TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
Footnotes, Tables 1-6
Appendix table 1.
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Historical, technical                    USDL 94-585
  information:                           (202) 606-5606 Transmission of this
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Media contact:                           (202) 606-5902 until 10:00 A.M. EST
                                         Wednesday, December 7, 1994.
 
 
                              PRODUCTIVITY AND COSTS
                                Third Quarter 1994
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
revised productivity data-as measured by output per hour of all persons-for the
third quarter of 1994.  The seasonally-adjusted annual rates of productivity growth
in the third quarter were:
 
               3.5 percent in the business sector, and
               2.9 percent in the nonfarm business sector.
 
In both the business and the nonfarm business sectors, productivity increases in
the third quarter followed second-quarter declines.  Although output in both
sectors increased faster in the third quarter than in the second, the increase in
hours of all persons slowed substantially.
 
     In manufacturing, revised productivity increases in the third quarter were:
 
               3.6 percent in manufacturing,
               5.0 percent in durable goods manufacturing, and
               1.4 percent in nondurable goods manufacturing.
 
     The third-quarter increase in productivity in the manufacturing sector was
lower than that recorded in the second quarter.  In the nondurable goods sector,
third-quarter productivity and output increases were significantly slower than they
had been in the previous quarter.  In the larger durable goods sector, however,
productivity growth in the third quarter was only slightly less than in the second
quarter.  Manufacturing includes nearly 20 percent of U.S. business sector
employment.  Third-quarter measures are summarized in table A and appear in detail
in tables 1 through 5.
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors of
the Federal Reserve System.  See Technical Notes for further information on data
sources (page 8).
 
                                   -2-
 
Table A.  Productivity and costs:  Revised third-quarter 1994 measures
(Seasonally adjusted annual rates)
 
 
                                                 Real
                                         Hourly  hourly  Unit
                    Produc-              compen- compen- labor
    Sector          tivity Output Hours  sation  sation  costs
 
 
                      Percent change from preceding quarter
 
   Business          3.5     4.4   0.9    3.4   -0.1    0.0
   Nonfarm business  2.9     4.2   1.2    3.0   -0.6    0.0
   Manufacturing     3.6     5.7   2.0    3.0   -0.5   -0.6
   Durable           5.0     8.1   2.9    2.8   -0.8   -2.2
   Nondurable        1.4     2.3   0.8    3.3   -0.3    1.8
 
 
                      Percent change from same quarter a year ago
 
   Business          2.5     5.5   3.0    3.1    0.2    0.6
   Nonfarm business  2.1     5.1   2.9    3.0    0.2    0.9
   Manufacturing     5.4     6.8   1.3    2.3   -0.5   -2.9
   Durable           6.7     9.0   2.1    2.3   -0.6   -4.2
   Nondurable        3.4     3.8   0.4    2.3   -0.5   -1.1
 
 
 
Business
 
     From the second quarter to the third quarter of 1994, business sector
productivity increased at a 3.5 percent annual rate.  As revised, output rose 4.4
percent, and hours of all persons engaged in the sector increased 0.9 percent
(seasonally adjusted annual rates).  During the second quarter of 1994,
productivity had declined 2.0 percent, as output and hours rose by 3.7 and 5.9
percent, respectively (table 1).
 
     Hourly compensation increased 3.4 percent during the third quarter of 1994,
compared with a 0.2 percent rise in the second quarter.  This measure includes
wages and salaries, supplements, employer contributions to employee benefit plans,
and taxes.  Unit labor costs,  reflecting similar movements in hourly compensation
and productivity, were unchanged in the third quarter.  During the previous
quarter, these costs had increased 2.3 percent.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), decreased 0.1 percent in the third
quarter after falling  2.5 percent in the second quarter of 1994.
 
     The implicit price deflator for the business sector, which reflects changes in
unit labor costs and unit nonlabor payments, increased at a 1.8 percent annual rate
in the third quarter, compared with a 3.5 percent increase during the second
quarter of 1994.
 
 
                                  -3-
Nonfarm business
 
     Productivity rose 2.9 percent in the nonfarm business sector during the third
quarter of 1994 as output rose 4.2 percent and hours of all persons increased 1.2
percent.  During the second quarter of 1994, productivity had fallen 2.1 percent in
the nonfarm business sector, reflecting gains of 3.2 percent in output and 5.5
percent in hours (table 2).
 
     Hourly compensation increased at a 3.0 percent annual rate in the third
quarter, compared with a 0.7 percent increase one quarter earlier.  When the rise
in the CPI-U is taken into account, real hourly compensation fell at a 0.6 percent
annual rate in the third quarter.  Real hourly compensation has declined in 5 of
the last 7 quarters and is now about the same as it was in the fourth quarter of
1992.  Unit labor costs were unchanged in the third quarter after rising 2.9
percent during the second quarter of 1994.
 
     The implicit price deflator for nonfarm business output rose 2.2 percent in
the third quarter, compared with a 4.5 percent rise 1 quarter earlier.
 
 
Manufacturing
 
     Productivity increased 3.6 percent in manufacturing in the third quarter of
1994, as output rose 5.7 percent and hours of all persons rose 2.0 percent
(seasonally adjusted annual rates).  Manufacturing productivity has now increased
in every quarter since the first quarter of 1991 (when it declined 0.1 percent).
Productivity grew more in the durable goods industries than among nondurable goods
producers.  Output and hours rose in both the durable and the nondurable goods
sectors, but the increases in the durable goods sector were higher (tables 3, 4,
and 5).
 
     Hourly compensation of all manufacturing workers increased 3.0 percent during
the third quarter, compared with a 1.4 percent decline during the second quarter
(seasonally adjusted annual rates).  Real hourly compensation fell 0.5 percent in
the third quarter when the increase in the CPI-U is taken into account.  During the
second quarter, real hourly compensation had declined 4.1 percent.
 
     Unit labor costs fell at a 0.6 percent annual rate in the third quarter of
1994.  These costs had decreased 6.7 percent during the second quarter of 1994 and
have now declined for 4 consecutive quarters.
 
