119.6    r168.2      r120.9     r123.4      r133.0     r127.0
          II    r136.6     r164.2    r120.2    r168.1      r119.3     r123.0      r136.5     r128.0
         III    r136.1     r164.4    r120.8    r168.7      r118.9     r124.0      r136.6     r128.7
          IV    r136.5     r165.5    r121.2    r173.4      r122.8     r127.0      r132.2     r128.9

      ANNUAL    r136.4     r164.3    r120.5    r169.6      r120.4     r124.3      r134.6     r128.2

2007       I    r136.6     r165.6    r121.2    r174.8      r122.6     r128.0      r134.0     r130.2
          II     137.5      167.1     121.6     177.0       122.4      128.8       134.8      131.0
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2005       I      r3.0       r3.7      r0.7      r3.0        r1.1       r0.0        r9.1       r3.4
          II     r-0.3       r3.3       3.6      r0.7       r-3.1       r1.0        r5.1       r2.6
         III      r4.9       r5.5       0.6      r6.2        r0.7       r1.3        r7.1       r3.5
          IV     r-1.1       r1.0       2.1      r2.9       r-0.5       r4.0        r3.1       r3.7

      ANNUAL      r2.0       r3.6       1.6      r4.0        r0.6        2.0        r4.9       r3.1

2006       I      r2.5       r5.5      r2.9      r7.2        r5.1       r4.6        r0.0       r2.8
          II      r0.8       r2.5       1.7     r-0.4       r-5.1      r-1.2       r10.7       r3.3
         III     r-1.5       r0.6       2.2      r1.6       r-1.6       r3.1        r0.5       r2.1
          IV      r1.2       r2.6       1.4     r11.4       r13.8      r10.1      r-12.4       r0.8

      ANNUAL      r1.0       r3.1       2.1      r3.9        r0.6       r2.9        r2.9       r2.9

2007       I      r0.2       r0.2      r0.0      r3.3       r-0.5       r3.1        r5.7       r4.1
          II       2.6        3.8       1.1       5.3        -0.7        2.6         2.5        2.5
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I       2.5        3.8      r1.2      r5.0        r1.9       r2.4        r4.1       r3.1
          II       1.5       r3.5       2.0      r3.8         0.9        2.3        r3.6       r2.8
         III       2.4        3.9       1.5      r4.0        r0.3       r1.6        r5.8       r3.2
          IV      r1.6       r3.4       1.7      r3.2       r-0.5        1.6        r6.1       r3.3

      ANNUAL      r2.0       r3.6       1.6      r4.0        r0.6        2.0        r4.9       r3.1

2006       I      r1.5       r3.8       2.3      r4.2        r0.5       r2.7        r3.8       r3.1
          II      r1.7       r3.6       1.8      r3.9        r0.0       r2.2        r5.1       r3.3
         III      r0.2       r2.4       2.2      r2.8       r-0.6       r2.6        r3.5       r3.0
          IV      r0.7       r2.8      r2.1      r4.8        r2.8       r4.1       r-0.6       r2.2

      ANNUAL      r1.0       r3.1       2.1      r3.9        r0.6       r2.9        r2.9       r2.9

2007       I      r0.2       r1.5       1.3      r3.9        r1.4       r3.7        r0.8       r2.6
          II       0.6        1.8       1.2       5.3         2.6        4.7        -1.2        2.4
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       August 7, 2007
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

2005       I    r133.4     r157.4    r118.0    r160.3      r119.5     r120.2      r129.6     r123.6
          II    r133.5     r158.6    r118.8    r160.9      r118.8     r120.5      r131.3     r124.5
         III    r135.0     r160.8    r119.1    r163.2      r118.8     r120.9      r133.7     r125.6
          IV    r134.5     r161.2    r119.8    r164.2      r118.6     r122.1      r134.8     r126.8

      ANNUAL    r134.1     r159.5    r118.9    r162.1      r118.9     r120.9      r132.4     r125.1

2006       I    r135.3     r163.4    r120.8    r167.1      r120.1     r123.5      r135.0     r127.7
          II    r135.6     r164.4    r121.2    r167.0      r118.6     r123.2      r138.7     r128.9
         III    r135.0     r164.7    r122.0    r167.5      r118.0     r124.0      r138.6     r129.4
          IV    r135.6     r165.7    r122.2    r172.4      r122.1     r127.1      r133.6     r129.5

      ANNUAL    r135.4     r164.5    r121.5    r168.5      r119.7     r124.5      r136.5     r128.9

2007       I    r135.9     r165.9    r122.1    r174.0      r122.1     r128.1      r135.1     r130.6
          II     136.5      167.6     122.8     175.7       121.5      128.7       136.0      131.4
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2005       I      r3.7       r3.9      r0.2      r3.6        r1.6      r-0.1       r10.4       r3.8
          II      r0.3       r3.2       2.9      r1.5       r-2.4       r1.2        r5.1       r2.7
         III      r4.4       r5.6       1.1      r5.7        r0.2       r1.3        r7.8       r3.8
          IV     r-1.4       r0.9      r2.4      r2.6       r-0.8       r4.1        r3.2       r3.7

      ANNUAL      r1.9       r3.6       1.6      r4.0        r0.7        2.0        r5.5       r3.4

2006       I      r2.5       r5.7      r3.1      r7.2        r5.1       r4.6        r0.5       r3.0
          II      r0.8       r2.4      r1.6     r-0.2       r-5.0      r-1.0       r11.5       r3.7
         III     r-1.6       r0.8       2.4      r1.3       r-1.8       r2.9       r-0.4       r1.6
          IV      r1.8       r2.6       0.8     r12.2       r14.6      r10.3      r-13.6       r0.3

      ANNUAL      r1.0       r3.2      r2.2      r3.9        r0.6       r2.9        r3.1       r3.0

2007       I      r0.7       r0.3     r-0.3      r3.7       r-0.2       r3.0        r4.6       r3.6
          II       1.8        4.2       2.3       3.9        -2.0        2.1         2.8        2.4
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I      r2.5        3.8       1.4      r4.9        r1.8       r2.3        r4.8       r3.3
          II      r1.4       r3.4       2.0       3.9         0.9       r2.5        r4.3       r3.2
         III      r2.2       r3.8      r1.5      r4.0        r0.3       r1.7        r6.4       r3.5
          IV      r1.7       r3.4      r1.7      r3.3       r-0.4       r1.6        r6.6       r3.5

      ANNUAL      r1.9       r3.6       1.6      r4.0        r0.7        2.0        r5.5       r3.4

2006       I      r1.4       r3.8      r2.4      r4.2        r0.5       r2.8        r4.1       r3.3
          II      r1.5       r3.6       2.0      r3.8       r-0.2       r2.2        r5.7       r3.5
         III      r0.1       r2.4      r2.4      r2.7       r-0.7        2.6        r3.6       r3.0
          IV      r0.9       r2.8      r2.0      r5.0        r3.0       r4.1       r-0.9       r2.2

