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,
15
16


 
 
 
 
 
Historical, technical                         USDL 94-64
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Current data:                                 (202) 606-7828MATERIAL IS EMBARGOED
Media contact:                                (202) 606-5902 UNTIL 10:00 A.M. EST
                                              TUESDAY, FEBRUARY 8, 1994
 
 
 
 
                                PRODUCTIVITY AND COSTS
                         Preliminary Fourth-Quarter Measures
                              and Annual Averages, 1993
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
preliminary fourth-quarter seasonally-adjusted annual rates of productivity
changejas measured by output per hour of all personsjand annual changes for the
full year 1993.  In the fourth quarter, productivity increased in business, nonfarm
business, and manufacturing with the strongest gains recorded in durable goods
manufacturing (table A).  Unit labor costs declined in all sectors except
nondurable manufacturing in the fourth quarter, partly reflecting the strong gains
in productivity.  Fourth-quarter and annual 1993 measures are summarized in tables
A and B and appear in detail in tables 1 through 5.  The changes in business and
nonfarm business productivity were:
 
                                  Fourth  Annual averages
                                 quarter     1992-1993
 
     Business sector............    4.8          1.7
     Nonfarm business sector....    4.2          1.6
 
 
     On an annual basis, productivity in business and nonfarm business rose
moderately in 1993.  The pace of output growth picked up, increasing more rapidly
in 1993 than in 1992 in both sectors, and hours of labor input increased for the
first time since 1990 (table B).
 
     Growth in manufacturing productivity in 1993 reflected faster output growth
than during 1992.  A slight decline in hours of labor input extended the downward
trend which began in 1990.  The changes in manufacturing were:
                                  Fourth  Annual averages
                                 quarter     1992-1993
 
     Manufacturing..............    7.8          5.3
      Durable goods manufacturing               12.6    8.2
      Nondurable goods manufacturing             0.9    1.3
 
 
     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.  Output measures for manufacturing reflect independent
indexes of industrial production prepared by the Board of Governors of the Federal
Reserve System.  See Technical Notes (page 7) for further information on data
sources.
                                          2
 
 
 Table A.  Productivity and costs:  Preliminary fourth-quarter 1993 measures
 (Seasonally adjusted annual rates)
 
                                                Real
                                         Hourly hourly Unit
                    Produc               compen-compen-labor
     Sector         tivity Output Hours  sation sation costs
 
                      Percent change from preceding quarter
 
   Business          4.8     7.1   2.2    2.9    0.0   -1.8
   Nonfarm business  4.2     6.6   2.3    2.9    0.0   -1.2
   Manufacturing     7.8     9.2   1.2    3.0    0.1   -4.5
    Durable         12.6    14.5   1.7    3.3    0.4   -8.2
    Nondurable       0.9     1.5   0.6    2.4   -0.4    1.5
 
                      Percent change from same quarter a year ago
 
   Business          1.6     3.6   2.0    3.1    0.4    1.5
   Nonfarm business  1.5     3.8   2.3    2.8    0.1    1.3
   Manufacturing     5.5     5.4  -0.1    2.2   -0.5   -3.1
    Durable          8.4     8.3  -0.1    1.7   -1.0   -6.2
    Nondurable       1.2     1.2   0.0    2.9    0.2    1.7
 
 
 
                       THIRD-TO-FOURTH QUARTER CHANGES, 1993
Business
 
     Productivity increased at a 4.8 percent annual rate during the fourth quarter
of 1993 in the business sector, as output growth accelerated to a 7.1 percent
annual rate and hours of all persons engaged in the sector showed a 2.2 percent
increase (seasonally adjusted).  During the third quarter, business productivity
had increased 3.3 percent; output grew 3.2 percent and hours fell 0.1 percent
(table 1).  The increase in productivity in the fourth quarter was the greatest
gain since the first quarter of 1986, when a 6.1 percent increase occurred.  The
fourth-quarter 7.1 percent increase in output was the largest since the second
quarter of 1987 when a like increase occurred, and the rise in hours followed a
small decline during the third quarter.
 
     Hourly compensation increased at a 2.9 percent annual rate during the fourth
quarter of 1993, compared with a 3.9 percent increase during the third quarter.
This measure includes wages and salaries, supplements, employer contributions to
employee-benefit plans, and taxes.  Unit labor costs, which reflect changes in
hourly compensation and productivity, decreased at a 1.8 percent annual rate during
the fourth quarter, compared with a 0.5 percent increase one quarter earlier.  The
decline in unit labor costs partly reflects the faster gains in productivity in the
fourth quarter.  It was the first decrease in this series since the first quarter
of 1988.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), was unchanged for persons in the
business sector, compared with a 2.6 percent gain in the third quarter.
 
