TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
9
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
11
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
13
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
15
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
17
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
19
20
Footnotes, Tables 1-6


 
 
 
 
 
 
 
 
 
 
Historical, technical                       USDL 95-341
  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
                                            Thursday, September 7, 1995.
 
 
                            PRODUCTIVITY AND COSTS
                              Second Quarter 1995
 
 
     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 1995. The revised seasonally-adjusted annual
rates of productivity change in the second quarter were:
 
               4.7 percent in the business sector, and
               4.8 percent in the nonfarm business sector.
 
In both sectors, productivity rose from the first to the second quarter as
output grew while hours of all persons employed fell.
 
     In manufacturing, the revised productivity changes in the second quarter
were:
 
               2.6 percent in manufacturing,
               0.7 percent in durable goods manufacturing, and
               5.3 percent in nondurable goods manufacturing.
 
     The productivity advance in manufacturing reflected a decrease in output
combined with a larger decrease in the hours of all persons. Output and hours
in manufacturing, which includes about 20 percent of U.S. business-sector
employment, tend to vary more from quarter to quarter than in 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 8 are shown in table C.
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce. Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors
of the Federal Reserve System. See Technical Notes for further information on
data sources (page 6).
 
 
                                        2
 
  Table A.  Productivity and costs:  Revised second-quarter 1995 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           4.7     2.1    -2.4    3.7      0.3     -1.0
  Nonfarm business   4.8     2.3    -2.3    3.5      0.1     -1.2
  Manufacturing      2.6    -3.4    -5.9    0.4     -2.9     -2.1
    Durable          0.7    -3.7    -4.3   -2.6     -5.8     -3.3
    Nondurable       5.3    -3.1    -8.0    5.2      1.7     -0.2
 
                      Percent change from same quarter a year ago
 
  Business           3.6     4.7     1.1    3.6      0.5      0.0
  Nonfarm business   3.6     4.7     1.1    3.6      0.5      0.0
  Manufacturing      3.3     3.8     0.5    2.8     -0.3     -0.5
    Durable          3.4     5.0     1.6    2.2     -0.8     -1.1
    Nondurable       3.0     1.9    -1.1    3.6      0.5      0.5
 
 
Business
 
     From the first quarter to the second quarter of 1995, business sector
productivity increased at a 4.7 percent annual rate.  Business sector output
rose 2.1 percent, and hours of all persons engaged in the sector fell 2.4
percent, reflecting a 0.2 percent increase in employment and a 2.7 percent drop
in average weekly hours at work.  During the first quarter of 1995,
productivity had risen 2.1 percent, as output and hours of all persons employed
rose 4.3 and 2.2 percent, respectively (table 1).
 
     Hourly compensation increased 3.7 percent during the second quarter of
1995, about the same as the 3.8 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 0.3 percent annual rate in the second quarter; it had risen 0.7 percent in
the first quarter of 1995.
 
     Unit labor costs, which reflect changes in hourly compensation and
productivity, fell at a 1.0 percent annual rate during the second quarter and
have fallen in three of the last four quarters.  The implicit price deflator
for the business sector, which incorporates changes in both unit labor costs
and unit nonlabor payments, increased 1.2 percent in the second quarter and 1.4
percent during the first quarter of 1995.
 
 
                                        3
 
Nonfarm business
 
     Productivity rose 4.8 percent in the nonfarm business sector during the
second quarter of 1995, the largest increase since a 7.0 percent increase was
posted in the first quarter of 1986.  Output increased at a 2.3 percent rate in
the second quarter, and hours of all persons fell 2.3 percent.   This drop in
hours of all persons reflected a 0.3 percent increase in employment and a 2.6
percent decline in average weekly hours.  During the first quarter of 1995,
productivity had increased 2.5 percent in the nonfarm business sector,
reflecting gains of 4.5 percent in output and 2.0 percent in hours (table 2).
 
     Hourly compensation increased at a 3.5 percent annual rate in the second
quarter, compared with a 4.1 percent increase one quarter earlier. When the
rise in the CPI-U is taken into account, real hourly compensation rose 0.1
percent in the second quarter.
 