 
                                  -4-
Nonfinancial Corporations
 
     Third-quarter 1994 measures of productivity and costs also were announced
today for nonfinancial corporations (tables B and 6).  Output per all-employee hour
rose at a 1.9 percent annual rate, compared with a 1.4 percent decrease during the
second quarter.  Output increased 4.2 percent in the third quarter of 1994, while
hours of all employees increased 2.3 percent, at annual rates.  The sector includes
all corporations doing business in the United States, except banks, stock and
commodity brokers, and finance and insurance agencies.
 
   Hourly compensation increased 3.1 percent in the third quarter; it had decreased
0.1 percent in the second quarter.  When the rise in the CPI-U is taken into
account, real hourly compensation declined 0.4 percent in the third quarter and 2.7
percent in the second.
 
   Unit labor costs for nonfinancial corporations increased 1.2 percent in the
third quarter, about the same as the 1.4 percent increase in the previous quarter.
Unit nonlabor costs rose 3.0 percent, and unit profits 1.3 percent.  Unit profits
had increased strongly during the second quarter, 20.7 percent.  The implicit price
deflator for the output of nonfinancial corporations rose 1.6 percent in the third
quarter, about the same as the 1.8 percent increase one quarter earlier.
                                  -5-
 
Table B.  Nonfinancial corporations: Third quarter 1994 productivity and cost
measures
(Seasonally adjusted annual rates)
 
                                       Real
                               Hourly  hourly  Unit          Implicit
         Produc-               compen- compen- labor Unit    price
Period   tivity Output  Hours  sation  sation  costs profits deflator
 
                       Percent change from preceding quarter
 
1994 III  1.9     4.2    2.3    3.1    -0.4    1.2     1.3    1.6
 
                    Percent change from same quarter a year ago
 
1994 III  2.1     5.7    3.5    2.4    -0.5    0.3    13.2    1.5
 
 
 
Revised Measures
 
     Current and previous measures for the third quarter of 1994 for the business,
nonfarm business, and manufacturing sectors are compared in table C.  The quarterly
movements differ from those reported on November 9 based on information then
available.
 
 
 
    Table C. 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
 
 
                                                        Third quarter 1994
    Business:
     Previous . . . . . . . . .    3.1   4.0   0.8     3.3       -0.3      0.2
     Current . . . . . . . . . .   3.5   4.4   0.9     3.4       -0.1      0.0
 
    Nonfarm business:
     Previous . . . . . . . . .    2.7   3.9   1.2     2.9       -0.7      0.1
     Current . . . . . . . . . .   2.9   4.2   1.2     3.0       -0.6      0.0
 
    Manufacturing:
     Previous. . . . . . . . .     5.3   7.1   1.7     3.1       -0.5      -2.1
     Current . . . . . . . . . .   3.6   5.7   2.0     3.0       -0.5      -0.6
 
 
 
 
     Productivity and related measures for manufacturing industries include new
output estimates from the Bureau of Economic Analysis for 1992 and revised
estimates for 1991.  This new information places these manufacturing productivity
measures on the same basis as the business and nonfarm business sectors which were
revised in the August 9 issue of Productivity and Costs.  The manufacturing output
measures also reflect Indexes of Production from the Board of Governors of the
Federal Reserve System which were revised back to January 1991 to incorporate 1992
value-added proportions, revisions to monthly source data, and new seasonal
factors.  The 1989-91 productivity and cost data for the manufacturing sectors can
be found in appendix tables 1-3.
 
 
                                 -6-
 
                                 Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 AM EST,
Tuesday, February 7, 1995.  Preliminary fourth-quarter and annual 1994 measures
will be released at that time.
 
     Tentative release dates for productivity and costs measures for major sectors
of the U.S. economy in 1995 are:
 
        Reference period                1995 release date
        1994:
        Fourth Qtr., Annual                  February 7
        Fourth Qtr., Annual (revised)        March 8*
        1995:
        First Qtr.                           May 9
        First Qtr. (revised)                 June 14
        Second Qtr.                          August 8
        Second Qtr. (revised)                September 7
        Third Qtr.                           November 7
        Third Qtr. (revised)                 December 14
 
          * For nonfinancial corporations, 1994 annual measures only:
        fourth quarter results will be included in the May 9 release.
 
     These tentative dates are based on presently available schedules for the
release of underlying source data in 1995.  Each issue of Productivity and Costs
contains a "Next release date" paragraph which readers should use to confirm the
tentative dates above.
 
 
                                  -7-
 
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                                 -8-
 
                                  TECHNICAL NOTES
 
 
 
Labor Input: The primary source of hours  ufactures. Nondurables include: Food and
and employment  data is  the BLS Current  kindred  products,   tobacco   products,
Employment  Statistics   (CES)  program,  textile mill products, apparel products,
which provides  monthly survey  data  on  paper and  allied products, printing and
total  employment   and  average  weekly  publishing,   chemicals   and   chemical
hours of  production and  nonsupervisory  products, petroleum refining and related
workers   in    nonagricultural   estab-  industries, rubber and plastic products,
lishments. Jobs  rather than persons are  leather    and     leather     products.
counted. Weekly  hours are  adjusted  to  Manufacturing  accounted  for  about  19
the hours  at work  definition using the  percent  of  GDP  in  1992.    Quarterly
BLS Hours  at Work survey, conducted for  manufacturing output  measures are based
this purpose.                             on the  index of  industrial  production
     Data   from    the   BLS    Current  prepared  monthly   by  the   Board   of
Population Survey  (CPS)  are  used  for  Governors of  the Federal Reserve System
farm labor;  in the  nonfarm sector, the  adjusted by  BLS to annual manufacturing
National  Income  and  Product  Accounts  output     levels     (gross     product
(NIPA) prepared  by the  Bureau of  Eco-  originating) from  the  National  Income
nomic Analysis of the Department of Com-  and Product  Accounts  prepared  by  the
merce and  the CPS  are used  to measure  Bureau of  Economic Analysis of the U.S.
labor input  for government enterprises,  Department of Commerce.
proprietors and unpaid family workers.         Nonfinancial  corporate  output  is
                                          equal to  GDP in  constant 1987 dollars,
Output: Business  sector output is equal  less    the    output    of    nonprofit
to  gross   domestic  product  (GDP)  in  institutions, output  of paid  employees
constant  1987   dollars,  less  general  of private  households, rental  value of
government,    output    of    nonprofit  owner-occupied dwellings, unincorporated
institutions, output  of paid  employees  business,  the  output  of  corporations
of private  households, rental  value of  engaged in  banking, finance,  stock and
owner-occupied dwellings,  and the  sta-  commodity  trading,   and   credit   and
tistical discrepancy  in  computing  the  insurance agencies,  and the statistical
NIPA. Corresponding  exclusions are also  discrepancy  in   computing  the   NIPA.
made in  labor inputs.  Business  output  Nonfinancial corporations  accounted for
was about  78 percent  of GDP  in  1992.  about 56 percent of GDP in 1992.
Nonfarm business,  which  also  excludes
farming, was  about 77 percent of GDP in
1992.
     Total  manufacturing  measures  are
computed by  summing series prepared for
the   durable   and   nondurable   goods
sectors. Durables  include the following
2-digit SIC  industries:  Primary  metal
industries; fabricated  metal  products;
nonelectrical machinery;  industrial and
commercial   machinery    and   computer
equipment;    electronic    and    other
electrical   equipment;   transportation
equipment;   instruments;   lumber   and
lumber products; furniture and fixtures;
stone,  clay,  and  glass  and  concrete
products;   and    miscellaneous    man-
 