     The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased 1.3 percent in the fourth
                                          3
quarter.  During the third quarter, prices of the goods and services which comprise
business output had increased at a 1.1 percent annual rate.
 
 
Nonfarm business
 
     In the nonfarm business sector, productivity gained 4.2 percent in the fourth
quarter.  Output rose 6.6 percent (the largest gain since a 7.2 percent gain in the
second quarter of 1987), and hours of all personsjemployees, proprietors, and
unpaid family workersjrose 2.3 percent.  The change in hours resulted from a 1.5
percent increase in employment and a 0.8 percent increase in the average work week.
During the third quarter, nonfarm productivity had increased 4.0 percent as output
grew 4.1 percent and hours edged up 0.1 percent (table 2).
 
     Hourly compensation rose 2.9 percent in the fourth quarter, but real
compensation was unchanged when the increase in the CPI-U was taken into account.
During the third quarter, hourly compensation had increased by 3.7 percent, and
real hourly compensation by 2.4 percent.  Unit labor costs fell 1.2 percent in the
fourth quarter, compared with a 0.4 percent decrease during the third quarter.
 
     The implicit price deflator for nonfarm business output rose 1.0 percent in
the fourth quarter, about the same as the 1.1 percent increase one quarter earlier.
 
Manufacturing
 
     Manufacturing productivity rose at a 7.8 percent seasonally adjusted annual
rate in the fourth quarter of 1993, compared with a 3.1 percent increase in the
third quarter.  Output rose a robust 9.2 percent in the fourth quarter, and hours
of all persons increased 1.2 percent.  The increases in productivity and output
were the largest since the second quarter of 1987, when productivity rose 10.7
percent and output increased 10.6 percent.  The fourth-quarter 1993 increase in
hours followed declines in the second and third quarters (table 3).  Both durable
and nondurable goods industries experienced productivity increases in the fourth
quarter, but the increases in durable manufacturing productivity and output were
substantially greater (tables 4 and 5).
 
     Hourly compensation of all manufacturing workers increased 3.0 percent during
the fourth quarter, but edged up a scant 0.1 percent when the increase in consumer
prices was taken into account.  Unit labor costs fell at a 4.5 percent annual rate
in the fourth quarter of 1993, compared with a 0.3 percent increase during the
third quarter.
 
 
                         ANNUAL AVERAGE CHANGES, 1992-1993
 
Business
 
     Business productivity increased 1.7 percent when the annual average for 1993
is compared with the annual average for 1992 (table B).  In 1992, productivity grew
3.3 percent.  Output grew 3.5 percent in 1993, and hours of all persons engaged in
the sector increased 1.8 percent (table B).
 
     Hourly compensation increased 3.8 percent in 1993, compared with a 5.0 percent
increase during 1992.  Real hourly compensation increased 0.8 percent in 1993,
compared with a 2.0 percent rise in 1992.
 
 
                                          4
 
     Unit labor costs increased 2.1 percent during 1993, compared with a 1.7
percent increase a year earlier.  These costs grew more in 1993 than in 1992,
despite the lower increases in hourly compensation, because productivity grew less.
 
 Table B.  Annual changes in productivity and related measures, 1984-1993
 
   Measure        1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
 
 Business:
  Productivity...  2.4  1.4  2.1  1.0  1.0 -0.7  0.7  1.0  3.3  1.7
  Output.........  8.2  3.6  2.8  4.1  4.3  1.7  0.7 -1.3  2.9  3.5
  Hours..........  5.6  2.1  0.6  3.0  3.3  2.5  0.1 -2.3 -0.4  1.8
  Hourly comp....  4.3  4.5  5.0  3.6  4.4  3.5  5.7  4.9  5.0  3.8
  Real hourly comp.0.0  0.9  3.1 -0.1  0.2 -1.3  0.3  0.6  2.0  0.8
  Unit labor costs 1.9  3.0  2.8  2.5  3.4  4.3  5.0  3.8  1.7  2.1
 