      ANNUAL      r1.0       r3.2      r2.2      r3.9        r0.6       r2.9        r3.1       r3.0

2007       I      r0.4       r1.5       1.1      r4.1        r1.6       r3.7        r0.1       r2.3
          II       0.6        2.0       1.3       5.2         2.4        4.5        -1.9        2.0
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       August 7, 2007
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

2005       I           r168.3       r142.7        r84.8       r166.2         r123.9         r98.7
          II           r170.9       r143.8        r84.1       r167.8         r123.9         r98.2
         III           r172.4       r144.5        r83.8       r170.2         r124.0         r98.7
          IV           r173.7       r147.3        r84.8       r168.8         r121.9         r97.2

      ANNUAL           r171.3       r144.6        r84.4       r168.3         r123.4         r98.2

2006       I           r175.4       r149.5        r85.2       r172.6         r124.1         r98.4
          II           r177.0       r151.6        r85.6       r170.1         r120.8         r96.1
         III           r179.8       r153.4        r85.3       r170.7         r120.2         r94.9
          IV           r180.7       r152.6        r84.4       r176.4         r125.0         r97.6

      ANNUAL           r178.2       r151.7        r85.1       r172.4         r122.5         r96.8

2007       I           r181.5       r152.9        r84.3       r179.4         r125.8         r98.8
          II            182.2        154.2         84.6        180.6          124.9          99.1
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I             r4.9         r4.6        r-0.3         r1.0          r-0.9         r-3.7
          II             r6.3         r3.1        r-3.0         r4.0            0.0         r-2.2
         III             r3.5         r2.1        r-1.4         r5.6           r0.1          r2.1
          IV              3.1          7.9         r4.6        r-3.1          r-6.4         r-6.0

      ANNUAL              4.8         r3.5        r-1.2         r4.2           r0.8         r-0.6

2006       I             r4.0          6.0          1.9         r9.4           r7.2          r5.1
          II             r3.7          5.7         r2.0        r-5.8         r-10.2         r-9.1
         III             r6.5          4.8        r-1.6         r1.4          r-1.8         r-4.8
          IV             r2.0         -2.1        r-4.0        r14.2          r16.6         r12.0

      ANNUAL              4.0         r4.9         r0.9         r2.5          r-0.8         r-1.5

2007       I             r1.7         r0.9        r-0.8         r6.8           r2.8          r5.0
          II              1.6          3.5          1.8          2.8           -3.0           1.2
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              4.4         r3.1        r-1.2         r6.0           r2.9          r1.5
          II             r5.1          3.4        r-1.6          5.0           r2.1           0.0
         III              5.2         r3.3        r-1.9         r4.0           r0.3         r-1.1
          IV             r4.4         r4.4          0.0         r1.8          r-1.8         r-2.5

      ANNUAL              4.8         r3.5        r-1.2         r4.2           r0.8         r-0.6

2006       I             r4.2         r4.7         r0.5         r3.9           r0.1         r-0.3
          II              3.6         r5.4          1.8         r1.3          r-2.5         r-2.1
         III             r4.3          6.1         r1.7         r0.3          r-3.0         r-3.8
          IV             r4.0          3.6        r-0.5         r4.5           r2.5          r0.5

      ANNUAL              4.0         r4.9         r0.9         r2.5          r-0.8         r-1.5

2007       I              3.5         r2.3         -1.1         r3.9           r1.4          r0.4
          II              2.9          1.7         -1.2          6.2            3.4           3.2
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                August 7, 2007
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

2005       I           r189.8       r169.7        r89.4       r161.4         r120.3         r85.0
          II           r193.4       r171.6        r88.8       r162.5         r120.0         r84.0
         III           r196.5       r174.5        r88.8       r165.2         r120.4         r84.1
          IV           r200.7       r180.5        r89.9       r163.6         r118.2         r81.5

      ANNUAL           r195.1       r174.1        r89.2       r163.2         r119.7         r83.6

2006       I           r202.7       r182.9        r90.3       r168.4         r121.0         r83.1
          II           r205.5       r187.1        r91.1       r165.7         r117.7         r80.7
         III           r210.1       r189.6        r90.3       r166.4         r117.3         r79.2
          IV           r211.5       r188.9        r89.3       r173.0         r122.5         r81.8

      ANNUAL           r207.4       r187.2        r90.2       r168.4         r119.6         r81.2

2007       I           r212.3       r188.7        r88.9       r176.6         r123.9         r83.1
          II            214.8        191.6         89.2        177.2          122.5          82.5
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I             r4.1         r5.5         r1.3         r0.4          r-1.5         r-3.6
          II             r7.7         r4.7        r-2.8          2.7           -1.2         r-4.7
         III             r6.6         r6.8         r0.2         r7.0           r1.4          r0.4
          IV             r8.9        r14.5         r5.2        r-3.8          r-7.0        r-11.7

      ANNUAL             r5.3         r5.0        r-0.3         r3.8           r0.5         r-1.4

2006       I             r3.9          5.5         r1.5        r12.1           r9.9          r7.9
          II             r5.7          9.4         r3.5        r-6.1         r-10.5        r-11.2
         III             r9.3          5.5        r-3.5         r1.7          r-1.5         r-6.9
          IV             r2.7         -1.4        r-4.1        r16.6          r19.1         r13.5

      ANNUAL             r6.3          7.5         r1.1         r3.2          r-0.1         r-2.9

2007       I             r1.6        r-0.5        r-2.0         r8.6            4.5          r6.9
          II              4.7          6.2          1.5          1.5           -4.2          -3.0
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I             r3.3         r3.0        r-0.3         r6.0           r2.9          r2.6
          II             r4.8          4.0        r-0.8         r4.4           r1.5         r-0.4
         III             r6.2          5.1        r-1.0         r3.5          r-0.2         r-2.5
          IV             r6.8         r7.8          0.9         r1.5          r-2.1         r-5.0

      ANNUAL             r5.3         r5.0        r-0.3         r3.8           r0.5         r-1.4

2006       I             r6.8         r7.8         r1.0         r4.3           r0.6         r-2.3
          II             r6.3         r9.0         r2.6         r2.0          r-1.9         r-4.0
         III             r6.9          8.7         r1.6         r0.7          r-2.6         r-5.8
          IV             r5.4          4.7        r-0.7         r5.7           r3.6          r0.3

      ANNUAL             r6.3          7.5         r1.1         r3.2          r-0.1         r-2.9

2007       I              4.8          3.2         -1.5         r4.9           r2.4          r0.1
          II              4.5          2.4         -2.0          6.9            4.1           2.3
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                August 7, 2007
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