     Unit labor costs fell 1.2 percent, compared with a 1.6 percent rise during
the first quarter of 1995.  The implicit price deflator for nonfarm business
output rose 1.1 percent in the second quarter and 1.3 percent one quarter
earlier.
 
 
Manufacturing
 
     Productivity increased at a 2.6 percent seasonally adjusted annual rate in
manufacturing in the second quarter of 1995, as output fell 3.4 percent and
hours of all persons decreased 5.9 percent (seasonally adjusted annual rates).
Productivity grew strongly in the nondurable goods industries, 5.3 percent,
while posting a smaller gain among durable goods producers, 0.7 percent.  In
both the durable and nondurable goods subsectors, productivity increases
occurred because the hours of persons engaged in the sector fell more than
output (tables 4 and 5).
 
     Hourly compensation of all manufacturing workers increased 0.4 percent
during the second quarter, compared with a 4.7 percent gain during the January-
March period.  In durable goods industries, hourly compensation fell 2.6
percent; a 5.2 percent increase occurred in nondurable goods industries.  Real
hourly compensation in the manufacturing sector fell 2.9 percent in the second
quarter when the increase in consumer prices is taken into account. During the
first quarter, real hourly compensation had gone up 1.6 percent (seasonally
adjusted annual rates).
 
     Unit labor costs fell at a 2.1 percent annual rate in the second quarter
of 1995, the seventh decline in the last 10 quarters. Unit labor costs fell 3.3
percent in durable goods industries but only 0.2 percent in nondurable goods
industries.
 
 
                                        4
 
 Table B.  Nonfinancial corporations: Preliminary second-quarter productivity
 and cost measures
 (Seasonally adjusted annual rates)
                                        Real
                                Hourly  hourly  Unit           Implicit
          Produc-               compen- compen- labor  Unit    price
 Period   tivity Output  Hours  sation  sation  costs  profits deflator
 
                          Percent change from preceding quarter
 
 1995 II  5.4    3.5    -1.8    3.3    -0.1    -2.0     6.6     -0.1
 
                          Percent change from same quarter a year ago
 
 1995 II  3.0    5.1     2.0    3.2     0.1     0.2    -0.4      0.4
 
 
 
Nonfinancial corporations
 
     Preliminary second-quarter 1995 measures of productivity and costs also
were announced today for nonfinancial corporations (tables B and 6).
Productivity increased 5.4 percent in the second quarter, as output rose 3.5
percent and hours decreased 1.8 percent (seasonally adjusted annual rates). The
productivity increase was the largest since a 5.4 percent increase also was
posted in the first quarter of 1986.  A 0.9 percent employment increase,
combined with a 2.6 percent decline in average weekly hours, caused
nonfinancial corporate hours to drop for the first time since the first quarter
of 1992 (when they declined 0.2 percent). In the first quarter of 1995,
productivity had increased 1.7 percent in nonfinancial corporations, as output
increased 4.4 percent and employee hours rose 2.7 percent. Nonfinancial
corporations include all corporations doing business in the United States,
except banks, stock and commodity brokers, and finance and insurance agencies.
 
     Hourly compensation rose 3.3 percent in the second quarter; it had risen
3.4 percent in the first quarter of 1995.  When the rise in the CPI-U is taken
into account, real hourly compensation in the second quarter declined 0.1
percent after increasing 0.4 percent in the previous quarter (table 6).
 
     Unit labor costs for nonfinancial corporations fell 2.0 percent in the
second quarter, compared with a 1.8 percent rise in the first quarter of 1995.
Unit nonlabor costs rose 2.1  percent, and unit profits rose 6.6 percent.
During the first quarter, unit nonlabor costs had increased 0.5 percent while
unit profits fell 10.4 percent (annual rates). The implicit price deflator for
nonfinancial corporate output fell 0.1 percent in the second quarter and rose
0.1 percent in the first quarter.
 