 Nonfarm Business:
  Productivity...  2.2  0.8  2.0  0.8  0.9 -0.9  0.4  1.1  3.1  1.6
  Output.........  8.2  3.4  2.8  4.1  4.4  1.7  0.6 -1.3  2.7  3.7
  Hours..........  5.9  2.5  0.8  3.2  3.5  2.6  0.2 -2.4 -0.4  2.1
  Hourly comp....  4.1  4.1  5.0  3.5  4.2  3.3  5.5  5.0  5.1  3.6
  Real hourly cmp.-0.2  0.6  3.1 -0.2  0.1 -1.4  0.1  0.8  2.0  0.6
  Unit labor costs 1.9  3.3  2.9  2.6  3.2  4.3  5.1  3.9  2.0  1.9
 
 Manufacturing:
  Productivity...  1.3  3.2  2.6  6.5  2.2  0.6  1.8  1.9  4.3  5.3
  Output.........  7.8  2.4  1.1  7.2  5.2  0.9 -0.4 -2.2  3.2  4.9
  Hours..........  6.5 -0.7 -1.5  0.7  2.9  0.3 -2.2 -4.1 -1.1 -0.3
  Hourly comp....  3.2  5.0  4.1  2.3  3.9  3.9  5.3  5.4  4.4  2.8
  Real hourly cmp.-1.1  1.4  2.2 -1.3 -0.2 -0.9 -0.1  1.1  1.3 -0.2
  Unit labor costs 1.9  1.8  1.4 -4.0  1.6  3.3  3.5  3.4  0.1 -2.4
 
 
 
Nonfarm business
 
     Productivity increased 1.6 percent in the nonfarm business sector during 1993,
as output rose 3.7 percent and hours of all persons increased 2.1 percent.  The
increase in labor input in 1993 was the first annual gain in the series since 1990.
In 1992, productivity had risen 3.1 percent, as output rose 2.7 percent and hours
fell 0.4 percent.  Hourly compensation rose 3.6 percent in 1993, compared with a
5.1 percent increase in 1992.  Real hourly compensation increased 0.6 percent, down
from the 2.0 percent rise in 1992.
 
     Unit labor costs in the nonfarm business sector grew about as rapidly in 1993
as in 1992.  The similar growth rates, 2.0 percent in 1992 and 1.9 percent in 1993,
reflected a slowing of both productivity growth and hourly compensation gains from
1992 to 1993.
 
 
Manufacturing
 
     Manufacturing productivity grew 5.3 percent in 1993, as output rose 4.9 per-
cent and hours of all persons declined 0.3 percent.  During 1992, productivity rose
 
 
                                          5
4.3 percent; output rose 3.2 percent, and hours decreased 1.1 percent.  The
increase in manufacturing productivity in 1993 was the largest since 1987, the
output gain the largest since 1988, and the drop in hours the smallest of four
consecutive declines.
 
 
 
     Hourly compensation of manufacturing workers increased 2.8 percent during
1993, but was down 0.2 percent when the increase in consumer prices was taken into
account.  Unit labor costs fell 2.4 percent in 1993, the first such decline since
1987, reflecting both faster productivity growth and a smaller gain in compensation
per hour than in 1992.
 
     Both durable and nondurable goods industries experienced productivity
increases in 1993, but the very large gain among durable goods producers reflected
strong output growth and a decrease in hours.  In nondurable goods industries,
output and hours growth was comparatively modest in 1993 (tables 4 and 5).
 
 
Revised measures: Nonfinancial Corporations
 
     Productivity and cost measures for the third quarter for nonfinancial
corporations, which were revised to incorporate the most recent information, were
somewhat different from the preliminary results announced on December 8, 1993.
Productivity grew at an annual rate of 3.7 percent compared with the previously-
announced growth rate of 3.5 percent (table C).
 
 
 
 Table C.  Nonfinancial corporations: Previous and revised productivity and
 related measures
 Quarterly percent change at seasonally adjusted annual rate
 
                                        Real
                                Hourly  hourly Unit              Implicit
          Produc-               compen- compen-labor   Unit      price
 Period   tivity Output  Hours  sation  sation costs   profits   deflator
 
 Third quarter 1993:
  Previous 3.5   4.2     0.8    3.3     2.1   -0.1    -1.7    0.0
  Current  3.7   4.5     0.7    3.3     2.0   -0.4    -0.3   -0.1
 
 
 
                                 Next release date
 
     The next issue of Productivity and Costs is scheduled for release at 10:00 AM
EST, Tuesday, March 8, 1994, and will contain revised fourth-quarter and annual
measures for business, nonfarm business, and manufacturing.
 