 
                                  -9-
 
                                  TECHNICAL NOTES
Productivity:  These  productivity  mea-
sures describe  the relationship between
real output  and the labor time involved
in its production. They show the changes
from period  to period  in the amount of
goods and  services produced  per  hour.
Although these measures relate output to
hours at  work of all persons engaged in
a  sector,   they  do  not  measure  the
specific contribution of labor, capital,
or  any   other  factor  of  production.
Rather, they  reflect the  joint effects
of many influences, including changes in
technology; capital investment; level of
output; utilization of capacity, energy,
and  materials;   the  organization   of
production; managerial  skill;  and  the
characteristics and  effort of  the work
force.
 
     Information in this release will be
made   available   to   sensory-impaired
individuals upon  request. Voice  phone:
202-606-STAT; TDD  phone:  202-606-5897;
TDD message  referral phone  number:  1-
800-326-2577.
 
 
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted                                                              Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1982=100
 
  1992       I     114.5      133.7     116.8     152.2       105.9     133.0       148.4       138.0
            II     114.8      134.4     117.1     153.7       106.1     133.9       148.8       138.8
           III     115.9      136.1     117.4     156.0       106.8     134.7       145.8       138.3
            IV     116.8      137.9     118.1     157.7       107.1     135.1       150.2       140.1
 
        ANNUAL     115.5      135.5     117.4     154.9       106.6     134.2       148.3       138.8
 
  1993       I     116.2      138.1     118.9     158.8       107.0     136.6       149.5       140.8
            II     116.4      139.6     119.9     160.0       107.0     137.5       149.6       141.4
           III     117.3      140.9     120.1     161.2       107.3     137.4       150.4       141.6
            IV     119.0      143.9     121.0     162.1       107.2     136.3       153.8       142.1
 
        ANNUAL     117.2      140.6     120.0     160.5       107.2     136.9       150.9       141.5
 
  1994       I     119.8      145.8     121.7     164.6       108.3     137.4       153.2       142.6
            II     119.2      147.2     123.5     164.7       107.6     138.2       155.3       143.8
           III    r120.2     r148.7     123.7    r166.1       107.5     138.2      r157.3      r144.5
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1992       I       5.5        3.4      -1.9       5.8         3.1       0.3         9.1         3.3
            II       1.1        2.2       1.1       4.0         0.7       2.8         1.0         2.2
           III       3.7        4.9       1.2       6.1         3.0       2.4        -7.7        -1.3
            IV       3.2        5.6       2.3       4.4         1.2       1.2        12.7         5.1
 
        ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
  1993       I      -1.9        0.6       2.5       2.6        -0.4       4.6        -2.0         2.3
            II       0.6        4.2       3.6       3.1         0.0       2.5         0.3         1.7
           III       3.3        4.0       0.7       3.0         1.1      -0.3         2.1         0.6
            IV       5.7        8.6       2.8       2.4        -0.6      -3.1         9.4         1.2
 
        ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
  1994       I       2.9        5.5       2.5       6.3         4.1       3.3        -1.7         1.5
            II      -2.0        3.7       5.9       0.2        -2.5       2.3         5.8         3.5
           III      r3.5       r4.4      r0.9      r3.4       r-0.1      r0.0        r5.3        r1.8
  ---------------------------------------------------------------------------------------------------------
 
 
 
                      Percent change from corresponding quarter of previous year
 
  1992       I       2.8        1.7      -1.1       4.9         2.0       2.1         3.2         2.5
            II       2.5        2.0      -0.6       4.9         1.7       2.3         2.5         2.4
           III       3.1        3.0      -0.2       5.3         2.2       2.1         0.3         1.5
            IV       3.4        4.0       0.6       5.1         2.0       1.7         3.5         2.3
 
        ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
  1993       I       1.5        3.3       1.8       4.3         1.1       2.8         0.7         2.0
            II       1.4        3.8       2.4       4.1         0.9       2.7         0.6         1.9
           III       1.3        3.6       2.3       3.3         0.5       2.0         3.1         2.4
            IV       1.9        4.3       2.4       2.8         0.0       0.9         2.4         1.4
 
        ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
  1994       I       3.1        5.6       2.4       3.7         1.1       0.6         2.5         1.2
            II       2.4        5.4       3.0       3.0         0.5       0.5         3.8         1.7
           III      r2.5       r5.5       3.0      r3.1         0.2       0.6        r4.6        r2.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      December 7, 1994
  r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
  Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1982=100
 
  1992       I     112.6      133.6     118.6     150.9       105.0     134.0       149.5       139.0
            II     113.1      134.4     118.8     152.6       105.3     134.9       150.4       139.9
           III     113.9      135.9     119.3     154.7       106.0     135.9       147.0       139.5
            IV     115.0      137.9     120.0     156.4       106.3     136.1       152.1       141.2
 