 
                                        5
 
  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 1995
  Business:
   Previous...   3.0     0.4    -2.5      3.8      0.4     0.8
   Current....   4.7     2.1    -2.4      3.7      0.3    -1.0
 
  Nonfarm business:
   Previous...   3.0     0.6    -2.4      3.6      0.2     0.6
   Current....   4.8     2.3    -2.3      3.5      0.1    -1.2
 
  Manufacturing:
   Previous...   2.1    -3.8    -5.8      0.3     -2.9    -1.8
   Current....   2.6    -3.4    -5.9      0.4     -2.9    -2.1
 
 
 
 
 
Revised Measures
 
     Current and previous measures for the second quarter of 1995 for the
business, nonfarm business, and manufacturing sectors are compared in table C.
The quarterly movements differ from those reported on August 8 based on
information then available. In the business and nonfarm business sectors, the
growth in output (which is based on information from the national income and
product accounts prepared by the U.S. Department of Commerce) and productivity
were revised upward. 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,
Tuesday, November 7, 1995. Revised second-quarter measures for nonfinancial
corporations and preliminary third-quarter measures for business, nonfarm
business, and manufacturing will be released at that time.
 
 
NOTE:   The BLS  plans  to  switch  to  annually-weighted  output  indexes  for
computations underlying  its regular  Productivity  and  Costs  news  releases,
beginning in  late 1995  or early  1996.   These output indexes are designed to
eliminate a  source of  bias in  aggregate measures  and to  reduce the size of
future  historical  revisions  to  these  measures.    A  statement  containing
information  about   these  changes  can  be  obtained  from  the  Division  of
Productivity Research (202-606-5606).
 
 
                                        6
 
                                TECHNICAL NOTES
 
Labor Input:  The  primary  source  of  durables  include:  Food  and  kindred
hours and  employment data  is the BLS  products,  tobacco  products,  textile
Current  Employment  Statistics  (CES)  mill products  apparel products, paper
program, which provides monthly survey  and  allied   products,  printing  and
data on  total employment  and average  publishing,  chemicals   and  chemical
weekly hours  of production  and  non-  products,   petroleum   refining   and
supervisory workers in nonagricultural  related industries, rubber and plastic
establishments.   Jobs   rather   than  products,    leather    and    leather
persons are  counted. Weekly hours are  products. Manufacturing  accounted for
adjusted  to   the   hours   at   work  about  19  percent  of  GDP  in  1992.
definition using the BLS Hours at Work  Quarterly     manufacturing     output
survey, conducted for this purpose.     measures are  based on  the  index  of
     Data   from   the   BLS   Current  industrial production prepared monthly
Population Survey  (CPS) are  used for  by  the  Board  of  Governors  of  the
farm labor; in the nonfarm sector, the  Federal Reserve System adjusted by BLS
National Income  and Product  Accounts  to annual  manufacturing output levels
(NIPA) prepared  by the Bureau of Eco-  (gross product  originating) from  the
nomic Analysis  of the  Department  of  National Income  and Product  Accounts
Commerce  and  the  CPS  are  used  to  prepared by  the  Bureau  of  Economic
measure  labor  input  for  government  Analysis of  the  U.S.  Department  of
enterprises,  proprietors  and  unpaid  Commerce.
family workers.                              Nonfinancial corporate  output is
                                        equal to GDP in constant 1987 dollars,
Output: Business  output is  equal  to  less   the    output   of    nonprofit
gross  domestic   product   (GDP)   in  institutions, output of paid employees
constant 1987  dollars,  less  general  of private households, rental value of
government,   output    of   nonprofit  owner-occupied              dwellings,
institutions, output of paid employees  unincorporated business, the output of
of private households, rental value of  corporations engaged  in banking,  fi-
owner-occupied dwellings, and the sta-  nance, stock  and  commodity  trading,
tistical discrepancy  in computing the  and credit and insurance agencies, and
NIPA.  Corresponding   exclusions  are  the   statistical    discrepancy    in
also made  in labor  inputs.  Business  computing   the   NIPA.   Nonfinancial
output was  about 78 percent of GDP in  corporations accounted  for  about  56
1992. Nonfarm business, which also ex-  percent of GDP in 1992.
cludes farming,  was about  77 percent
of GDP in 1992.                         Productivity: These  productivity mea-
     Total manufacturing  measures are  sures   describe    the   relationship
computed by  summing  series  prepared  between real output and the labor time
for the  durable and  nondurable goods  involved in  its production. They show
sectors.    Durables    include    the  the changes  from period  to period in
following  2-digit   SIC   industries:  the amount  of goods and services pro-
Primary metal  industries;  fabricated  duced   per   hour.   Although   these
metal     products;      nonelectrical  measures relate  output  to  hours  at
machinery; industrial  and  commercial  work  of  all  persons  engaged  in  a
machinery  and   computer   equipment;  sector,  they   do  not   measure  the
electronic   and    other   electrical  specific   contribution    of   labor,
equipment;  transportation  equipment;  capital,  or   any  other   factor  of
instruments; lumber  and lumber  prod-  production. Rather,  they reflect  the
ucts; furniture  and fixtures;  stone,  joint  effects   of  many  influences,
clay, and glass and concrete products;  including   changes   in   technology;
and miscellaneous  manufactures.  Non-  capital investment;  level of  output;
 