2005       I           r147.3       r114.7        r77.8       r173.3         r129.2        r117.6
          II           r149.1       r115.1        r77.2       r176.1         r130.0        r118.1
         III           r149.5       r114.2        r76.4       r177.3         r129.2        r118.6
          IV           r148.4       r114.4        r77.1       r176.5         r127.5        r118.9

      ANNUAL           r148.6       r114.6        r77.1       r175.8         r129.0        r118.3

2006       I           r149.8       r116.3        r77.6       r178.3         r128.2        r119.0
          II           r150.7       r116.8        r77.5       r175.9         r124.9        r116.7
         III           r151.6       r117.9        r77.8       r176.4         r124.3        r116.4
          IV           r152.0       r117.1        r77.0       r180.5         r127.9        r118.8

      ANNUAL           r151.0       r117.0        r77.5       r177.8         r126.3        r117.7

2007       I           r152.4       r117.8        r77.3       r182.2         r127.8        r119.5
          II            151.7        117.9         77.7        184.6          127.7         121.7
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I              6.4         r3.3        r-2.9         r1.8          r-0.2         r-4.3
          II             r4.9         r1.3        r-3.4         r6.5           r2.5          r1.6
         III             r1.0        r-3.0        r-4.0         r2.8          r-2.6          r1.7
          IV            r-2.9         r0.8         r3.8        r-1.9          r-5.2          r1.0

      ANNUAL             r4.8         r1.9         -2.7         r4.8           r1.4          r0.0

2006       I             r3.9          6.6          2.7         r4.3           r2.3          r0.4
          II             r2.4          1.7        r-0.7        r-5.4          r-9.9         r-7.6
         III             r2.4          4.1         r1.7         r1.2          r-2.0         r-1.2
          IV             r1.0         -2.9        r-3.9         r9.7          r12.0          r8.6

      ANNUAL             r1.6         r2.1          0.5         r1.1          r-2.1         r-0.5

2007       I             r1.2         r2.6         r1.4         r3.8          r-0.1          r2.5
          II             -1.9          0.3          2.3          5.4           -0.5           7.5
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              6.3         r3.3        r-2.8         r5.9           r2.8          -0.4
          II             r5.8         r2.5        r-3.1         r6.1           r3.0          r0.2
         III             r4.7         r1.2        r-3.3         r4.9           r1.1          r0.1
          IV             r2.3         r0.6         -1.7         r2.3          r-1.4          r0.0

      ANNUAL             r4.8         r1.9         -2.7         r4.8           r1.4          r0.0

2006       I             r1.7         r1.4        r-0.3         r2.9          r-0.8          r1.2
          II             r1.1          1.5         r0.4        r-0.1          r-3.9         r-1.2
         III             r1.4          3.3          1.8        r-0.5          r-3.8         r-1.9
          IV             r2.4          2.3        r-0.1         r2.3           r0.3          -0.1

      ANNUAL             r1.6         r2.1          0.5         r1.1          r-2.1         r-0.5

2007       I             r1.7         r1.3        r-0.4         r2.2          r-0.3          r0.4
          II              0.6          1.0          0.4          5.0            2.2           4.3
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                August 7, 2007
r=revised                                                       Source: Bureau of Labor Statistics




Table 6. Nonfinancial corporate sector: 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

2005       I   r140.3   r164.6    r117.3   r158.0    r117.8    r112.6   r111.5   r112.3   r151.9   r115.9
          II   r141.1   r166.8    r118.2   r158.5    r117.0    r112.3   r111.7   r112.1   r161.7   r116.6
         III   r140.5   r166.9    r118.8   r160.8    r117.1    r114.4   r115.1   r114.6   r147.5   r117.6
          IV   r141.4   r169.2    r119.7   r161.8    r116.9    r114.5   r112.8   r114.0   r159.5   r118.1

      ANNUAL   r140.8   r166.9    r118.5   r159.8    r117.2    r113.5   r112.8   r113.3   r155.2    117.0

2006       I   r142.4   r171.5    r120.4   r163.8    r117.8    r115.0   r112.5   r114.4   r164.4   r118.8
          II   r141.8   r171.5    r120.9   r163.9    r116.4    r115.6   r114.3   r115.2   r164.8   r119.7
         III   r142.9   r173.6    r121.5   r164.6    r115.9    r115.2   r113.8   r114.8   r172.6   r120.0
          IV   r143.3   r174.6    r121.8   r169.3    r119.9    r118.1   r114.5   r117.1   r150.0   r120.1

      ANNUAL   r142.6   r172.8    r121.2   r165.4    r117.5    r116.0   r113.8   r115.4   r162.9   r119.6

2007       I   r143.4   r174.8    r121.9   r170.8    r119.9    r119.1   r114.7   r118.0   r154.5   r121.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2005       I     r0.3     r0.3       0.1     r2.7      r0.7      r2.4     r6.8     r3.6     r9.8     r4.3
          II     r2.2     r5.4       3.1     r1.2     r-2.6     r-1.0     r0.5    r-0.6    r28.4     r2.5
         III    r-1.6     r0.4       2.0     r6.1      r0.5      r7.8    r12.7     r9.1   r-30.8     r3.4
          IV     r2.4     r5.6       3.1     r2.4     r-1.0      r0.0    r-7.6    r-2.1    r36.9     r1.8

      ANNUAL     r1.1     r2.7       1.6     r3.8      r0.5      r2.7      3.0     r2.8     r7.0      3.3

2006       I     r3.1     r5.5       2.3     r5.2      r3.2      r2.0    r-1.0     r1.2    r12.7     r2.6
          II    r-1.8    r-0.1       1.7     r0.2     r-4.6      r2.0     r6.4     r3.1     r1.2      2.9
         III     r3.1     r5.0       1.9     r1.6     r-1.5     r-1.4    r-1.5    r-1.5    r20.1     r1.0
          IV      1.3      2.4      r1.2    r11.9     r14.3     r10.5     r2.2     r8.3   r-42.9     r0.3

      ANNUAL     r1.3     r3.5       2.2     r3.5      r0.2       2.2     r0.9     r1.9     r5.0     r2.2

2007       I     r0.2     r0.4      r0.2     r3.8     r-0.1      r3.6     r0.9     r2.9    r12.4     r3.9
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2005       I     r2.2     r3.3       1.1     r4.8      r1.7      r2.5     r1.8     r2.3    r12.4     r3.4
          II     r1.6     r3.3       1.7     r3.7      r0.7      r2.1      2.1     r2.1    r10.9     r3.1
         III    r-0.1     r1.5       1.7     r3.8      r0.1      r4.0     r5.4     r4.3    r-2.1      3.6
          IV     r0.8     r2.9       2.1     r3.1     r-0.6      r2.3     r2.8     r2.4     r7.5     r3.0

      ANNUAL     r1.1     r2.7       1.6     r3.8      r0.5      r2.7      3.0     r2.8     r7.0      3.3

2006       I     r1.5     r4.2       2.6     r3.7      r0.0      r2.2     r0.9     r1.8     r8.2     r2.6
          II     r0.5     r2.8       2.3     r3.4     r-0.5      r2.9     r2.3     r2.8     r1.9     r2.7
         III     r1.7     r4.0      r2.3     r2.3     r-1.0      r0.6    r-1.1     r0.2    r17.0     r2.1
          IV     r1.4     r3.2       1.8     r4.6      r2.6      r3.2     r1.5     r2.7    r-5.9     r1.7

      ANNUAL     r1.3     r3.5       2.2     r3.5      r0.2       2.2     r0.9     r1.9     r5.0     r2.2

2007       I     r0.7     r1.9      r1.3     r4.3      r1.8      r3.6     r2.0     r3.1    r-6.0      2.0
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        August 7, 2007
r=revised                                                               Source: Bureau of Labor Statistics




SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.6 and +1.4 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the first quarter of 2007.


