TEXT
Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
Percent change from corresponding quarter of previous year
Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
Percent change from corresponding quarter of previous year
Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
Percent change from corresponding quarter of previous year
Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
Percent change from corresponding quarter of previous year
Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
Percent change from corresponding quarter of previous year
Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
Percent change from corresponding quarter of previous year

 
 
 
 
 
 Historical, technical                 USDL 96-366
 information:  (202) 606-5606          Transmission of this
 Current data: (202) 606-7828          material is embargoed
 Media contact:(202) 606-5902          until 10:00 A.M. EDT
                                       Tuesday, September 10, 1996.
 
 
                       PRODUCTIVITY AND COSTS
                       Second Quarter 1996
 
 
       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 second quarter of 1996.
 The revised seasonally-adjusted annual rates of productivity
 change in the second quarter were:
 
       1.1 percent in the business sector, and
       0.5 percent in the nonfarm business sector.
 
 In both sectors, productivity growth was slower than in the first
 quarter of 1996, when output per hour increased at annual rates
 of 2.0 percent in the business sector and 1.8 percent in the
 nonfarm business sector.  The modest second-quarter increases in
 productivity resulted from strong growth in both output and
 hours.
 
       In manufacturing, the revised productivity changes in the
 second quarter were:
 
       2.2 percent in manufacturing,
       3.9 percent in durable goods manufacturing, and
       0.5 percent in nondurable goods manufacturing.
 
       The second-quarter increase in manufacturing productivity
 was concentrated in durable goods industries, where a 3.9 percent
 productivity gain reflected a 10.9 percent increase in output and
 a 6.8 percent rise in hours worked in that subsector (seasonally
 adjusted annual rates).  Output and hours in manufacturing, which
 includes about 18 percent of U.S. business-sector employment,
 tend to vary more from quarter to quarter than data for the more
 aggregate business and nonfarm business sectors.  Second-quarter
 measures are summarized in table A and appear in detail in tables
 1 through 5; the differences between these measures and the
 preliminary second-quarter figures issued on August 14 are shown
 in table C.
 
       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
 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 6).
 
 
 
   Table A.  Productivity and costs:  Revised second-quarter 1996
   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            1.1     5.2     4.0     4.0     0.2     2.9
   Nonfarm business    0.5     4.9     4.4     3.7    -0.1     3.2
   Manufacturing       2.2     6.4     4.1     5.8     1.9     3.6
     Durable           3.9    10.9     6.8     6.8     2.8     2.8
     Nondurable        0.5     0.9     0.4     3.9     0.0     3.4
 ---------------------------------------------------------------------
               Percent change from same quarter a year ago
 
   Business            1.1     3.3     2.3     3.8     0.9     2.8
   Nonfarm business    0.8     3.2     2.4     3.8     0.9     2.9
   Manufacturing       4.2     3.2    -0.9     3.8     0.9    -0.3
     Durable           5.6     6.2     0.6     3.3     0.4    -2.1
     Nondurable        2.6    -0.6    -3.1     4.4     1.5     1.7
 ---------------------------------------------------------------------
 
 
 Business
 
       From the first quarter to the second quarter of 1996,
 business sector productivity increased at a 1.1 percent annual
 rate.  Business sector output rose 5.2 percent and hours of all
 persons rose 4.0 percent.  These were the largest increases in
 both series since the second quarter of 1994, when output and
 hours grew 6.9 percent and 6.3 percent, respectively.  The hours
 increase reflected a 2.4 percent increase in employment and a 1.6
 percent rise in average weekly hours.  During the first quarter
 of 1996, productivity had increased 2.0 percent, as output grew
 3.0 percent and hours of all persons engaged in the sector rose
 1.0 percent (table 1).
 
       Hourly compensation increased 4.0 percent in the second
 quarter of 1996, following a 3.0 percent rise in the first
 quarter.  This measure includes wages and salaries, supplements,
 employer contributions to employee benefit plans, and taxes.
 Real hourly compensation, which takes into account changes in the
 Consumer Price Index for All Urban Consumers (CPI-U), increased
 at a 0.2 percent annual rate in the second quarter of 1996 after
 falling 0.2 percent in the first quarter.
 
       Unit labor costs, which reflect changes in hourly
 compensation and productivity, grew at a 2.9 percent annual rate
 during the second quarter, compared with a 1.0 percent rise in
 the first quarter.  The implicit price deflator for the business
 sector, which incorporates changes in both unit labor costs and
 unit nonlabor payments, increased 2.4 percent in the second
 quarter and 1.5 percent during the first quarter of 1996
 (seasonally adjusted annual rates).
 