 
                                        7
 
utilization of  capacity, energy,  and       Information in  this release will
materials; the organization of produc-  be made  available to sensory-impaired
tion;  managerial   skill;   and   the  individuals upon request. Voice phone:
characteristics and effort of the work  202-606-STAT; TDD phone: 202-606-5897;
force.                                  TDD message  referral phone number: 1-
                                        800-326-2577.
 
 Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
           and prices, seasonally adjusted
                                                                      Real
              Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
              and        hour of                of all    tion per    tion per    labor    labor pay-  price
              quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
           ---------------------------------------------------------------------------------------------------------
                                                    Indexes 1982=100
 
           1993       I     116.2      138.1     118.9     158.7       107.0     136.6       149.5       140.8
                     II     116.3      139.6     120.0     159.9       107.0     137.5       149.6       141.4
                    III     117.0      140.9     120.5     160.6       107.0     137.3       150.5       141.6
                     IV     118.4      143.9     121.5     161.3       106.6     136.2       154.0       142.1
 
                 ANNUAL     117.0      140.6     120.2     160.1       106.9     136.9       150.9       141.5
 
           1994       I     118.9      145.8     122.6     163.3       107.4     137.3       153.4       142.6
                     II     118.5      147.2     124.2     163.6       106.9     138.1       155.6       143.8
                    III     119.5      148.8     124.6     164.9       106.8     138.0       157.8       144.5
                     IV     120.7      151.6     125.6     166.4       107.2     137.8       159.0       144.8
 
                 ANNUAL     119.4      148.4     124.2     164.5       107.1     137.8       156.4       143.9
 
           1995       I     121.3      153.2     126.3     167.9       107.3     138.4       159.3       145.3
                     II    r122.7     r154.0     125.5     169.5       107.4    r138.1      r161.3      r145.7
           ---------------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
           1993       I      -2.1        0.6       2.7       2.5        -0.6       4.6        -1.9         2.3
                     II       0.6        4.2       3.6       3.1         0.1       2.5         0.3         1.7
                    III       2.2        4.0       1.7       1.8         0.1      -0.4         2.4         0.6
                     IV       5.0        8.6       3.5       1.7        -1.5      -3.2         9.6         1.2
 
                 ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
           1994       I       1.8        5.5       3.6       5.1         2.9       3.2        -1.6         1.5
                     II      -1.4        3.7       5.2       0.9        -1.7       2.3         5.9         3.5
                    III       3.2        4.5       1.3       3.1        -0.4      -0.1         5.8         2.0
                     IV       4.3        7.8       3.3       3.6         1.3      -0.7         3.1         0.7
 
                 ANNUAL       2.1        5.5       3.4       2.8         0.2       0.7         3.6         1.7
 
           1995       I       2.1        4.3       2.2       3.8         0.7       1.7         0.9         1.4
                     II      r4.7       r2.1     r-2.4      r3.7        r0.3     r-1.0        r5.0        r1.2
 
 
                                                                       9
           ---------------------------------------------------------------------------------------------------------
                               Percent change from corresponding quarter of previous year
 