        ANNUAL     113.7      135.5     119.2     153.7       105.7     135.2       149.7       139.9
 
  1993       I     114.4      138.3     120.9     157.2       106.0     137.5       151.5       142.0
            II     114.5      139.9     122.1     158.2       105.8     138.1       151.8       142.5
           III     115.6      141.5     122.4     159.3       106.1     137.7       153.5       142.8
            IV     117.0      144.3     123.3     160.2       105.9     136.9       156.1       143.1
 
        ANNUAL     115.4      141.0     122.2     158.7       106.0     137.5       153.3       142.6
 
  1994       I     117.9      146.1     124.0     162.6       106.9     137.9       155.3       143.5
            II     117.2      147.3     125.6     162.9       106.4     138.9       158.1       145.1
           III    r118.1     r148.8     126.0    r164.1       106.2    r138.9      r160.5      r145.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1992       I       4.2        2.4      -1.8       5.7         3.0       1.4         6.5         3.2
            II       1.9        2.5       0.6       4.6         1.2       2.6         2.3         2.5
           III       2.8        4.4       1.6       5.8         2.6       2.9        -8.6        -1.2
            IV       3.8        6.2       2.3       4.5         1.2       0.6        14.4         5.1
 
        ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
  1993       I      -2.0        1.0       3.0       2.1        -0.9       4.1        -1.4         2.2
            II       0.4        4.7       4.3       2.4        -0.7       2.0         0.8         1.6
           III       4.0        4.9       0.9       2.8         0.9      -1.2         4.4         0.7
            IV       4.9        7.9       2.9       2.4        -0.6      -2.4         7.1         0.8
 
        ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
  1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
            II      -2.1        3.2       5.5       0.7        -2.0       2.9         7.5         4.5
           III      r2.9       r4.2       1.2      r3.0       r-0.6      r0.0        r6.2        r2.2
  ---------------------------------------------------------------------------------------------------------
 
 
 
                      Percent change from corresponding quarter of previous year
 
  1992       I       2.4        1.4      -1.0       4.9         2.0       2.4         2.8         2.5
            II       2.4        1.8      -0.6       5.0         1.8       2.5         2.8         2.6
           III       2.7        2.6      -0.1       5.3         2.1       2.6         0.0         1.7
            IV       3.2        3.8       0.7       5.1         2.0       1.9         3.3         2.4
 
        ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
  1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
            II       1.2        4.0       2.8       3.7         0.5       2.4         0.9         1.9
           III       1.5        4.2       2.6       2.9         0.1       1.4         4.4         2.4
            IV       1.8        4.6       2.7       2.4        -0.3       0.6         2.7         1.3
 
        ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
  1994       I       3.0        5.7       2.6       3.4         0.9       0.3         2.5         1.1
            II       2.4        5.3       2.8       3.0         0.5       0.6         4.2         1.8
           III       2.1        5.1       2.9       3.0        r0.2       0.9        r4.6        r2.2
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      December 7, 1994
  r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
  Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1992       I           r126.4       r128.6        101.8        145.2           101.0       r114.9
            II           r126.8       r129.6        102.2        146.8           101.3       r115.8
           III           r127.6       r130.3        102.1        148.4           101.6       r116.3
            IV           r128.8       r132.0        102.5        150.7           102.4       r117.0
 
        ANNUAL           r127.5       r130.1        102.0        147.9           101.7       r116.0
 
  1993       I           r130.0       r134.0        103.1        150.0           101.1       r115.4
            II           r130.7       r134.4        102.8        152.1           101.8       r116.4
           III           r131.7       r135.4        102.8        153.6           102.3       r116.6
            IV           r133.6       r137.7        103.0        155.1           102.5       r116.1
 
        ANNUAL           r131.6       r135.4        102.9        152.8           102.0       r116.1
 
  1994       I           r135.7       r140.2        103.3        156.6           103.0       r115.4
            II           r137.6       r142.7        103.7        156.1           101.9       r113.4
           III           r138.8       r144.7       r104.2        157.2           101.8       r113.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1992       I             r0.6        r-1.6         -2.1          1.5            -1.1         r0.9
            II             r1.3         r3.0          1.7          4.5             1.2         r3.2
           III             r2.6         r2.1         -0.5          4.3             1.2         r1.6
            IV             r3.8         r5.3          1.4          6.5             3.2         r2.6
 
        ANNUAL             r2.1         r1.5         -0.6          4.2             1.2         r2.1
 
  1993       I             r3.7         r6.3          2.6         -2.0            -4.9        r-5.5
            II             r2.4         r1.3         -1.1          6.0             2.8         r3.5
           III             r3.0         r3.0          0.0          3.9             2.0         r0.9
            IV             r6.0         r6.9          0.9          3.9             0.9        r-2.0
 
        ANNUAL             r3.2         r4.1          0.8          3.3             0.3         r0.1
 
  1994       I             r6.4         r7.4          1.0          4.0             1.8        r-2.3
            II             r5.6         r7.2          1.5         -1.4            -4.1        r-6.7
           III             r3.6         r5.7         r2.0         r3.0            -0.5        r-0.6
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1992       I             r2.6         r1.3         -1.2          4.0             1.1         r1.4
            II             r1.9         r1.7         -0.1          4.0             0.9         r2.1
           III             r1.4         r0.8         -0.6          4.2             1.1         r2.8
            IV             r2.1         r2.2          0.1          4.2             1.1         r2.1
 
        ANNUAL             r2.1         r1.5         -0.6          4.2             1.2         r2.1
 
  1993       I             r2.9         r4.2          1.3          3.3             0.1         r0.4
            II             r3.1         r3.7          0.6          3.6             0.5         r0.5
           III             r3.2         r4.0          0.7          3.5             0.7         r0.3
            IV             r3.8         r4.4          0.6          2.9             0.2        r-0.8
 
        ANNUAL             r3.2         r4.1          0.8          3.3             0.3         r0.1
 