 
 Nonfarm business
 
       Productivity edged up 0.5 percent in the nonfarm business
 sector during the second quarter of 1996, as output increased 4.9
 percent and hours of all persons increased 4.4 percent
 (seasonally adjusted annual rates).  The rise in hours reflected
 increases of 2.6 percent in employment and 1.7 percent in average
 weekly hours at work.  During the first quarter of 1996,
 productivity had increased 1.8 percent in the nonfarm business
 sector, reflecting gains of 2.7 percent in output and 1.0 percent
 in hours (table 2).
 
       Hourly compensation increased at a 3.7 percent annual rate
 in the second quarter, compared with a 3.3 percent increase one
 quarter earlier.  When the rise in the CPI-U is taken into
 account, real hourly compensation fell 0.1 percent in the second
 quarter, after remaining unchanged in the first quarter.
 
       Unit labor costs rose 3.2 percent during the second quarter
 of 1996, compared with a 1.5 percent rise in the first quarter.
 The implicit price deflator for nonfarm business output rose 2.1
 percent in the second quarter and 1.4 percent one quarter
 earlier.
 
 
 Manufacturing
 
       Productivity increased 2.2 percent in manufacturing in the
 second quarter of 1996, as output grew 6.4 percent and hours of
 all persons increased 4.1 percent (seasonally adjusted annual
 rates).  The increase in hours was due entirely to a 5.0 percent
 increase in average weekly hours.  Productivity increased at a
 3.9 percent annual rate in durable goods industries, compared
 with a 0.5 percent rise in output per hour worked among
 nondurable goods producers (tables 4 and 5).  In the durable
 goods subsector, output increased at a 10.9 percent annual rate
 and hours of all persons rose 6.8 percent.
 
       Hourly compensation of all manufacturing workers increased
 5.8 percent during the second quarter, the largest gain since the
 second quarter of 1990.  Hourly compensation grew 6.8 percent in
 the durable goods industries and 3.9 percent in nondurable goods
 industries.  Real hourly compensation in the manufacturing sector
 rose 1.9 percent in the second quarter when the increase in
 consumer prices is taken into account.  During the first quarter,
 real hourly compensation fell 2.8 percent (seasonally adjusted
 annual rates).
 
       Manufacturing unit labor costs rose at a 3.6 percent annual
 rate in the second quarter of 1996, the largest increase since a
 6.0 percent rise in the first quarter of 1991.  Unit labor costs
 increased 2.8 percent in durable goods industries in the second
 quarter of 1996, after falling 9.3 percent in the first quarter.
 In nondurable manufacturing, unit labor costs increased 3.4
 percent in the second quarter and 1.6 percent in the first
 quarter of 1996.
 
 
 
 Table B.  Nonfinancial corporations: Preliminary second-quarter
 productivity and cost measures (Seasonally adjusted annual rates)
 ---------------------------------------------------------------------
 
                                       Real
                               Hourly  hourly  Unit            Imp.
       Produc-                 compen- compen- labor   Unit    price
 Qtr.  tivity  Output  Hours   sation  sation  costs   profits def.
 --------------------------------------------------------------------
 
                       Percent change from preceding quarter
 
 96 II 1.7     6.1     4.4     3.6     -0.2    1.9      6.9    1.6
 --------------------------------------------------------------------
 
                   Percent change from same quarter a year ago
 
 96 II 2.6     4.9     2.3     3.6     0.7     0.9     13.4    1.4
 --------------------------------------------------------------------
 
 
 
 
 Nonfinancial corporations
 
       Preliminary second-quarter 1996 measures of productivity and
 costs also were announced today for nonfinancial corporations
 (tables B and 6).  Productivity increased 1.7 percent during the
 second quarter, as output rose 6.1 percent and hours increased
 4.4 percent (seasonally adjusted annual rates).  In the first
 quarter of 1996, productivity had increased 1.1 percent in
 nonfinancial corporations, as output increased 2.2 percent and
 employee hours rose 1.0 percent. Nonfinancial corporations
 include all corporations doing business in the United States,
 except for financial corporations, which include depository
 institutions, nondepository institutions, security and commodity
 brokers, insurance carriers, regulated investment offices, small
 business investment offices, and real estate investment trusts.
 