           1993       I       1.5        3.3       1.8       4.3         1.1       2.7         0.7         2.0
                     II       1.3        3.8       2.5       3.9         0.8       2.6         0.6         1.9
                    III       1.0        3.6       2.6       3.0         0.2       2.0         3.2         2.4
                     IV       1.4        4.3       2.9       2.3        -0.5       0.8         2.5         1.4
 
                 ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
           1994       I       2.4        5.6       3.1       2.9         0.4       0.5         2.6         1.2
                     II       1.9        5.4       3.5       2.3        -0.1       0.4         4.0         1.7
                    III       2.1        5.6       3.4       2.7        -0.2       0.5         4.8         2.0
                     IV       2.0        5.4       3.4       3.2         0.5       1.2         3.2         1.9
 
                 ANNUAL       2.1        5.5       3.4       2.8         0.2       0.7         3.6         1.7
 
           1995       I       2.0        5.1       3.0       2.8         0.0       0.8         3.9         1.9
                     II      r3.6       r4.7       1.1       3.6         0.5      r0.0        r3.7        r1.3
           ---------------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                      September 7, 1995
           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
 
           1993       I     114.3      138.3     120.9     157.2       105.9     137.4       151.5       142.0
                     II     114.5      139.9     122.2     158.1       105.8     138.1       151.8       142.5
                    III     115.3      141.5     122.8     158.7       105.7     137.7       153.6       142.8
                     IV     116.5      144.3     123.8     159.3       105.3     136.8       156.3       143.1
 
                 ANNUAL     115.2      141.0     122.4     158.3       105.7     137.5       153.4       142.6
 
           1994       I     117.0      146.1     124.9     161.2       106.0     137.8       155.5       143.5
                     II     116.6      147.3     126.3     161.8       105.7     138.8       158.3       145.1
                    III     117.3      148.8     126.8     162.9       105.5     138.8       160.9       145.9
                     IV     118.6      151.6     127.9     164.4       105.9     138.7       161.8       146.1
 
                 ANNUAL     117.4      148.5     126.5     162.6       105.9     138.5       159.2       145.2
 
           1995       I     119.3      153.3     128.5     166.1       106.2     139.2       162.1       146.6
                     II    r120.7     r154.2     127.7    r167.5       106.2    r138.8      r164.2      r147.0
           ---------------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
           1993       I      -2.2        1.0       3.2       1.9        -1.1       4.1        -1.4         2.2
                     II       0.4        4.7       4.2       2.4        -0.6       2.0         0.8         1.6
                    III       2.9        4.9       1.9       1.5        -0.2      -1.3         4.7         0.7
                     IV       4.2        7.9       3.5       1.6        -1.6      -2.5         7.3         0.8
 
                 ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
           1994       I       1.7        5.2       3.4       4.9         2.7       3.1        -2.1         1.2
                     II      -1.4        3.2       4.7       1.4        -1.2       2.8         7.6         4.5
                    III       2.7        4.3       1.6       2.7        -0.8       0.0         6.7         2.3
                     IV       4.3        7.7       3.3       3.8         1.5      -0.4         2.2         0.5
 
                 ANNUAL       1.9        5.3       3.3       2.7         0.1       0.8         3.8         1.8
 
           1995       I       2.5        4.5       2.0       4.1         1.0       1.6         0.7         1.3
                     II      r4.8       r2.3     r-2.3      r3.5        r0.1     r-1.2        r5.3        r1.1
 
 
                                                                      11
           ---------------------------------------------------------------------------------------------------------
                               Percent change from corresponding quarter of previous year
 
           1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
                     II       1.1        4.0       2.9       3.5         0.4       2.4         1.0         1.9
                    III       1.2        4.2       2.9       2.6        -0.2       1.3         4.4         2.4
                     IV       1.3        4.6       3.2       1.9        -0.9       0.5         2.8         1.3
 
                 ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
           1994       I       2.3        5.7       3.3       2.6         0.1       0.3         2.6         1.1
                     II       1.8        5.3       3.4       2.3        -0.1       0.5         4.3         1.8
                    III       1.8        5.2       3.3       2.6        -0.2       0.8         4.8         2.2
                     IV       1.8        5.1       3.3       3.2         0.6       1.4         3.5         2.1
 