                           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)  The change for recent quarters is based on the Consumer Price Index for 
all urban consumers (CPI-U).  The trend from 1978-2006 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital, 
taxes on production and imports less subsidies, net interest and 
miscellaneous payments, business current transfer payments, rental 
income of persons, and the current surplus of government enterprises.

(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 consumption of fixed capital, taxes on 
production and imports less subsidies, net interest and miscellaneous 
payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory 
valuation and capital consumption adjustments.





Appendix table 1. Business sector: Revised 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

 2002       I    r122.8      141.9    r115.5     143.7      r115.6      117.0      r113.2      115.6
           II     123.4      142.6     115.6     145.4       116.0      117.9       112.6      115.9
          III     124.8      143.8     115.2     146.1       116.0      117.1       114.7      116.2
           IV    r124.8      144.0    r115.4     146.1      r115.3      117.1       116.0      116.7

       ANNUAL     123.9      143.1     115.4     145.3       115.7      117.3       114.1      116.1

 2003       I    r125.8      144.4    r114.8    r148.1      r115.7     r117.7      r116.5      117.3
           II    r127.9      146.0    r114.1    r150.8      r117.8     r117.9       116.7      117.4
          III    r130.8      149.7    r114.5    r152.5      r118.4     r116.6      r120.2      118.0
           IV    r130.3      150.1    r115.2    r153.6      r118.9      117.9      r119.5      118.5

       ANNUAL    r128.7      147.5    r114.6    r151.2      r117.7      117.5       118.3      117.8

 2004       I    r131.1     r151.4    r115.5    r153.8      r118.1     r117.3      r123.1     r119.5
           II    r132.3     r153.1    r115.7    r155.8      r118.4     r117.7      r125.3     r120.5
          III    r132.7     r154.6    r116.5    r157.8      r119.2     r118.9      r124.7     r121.1
           IV    r133.4     r155.7    r116.8    r160.2      r120.0     r120.1      r125.4     r122.1

       ANNUAL    r132.4     r153.7    r116.1    r156.9      r118.9     r118.5      r124.6     r120.8

 ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

 2002       I       5.6        2.6      -2.9       5.7         4.2        0.1         0.4        0.2
           II       1.8        2.1       0.3       4.7         1.4        2.8        -2.1        1.0
          III       4.8        3.6      -1.2       2.0        -0.1       -2.7         7.9        1.0
           IV      -0.2        0.5       0.6      -0.1        -2.5        0.1         4.6        1.7

       ANNUAL       4.1        1.5      -2.5       3.5         1.9       -0.5         3.8        1.0

 2003       I       3.3        1.1      -2.2       5.5         1.7        2.1         1.7        1.9
           II      r6.9        4.6      -2.2      r7.5         7.2        0.6         0.6        0.6
          III       9.1       10.4       1.2      r4.6        r2.1       -4.1        12.5        1.8
           IV     r-1.4        1.1       2.5       2.9         1.8        4.3        -2.1        1.8

       ANNUAL       3.8        3.1      -0.7       4.1         1.7        0.2         3.6        1.5

 2004       I      r2.4       r3.7       1.2      r0.6       r-2.9      r-1.8       r12.4       r3.4
           II      r3.9       r4.4       0.5      r5.2        r1.0       r1.3        r7.5        3.6
          III      r1.2       r4.0       2.8      r5.3        r3.0       r4.1        -1.8       r1.8
           IV      r2.0       r3.0       1.0      r6.3        r2.6       r4.2        r2.2       r3.5

       ANNUAL      r2.9       r4.2       1.3      r3.7         1.1       r0.9        r5.4        2.6

 ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

 2002       I       4.8        0.5      -4.1       3.4         2.2       -1.3         6.3        1.3
           II       3.9        0.8      -2.9       3.9         2.5        0.0         2.4        0.9
          III       4.7        2.5      -2.1       3.8         2.2       -0.8         3.9        0.9
           IV       3.0        2.2      -0.8       3.1         0.7        0.1         2.6        1.0

       ANNUAL       4.1        1.5      -2.5       3.5         1.9       -0.5         3.8        1.0

 2003       I       2.4        1.8      -0.6       3.0         0.1        0.6         2.9        1.4
           II       3.7        2.4      -1.3       3.7         1.5        0.0         3.6        1.3
          III       4.7        4.0      -0.7       4.4         2.1       -0.4         4.7        1.5
           IV       4.4        4.2      -0.2       5.1         3.2        0.7         3.0        1.5

       ANNUAL       3.8        3.1      -0.7       4.1         1.7        0.2         3.6        1.5

 2004       I      r4.2       r4.9      r0.7      r3.9        r2.0      r-0.3        r5.6        1.9
           II      r3.4       r4.8      r1.4       3.3         0.5      r-0.1        r7.4       r2.6
          III      r1.5       r3.3       1.7      r3.5        r0.7       r1.9        r3.8       r2.6
           IV       2.4        3.8       1.4      r4.3        r0.9       r1.9        r4.9       r3.0

       ANNUAL      r2.9       r4.2       1.3      r3.7         1.1       r0.9        r5.4        2.6

 --------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                      August 7, 2007
 r=revised                                                             Source: Bureau of Labor Statistics




Appendix table 2. Nonfarm business sector: Revised 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

 2002       I     122.7      142.5    r116.1    r143.1      r115.1      116.6       115.0      116.0
           II    r122.9      143.0    r116.3    r144.6      r115.4      117.7       114.8      116.6
          III     124.2      144.1     116.0     145.3       115.3      117.0       116.6      116.9
           IV     124.1      144.1     116.1    r145.4      r114.7      117.1       117.7      117.3

       ANNUAL     123.5      143.4     116.1     144.6       115.1      117.1       116.0      116.7

 2003       I    r125.2      144.6    r115.5    r147.3      r115.2      117.7       118.3      117.9
           II    r126.9      146.1    r115.1    r149.7      r116.9      118.0       118.1      118.0
          III    r130.1      150.0    r115.3    r151.7      r117.8     r116.6       121.5      118.4
           IV    r129.9      150.6    r115.9    r152.9      r118.4     r117.7      r120.5      118.7