       Hourly compensation rose 3.6 percent in the second
 quarter; it had increased 2.6 percent one quarter earlier.
 When the rise in the CPI-U is taken into account, real
 hourly compensation declined 0.2 percent in the second
 quarter of 1996, after decreasing 0.6 percent in the first
 quarter (table 6).
 
       Unit labor costs for nonfinancial corporations rose 1.9
 percent in the second quarter, following a 1.5 percent rise
 in the first quarter of 1996.  Unit nonlabor costs fell 1.6
 percent, and unit profits rose 6.9 percent.  During the
 first quarter, unit nonlabor costs had dropped 2.6 percent,
 while unit profits rose 14.3 percent (seasonally adjusted
 annual rates).  The implicit price deflator for nonfinancial
 corporate output rose 1.6 percent in the second quarter and
 1.7 percent in the first quarter.
 
 
   Table C. Previous and revised productivity and related measures
   Quarterly percent change at seasonally adjusted annual rate
 --------------------------------------------------------------------
 
                                               Real
                                               Hourly  hourly  Unit
                       Produc-                 compen- compen- labor
    Sector             tivity  Output  Hours   sation  sation  costs
 ---------------------------------------------------------------------
                               Second quarter 1996
   Business:
    Previous           0.5     4.4     3.9     4.1     0.2     3.6
    Current            1.1     5.2     4.0     4.0     0.2     2.9
 
   Nonfarm business:
    Previous          -0.1     4.2     4.3     3.7     -0.1    3.8
    Current            0.5     4.9     4.4     3.7     -0.1    3.2
 
   Manufacturing:
    Previous            1.5    5.5     3.9     5.8     1.9     4.2
    Current             2.2    6.4     4.1     5.8     1.9     3.6
 ---------------------------------------------------------------------
 
 
 Revised Measures
 
       Current and previous measures for the second quarter of 1996
 for the business, nonfarm business, and manufacturing sectors are
 compared in table C.  The quarterly movements differ from those
 reported on August 14 based on information then available.  In
 the business and nonfarm business sectors, changes in output
 (which is based on information from the national income and
 product accounts prepared by the U.S. Department of Commerce) and
 productivity were revised upward.  A productivity gain of 0.5
 percent is now reported for the nonfarm business sector, rather
 than a decline of 0.1 percent.  Manufacturing output (which is
 based on information from the Federal Reserve Board) and
 productivity also were revised up.
 
 Next release date
 
       The next release of Productivity and Costs is scheduled for
 10:00 AM EST, Thursday, November 7, 1996.  Revised second-quarter
 measures for nonfinancial corporations and preliminary third-
 quarter measures for business, nonfarm business, and
 manufacturing will be released at that time.
 
 
 
 TECHNICAL NOTES
 
 
 
 
 Labor Hours: The primary source of hours and employment data
 is the BLS Current Employment Statistics (CES) program, which
 provides monthly survey data on total employment and average
 weekly paid hours of production and nonsupervisory workers in
 nonagricultural establishments. Jobs rather than persons are
 counted. Weekly paid hours are adjusted to hours at work using
 the BLS Hours at Work survey, conducted for this purpose.
       Data from the BLS Current Population Survey (CPS) are
 used for farm labor; in the nonfarm sector, the National Income
 and Product Accounts (NIPA) prepared by the Bureau of Economic
 Analysis (BEA) of the Department of Commerce and the CPS are used
 to measure labor input for government enterprises, proprietors,
 and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index
 constructed after excluding from gross domestic product (GDP) the
 following outputs: General government, nonprofit institutions, paid
 employees of private households, and the rental value of owner-
 occupied dwellings. Corresponding exclusions also are made in labor
 inputs. Business output accounted for about 76 percent of the value
 of GDP in 1992. Nonfarm business, which also excludes farming,
 accounted for about 75 percent of GDP in 1992.
       Annual manufacturing indexes are constructed by deflating
 current-dollar industry value of production data from the U.S. Bureau
 of the Census with deflators from the BEA.  These deflators are based
 on data from the BLS producer price program and other sources.  The
 industry shipments are aggregated using annual weights, and intra-
 sector transactions are removed.  Quarterly manufacturing output
 measures are based on the index of industrial production prepared
 monthly by the Board of Governors of the Federal Reserve System
 adjusted to be consistent with annual indexes of manufacturing sector
 output prepared by BLS.  Durables include the following 2-digit SIC
 industries: Primary metal industries; fabricated metal products;
 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 manufactures. Nondurables include: Food and kindred
 products, tobacco products, textile mill products, apparel products,
 paper and allied products, printing and publishing, chemicals and
 chemical products, petroleum refining and related industries, rubber
 and plastic products, and leather and leather products.
       Nonfinancial corporate output is an annual-weighted index
 constructed by excluding from GDP the following outputs: General
 government; nonprofit institutions; employees of private households;
 the rental value of owner-occupied dwellings; unincorporated
 business; and those corporations which are depository institutions,
 nondepository institutions, security and commodity brokers, insurance
 carriers, regulated investment offices, small business investment
 offices, and real estate investment trusts. Nonfinancial corporations
 accounted for about 52 percent of the value of GDP in 1992.
 