                 ANNUAL       1.9        5.3       3.3       2.7         0.1       0.8         3.8         1.8
 
           1995       I       2.0        4.9       2.9       3.0         0.1       1.0         4.3         2.1
                     II      r3.6       r4.7       1.1       3.6         0.5      r0.0        r3.7        r1.3
           ---------------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                      September 7, 1995
           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
 
           1993       I            130.8        134.8        103.0        149.9           101.0        114.6
                     II            131.3        135.6        103.2        151.7           101.5        115.5
                    III            132.1        136.8        103.6        152.5           101.6        115.4
                     IV            133.6        139.3        104.2        153.3           101.4        114.7
 
                 ANNUAL            132.0        136.6        103.5        152.0           101.5        115.1
 
           1994       I            135.4        141.8        104.7        154.3           101.4        113.9
                     II            136.8        144.3        105.4        153.6           100.3        112.2
                    III            138.0        146.3        106.0        154.5           100.0        111.9
                     IV            139.3        149.2        107.1        155.9           100.4        112.0
 
                 ANNUAL            137.4        145.4        105.8        154.5           100.6        112.5
 
           1995       I            140.5        151.1        107.5        157.7           100.8        112.3
                     II           r141.4       r149.7        105.9        157.9           100.1       r111.7
           --------------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1993       I              5.4          7.8          2.2         -2.1            -5.0         -7.1
                     II              1.5          2.3          0.8          4.9             1.8          3.3
                    III              2.5          3.8          1.2          2.0             0.4         -0.4
                     IV              4.7          7.4          2.6          2.3            -0.9         -2.3
 
                 ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
           1994       I              5.4          7.5          2.0          2.4             0.3         -2.8
                     II              4.3          7.2          2.8         -1.8            -4.2         -5.8
                    III              3.4          5.7          2.2          2.4            -1.2         -1.0
                     IV              3.7          8.1          4.2          3.8             1.5          0.1
 
                 ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
           1995       I              3.5          5.2          1.6          4.7             1.6          1.1
                     II             r2.6        r-3.4        r-5.9         r0.4            -2.9        r-2.1
 
 
                                                                      13
           --------------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1993       I              3.6          4.9          1.3          3.3             0.1         -0.3
                     II              3.8          4.7          0.9          3.3             0.2         -0.5
                    III              3.5          5.0          1.4          2.8             0.0         -0.7
                     IV              3.5          5.3          1.7          1.7            -1.0         -1.7
 
                 ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
           1994       I              3.5          5.2          1.6          2.9             0.4         -0.6
                     II              4.2          6.4          2.1          1.2            -1.1         -2.9
                    III              4.5          6.9          2.4          1.3            -1.5         -3.0
                     IV              4.2          7.1          2.8          1.7            -0.9         -2.4
 
                 ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
           1995       I              3.7          6.5          2.7          2.2            -0.6         -1.4
                     II             r3.3         r3.8          0.5          2.8            -0.3        r-0.5
           --------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                September 7, 1995
           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
 
           1993       I            143.0        143.4        100.3        147.4            99.3        103.1
                     II            144.2        144.8        100.4        148.8            99.6        103.2
                    III            145.2        146.7        101.1        149.2            99.4        102.8
                     IV            148.2        151.0        101.9        150.2            99.3        101.3
 
                 ANNUAL            145.3        146.5        100.8        149.0            99.5        102.6
 
           1994       I            150.3        154.4        102.7        151.2            99.4        100.6
                     II            151.7        157.1        103.6        150.0            98.0         98.9
                    III            153.3        160.1        104.4        150.7            97.6         98.3
                     IV            154.9        163.9        105.8        152.4            98.2         98.4
 