       ANNUAL    r128.0      147.8    r115.4    r150.4      r117.1      117.5      r119.6      118.3

 2004       I    r130.2     r151.5    r116.4    r152.9      r117.4     r117.4      r123.7     r119.7
           II    r131.7     r153.4    r116.5    r154.9      r117.7     r117.6      r125.9     r120.6
          III    r132.0     r154.9    r117.3    r156.8      r118.5     r118.8      r125.7     r121.4
           IV    r132.2     r155.9    r117.9    r158.9      r119.0     r120.2      r126.5     r122.5

       ANNUAL    r131.5     r153.9    r117.0    r155.9      r118.2     r118.5      r125.5     r121.1

 ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

 2002       I       6.9        3.5      -3.2       6.2         4.7       -0.7         1.2        0.0
           II       0.7        1.4       0.6       4.4         1.2        3.6        -0.9        2.0
          III       4.2        3.1      -1.0       1.9        -0.2       -2.2         6.6        0.9
           IV      -0.1        0.1       0.2       0.1        -2.3        0.2         3.9        1.6

       ANNUAL       4.1        1.5      -2.6       3.6         2.0       -0.5         4.0        1.1

 2003       I       3.4        1.2      -2.1       5.5         1.7        2.0         1.8        2.0
           II       5.7        4.3      -1.3       6.7         6.4        1.0        -0.6        0.4
          III      10.4       11.0       0.5       5.4         2.9       -4.5        11.9        1.3
           IV      -0.5        1.6       2.2       3.3         2.2        3.8        -3.2        1.1

       ANNUAL       3.7        3.1      -0.6       4.0         1.7        0.3         3.1        1.3

 2004       I      r0.9       r2.6       1.7     r-0.2       r-3.6      r-1.0       r11.3       r3.4
           II      r4.7       r5.0       0.3      r5.3        r1.1       r0.6        r7.1       r3.0
          III      r0.9       r3.8       3.0      r5.2        r2.9       r4.3        -0.4        2.4
           IV      r0.7       r2.6       2.0      r5.4        r1.7       r4.7        r2.4       r3.8

       ANNUAL      r2.7       r4.1       1.4       3.6         0.9       r0.9        r4.9        2.4

 ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

 2002       I       5.1        0.7      -4.2       3.5         2.2       -1.6         6.5        1.2
           II       3.9        0.8      -3.0       4.0         2.6        0.1         2.8        1.0
          III       4.5        2.3      -2.1       3.9         2.3       -0.6         4.1        1.1
           IV       2.9        2.0      -0.8       3.1         0.8        0.2         2.7        1.1

       ANNUAL       4.1        1.5      -2.6       3.6         2.0       -0.5         4.0        1.1

 2003       I       2.0        1.5      -0.6       3.0         0.1        0.9         2.8        1.6
           II       3.3        2.2      -1.0       3.5         1.3        0.2         2.9        1.2
          III       4.8        4.1     r-0.6       4.4         2.1       -0.4         4.2        1.3
           IV       4.7        4.5      -0.2       5.2         3.3        0.5         2.3        1.2

       ANNUAL       3.7        3.1      -0.6       4.0         1.7        0.3         3.1        1.3

 2004       I      r4.0       r4.8       0.8      r3.8        r1.9      r-0.3        r4.6        1.6
           II      r3.8       r5.0       1.2       3.4         0.6      r-0.3        r6.6       r2.2
          III      r1.5       r3.3       1.8      r3.4        r0.6       r1.9        r3.5        2.5
           IV       1.8       r3.5       1.7      r3.9        r0.5       r2.1        r5.0        3.2

       ANNUAL      r2.7       r4.1       1.4       3.6         0.9       r0.9        r4.9        2.4

 --------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                      August 7, 2007
 r=revised                                                             Source: Bureau of Labor Statistics




Appendix table 3. Manufacturing sector: Revised 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

 2002       I         r147.0       r134.2        r91.2       r144.6         r116.3         r98.3
           II         r149.9       r136.0        r90.7       r147.6         r117.8         r98.4
          III         r152.3       r136.9        r89.8       r149.1         r118.3         r97.9
           IV         r154.1       r136.6        r88.7       r150.1         r118.4         r97.4

       ANNUAL         r150.8       r135.9        r90.1       r147.8         r117.7         r98.0

 2003       I         r157.3       r137.3        r87.3       r154.5         r120.8         r98.2
           II         r159.2       r136.5        r85.8       r157.2         r122.8         r98.8
          III         r162.4       r137.2        r84.5       r159.4         r123.7         r98.1
           IV         r161.8       r138.0        r85.3       r161.8         r125.3        r100.0

       ANNUAL         r160.1       r137.3        r85.7       r158.2         r123.1         r98.8

 2004       I         r161.2       r138.4        r85.8       r156.8         r120.4         r97.2
           II         r162.7       r139.1        r85.5       r159.8         r121.4         r98.2
          III         r163.8       r140.0        r85.5       r163.5         r123.6         r99.8
           IV         r166.4       r141.1        r84.8       r165.8         r124.2         r99.7

       ANNUAL         r163.5       r139.7        r85.4       r161.5         r122.4         r98.7

 --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

 2002       I           r9.4         r2.3        r-6.5         17.1           15.4          r7.0
           II           r8.1         r5.7        r-2.3          8.7            5.3          r0.6
          III           r6.6         r2.6        r-3.8          4.2            2.0         r-2.3
           IV           r4.7        r-0.8        r-5.2          2.8            0.3         r-1.8

       ANNUAL           r6.9        r-0.7         -7.1          7.3            5.6          r0.3

 2003       I           r8.7         r2.1        r-6.1         12.2            8.2          r3.3
           II           r4.7        r-2.3        r-6.7          7.2            6.9          r2.4
          III           r8.4         r1.9         -6.0          5.5            3.0         r-2.7
           IV          r-1.5         r2.6         r4.1          6.4            5.3          r8.0

       ANNUAL            6.2          1.0         -4.9          7.0            4.7           0.8

 2004       I          r-1.4         r1.1         r2.5       r-11.9         r-14.9        r-10.7
           II           r3.6         r2.1        r-1.4         r7.8           r3.5          r4.1
          III           r2.8         r2.4        r-0.4         r9.8           r7.4          r6.8
           IV           r6.4         r3.3        r-2.9         r5.6           r2.0         r-0.7

       ANNUAL           r2.1         r1.8        r-0.3          2.0          r-0.6         r-0.1