 Productivity: These productivity measures describe the relationship
 between real output and the labor time involved in its production.
 They show the changes from period to period in the amount of goods
 and services produced per hour. Although these measures relate output
 to hours at work of all persons engaged in a sector, they do not
 measure the specific contribution of labor, capital, or any other
 factor of production. Rather, they reflect the joint effects of many
 influences, including changes in technology; capital investment;
 level of output; utilization of capacity, energy, and materials; the
 organization of production;managerial skill; and the characteristics
 and effort of the work force.
 
       Information in this release will be made available to sensory-
 impaired individuals upon request. Voice phone: 202-606-STAT;
 TDD phone: 202-606-5897; TDD message referral phone number:
 1-800-326-2577.
 
 
 
 
 
 
 
 Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
 and prices, seasonlly 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
 
 1994       I     100.4      104.9     104.5     104.0        99.4      103.6       104.5      103.9
           II     100.5      106.7     106.1     104.2        99.0      103.6       105.7      104.4
          III     101.1      107.7     106.6     104.7        98.6      103.6       107.6      105.1
           IV     101.2      108.7     107.4     105.6        98.9      104.4       107.8      105.6
 
       ANNUAL     100.7      107.0     106.2     104.5        99.0      103.8       106.5      104.7
 
 1995       I     100.7      108.8     108.1     106.6        99.1      105.8       107.4      106.4
           II     101.2      109.0     107.7     107.8        99.4      106.5       107.7      106.9
          III     101.6      110.3     108.5     108.8        99.8      107.1       108.2      107.5
           IV     101.5      110.4     108.8     110.0       100.3      108.4       106.6      107.8
 
       ANNUAL     101.2      109.6     108.3     108.2        99.7      107.0       107.5      107.1
 
 1996       I     102.0      111.2     109.1     110.8       100.2      108.7       107.3      108.2
           II    r102.3     r112.7    r110.2     111.9       100.3     r109.5      r107.7      108.8
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I      -1.9        1.7       3.6       2.6         0.6        4.6        -1.3        2.4
           II       0.6        6.9       6.3       0.8        -1.8        0.2         4.6        1.8
          III       2.2        4.1       1.9       2.3        -1.4        0.2         7.3        2.7
           IV       0.6        3.8       3.2       3.4         1.2        2.8         0.7        2.0
 
       ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2
 
 1995       I      -1.9        0.3       2.3       3.6         0.7        5.6        -1.5        3.0
           II       1.9        0.7      -1.1       4.6         1.2        2.7         1.2        2.2
          III       1.7        4.8       3.0       3.9         1.8        2.2         1.8        2.0
           IV      -0.6        0.5       1.1       4.4         1.9        5.0        -5.6        1.0
 
       ANNUAL       0.5        2.5       2.0       3.6         0.7        3.1         1.0        2.3
 
 1996       I       2.0        3.0       1.0       3.0        -0.2        1.0         2.4        1.5
           II      r1.1       r5.2      r4.0      r4.0         0.2       r2.9        r1.5       r2.4
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1994       I       0.2        3.4       3.2       2.2        -0.2        2.0         2.4        2.2
           II       0.8        4.5       3.7       1.8        -0.6        1.0         3.7        2.0
          III       1.1        4.8       3.6       1.9        -1.0        0.8         5.1        2.3
           IV       0.3        4.1       3.7       2.3        -0.4        1.9         2.8        2.2
 
       ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2
 
 1995       I       0.3        3.8       3.4       2.5        -0.3        2.2         2.7        2.4
           II       0.7        2.2       1.5       3.5         0.4        2.8         1.9        2.5
          III       0.6        2.4       1.8       3.9         1.2        3.3         0.5        2.3
           IV       0.3        1.6       1.3       4.1         1.4        3.9        -1.1        2.0
 