  1994       I             r4.4         r4.6          0.2          4.4             1.9         r0.0
            II             r5.3         r6.1          0.8          2.6             0.1        r-2.5
           III             r5.4         r6.8          1.3         r2.3            -0.5        r-2.9
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                December 7, 1994
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
  Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1992       I           r135.3       r134.5         99.4        143.1            99.5       r105.7
            II           r136.4       r135.7         99.5        144.9           100.0       r106.2
           III           r137.5       r136.5         99.3        146.4           100.2       r106.5
            IV           r139.2       r138.7         99.7        149.2           101.4       r107.2
 
        ANNUAL           r137.3       r136.3         99.3        146.1           100.5       r106.4
 
  1993       I           r141.0       r141.6        100.4        147.4            99.4       r104.5
            II           r142.3       r142.2         99.9        149.4           100.0       r105.0
           III           r143.4       r143.5        100.1        150.7           100.3       r105.1
            IV           r146.6       r147.4        100.5        152.3           100.7       r103.9
 
        ANNUAL           r143.5       r143.7        100.1        150.1           100.2       r104.6
 
  1994       I           r149.3       r150.8        101.0        154.0           101.2       r103.1
            II           r151.2       r153.4        101.4        153.1           100.0       r101.2
           III           r153.1       r156.4       r102.2       r154.1            99.8       r100.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1992       I            r-1.0        r-3.2         -2.2          0.9            -1.7         r1.9
            II             r3.3         r3.7          0.4          5.2             1.8         r1.8
           III             r3.1         r2.2         -0.8          4.1             1.0         r1.1
            IV             r5.1         r6.8          1.6          8.1             4.7         r2.8
 
        ANNUAL             r3.0         r1.5         -1.5          4.5             1.5         r1.4
 
  1993       I             r5.5         r8.5          2.8         -4.8            -7.6        r-9.8
            II             r3.7         r1.8         -1.9          5.6             2.5         r1.9
           III             r3.0         r3.9          0.8          3.4             1.5         r0.3
            IV             r9.4        r11.2          1.7          4.4             1.3        r-4.6
 
        ANNUAL             r4.5         r5.4          0.8          2.8            -0.2        r-1.7
 
  1994       I             r7.3         r9.5          2.0          4.4             2.3        r-2.7
            II             r5.3         r7.1          1.7         -2.3            -4.9        r-7.2
           III             r5.0         r8.1         r2.9         r2.8           r-0.8        r-2.2
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1992       I             r3.5         r1.3         -2.1          4.0             1.1         r0.5
            II             r3.3         r1.8         -1.4          4.4             1.3         r1.1
           III             r2.2         r0.7         -1.5          4.6             1.5         r2.3
            IV             r2.6         r2.3         -0.2          4.5             1.4         r1.9
 
        ANNUAL             r3.0         r1.5         -1.5          4.5             1.5         r1.4
 
  1993       I             r4.2         r5.3          1.0          3.0            -0.1        r-1.2
            II             r4.3         r4.8          0.4          3.1             0.0        r-1.1
           III             r4.3         r5.2          0.8          2.9             0.1        r-1.3
            IV             r5.4         r6.3          0.8          2.1            -0.7        r-3.2
 
        ANNUAL             r4.5         r5.4          0.8          2.8            -0.2        r-1.7
 
  1994       I             r5.8         r6.5          0.7          4.4             1.9        r-1.3
            II             r6.2         r7.9          1.6          2.4             0.0        r-3.6
           III             r6.7         r9.0         r2.1          2.3           r-0.6        r-4.2
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                December 7, 1994
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
  Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1992       I            115.4        121.5        105.3        149.5           104.0       r129.6
            II           r115.0       r122.1        106.2        151.0           104.2       r131.3
           III           r115.6       r122.7        106.1        152.7           104.6       r132.1
            IV           r116.2       r123.7        106.4        154.2           104.8       r132.7
 
        ANNUAL           r115.6       r122.5        105.9        152.0           104.5       r131.4
 
  1993       I            116.5       r124.7        107.0        155.2           104.6       r133.1
            II           r116.7       r124.9        107.0        157.7           105.5       r135.1
           III           r117.6       r125.5        106.7        159.5           106.2       r135.6
            IV           r118.0       r125.8        106.6        160.7           106.2       r136.2
 
        ANNUAL           r117.2       r125.2        106.8        158.3           105.7       r135.0
 
  1994       I           r119.4       r127.2        106.5        161.9           106.5       r135.6
            II           r121.2       r129.5        106.9        161.9           105.7       r133.5
           III           r121.6       r130.3        107.1        163.2          r105.7       r134.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1992       I             r2.7         r0.6         -2.0          2.4            -0.3        r-0.3
            II            r-1.4         r2.0          3.4          3.9             0.5         r5.3
           III             r2.1         r1.9         -0.2          4.6             1.5         r2.5
            IV             r2.2         r3.3          1.1          4.1             0.8         r1.9
 
        ANNUAL             r0.9         r1.5          0.6          4.0             0.9         r3.1
 
  1993       I             r1.2         r3.5          2.3          2.4            -0.6         r1.2
            II             r0.7         r0.6         -0.1          6.6             3.4         r5.9
           III             r3.0         r1.8         -1.1          4.6             2.7         r1.6
            IV             r1.4         r1.1         -0.3          3.1             0.1         r1.7
 
        ANNUAL             r1.4         r2.3          0.9          4.1             1.1         r2.7
 
  1994       I             r5.0         r4.6         -0.4          3.1             0.9        r-1.9
            II             r6.1         r7.4          1.3         -0.1            -2.8        r-5.8
           III             r1.4         r2.3         r0.8         r3.3            -0.3         r1.8
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1992       I             r1.3         r1.3          0.0          4.1             1.2         r2.8
            II             r0.0         r1.6          1.6          3.7             0.6         r3.7
           III             r0.3         r1.0          0.7          3.8             0.7         r3.5
            IV             r1.4         r2.0          0.6          3.8             0.7         r2.3
 
        ANNUAL             r0.9         r1.5          0.6          4.0             0.9         r3.1
 