 --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

 2002       I           r5.4        r-4.5        r-9.3          4.7            3.4         r-0.6
           II           r6.8        r-1.5         -7.8          7.5            6.1          r0.6
          III           r8.2         r1.1         -6.6          8.8            7.2          r0.6
           IV            7.2         r2.4        r-4.5          8.0            5.6          r0.8

       ANNUAL           r6.9        r-0.7         -7.1          7.3            5.6          r0.3

 2003       I           r7.0         r2.4         -4.3          6.9            3.9         r-0.1
           II           r6.1          0.4         -5.4          6.5            4.3          r0.4
          III           r6.6          0.2         -6.0          6.9           r4.6           0.3
           IV           r5.0         r1.0        r-3.8          7.8            5.8           2.7

       ANNUAL            6.2          1.0         -4.9          7.0            4.7           0.8

 2004       I           r2.5         r0.8        r-1.6         r1.5          r-0.4         r-1.0
           II           r2.2         r1.9        r-0.3          1.6          r-1.1         r-0.6
          III           r0.9         r2.0         r1.2         r2.6          r-0.1          r1.7
           IV           r2.8         r2.2        r-0.6         r2.4          r-0.9         r-0.4

       ANNUAL           r2.1         r1.8        r-0.3          2.0          r-0.6         r-0.1

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               August 7, 2007
 r=revised                                                      Source: Bureau of Labor Statistics




Appendix table 4. Durable manufacturing sector: Revised 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

 2002       I         r165.1       r156.7        r94.9        141.9         r114.1         r85.9
           II         r169.0       r159.7        r94.5       r145.0         r115.7         r85.8
          III         r172.5       r161.3        r93.5       r146.1         r116.0         r84.7
           IV         r175.8       r161.3        r91.7       r147.3         r116.2         r83.8

       ANNUAL         r170.5       r159.8        r93.7       r145.0         r115.4         r85.1

 2003       I         r179.0       r161.7        r90.4       r153.0         r119.6         r85.5
           II         r181.0       r160.5        r88.7       r155.8         r121.7         r86.1
          III         r185.9       r162.2        r87.2       r158.0         r122.7         r85.0
           IV         r184.9       r163.7        r88.5        160.5          124.3         r86.8

       ANNUAL         r182.6       r162.0        r88.7       r156.8         r122.0         r85.8

 2004       I         r183.8       r164.8        r89.6       r152.3         r116.9         r82.8
           II         r184.4       r165.0        r89.5       r155.6         r118.2         r84.3
          III         r185.1       r166.1        r89.7       r159.6         r120.6         r86.2
           IV         r187.9       r167.4        r89.1       r161.2         r120.8         r85.8

       ANNUAL         r185.3       r165.8        r89.5       r157.2         r119.1         r84.8

 --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

 2002       I          r10.6         r2.5        r-7.3         12.0           10.4          r1.3
           II           r9.9         r7.8        r-1.8          9.2            5.8         r-0.6
          III           r8.5         r4.1        r-4.0          3.0            0.8         r-5.1
           IV           r8.0         r0.0        r-7.4          3.2            0.7         r-4.4

       ANNUAL           r7.5        r-1.4        r-8.2          6.4            4.7         r-1.1

 2003       I           r7.3         r1.0        r-5.9         16.6           12.5          r8.7
           II           r4.5        r-3.0        r-7.2          7.4            7.0          r2.7
          III          r11.3         r4.2        r-6.4          5.8            3.3         r-4.9
           IV          r-2.1         r3.9          6.1         r6.4           r5.3          r8.6

       ANNUAL           r7.1         r1.4         -5.3          8.1            5.7          r0.9

 2004       I          r-2.2         r2.7         r5.1       r-18.8         r-21.6        r-17.0
           II           r1.3         r0.4        r-0.9         r8.8           r4.5          r7.4
          III           r1.4         r2.7         r1.3        r10.7           r8.3          r9.2
           IV           r6.2         r3.2        r-2.9         r4.2           r0.6         r-1.9

       ANNUAL           r1.5         r2.3         r0.9         r0.2          r-2.4         r-1.2

 --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

 2002       I           r4.9        r-6.7       r-11.0          4.1            2.8         r-0.7
           II           r7.0        r-2.8        r-9.1          6.8            5.4         r-0.2
          III           r8.9         r0.9         -7.3          7.8            6.1         r-1.0
           IV           r9.2         r3.6        r-5.2          6.8            4.4         r-2.2

       ANNUAL           r7.5        r-1.4        r-8.2          6.4            4.7         r-1.1

 2003       I           r8.4         r3.2         -4.8          7.9            4.9         r-0.5
           II           r7.1         r0.5         -6.1          7.4            5.2          r0.3
          III           r7.8         r0.5         -6.7         r8.1            5.8          r0.4
           IV           r5.2          1.5        r-3.5          9.0            7.0          r3.6

       ANNUAL           r7.1         r1.4         -5.3          8.1            5.7          r0.9

 2004       I           r2.7         r1.9        r-0.8        r-0.5          r-2.3         r-3.1
           II           r1.9         r2.8         r0.8        r-0.1          r-2.8         r-2.0
          III          r-0.4         r2.4         r2.9         r1.0          r-1.7          r1.4
           IV           r1.6         r2.3         r0.6         r0.5          r-2.8         r-1.1

       ANNUAL           r1.5         r2.3         r0.9         r0.2          r-2.4         r-1.2

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               August 7, 2007
 r=revised                                                      Source: Bureau of Labor Statistics




Appendix table 5. Nondurable manufacturing sector: Revised 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

 2002       I         r128.5       r110.1        r85.7       r148.1         r119.1        r115.3
           II         r130.5       r111.0        r85.0       r150.9         r120.4        r115.6
          III         r131.9       r111.2        r84.3       r153.3         r121.7        r116.2
           IV         r131.7       r110.6        r84.0       r154.2         r121.6        r117.1

       ANNUAL         r130.7       r110.7        r84.8       r151.6         r120.7        r116.0

 2003       I         r134.9       r111.5        r82.6       r155.9         r121.8        r115.5
           II         r136.5       r111.1        r81.4       r158.5         r123.8        r116.2
          III         r138.1       r110.9        r80.3       r160.5         r124.6        r116.2
           IV         r138.2       r111.2        r80.5        162.8         r126.1        r117.8

       ANNUAL         r136.9       r111.1        r81.2       r159.4         r124.1        r116.4

 2004       I         r138.6       r111.0        r80.1       r163.7         r125.7        r118.1
           II         r140.9       r112.2        r79.6       r166.0         r126.2        r117.9
          III         r142.8       r112.8        r79.0       r169.1         r127.8        r118.4
           IV         r145.1       r113.8        r78.4       r172.6         r129.3        r119.0

       ANNUAL         r141.8       r112.4        r79.3       r167.8         r127.2        r118.3