       ANNUAL       0.5        2.5       2.0       3.6         0.7        3.1         1.0        2.3
 
 1996       I       1.2        2.2       1.0       4.0         1.2        2.7        -0.1        1.7
           II      r1.1       r3.3      r2.3       3.8        r0.9       r2.8        r0.0       r1.7
 ---------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                       September 10, 1996
 r=revised                                                              Source: Bureau of Labor Statistics
 
 
 
 
 Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
 and prices, seasonlly 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
 
 1994       I     100.2      104.9     104.6     103.7        99.1      103.4       104.9      103.9
           II     100.5      106.7     106.1     104.0        98.8      103.5       106.3      104.5
          III     101.0      107.8     106.7     104.6        98.4      103.5       108.4      105.3
           IV     101.2      108.8     107.5     105.5        98.8      104.3       108.4      105.7
 
       ANNUAL     100.7      107.0     106.3     104.3        98.8      103.7       107.0      104.9
 
 1995       I     100.8      109.0     108.1     106.5        99.0      105.6       108.1      106.5
           II     101.3      109.2     107.8     107.7        99.3      106.3       108.4      107.1
          III     101.8      110.6     108.6     108.8        99.8      106.8       108.8      107.5
           IV     101.5      110.7     109.0     109.9       100.2      108.2       107.0      107.8
 
       ANNUAL     101.3      109.9     108.4     108.2        99.6      106.7       108.1      107.2
 
 1996       I     102.0      111.4     109.3     110.7       100.2      108.6       107.3      108.1
           II    r102.1     r112.8     110.4    r111.7       100.1     r109.4      r107.3      108.7
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I      -2.0        0.8       2.9       2.8         0.7        4.8        -1.6        2.5
           II       1.0        7.0       5.9       1.4        -1.2        0.3         5.6        2.2
          III       2.0        4.2       2.1       2.1        -1.6        0.1         8.1        2.9
           IV       0.9        4.0       3.1       3.9         1.6        2.9         0.0        1.9
 
       ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3
 
 1995       I      -1.6        0.6       2.2       3.7         0.8        5.4        -1.0        3.0
           II       2.0        0.9      -1.0       4.6         1.1        2.6         1.0        2.0
          III       2.0        5.0       2.9       4.0         1.9        1.9         1.3        1.7
           IV      -1.1        0.3       1.5       4.1         1.6        5.2        -6.4        0.9
 
       ANNUAL       0.7        2.7       2.0       3.7         0.8        3.0         1.0        2.2
 
 1996       I       1.8        2.7       1.0       3.3         0.0        1.5         1.1        1.4
           II      r0.5       r4.9      r4.4       3.7        -0.1       r3.2        r0.2       r2.1
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1994       I       0.1        3.3       3.2       2.1        -0.4        2.0         2.1        2.1
           II       0.8        4.3       3.5       1.9        -0.5        1.1         3.9        2.1
          III       0.9        4.3       3.4       2.0        -0.8        1.1         5.1        2.5
           IV       0.5        4.0       3.5       2.5        -0.1        2.0         3.0        2.4
 
       ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3
 
 1995       I       0.6        3.9       3.3       2.7        -0.1        2.2         3.1        2.5
           II       0.8        2.4       1.6       3.5         0.5        2.7         2.0        2.5
          III       0.8        2.6       1.8       4.0         1.4        3.2         0.3        2.1
           IV       0.3        1.7       1.4       4.1         1.4        3.8        -1.3        1.9
 
       ANNUAL       0.7        2.7       2.0       3.7         0.8        3.0         1.0        2.2
 
 1996       I       1.2        2.2       1.1       4.0         1.2        2.8        -0.8        1.5
           II      r0.8       r3.2       2.4       3.8         0.9       r2.9       r-1.0        1.5
 ---------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                       September 10, 1996
 r=revised                                                              Source: Bureau of Labor Statistics
 
 
 
 
 Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
 seasonlly 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
 
 1994       I            104.8        107.3        102.4        104.4           99.9          99.7
           II            106.2        109.5        103.2        104.7           99.5          98.6
          III            106.6        110.9        104.0        105.5           99.4          99.0
           IV            107.7        113.0        105.0        106.4           99.6          98.8
 