 
                                          6
 
 
 
 
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                                          7
                                  TECHNICAL NOTES
 
 
Labor Input: The primary source of hours  paper and  allied products, printing and
and employment  data is  the BLS Current  publishing,   chemicals   and   chemical
Employment  Statistics   (CES)  program,  products, petroleum refining and related
which provides  monthly survey  data  on  industries, rubber and plastic products,
total  employment   and  average  weekly  leather    and     leather     products.
hours of  production and  nonsupervisory  Manufacturing  accounted  for  about  19
workers   in    nonagricultural   estab-  percent  of  GDP  in  1992.    Quarterly
lishments. Jobs  rather than persons are  manufacturing output  measures are based
counted. Weekly  hours are  adjusted  to  on the  index of  industrial  production
the hours  at work  definition using the  prepared  monthly   by  the   Board   of
BLS Hours  at Work survey, conducted for  Governors of  the Federal Reserve System
this purpose.                             adjusted by  BLS to annual manufacturing
     Data   from    the   BLS    Current  output     levels     (gross     product
Population Survey  (CPS)  are  used  for  originating) from  the  National  Income
farm labor;  in the  nonfarm sector, the  and Product  Accounts  prepared  by  the
National  Income  and  Product  Accounts  Bureau of  Economic Analysis of the U.S.
(NIPA) prepared  by the  Bureau of  Eco-  Department of Commerce.
nomic Analysis of the Department of Com-       Nonfinancial  corporate  output  is
merce and  the CPS  are used  to measure  equal to  GDP in  constant 1987 dollars,
labor input  for government enterprises,  less    the    output    of    nonprofit
proprietors and unpaid family workers.    institutions, output  of paid  employees
                                          of private  households, rental  value of
Output:  Business  output  is  equal  to  owner-occupied dwellings, unincorporated
gross domestic product (GDP) in constant  business,  the  output  of  corporations
1987 dollars,  less general  government,  engaged in  banking, finance,  stock and
output of nonprofit institutions, output  commodity  trading,   and   credit   and
of paid employees of private households,  insurance agencies,  and the statistical
rental    value     of    owner-occupied  discrepancy  in   computing  the   NIPA.
dwellings,    and     the    statistical  Nonfinancial corporations  accounted for
discrepancy in  computing the NIPA. Cor-  about 56 percent of GDP in 1992.
responding exclusions  are also  made in
labor inputs.  Business output was about  Productivity:  These  productivity  mea-
78  percent  of  GDP  in  1992.  Nonfarm  sures describe  the relationship between
business, which  also excludes  farming,  real output  and the labor time involved
was about 77 percent of GDP in 1992.      in its production. They show the changes
     Total  manufacturing  measures  are  from period  to period  in the amount of
computed by  summing series prepared for  goods and  services produced  per  hour.
the   durable   and   nondurable   goods  Although these measures relate output to
sectors. Durables  include the following  hours at  work of all persons engaged in
2-digit SIC  industries:  Primary  metal  a  sector,   they  do  not  measure  the
industries; fabricated  metal  products;  specific contribution of labor, capital,
nonelectrical machinery;  industrial and  or  any   other  factor  of  production.
commercial   machinery    and   computer  Rather, they  reflect the  joint effects
equipment;    electronic    and    other  of many influences, including changes in
electrical   equipment;   transportation  technology; capital investment; level of
equipment;   instruments;   lumber   and  output; utilization of capacity, energy,
lumber products; furniture and fixtures;  and  materials;   the  organization   of
stone,  clay,  and  glass  and  concrete  production; managerial  skill;  and  the
products;   and    miscellaneous    man-  characteristics and  effort of  the work
ufactures. Nondurables include: Food and  force.
kindred  products,   tobacco   products,
textile mill  products apparel products,
 
                                          8
 
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made   available   to   sensory-impaired  TDD message  referral phone  number:  1-
individuals upon  request. Voice  phone:  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     114.1      133.3     116.8     152.2       105.8     133.4       148.5       138.3
                II     114.8      134.5     117.1     153.7       106.0     133.9       149.9       139.1
               III     116.0      136.0     117.2     156.1       106.9     134.5       147.3       138.7
                IV     117.1      137.9     117.7     157.8       107.3     134.8       152.6       140.6
 
            ANNUAL     115.5      135.4     117.3     154.9       106.5     134.1       149.6       139.2
 
      1993       I     116.6      138.0     118.3     159.1       107.1     136.4       152.1       141.6
                II     116.6      139.3     119.5     160.1       107.0     137.3       153.1       142.5
               III     117.6     r140.4     119.4     161.6       107.7     137.4      r153.9      r142.8
                IV     119.0      142.8     120.1     162.8       107.7     136.8       156.5       143.3
 