  1993       I             r1.0         r2.7          1.7          3.8             0.6         r2.7
            II             r1.5         r2.3          0.8          4.4             1.3         r2.9
           III             r1.7         r2.3          0.6          4.4             1.6         r2.7
            IV             r1.5         r1.8          0.2          4.2             1.4         r2.6
 
        ANNUAL             r1.4         r2.3          0.9          4.1             1.1         r2.7
 
  1994       I             r2.5         r2.0         -0.4          4.3             1.8         r1.8
            II              3.8          3.7         -0.1          2.7             0.2         -1.1
           III             r3.4         r3.8         r0.4          2.3            -0.5        r-1.1
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                December 7, 1994
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
  Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1992       I    116.8     137.3    117.6    147.7     102.7     126.5    119.3    124.5    170.4    127.3
            II    117.6     138.8    118.1    149.4     103.1     127.1    118.0    124.5    175.6    127.6
           III    119.1     140.7    118.1    151.5     103.7     127.2    119.0    124.9    171.0    127.7
            IV    120.6     143.4    118.9    153.1     104.0     127.0    115.7    123.8    191.2    127.9
 
        ANNUAL    118.5     140.0    118.2    150.4     103.5     126.9    118.0    124.4    177.2    127.7
 
  1993       I    120.0     143.3    119.4    154.0     103.8     128.3    116.8    125.0    183.7    128.7
            II    121.3     145.9    120.3    154.5     103.4     127.3    115.8    124.1    199.4    128.7
           III    122.7     148.1    120.7    155.4     103.5     126.7    115.8    123.6    202.5    128.5
            IV    124.1     150.9    121.6    155.9     103.1     125.7    114.8    122.6    220.9    128.7
 
        ANNUAL    122.0     147.0    120.5    154.9     103.5     127.0    115.8    123.8    201.9    128.6
 
  1994       I    125.1     153.0    122.3    157.9     103.8     126.2    116.6    123.5    218.2    129.4
            II    124.6     154.8    124.2    157.9     103.1     126.7    115.2    123.4    228.7    129.9
           III    125.2     156.5    124.9    159.1     103.0     127.0    116.1    123.9    229.4    130.4
  ----------------------------------------------------------------------------------------------------------
                               Percent change from previous quarter at annual rate(5)
 
  1992       I      1.3       0.9     -0.4      3.9       1.2       2.6     -2.6      1.2     14.8      2.2
            II      2.9       4.7      1.7      4.7       1.3       1.7     -4.4      0.0     12.8      1.0
           III      5.2       5.5      0.3      5.7       2.5       0.4      3.5      1.2    -10.0      0.2
            IV      5.1       8.0      2.7      4.3       1.0      -0.8    -10.4     -3.5     56.4      0.7
 
        ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
  1993       I     -1.9      -0.3      1.7      2.3      -0.7       4.4      3.6      4.2    -14.9      2.3
            II      4.5       7.5      2.8      1.4      -1.7      -3.0     -3.3     -3.1     38.9      0.2
           III      4.5       6.0      1.5      2.2       0.4      -2.1      0.0     -1.6      6.5     -0.8
            IV      4.7       7.8      3.0      1.4      -1.5      -3.1     -3.4     -3.2     41.5      0.6
 
        ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      3.3       5.8      2.5      5.1       3.0       1.8      6.6      3.1     -4.9      2.2
            II     -1.4       4.8      6.4     -0.1      -2.7       1.4     -4.8     -0.3     20.7      1.8
           III      1.9       4.2      2.3      3.1      -0.4       1.2      3.0      1.7      1.3      1.6
  ----------------------------------------------------------------------------------------------------------
 
 
 
                            Percent change from corresponding quarter of previous year
 
  1992       I      2.4       1.7     -0.7      4.3       1.4       1.8     -1.2      1.0      5.2      1.3
            II      2.6       2.7      0.2      4.5       1.3       1.9     -2.1      0.8      5.0      1.1
           III      3.3       3.5      0.3      4.9       1.7       1.6     -1.5      0.7      3.7      0.9
            IV      3.6       4.7      1.1      4.6       1.5       1.0     -3.6     -0.3     16.2      1.1
 
        ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
  1993       I      2.8       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
            II      3.2       5.1      1.9      3.4       0.3       0.2     -1.8     -0.3     13.6      0.8
           III      3.0       5.2      2.2      2.6      -0.3      -0.4     -2.7     -1.0     18.5      0.6
            IV      2.9       5.2      2.2      1.8      -0.9      -1.0     -0.8     -1.0     15.5      0.6
 
        ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      4.2       6.8      2.4      2.5       0.0      -1.6     -0.1     -1.2     18.8      0.5
            II      2.7       6.1      3.3      2.2      -0.3      -0.5     -0.5     -0.5     14.7      0.9
           III      2.1       5.7      3.5      2.4      -0.5       0.3      0.3      0.3     13.2      1.5
  ----------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                        December 7, 1994
  r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
 
SOURCE:  Output data from the Bureau of Economic Analysis, U.S. Department of
Commerce, and the Federal Reserve Board.  Compensation and hours data from the
Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic
Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more complete
information becomes available.  The measures are first published 30 days after the
close of the reference period; revisions appear about 35 days later, and second
revisions after an additional 60 days.  In the business sector, the probability is
0.95 that the third publication (second revision) of a quarterly index of output
per hour of all persons will differ from the initial value by between -2.0 and +2.0
index points.  This interval is based on the performance of this measure between
the third quarter of 1976 and the fourth quarter of 1992.
 
 
                               Footnotes, Tables 1-6
 
(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial corporations,
     where there are no self-employed, data also include an estimate of wages,
     salaries, and supplemental payments for the self-employed.
 
(2)  Compensation per hour adjusted for changes in the Consumer Price Index for All
     Urban Consumers.
 
(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.
 
(4)  Current dollar gross product divided by constant dollar gross product.
 
(5)  Quarterly changes:  Percent change compounded at annual rate from the original
     data rather than index numbers.  Annual changes:  Percent change between
     annual average levels.
 
(6)  Unit nonlabor cost includes capital consumption allowances, interest, rental
     income of persons, and indirect taxes.  For nonfinancial corporations, rental
     income of persons is zero by definition.
 