       ANNUAL            106.1        110.2        103.8        105.1           99.5          99.0
 
 1995       I            108.3        114.1        105.3        107.2           99.7          99.0
           II            109.0        113.5        104.1        108.3           99.9          99.4
          III            110.4        114.2        103.4        109.7          100.6          99.3
           IV            111.5        114.6        102.8        110.8          101.0          99.4
 
       ANNUAL            109.8        114.1        103.9        109.0          100.3          99.3
 
 1996       I            113.0        115.3        102.1        110.9          100.3          98.2
           II           r113.6       r117.1       r103.1        112.5          100.8         r99.0
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              6.7          8.8          2.0          3.3            1.3          -3.1
           II              5.5          8.5          2.9          1.1           -1.4          -4.1
          III              1.7          5.1          3.4          3.1           -0.6           1.5
           IV              4.1          7.9          3.6          3.1            0.9          -0.9
 
       ANNUAL              4.0          6.5          2.4          2.7            0.1          -1.2
 
 1995       I              2.4          3.9          1.4          3.2            0.4           0.8
           II              2.7         -2.1         -4.7          4.3            0.8           1.5
          III              5.3          2.6         -2.5          5.1            3.0          -0.2
           IV              3.7          1.4         -2.2          4.1            1.7           0.4
 
       ANNUAL              3.4          3.5          0.1          3.7            0.8           0.2
 
 1996       I              5.6          2.4         -3.0          0.4           -2.8          -4.9
           II             r2.2         r6.4         r4.1          5.8            1.9          r3.6
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              3.1          4.7          1.5          3.1            0.6           0.0
           II              4.5          6.5          1.9          2.8            0.4          -1.7
          III              4.5          7.1          2.4          2.9            0.0          -1.6
           IV              4.5          7.6          3.0          2.7            0.0          -1.7
 
       ANNUAL              4.0          6.5          2.4          2.7            0.1          -1.2
 
 1995       I              3.4          6.3          2.8          2.7           -0.2          -0.7
           II              2.7          3.6          0.9          3.5            0.4           0.7
          III              3.6          3.0         -0.6          3.9            1.3           0.3
           IV              3.5          1.4         -2.0          4.2            1.5           0.7
 
       ANNUAL              3.4          3.5          0.1          3.7            0.8           0.2
 
 1996       I              4.3          1.0         -3.1          3.4            0.7          -0.8
           II             r4.2         r3.2        r-0.9          3.8            0.9         r-0.3
 --------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                September 10, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
 seasonlly 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
 
 1994       I            107.0        110.4        103.2        104.3           99.7          97.5
           II            108.2        112.6        104.1        104.5           99.3          96.6
          III            109.0        114.8        105.3        105.3           99.1          96.6
           IV            110.3        117.5        106.6        106.0           99.3          96.1
 
       ANNUAL            108.4        113.8        105.0        104.8           99.2          96.7
 
 1995       I            111.5        119.5        107.2        106.8           99.2          95.7
           II            111.8        119.0        106.4        107.7           99.3          96.3
          III            113.6        120.4        106.0        109.1          100.1          96.1
           IV            114.8        121.5        105.9        110.1          100.4          95.9
 
       ANNUAL            112.9        120.1        106.4        108.4           99.8          96.0
 
 1996       I            116.9        123.1        105.3        109.5           99.0          93.6
           II           r118.0       r126.3        107.0        111.3           99.7         r94.3
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              7.4         11.0          3.3          3.1            1.0          -4.1
           II              4.8          8.6          3.6          1.0           -1.5          -3.7
          III              3.0          7.8          4.7          2.9           -0.8          -0.1
           IV              4.7          9.9          5.0          2.8            0.6          -1.8
 
       ANNUAL              4.9          8.5          3.5          2.5            0.0          -2.2
 
 1995       I              4.4          7.0          2.4          2.7           -0.1          -1.6
           II              1.2         -1.9         -3.1          3.6            0.2           2.4
          III              6.4          5.1         -1.2          5.3            3.2          -1.0
           IV              4.3          3.6         -0.7          3.6            1.2          -0.7
 
       ANNUAL              4.1          5.5          1.3          3.4            0.5          -0.7
 
 1996       I              7.8          5.5         -2.1         -2.2           -5.3          -9.3
           II             r3.9        r10.9         r6.8          6.8            2.8          r2.8
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              4.4          6.8          2.3          3.1            0.6          -1.2
           II              5.3          8.4          2.9          2.8            0.4          -2.4
          III              5.8          9.5          3.5          2.9            0.0          -2.8
           IV              5.0          9.3          4.1          2.4           -0.2          -2.4
 