 --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

 2002       I           r8.2          2.5        r-5.3         27.8           26.0         r18.1
           II           r6.4         r3.3        r-2.9          7.6            4.3          r1.2
          III           r4.2         r0.7         -3.4          6.5            4.3          r2.2
           IV          r-0.5        r-1.9        r-1.4          2.4           -0.1          r2.9

       ANNUAL            5.7          0.3         -5.1          9.4            7.6          r3.4

 2003       I          r10.1         r3.1        r-6.4          4.4            0.7         r-5.2
           II           r4.7        r-1.5         -5.9          7.1           r6.8          r2.3
          III           r4.9        r-0.8        r-5.4         r5.0           r2.5          r0.1
           IV           r0.2         r1.2         r1.0          5.8            4.7          r5.7

       ANNUAL           r4.8         r0.4         -4.2          5.1            2.8          r0.3

 2004       I           r1.1        r-0.6        r-1.7         r2.2          r-1.3          r1.0
           II           r6.9         r4.4        r-2.3         r5.9           r1.7         r-0.9
          III           r5.4         r2.1        r-3.2         r7.6           r5.2          r2.0
           IV           r6.6         r3.5         -2.9         r8.4           r4.7          r1.7

       ANNUAL           r3.6         r1.2        r-2.3         r5.3           r2.5          r1.6

 --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

 2002       I            5.2         -1.5         -6.4          6.4            5.1          r1.2
           II            6.0          0.4        r-5.4          9.3            7.9           3.1
          III            7.2          1.4        r-5.3         11.1            9.4           3.7
           IV           r4.5         r1.1         -3.3         10.7            8.2          r5.9

       ANNUAL            5.7          0.3         -5.1          9.4            7.6          r3.4

 2003       I           r5.0         r1.3         -3.5          5.2            2.3          r0.2
           II           r4.5         r0.1         -4.3          5.1            2.9          r0.5
          III           r4.7        r-0.3        r-4.8          4.7            2.4          r0.0
           IV           r4.9         r0.5        r-4.2          5.6            3.7          r0.6

       ANNUAL           r4.8         r0.4         -4.2          5.1            2.8          r0.3

 2004       I           r2.7        r-0.4        r-3.0         r5.0           r3.1           2.3
           II           r3.2         r1.0        r-2.1         r4.7           r1.9          r1.4
          III           r3.4         r1.8        r-1.6         r5.4           r2.6          r1.9
           IV           r5.0         r2.3        r-2.5         r6.0           r2.5          r1.0

       ANNUAL           r3.6         r1.2        r-2.3         r5.3           r2.5          r1.6

 -------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                               August 7, 2007
 r=revised                                                      Source: Bureau of Labor Statistics




Appendix table 6. Nonfinancial corporate sector: Revised 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

 2002       I   r127.3    149.3    r117.3   r141.6    r113.9     111.2    113.0    111.7     85.8    109.4
           II    129.3    151.3     117.0    143.5     114.5     111.0    110.7    110.9     94.5    109.4
          III   r130.6    152.2    r116.6   r144.4    r114.6     110.6    110.0    110.5    100.3    109.5
           IV   r131.6    153.0    r116.3   r144.9    r114.3     110.1    109.6    110.0    111.2    110.1

       ANNUAL    129.7    151.5     116.8    143.6     114.3     110.7    110.8    110.7     98.0    109.6

 2003       I   r132.1    152.3    r115.3   r146.2    r114.3     110.7    112.6    111.2    102.9    110.5
           II   r133.8    153.6    r114.8   r148.8    r116.2     111.2    111.0    111.2    105.7    110.7
          III    135.9    155.9     114.7    150.8     117.1     111.0    110.7    110.9    112.8    111.1
           IV   r136.6    157.5    r115.3   r152.0    r117.7     111.2    110.0    110.9    117.8    111.5

       ANNUAL    134.6    154.8     115.0    149.5     116.3     111.0    111.1    111.0    109.9    110.9

 2004       I   r137.4   r159.4    r116.1   r150.8    r115.8    r109.8   r109.6   r109.7   r135.2    112.0
           II   r138.9   r161.5    r116.2   r152.8    r116.2    r110.0   r109.4   r109.8   r145.8   r113.1
          III   r140.7   r164.4    r116.8   r154.9    r117.1    r110.1   r109.2   r109.8   r150.6   r113.5
           IV   r140.2   r164.5    r117.3   r156.9    r117.6    r111.9   r109.7   r111.3   r148.4   r114.6

       ANNUAL   r139.3   r162.4    r116.6   r153.9    r116.7    r110.5   r109.5   r110.2   r145.1    113.3

 ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

 2002       I      5.2      2.9      -2.2      2.5       1.1      -2.6     -9.0     -4.4     66.8     -0.8
           II      6.4      5.6      -0.8      5.4       2.1      -0.9     -7.9     -2.9     46.9      0.1
          III      4.0      2.3      -1.5      2.7       0.5      -1.2     -2.4     -1.6     27.0      0.5
           IV      3.1      2.0      -1.1      1.2      -1.3      -1.9     -1.6     -1.8     50.9      1.9

       ANNUAL      4.0      0.9      -3.0      3.6       1.9      -0.4     -1.6     -0.7     19.2      0.6

 2003       I      1.6     -1.8      -3.3      3.9       0.2       2.3     11.4      4.7    -26.5      1.5
           II      5.3      3.6      -1.6      7.3       6.9       1.9     -5.6     -0.2     11.3      0.7
          III      6.3      6.1      -0.2      5.4       2.9      -0.8     -1.2     -0.9     29.4      1.4
           IV      2.3      4.3       2.0     r3.1       2.1       0.9     -2.5     -0.1     18.9      1.6

       ANNUAL      3.8      2.2      -1.5      4.1       1.8       0.3      0.2      0.3     12.1      1.2

 2004       I     r2.2     r4.8       2.6    r-3.0     r-6.3     r-5.0    r-1.5    r-4.1    r73.6      1.8
           II     r4.7     r5.3       0.6     r5.5      r1.3      r0.8    r-0.6     r0.4    r35.4     r3.8
          III     r5.2     r7.5       2.2     r5.5      r3.2      r0.3    r-0.8     r0.0    r13.8     r1.5
           IV    r-1.4     r0.1       1.5     r5.3      r1.7      r6.9     r2.0     r5.5    r-5.7     r4.1

       ANNUAL     r3.5     r4.9       1.4     r3.0      r0.3     r-0.5    r-1.4    r-0.8    r32.0      2.1

 ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

 2002       I      3.0     -1.7      -4.5      3.6       2.4       0.6      3.5      1.4     -1.9      1.2
           II      3.8      0.2      -3.5      4.0       2.6       0.2     -0.8     -0.1      8.7      0.5
          III      4.6      1.9      -2.6      3.7       2.1      -0.8     -3.5     -1.5     27.0      0.3
           IV      4.7      3.2      -1.4      2.9       0.6      -1.7     -5.3     -2.7     47.2      0.4