(7)  Total unit cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital
     consumption adjustments.
 
 
 
  Appendix table 1.
  Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
 
                                                                           Real
                    Output per                 Hours       Compensa-       compensa-      Unit
       Year and     hour of                    of all      tion per        tion per       labor
       quarter      all persons     Output     persons     hour(1)         hour(2)        costs
  -----------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1989       I        120.4         132.6       110.2       126.6           100.4         105.2
            II        120.5         132.2       109.7       126.7            98.8         105.1
           III        119.0         130.2       109.4       128.1            99.1         107.6
            IV        119.7         129.6       108.3       130.2            99.8         108.8
 
        ANNUAL        119.9         131.2       109.4       127.9            99.5         106.7
 
  1990       I        121.0         130.7       108.0       131.8            99.3         109.0
            II        121.0         130.9       108.1       133.8            99.8         110.5
           III        122.6         131.3       107.1       135.1            99.1         110.2
            IV        123.2         129.7       105.3       137.6            99.2         111.7
 
        ANNUAL        122.1         130.6       107.0       134.7            99.5         110.4
 
  1991       I        123.2         127.0       103.1       139.7            99.9         113.4
            II        124.4         127.4       102.4       141.1           100.4         113.4
           III        125.8         129.2       102.7       142.4           100.5         113.1
            IV        126.2         129.1       102.3       144.6           101.3         114.6
 
        ANNUAL        124.9         128.2       102.6       141.9           100.5         113.7
  -----------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1989       I          1.7           3.3         1.6         3.7            -0.8           2.0
            II          0.6          -1.2        -1.7         0.1            -6.0          -0.5
           III         -4.9          -5.9        -1.1         4.5             1.2           9.9
            IV          2.4          -1.9        -4.2         6.9             2.8           4.4
 
        ANNUAL          0.6           0.9         0.4         3.9            -0.9           3.3
 
  1990       I          4.2           3.4        -0.8         5.0            -1.8           0.8
            II          0.3           0.5         0.2         6.1             1.8           5.8
           III          5.2           1.4        -3.6         4.0            -2.9          -1.2
            IV          2.1          -4.8        -6.8         7.6             0.6           5.4
 
        ANNUAL          1.8          -0.4        -2.2         5.3            -0.1           3.5
 
  1991       I         -0.1          -8.2        -8.1         6.1             2.9           6.3
            II          4.0           1.3        -2.6         4.3             1.9           0.3
           III          4.7           6.0         1.3         3.6             0.4          -1.1
            IV          1.1          -0.3        -1.4         6.6             3.2           5.4
 
        ANNUAL          2.3          -1.9        -4.1         5.3             1.1           3.0
  -----------------------------------------------------------------------------------------------
 
                                  -24-
 
                     Percent change from corresponding quarter of previous year
 
  1989       I          1.5           3.3         1.8         4.7             0.0           3.1
            II          1.3           2.1         0.8         3.7            -1.3           2.4
           III         -0.4          -0.1         0.3         3.5            -1.2           4.0
            IV         -0.1          -1.5        -1.4         3.8            -0.8           3.9
 
        ANNUAL          0.6           0.9         0.4         3.9            -0.9           3.3
 
  1990       I          0.5          -1.5        -2.0         4.1            -1.0           3.6
            II          0.4          -1.0        -1.5         5.6             1.0           5.2
           III          3.0           0.8        -2.1         5.5            -0.1           2.4
            IV          2.9           0.1        -2.8         5.6            -0.6           2.7
 
        ANNUAL          1.8          -0.4        -2.2         5.3            -0.1           3.5
 
  1991       I          1.8          -2.9        -4.6         5.9             0.6           4.0
            II          2.8          -2.7        -5.3         5.5             0.6           2.6
           III          2.6          -1.6        -4.1         5.4             1.4           2.7
            IV          2.4          -0.4        -2.8         5.1             2.1           2.7
 
        ANNUAL          2.3          -1.9        -4.1         5.3             1.1           3.0
  -----------------------------------------------------------------------------------------------
  See footnotes following table 6.                             December 7, 1994
                                                               Source: Bureau of Labor Statistics
                                 -25-
 
  Appendix table 2.
  Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
 
                                                                           Real
                    Output per                 Hours       Compensa-       compensa-      Unit
       Year and     hour of                    of all      tion per        tion per       labor
       quarter      all persons     Output     persons     hour(1)         hour(2)        costs
  -----------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1989       I        125.6         140.8       112.1       124.3            98.5          98.9
            II        126.4         140.2       110.9       124.2            96.9          98.2
           III        125.5         138.0       110.0       125.8            97.3         100.3
            IV        125.3         136.1       108.6       128.5            98.4         102.5
 
        ANNUAL        125.7         138.8       110.4       125.6            97.8         100.0
 
  1990       I        126.4         136.8       108.2       129.7            97.7         102.6
            II        127.2         137.7       108.2       131.5            98.1         103.4
           III        129.7         138.5       106.8       132.8            97.3         102.4
            IV        130.3         135.9       104.3       135.4            97.6         103.9
 
        ANNUAL        128.6         137.2       106.7       132.5            97.8         103.1
 
  1991       I        130.7         132.7       101.5       137.6            98.4         105.3
            II        132.1         133.2       100.9       138.7            98.7         105.1
           III        134.5         135.6       100.8       139.9            98.8         104.1
            IV        135.6         135.5        99.9       142.7            99.9         105.2
 
        ANNUAL        133.2         134.3       100.8       139.7            99.0         104.9
  -----------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1989       I          2.3           4.0         1.6         4.5            -0.2           2.1
            II          2.5          -1.8        -4.3        -0.5            -6.5          -2.9
           III         -3.0          -6.1        -3.2         5.4             2.0           8.6
            IV         -0.5          -5.5        -5.0         8.7             4.5           9.2
 
        ANNUAL          1.3           1.3         0.0         4.2            -0.6           2.8
 
  1990       I          3.4           2.0        -1.4         3.8            -3.0           0.4
            II          2.7           2.7         0.0         5.8             1.5           3.0
           III          8.0           2.2        -5.4         3.9            -3.0          -3.8
            IV          1.9          -7.2        -9.0         8.3             1.3           6.3
 