            ANNUAL     117.4      140.1     119.4     160.8       107.4     137.0       153.9       142.5
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       4.7        2.9      -1.8       5.7         2.3       0.9         7.8         3.3
                II       2.5        3.4       1.0       4.1         0.9       1.6         3.9         2.4
               III       4.2        4.6       0.4       6.2         3.4       1.9        -6.7        -1.2
                IV       3.8        5.6       1.8       4.6         1.4       0.7        15.2         5.6
 
            ANNUAL       3.3        2.9      -0.4       5.0         2.0       1.7         3.4         2.3
 
      1993       I      -1.6        0.5       2.1       3.3        -0.5       5.0        -1.4         2.7
                II       0.0        3.8       3.8       2.5        -0.4       2.5         2.6         2.6
               III      r3.3       r3.2      -0.1       3.9        r2.6      r0.5        r2.1        r1.1
                IV       4.8        7.1       2.2       2.9         0.0      -1.8         7.1         1.3
 
            ANNUAL       1.7        3.5       1.8       3.8         0.8       2.1         2.9         2.4
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.9        1.8      -1.1       5.0         2.1       2.1         3.6         2.6
                II       2.9        2.3      -0.6       4.8         1.7       1.9         3.4         2.4
               III       3.8        3.4      -0.4       5.3         2.1       1.4         1.7         1.5
                IV       3.8        4.1       0.3       5.1         2.0       1.3         4.7         2.5
 
            ANNUAL       3.3        2.9      -0.4       5.0         2.0       1.7         3.4         2.3
 
      1993       I       2.2        3.5       1.3       4.5         1.3       2.3         2.4         2.3
                II       1.6        3.6       2.0       4.1         1.0       2.5         2.1         2.4
               III      r1.3       r3.2       1.9       3.6         0.8      r2.2        r4.5         3.0
                IV       1.6        3.6       2.0       3.1         0.4       1.5         2.6         1.9
 
            ANNUAL       1.7        3.5       1.8       3.8         0.8       2.1         2.9         2.4
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      February 8, 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     112.4      133.3     118.7     150.9       104.8     134.3       149.8       139.3
                II     113.1      134.4     118.8     152.6       105.2     134.9       151.5       140.2
               III     114.1      135.9     119.0     154.8       106.0     135.6       148.7       139.8
                IV     115.3      137.9     119.6     156.6       106.4     135.8       154.4       141.8
 
            ANNUAL     113.7      135.4     119.1     153.7       105.7     135.1       151.1       140.3
 
      1993       I     114.8      138.1     120.3     157.7       106.2     137.4       153.8       142.7
                II     114.7      139.5     121.6     158.4       105.9     138.2       154.8       143.5
               III    r115.8     r140.9     121.7    r159.8      r106.5     138.0      r156.3      r143.9
                IV     117.0      143.1     122.3     161.0       106.6     137.6       158.2       144.2
 
            ANNUAL     115.5      140.4     121.5     159.2       106.3     137.8       155.8       143.6
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       3.8        2.1      -1.6       5.6         2.2       1.7         6.0         3.2
                II       2.8        3.3       0.5       4.7         1.5       1.8         4.5         2.7
               III       3.6        4.4       0.8       5.9         3.1       2.2        -7.2        -1.1
                IV       4.2        6.0       1.8       4.6         1.4       0.4        16.2         5.6
 
            ANNUAL       3.1        2.7      -0.4       5.1         2.0       2.0         3.3         2.4
 
      1993       I      -1.8        0.6       2.5       2.9        -0.9       4.8        -1.6         2.5
                II      -0.4        4.0       4.4       1.9        -1.0       2.3         2.8         2.4
               III      r4.0       r4.1       0.1       3.7        r2.4     r-0.4        r3.8        r1.1
                IV       4.2        6.6       2.3       2.9         0.0      -1.2         5.1         1.0
 
            ANNUAL       1.6        3.7       2.1       3.6         0.6       1.9         3.1         2.3
      ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.7        1.6      -1.0       5.0         2.1       2.3         3.4         2.7
                II       2.7        2.1      -0.6       4.9         1.8       2.2         3.7         2.7
               III       3.4        3.1      -0.3       5.3         2.1       1.8         1.6         1.7
                IV       3.6        3.9       0.3       5.2         2.1       1.5         4.5         2.6
 