       ANNUAL              4.9          8.5          3.5          2.5            0.0          -2.2
 
 1995       I              4.2          8.3          3.9          2.4           -0.5          -1.8
           II              3.3          5.6          2.2          3.0            0.0          -0.3
          III              4.2          4.9          0.7          3.6            1.0          -0.5
           IV              4.1          3.4         -0.7          3.8            1.1          -0.2
 
       ANNUAL              4.1          5.5          1.3          3.4            0.5          -0.7
 
 1996       I              4.9          3.0         -1.8          2.5           -0.2          -2.2
           II             r5.6         r6.2          0.6          3.3            0.4         r-2.1
 --------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                September 10, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
 seasonlly 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
 
 1994       I            102.8        104.3        101.4        104.5           99.9         101.7
           II            104.3        106.3        101.9        104.8           99.6         100.4
          III            104.4        106.9        102.4        105.7           99.5         101.2
           IV            105.3        108.3        102.8        106.5           99.7         101.1
 
       ANNUAL            104.2        106.5        102.2        105.3           99.7         101.1
 
 1995       I            105.4        108.4        102.8        107.5          100.0         102.0
           II            106.7        107.8        101.0        108.8          100.3         102.0
          III            107.8        107.7         99.9        110.0          100.9         102.1
           IV            108.6        107.3         98.8        111.3          101.5         102.5
 
       ANNUAL            107.1        107.8        100.6        109.4          100.8         102.1
 
 1996       I            109.3        106.9         97.7        112.5          101.8         102.9
           II           r109.5       r107.1         97.8        113.6          101.8        r103.8
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I              6.2          6.4          0.1          3.5            1.5          -2.6
           II              6.0          8.1          1.9          1.1           -1.4          -4.7
          III              0.3          2.0          1.7          3.3           -0.5           3.0
           IV              3.5          5.4          1.8          3.4            1.1          -0.2
 
       ANNUAL              3.1          4.1          1.0          2.6            0.1          -0.5
 
 1995       I              0.5          0.6          0.1          3.8            0.9           3.3
           II              4.8         -2.5         -7.0          4.9            1.5           0.2
          III              4.1         -0.3         -4.3          4.4            2.3           0.3
           IV              3.0         -1.4         -4.3          4.7            2.3           1.6
 
       ANNUAL              2.9          1.3         -1.6          3.9            1.1           1.0
 
 1996       I              2.9         -1.5         -4.3          4.6            1.3           1.6
           II             r0.5         r0.9         r0.4         r3.9            0.0          r3.4
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              1.9          2.4          0.5          3.0            0.5           1.1
           II              3.9          4.4          0.5          2.6            0.2          -1.2
          III              3.2          4.3          1.0          2.6           -0.2          -0.6
           IV              4.0          5.4          1.4          2.8            0.2          -1.1
 
       ANNUAL              3.1          4.1          1.0          2.6            0.1          -0.5
 
 1995       I              2.5          4.0          1.4          2.9            0.0           0.3
           II              2.2          1.3         -0.9          3.8            0.7           1.6
          III              3.2          0.7         -2.4          4.1            1.4           0.9
           IV              3.1         -0.9         -3.9          4.5            1.7           1.3
 
       ANNUAL              2.9          1.3         -1.6          3.9            1.1           1.0
 
 1996       I              3.7         -1.4         -5.0          4.7            1.8           0.9
           II             r2.6        r-0.6        r-3.1          4.4            1.5          r1.7
 --------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                September 10, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
 and prices, seasonlly adjusted
               Output                      Hourly    Real                Unit     Total    Unit   Implicit
     Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
     and       employee          Employee  sation    compen-r   labor    labor    cost     fits   deflator
     quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
 ----------------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1994       I    102.7    107.4     104.6    103.7      99.2     101.0    102.1    101.3    120.5    102.8
           II    102.5    108.9     106.2    103.7      98.6     101.2     98.7    100.5    134.5    103.1
          III    102.4    109.7     107.0    104.1      98.0     101.6     99.3    101.0    136.5    103.7
           IV    102.9    111.5     108.3    104.8      98.1     101.9     98.3    100.9    141.5    104.0
 