        ANNUAL          2.3          -1.1        -3.3         5.5             0.1           3.1
 
  1991       I          1.3          -9.0       -10.2         6.5             3.3           5.2
            II          4.1           1.6        -2.4         3.3             1.0          -0.7
           III          7.5           7.1        -0.4         3.5             0.3          -3.8
            IV          3.5           0.0        -3.4         8.3             4.9           4.6
 
        ANNUAL          3.6          -2.1        -5.6         5.5             1.2           1.8
  -----------------------------------------------------------------------------------------------
 
 
                                   -26-
                     Percent change from corresponding quarter of previous year
 
  1989       I          1.9           4.8         2.8         4.3            -0.3           2.4
            II          2.1           2.7         0.6         3.9            -1.2           1.7
           III          0.8           0.2        -0.7         4.0            -0.7           3.1
            IV          0.3          -2.4        -2.7         4.5            -0.1           4.1
 
        ANNUAL          1.3           1.3         0.0         4.2            -0.6           2.8
 
  1990       I          0.6          -2.9        -3.5         4.3            -0.8           3.7
            II          0.6          -1.8        -2.4         5.9             1.2           5.2
           III          3.4           0.3        -3.0         5.5             0.0           2.1
            IV          4.0          -0.2        -4.0         5.4            -0.8           1.4
 
        ANNUAL          2.3          -1.1        -3.3         5.5             0.1           3.1
 
  1991       I          3.5          -3.0        -6.2         6.1             0.8           2.6
            II          3.8          -3.2        -6.8         5.5             0.6           1.6
           III          3.7          -2.1        -5.6         5.4             1.5           1.7
            IV          4.1          -0.3        -4.2         5.4             2.4           1.2
 
        ANNUAL          3.6          -2.1        -5.6         5.5             1.2           1.8
  -----------------------------------------------------------------------------------------------
  See footnotes following table 6.                             December 7, 1994
                                                               Source: Bureau of Labor Statistics
 
 
                                   -27-
  Appendix table 3.
  Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
 
                                                                           Real
                    Output per                 Hours       Compensa-       compensa-      Unit
       Year and     hour of                    of all      tion per        tion per       labor
       quarter      all persons     Output     persons     hour(1)         hour(2)        costs
  -----------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1989       I        114.0         122.6       107.5       130.1           103.1         114.1
            II        113.4         122.5       108.0       130.7           101.9         115.3
           III        111.2         120.7       108.6       131.8           102.0         118.6
            IV        112.9         121.7       107.8       133.2           102.1         118.0
 
        ANNUAL        112.8         121.9       108.0       131.5           102.3         116.5
 
  1990       I        114.4         123.3       107.8       135.5           102.1         118.5
            II        113.5         122.5       107.9       137.7           102.7         121.3
           III        113.9         122.6       107.7       139.2           102.1         122.3
            IV        114.5         122.1       106.6       141.6           102.1         123.6
 
        ANNUAL        114.1         122.6       107.5       138.6           102.3         121.4
 
  1991       I        113.9         119.9       105.3       143.6           102.7         126.1
            II        115.0         120.1       104.5       145.6           103.6         126.7
           III        115.2         121.5       105.4       147.1           103.8         127.6
            IV        114.6         121.3       105.8       148.7           104.1         129.7
 
        ANNUAL        114.6         120.7       105.3       146.2           103.6         127.5
  -----------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1989       I          0.7           2.3         1.6         2.5            -2.0           1.8
            II         -2.3          -0.3         2.1         1.6            -4.6           4.1
           III         -7.5          -5.6         2.1         3.6             0.3          12.0
            IV          6.5           3.3        -3.0         4.2             0.2          -2.1
 
        ANNUAL         -0.4           0.5         0.9         3.6            -1.2           4.1
 
  1990       I          5.2           5.2         0.1         7.1             0.1           1.9
            II         -3.0          -2.5         0.5         6.6             2.3           9.9
           III          1.3           0.4        -0.9         4.5            -2.4           3.1
            IV          2.3          -1.5        -3.7         7.0             0.0           4.5
 
        ANNUAL          1.1           0.6        -0.5         5.4             0.0           4.2
 
  1991       I         -2.2          -7.1        -5.0         5.9             2.7           8.2
            II          3.9           0.8        -3.0         5.7             3.3           1.8
           III          0.9           4.6         3.6         4.1             0.8           3.1
            IV         -2.1          -0.7         1.4         4.4             1.1           6.6
 
        ANNUAL          0.5          -1.6        -2.0         5.5             1.2           5.0
  -----------------------------------------------------------------------------------------------
 
 
                                   -28-
 
                     Percent change from corresponding quarter of previous year
 
  1989       I          1.0           1.2         0.2         5.0             0.3           4.0
            II          0.3           1.4         1.1         3.6            -1.5           3.3
           III         -2.2          -0.5         1.8         3.0            -1.7           5.3
            IV         -0.8          -0.1         0.7         3.0            -1.5           3.8
 
        ANNUAL         -0.4           0.5         0.9         3.6            -1.2           4.1
 
  1990       I          0.3           0.6         0.3         4.1            -1.0           3.8
            II          0.1           0.0        -0.1         5.4             0.7           5.3
           III          2.4           1.5        -0.9         5.6             0.0           3.1
            IV          1.4           0.4        -1.0         6.3             0.0           4.8
 
        ANNUAL          1.1           0.6        -0.5         5.4             0.0           4.2
 
  1991       I         -0.4          -2.7        -2.3         6.0             0.6           6.4
            II          1.3          -1.9        -3.2         5.8             0.9           4.4
           III          1.2          -0.9        -2.1         5.6             1.7           4.4
            IV          0.1          -0.7        -0.8         5.0             2.0           4.9
 
        ANNUAL          0.5          -1.6        -2.0         5.5             1.2           5.0
  -----------------------------------------------------------------------------------------------
  See footnotes following table 6.                             December 7, 1994
                                                               Source: Bureau of Labor Statistics