            ANNUAL       3.1        2.7      -0.4       5.1         2.0       2.0         3.3         2.4
 
      1993       I       2.1        3.6       1.4       4.5         1.3       2.3         2.6         2.4
                II       1.3        3.8       2.4       3.8         0.6       2.4         2.2         2.3
               III       1.5       r3.7       2.2       3.3         0.5      r1.8        r5.1         2.9
                IV       1.5        3.8       2.3       2.8         0.1       1.3         2.5         1.7
 
            ANNUAL       1.6        3.7       2.1       3.6         0.6       1.9         3.1         2.3
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      February 8, 1994
      r=revised                                                             Source: Bureau of Labor Statistics
 
 
 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
      seasonally adjusted
                                                                                  Real
           Year           Output per                  Hours       Compensa-       compensa-      Unit
           and            hour of                     of all      tion per        tion per       labor
           quarter        all persons     Output      persons     hour(1)         hour(2)        costs
      --------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1992       I            127.5        129.8        101.8        145.4           101.0        114.1
                II            129.1        131.5        101.9        147.1           101.5        114.0
               III            130.2        131.9        101.3        148.7           101.9        114.2
                IV            132.4        134.1        101.2        150.8           102.5        113.9
 
            ANNUAL            129.9        131.8        101.5       r148.2           101.9        114.0
 
      1993       I            134.1        136.3        101.6        149.9           100.9        111.8
                II            136.0        137.4        101.0        151.7           101.4        111.5
               III            137.1       r138.2        100.9       r153.0           102.0        111.6
                IV            139.7        141.3        101.2        154.1           102.0        110.3
 
            ANNUAL            136.8        138.3        101.1        152.2           101.7        111.3
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              4.0          2.1         -1.8          1.2            -2.0         -2.7
                II              5.0          5.2          0.2          4.9             1.7         -0.2
               III              3.6          1.2         -2.4          4.2             1.5          0.6
                IV              7.0          6.8         -0.2          5.8             2.5         -1.2
 
            ANNUAL              4.3          3.2         -1.1          4.4             1.3          0.1
 
      1993       I              5.1          6.7          1.5         -2.3            -5.9         -7.0
                II              5.9          3.4         -2.4          4.9             1.9         -1.0
               III              3.1         r2.4         -0.6         r3.4             2.1         r0.3
                IV              7.8          9.2          1.2          3.0             0.1         -4.5
 
            ANNUAL              5.3          4.9         -0.3          2.8            -0.2         -2.4
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1992       I              3.9          2.7         -1.2          4.4             1.5          0.5
                II              4.2          3.8         -0.4          4.3             1.2          0.1
               III              3.8          2.4         -1.3          4.2             1.1          0.5
                IV              4.9          3.8         -1.1          4.0             0.9         -0.9
 
            ANNUAL              4.3          3.2         -1.1          4.4             1.3          0.1
 
      1993       I              5.2          4.9         -0.2          3.1            -0.1         -2.0
                II              5.4          4.5         -0.9          3.1             0.0         -2.2
               III              5.3          4.8         -0.4          2.9             0.1         -2.3
                IV              5.5          5.4         -0.1          2.2            -0.5         -3.1
 
            ANNUAL              5.3          4.9         -0.3          2.8            -0.2         -2.4
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                February 8, 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            137.9        137.2         99.5        143.0            99.4        103.7
                II            140.9        139.6         99.1        144.9            99.9        102.8
               III            142.7        140.3         98.3        146.4           100.3        102.6
                IV            146.3        143.7         98.2        149.2           101.4        102.0
 
            ANNUAL            142.1        140.2         98.7        146.0           100.4        102.8
 
      1993       I            149.3        147.2         98.6        147.8            99.5         99.0
                II            152.3        148.8         97.7        149.5            99.9         98.1
               III           r153.9       r150.4         97.7        150.6           100.4        r97.8
                IV            158.6        155.6         98.1        151.8           100.5         95.7
 
            ANNUAL            153.7        150.5         98.0        150.0           100.2         97.6
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              4.1          2.4         -1.6         -1.0            -4.2         -4.8
                II              9.1          7.4         -1.5          5.4             2.3         -3.3
               III              5.1          2.0         -3.0          4.2             1.5         -0.8
                IV             10.3          9.8         -0.5          7.9             4.6         -2.2
 