                 ANNUAL            152.6        158.9        104.1        151.0            98.3         99.0
 
           1995       I            156.5        166.6        106.4        154.3            98.6         98.6
                     II           r156.8       r165.0        105.2        153.3            97.2         97.8
           --------------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1993       I              9.0         11.7          2.5         -4.9            -7.7        -12.7
                     II              3.6          4.1          0.4          4.0             0.9          0.3
                    III              2.7          5.4          2.7          1.1            -0.6         -1.5
                     IV              8.5         12.1          3.3          2.6            -0.7         -5.4
 
                 ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
           1994       I              5.9          9.5          3.4          2.7             0.5         -3.1
                     II              3.6          7.1          3.4         -3.1            -5.6         -6.5
                    III              4.4          7.8          3.3          2.1            -1.5         -2.3
                     IV              4.1          9.7          5.4          4.5             2.2          0.4
 
                 ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
           1995       I              4.4          6.8          2.3          5.1             2.0          0.7
                     II             r0.7        r-3.7        r-4.3         -2.6            -5.8        r-3.3
 
 
                                                                      15
           --------------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1993       I              5.9          7.0          1.0          3.0            -0.2         -2.7
                     II              6.1          7.0          0.9          2.7            -0.4         -3.2
                    III              5.7          7.5          1.8          2.0            -0.8         -3.5
                     IV              5.9          8.3          2.2          0.6            -2.0         -5.0
 
                 ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
           1994       I              5.2          7.7          2.4          2.6             0.1         -2.5
                     II              5.1          8.5          3.2          0.8            -1.6         -4.2
                    III              5.6          9.1          3.3          1.0            -1.8         -4.3
                     IV              4.5          8.5          3.8          1.5            -1.1         -2.9
 
                 ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
           1995       I              4.1          7.8          3.6          2.1            -0.8         -2.0
                     II             r3.4          5.0          1.6          2.2            -0.8         -1.1
           --------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                September 7, 1995
           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
 
           1993       I            116.2        124.2        106.9        155.1           104.5        133.5
                     II            115.8        124.2        107.3        157.5           105.4        136.0
                    III            116.4        124.6        107.1        158.7           105.8        136.4
                     IV            116.2        124.9        107.5        159.4           105.4        137.2
 
                 ANNUAL            116.1        124.5        107.2        157.7           105.3        135.8
 
           1994       I            117.4        126.3        107.5        160.1           105.3        136.4
                     II            119.0        128.6        108.1        160.2           104.7        134.7
                    III            119.5        129.4        108.3        161.3           104.5        135.0
                     IV            120.4        131.2        109.0        162.3           104.5        134.8
 
                 ANNUAL            119.0        128.9        108.2        161.0           104.8        135.2
 
           1995       I            121.0        132.1        109.1        163.9           104.7        135.4
                     II           r122.6       r131.0        106.9       r165.9          r105.2       r135.4
           --------------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1993       I              0.7          2.6          1.9          2.3            -0.7          1.6
                     II             -1.3         -0.1          1.2          6.3             3.2          7.7
                    III              2.1          1.4         -0.7          3.2             1.5          1.1
                     IV             -0.7          0.9          1.5          1.8            -1.5          2.5
 
                 ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
           1994       I              4.4          4.6          0.1          1.8            -0.4         -2.6
                     II              5.4          7.4          1.9          0.3            -2.2         -4.8
                    III              1.8          2.5          0.7          2.6            -0.9          0.8
                     IV              2.9          5.6          2.6          2.5             0.3         -0.4
 
                 ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
           1995       I              2.1          2.8          0.7          3.9             0.8          1.8
                     II             r5.3        r-3.1        r-8.0         r5.2            r1.7        r-0.2
 
 
                                                                      17
           --------------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1993       I              0.5          2.2          1.6          3.8             0.6          3.2
                     II              0.7          1.7          1.0          4.3             1.1          3.6
                    III              0.6          1.6          1.0          4.0             1.1          3.3
                     IV              0.2          1.2          1.0          3.4             0.6          3.2
 
                 ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
           1994       I              1.1          1.7          0.6          3.2             0.7          2.1
                     II              2.8          3.5          0.7          1.7            -0.6         -1.0
                    III              2.7          3.8          1.1          1.6            -1.2         -1.1
                     IV              3.6          5.0          1.3          1.8            -0.8         -1.8
 