       ANNUAL    102.6    109.3     106.6    104.1      98.5     101.4     99.6    100.9    133.4    103.4
 
 1995       I    102.2    111.4     109.0    105.6      98.2     103.4    100.0    102.5    130.9    104.7
           II    102.9    112.1     108.9    106.8      98.4     103.8    100.9    103.0    130.1    105.1
          III    104.2    114.0     109.4    107.8      98.9     103.5     99.7    102.5    142.1    105.5
           IV    104.8    115.2     109.9    108.9      99.3     103.9    100.0    102.8    140.4    105.7
 
       ANNUAL    103.6    113.2     109.3    107.3      98.8     103.6    100.1    102.7    136.0    105.2
 
 1996       I    105.1    115.8     110.2    109.6      99.1     104.3     99.3    102.9    145.1    106.1
           II    105.6    117.6     111.4    110.6      99.1     104.7     98.9    103.2    147.6    106.6
 ----------------------------------------------------------------------------------------------------------
                            Percent change from previous quarter at annual rate(5)
 
 1994       I      0.8      5.0       4.2      3.5       1.4       2.6     12.0      5.1    -22.4      2.2
           II     -0.5      5.7       6.2      0.0      -2.5       0.5    -12.8     -3.3     55.2      1.2
          III     -0.3      2.8       3.2      1.4      -2.3       1.7      2.4      1.9      5.9      2.3
           IV      1.7      6.7       5.0      2.9       0.6       1.2     -3.7     -0.1     15.6      1.4
 
       ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7
 
 1995       I     -2.7     -0.2       2.5      3.2       0.3       6.0      7.0      6.3    -26.8      2.4
           II      2.8      2.4      -0.3      4.3       0.9       1.5      3.7      2.1     -2.4      1.6
          III      5.2      7.2       1.9      4.1       2.0      -1.1     -4.7     -2.1     42.2      1.6
           IV      2.5      4.3       1.8      4.0       1.6       1.5      1.0      1.4     -4.8      0.7
 
       ANNUAL      0.9      3.5       2.5      3.1       0.3       2.2      0.6      1.8      1.9      1.8
 
 1996       I      1.1      2.2       1.0      2.6      -0.6       1.5     -2.6      0.4     14.3      1.7
           II      1.7      6.1       4.4      3.6      -0.2       1.9     -1.6      0.9      6.9      1.6
 ----------------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
 1994       I      2.5      6.1       3.5      2.2      -0.3      -0.3      1.5      0.2     17.1      1.5
           II      1.6      5.8       4.2      1.8      -0.6       0.2     -1.3     -0.2     20.6      1.6
          III      1.0      5.2       4.2      1.6      -1.2       0.7     -0.6      0.3     18.1      1.9
           IV      0.4      5.1       4.6      1.9      -0.7       1.5     -0.9      0.9     10.2      1.8
 
       ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7
 
 1995       I     -0.5      3.7       4.2      1.9      -1.0       2.4     -2.1      1.1      8.6      1.8
           II      0.3      2.9       2.6      2.9      -0.1       2.6      2.3      2.5     -3.3      1.9
          III      1.7      4.0       2.2      3.6       0.9       1.9      0.5      1.5      4.1      1.8
           IV      1.9      3.4       1.4      3.9       1.2       1.9      1.7      1.9     -0.8      1.6
 
       ANNUAL      0.9      3.5       2.5      3.1       0.3       2.2      0.6      1.8      1.9      1.8
 
 1996       I      2.9      4.0       1.1      3.7       0.9       0.8     -0.7      0.4     10.9      1.4
           II      2.6      4.9       2.3      3.6       0.7       0.9     -2.0      0.1     13.4      1.4
 ----------------------------------------------------------------------------------------------------------
 See footnotes following Table 6.                                        September 10, 1996
 r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
SOURCES:  Output data are from the Bureau of Economic Analysis and the Census Bureau of the U.S. Department
of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor; and the Federal Reserve Board.
Compensation and hours data are from the Bureau of Labor Statistics  and the Bureau of Economic Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more complete information becomes
available.  The measures are first published 30 days after the close of the reference period; revisions appear 30 days
later, and second revisions after an additional 60 days.
 
 
 
Footnotes, Tables 1-6
 
(1)  Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans.
Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of
wages, salaries, and supplemental payments for the self-employed.
 
(2)  Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers.
 
(3)  Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and
indirect taxes.
 
(4)  Current dollar output divided by the output index.
 
(5)  Quarterly changes:  Percent change compounded at annual rate from the original data rather than index
numbers.  Annual changes:  Percent change between annual average levels.
 
(6)  Unit nonlabor 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 unit labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital consumption adjustments.