       ANNUAL      4.0      0.9      -3.0      3.6       1.9      -0.4     -1.6     -0.7     19.2      0.6

 2003       I      3.8      2.0      -1.7      3.3       0.4      -0.5     -0.4     -0.4     20.0      1.0
           II      3.5      1.5      -1.9      3.7       1.5       0.2      0.3      0.2     11.9      1.1
          III      4.1      2.4      -1.6      4.4       2.1       0.3      0.6      0.4     12.4      1.4
           IV      3.8      3.0      -0.8      4.9       3.0       1.0      0.3      0.8      5.9      1.3

       ANNUAL      3.8      2.2      -1.5      4.1       1.8       0.3      0.2      0.3     12.1      1.2

 2004       I      4.0      4.7       0.7     r3.1      r1.3     r-0.8    r-2.7    r-1.3    r31.3      1.4
           II     r3.8     r5.1       1.2     r2.7     r-0.1     r-1.1    r-1.4    r-1.2    r37.9      2.2
          III     r3.6     r5.5       1.8      2.7       0.0     r-0.8    r-1.4    r-1.0    r33.5      2.2
           IV     r2.6     r4.4       1.7      3.3      -0.1      r0.6    r-0.2     r0.4    r26.0      2.8

       ANNUAL     r3.5     r4.9       1.4     r3.0      r0.3     r-0.5    r-1.4    r-0.8    r32.0      2.1

 ---------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                       August 7, 2007
 r=revised                                                              Source: Bureau of Labor Statistics




 Appendix table 7. Manufacturing sector: Productivity, hourly compensation, and unit labor costs
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r89.0        r92.4       r103.8        r81.3           r98.0        r91.3
       1988            r90.9        r97.2       r106.9        r84.1           r97.8        r92.5
       1989            r91.8        r98.8       r107.6        r86.6           r96.6        r94.3

       1990            r93.9        r98.5       r104.9         90.5           r96.1        r96.4
       1991            r96.3        r96.8       r100.5        r95.6           r98.0        r99.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r102.5       r103.9       r101.3       r102.0           r99.5        r99.5
       1994           r106.1       r110.1       r103.7       r105.3          r100.6        r99.2

       1995           r110.9       r115.8       r104.4       r107.3          r100.1        r96.7
       1996           r114.9       r119.8       r104.2       r109.3           r99.4        r95.1
       1997           r121.3       r128.6       r106.0       r112.2           r99.8        r92.5
       1998           r127.9       r135.2       r105.8       r118.7          r104.2        r92.9
       1999           r133.5       r140.3       r105.1       r123.4          r106.0        r92.4

       2000           r138.9       r144.2       r103.8       r134.7          r112.0        r97.0
       2001           r141.1       r136.8        r97.0       r137.8          r111.5        r97.7
       2002           r150.8       r135.9        r90.1       r147.8          r117.7        r98.0
       2003           r160.1       r137.3        r85.7       r158.2          r123.1        r98.8
       2004           r163.5       r139.7        r85.4       r161.5          r122.4        r98.7

       2005           r171.3       r144.6        r84.4       r168.3          r123.4        r98.2
       2006           r178.2       r151.7        r85.1       r172.4          r122.5        r96.8
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            August 7, 2007
 r=revised                                                   Source: Bureau of Labor Statistics




Appendix table 8. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r88.5        r94.2       r106.5        r81.2           r98.0        r91.8
       1988            r90.4       r100.0       r110.7        r83.6           r97.3        r92.5
       1989            r91.1       r101.1       r111.0        r85.9           r95.8        r94.3

       1990            r92.9        r99.8       r107.4        r89.5           r95.0        r96.3
       1991            r94.6        r96.0       r101.4        r94.9           r97.3        100.3
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r103.9       r105.4       r101.4       r101.9           r99.4        r98.1
       1994           r109.0       r114.2       r104.8       r105.4          r100.7        r96.7

       1995           r115.9       r123.3       r106.4       r106.7           r99.5        r92.1
       1996           r122.0       r131.0       r107.3       r108.1           r98.2        r88.6
       1997           r130.5        144.0       r110.4       r110.6           r98.4        r84.8
       1998           r140.5       r156.0       r111.0       r117.1          r102.7        r83.3
       1999           r150.5       r166.4       r110.6       r122.4          r105.1        r81.3

       2000           r157.7       r173.5       r110.0       r134.2          r111.6        r85.1
       2001           r158.6       r161.9       r102.1       r136.4          r110.3        r86.0
       2002           r170.5       r159.8        r93.7       r145.0          r115.4        r85.1
       2003           r182.6       r162.0        r88.7       r156.8          r122.0        r85.8
       2004           r185.3       r165.8        r89.5       r157.2          r119.1        r84.8

       2005           r195.1       r174.1        r89.2       r163.2          r119.7        r83.6
       2006           r207.4       r187.2        r90.2       r168.4          r119.6        r81.2
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            August 7, 2007
 r=revised                                                   Source: Bureau of Labor Statistics




Appendix table 9. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs
Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987            r91.3        r91.1        r99.7         80.8            97.4        r88.5
       1988            r93.2        r94.5       r101.4        r84.2           r98.0        r90.4
       1989            r94.0        r96.4       r102.6        r87.2           r97.2        r92.7

       1990            r95.9        r97.1       r101.2        r91.7           r97.4        r95.6
       1991            r98.3        r97.4        r99.1        r96.5           r99.0        r98.2
       1992            100.0        100.0        100.0        100.0           100.0        100.0
       1993           r101.1       r102.4       r101.2       r102.3           r99.7       r101.1
       1994           r103.4       r105.7       r102.2       r104.7          r100.1       r101.3

       1995           r106.1       r107.7       r101.5       r107.8          r100.6       r101.6
       1996           r108.3       r107.8        r99.5       r110.8          r100.7       r102.3
       1997           r112.8       r112.2        r99.4       r114.1          r101.5       r101.1
       1998           r115.8       r113.4        r97.9       r120.3          r105.6       r103.9
       1999           r116.9       r113.3        r96.9       r123.6          r106.2       r105.7

       2000           r120.8       r114.1        r94.4       r133.2          r110.8       r110.3
       2001           r123.6       r110.4        r89.3       r138.6          r112.1       r112.2
       2002           r130.7       r110.7        r84.8       r151.6          r120.7       r116.0
       2003           r136.9       r111.1        r81.2       r159.4          r124.1       r116.4
       2004           r141.8       r112.4        r79.3       r167.8          r127.2       r118.3

       2005           r148.6       r114.6        r77.1       r175.8          r129.0       r118.3
       2006           r151.0       r117.0        r77.5       r177.8          r126.3       r117.7
 ----------------------------------------------------------------------------------------------
 See footnotes following Table 6.                            August 7, 2007
 r=revised                                                   Source: Bureau of Labor Statistics