            ANNUAL              6.6          4.4         -2.0          4.4             1.4         -2.0
 
      1993       I              8.7         10.4          1.5         -3.8            -7.3        -11.5
                II              8.2          4.4         -3.5          4.6             1.6         -3.4
               III             r4.3         r4.2        r-0.1          3.0             1.8        r-1.3
                IV             12.6         14.5          1.7          3.3             0.4         -8.2
 
            ANNUAL              8.2          7.4         -0.7          2.7            -0.2         -5.0
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1992       I              5.7          3.6         -2.0          4.3             1.4         -1.3
                II              6.9          5.1         -1.7          4.5             1.3         -2.3
               III              6.1          3.6         -2.3          4.3             1.1         -1.7
                IV              7.1          5.4         -1.6          4.1             1.0         -2.8
 
            ANNUAL              6.6          4.4         -2.0          4.4             1.4         -2.0
 
      1993       I              8.3          7.3         -0.9          3.3             0.1         -4.6
                II              8.1          6.6         -1.4          3.1             0.0         -4.6
               III             r7.9         r7.2        r-0.6          2.8             0.1        r-4.7
                IV              8.4          8.3         -0.1          1.7            -1.0         -6.2
 
            ANNUAL              8.2          7.4         -0.7          2.7            -0.2         -5.0
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                February 8, 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            114.8        120.9        105.2        150.2           104.4        130.8
                II            114.8        121.5        105.9        151.9           104.7        132.3
               III            115.2        121.5        105.5        153.5           105.1        133.2
                IV            115.9        122.4        105.5        154.5           105.0        133.3
 
            ANNUAL            115.3        121.6        105.4        152.7           105.0        132.4
 
      1993       I            115.9        122.8        106.0        154.5           104.1        133.3
                II            116.7        123.4        105.7        156.6           104.7        134.2
               III           r117.1       r123.4        105.4        158.1           105.4       r135.0
                IV            117.3        123.8        105.5        159.1           105.3        135.6
 
            ANNUAL            116.8        123.4        105.6        157.1           104.9        134.5
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              3.9          1.7         -2.2          4.7             1.3          0.7
                II             -0.2          2.3          2.5          4.4             1.2          4.6
               III              1.5          0.0         -1.5          4.4             1.6          2.8
                IV              2.5          2.7          0.2          2.7            -0.4          0.2
 
            ANNUAL              1.3          1.5          0.2          4.5             1.5          3.2
 
      1993       I             -0.1          1.5          1.6          0.0            -3.7          0.1
                II              2.9          2.0         -0.8          5.6             2.6          2.6
               III             r1.2        r-0.2        r-1.4         r3.8            r2.6         r2.6
                IV              0.9          1.5          0.6          2.4            -0.4          1.5
 
            ANNUAL              1.3          1.5          0.2          2.9            -0.1          1.6
      --------------------------------------------------------------------------------------------------
                         Percent change from corresponding quarter of previous year
 
      1992       I              1.5          1.5         -0.1          4.7             1.8          3.1
                II              0.6          2.0          1.4          4.4             1.3          3.8
               III              0.7          0.8          0.1          4.4             1.3          3.7
                IV              1.9          1.7         -0.3          4.0             0.9          2.1
 
            ANNUAL              1.3          1.5          0.2          4.5             1.5          3.2
 
      1993       I              0.9          1.6          0.7          2.9            -0.3          1.9
                II              1.7          1.6         -0.2          3.1             0.0          1.4
               III             r1.6         r1.5         -0.1          3.0             0.2         r1.4
                IV              1.2          1.2          0.0          2.9             0.2          1.7
 
            ANNUAL              1.3          1.5          0.2          2.9            -0.1          1.6
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                February 8, 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    117.3     137.9    117.6    147.9     102.8     126.1    121.1    124.7    164.1    127.1
                II    118.6     140.0    118.0    149.5     103.1     126.0    120.0    124.3    175.5    127.5
               III    120.3     141.9    117.9    151.6     103.8     126.0    121.3    124.7    172.4    127.6
                IV    121.7     144.3    118.6    153.0     104.0     125.8    118.3    123.7    195.3    128.1
 
            ANNUAL    119.4     141.0    118.1    150.4     103.4     126.0    120.2    124.3    177.0    127.6
 
      1993       I    120.4     143.3    119.0    153.9     103.6     127.8    119.6    125.4    182.8    129.0
                II    121.6     145.7    119.9    154.8     103.5     127.3    119.2    125.0    193.9    129.3
               III   r122.7     147.3    120.1   r156.0     104.0    r127.2   r119.4    125.0   r193.7   r129.2
      ----------------------------------------------------------------------------------------------------------
                                   Percent change from previous quarter at annual rate(5)
 
      1992       I      2.5       2.1     -0.3      3.9       0.6       1.5     -2.2      0.4     18.9      1.8
                II      4.8       6.4      1.6      4.5       1.4      -0.2     -3.6     -1.2     30.6      1.1
               III      5.8       5.4     -0.4      5.6       2.8      -0.2      4.6      1.1     -6.8      0.4
                IV      4.5       6.9      2.2      4.0       0.8      -0.5     -9.7     -3.1     64.6      1.5
 
            ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
      1993       I     -4.0      -2.7      1.3      2.2      -1.6       6.4      4.3      5.9    -23.1      2.8
                II      3.9       7.0      3.0      2.4      -0.5      -1.5     -1.3     -1.4     26.4      0.8
               III     r3.7      r4.5     r0.7      3.3      r2.0     r-0.4     r0.7    r-0.1    r-0.3    r-0.1
      ----------------------------------------------------------------------------------------------------------
                                Percent change from corresponding quarter of previous year
 
      1992       I      3.2       2.4     -0.8      4.5       1.6       1.3     -0.4      0.8      5.8      1.2
                II      4.0       4.1      0.1      4.5       1.4       0.6     -1.4      0.0     11.8      0.9
               III      4.8       4.8      0.1      4.8       1.7       0.1     -1.0     -0.2     14.6      0.9
                IV      4.4       5.2      0.8      4.5       1.4       0.1     -2.8     -0.7     24.2      1.2
 
            ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
      1993       I      2.7       3.9      1.2      4.1       0.8       1.3     -1.3      0.6     11.4      1.5
                II      2.5       4.1      1.5      3.5       0.4       1.0     -0.7      0.6     10.5      1.4
               III     r2.0       3.8      1.8      3.0       0.2       1.0    r-1.6     r0.2    r12.4      1.3
      ----------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                        February 8, 1994
      r=revised                                                               Source: Bureau of Labor Statistics
 
 
                                          15
 
 
 
         SOURCE:  Output data from the Bureau of Economic Analysis, U.S.
         Department of Commerce, and the Federal Reserve Board.
         Compensation and hours data from the Bureau of Labor Statistics,
         U.S. Department of Labor, and the Bureau of Economic Analysis.
 
         RELIABILITY:  Productivity and cost measures are regularly
         revised as more complete information becomes available.  The
         measures are first published 30 days after the close of the
         reference period; revisions appear 30 days later, and third
         revisions after an additional 60 days.  In the business sector,
         the probability is 0.95 that the third publication (third
         revision) of a quarterly index of output per hour of all persons
         will differ from the initial value by between -1.8 and +2.1 index
         points.  This interval is based on the performance of this
         measure between the second quarter of 1976 and the third quarter
         of 1992.
 
 
                               Footnotes, Tables 1-6
 
         (1)  Wages and salaries of employees plus employers'
              contributions for social insurance and private benefit
              plans.  Except for nonfinancial corporations, where there
              are no self-employed, data also include an estimate of
              wages, salaries, and supplemental payments for the self-
              employed.
 
         (2)  Compensation per hour adjusted for changes in the Consumer
              Price Index for All Urban Consumers.
 
         (3)  Unit nonlabor payments include profits, capital consumption
              allowances, interest, rental income of persons, and indirect
              taxes.
 
         (4)  Current dollar gross product divided by constant dollar
              gross product.
 
         (5)  Quarterly changes:  Percent change compounded at annual rate
              from the original data rather than index numbers.  Annual
              changes:  Percent change between annual average levels.
 
         (6)  Quarterly manufacturing output measures are based on the
              index of industrial production prepared monthly by the Board
              of Governors of the Federal Reserve adjusted by BLS to
              annual manufacturing output levels (gross product
              originating) from the National Income and Product Accounts
              prepared by the Bureau of Economic Analysis of the U.S.
              Department of Commerce.
 
         (7)  Unit nonlabor cost includes capital consumption allowances,
              interest, rental income of persons, and indirect taxes.  For
              nonfinancial corporations, rental income of persons is zero
              by definition.
 
 
                                          16
 
 
 
         (8)  Total unit cost is the sum of labor and nonlabor costs.
 
         (9)  Unit profits include corporate profits with inventory
              valuation and capital consumption adjustments.