                 ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
           1995       I              3.0          4.6          1.5          2.3            -0.5         -0.7
                     II             r3.0         r1.9        r-1.1         r3.6            r0.5         r0.5
           --------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                September 7, 1995
           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
 
           1993       I    119.9     143.3    119.5    153.9     103.7     128.3    116.8    125.0    183.7    128.7
                     II    121.2     145.9    120.4    154.4     103.3     127.3    115.8    124.1    199.4    128.7
                    III    122.2     148.1    121.2    154.8     103.1     126.7    115.8    123.6    202.5    128.5
                     IV    123.4     150.9    122.3    155.0     102.5     125.7    114.8    122.6    220.9    128.7
 
                 ANNUAL    121.8     147.0    120.8    154.6     103.3     127.0    115.8    123.8    201.9    128.6
 
           1994       I    124.0     153.0    123.4    156.5     102.9     126.2    116.6    123.5    218.2    129.4
                     II    123.8     154.8    125.1    156.8     102.4     126.7    115.2    123.4    228.7    129.9
                    III    124.3     156.5    125.9    157.9     102.3     127.1    116.2    124.0    228.8    130.5
                     IV    125.3     159.6    127.4    159.1     102.5     127.0    115.9    123.8    230.3    130.4
 
                 ANNUAL    124.4     156.0    125.4    157.7     102.7     126.7    116.0    123.7    226.5    130.0
 
           1995       I    125.8     161.4    128.2    160.5     102.6     127.5    116.0    124.2    224.0    130.4
                     II    127.5     162.8    127.7    161.8     102.6     126.9    116.6    124.0    227.6    130.4
           ----------------------------------------------------------------------------------------------------------
                                        Percent change from previous quarter at annual rate(5)
 
           1993       I     -2.2      -0.3      2.0      2.0      -1.0       4.4      3.6      4.2    -14.9      2.3
                     II      4.6       7.5      2.8      1.4      -1.5      -3.0     -3.3     -3.1     38.9      0.2
                    III      3.2       6.0      2.7      1.0      -0.7      -2.1      0.0     -1.6      6.5     -0.8
                     IV      3.9       7.8      3.8      0.6      -2.6      -3.1     -3.4     -3.2     41.5      0.6
 
                 ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
           1994       I      2.0       5.8      3.7      3.9       1.7       1.8      6.6      3.1     -4.9      2.2
                     II     -0.8       4.8      5.6      0.6      -1.9       1.4     -4.8     -0.3     20.7      1.8
                    III      1.6       4.2      2.5      2.9      -0.7       1.2      3.5      1.8      0.3      1.7
                     IV      3.4       8.4      4.8      3.2       0.9      -0.3     -1.1     -0.5      2.5     -0.2
 
                 ANNUAL      2.2       6.1      3.8      2.0      -0.6      -0.2      0.2     -0.1     12.2      1.1
 
           1995       I      1.7       4.4      2.7      3.4       0.4       1.8      0.5      1.4    -10.4      0.1
 
 
                                                                      19
                     II      5.4       3.5     -1.8      3.3      -0.1      -2.0      2.1     -0.9      6.6     -0.1
           ----------------------------------------------------------------------------------------------------------
                                     Percent change from corresponding quarter of previous year
 
           1993       I      2.7       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
                     II      3.0       5.1      2.0      3.3       0.1       0.2     -1.8     -0.3     13.6      0.8
                    III      2.6       5.2      2.5      2.2      -0.6      -0.4     -2.7     -1.0     18.5      0.6
                     IV      2.3       5.2      2.8      1.3      -1.4      -1.0     -0.8     -1.0     15.5      0.6
 
                 ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
           1994       I      3.4       6.8      3.3      1.7      -0.8      -1.6     -0.1     -1.2     18.8      0.5
                     II      2.1       6.1      4.0      1.5      -0.9      -0.5     -0.5     -0.5     14.7      0.9
                    III      1.7       5.7      3.9      2.0      -0.9       0.3      0.4      0.3     13.0      1.6
                     IV      1.6       5.8      4.2      2.6       0.0       1.0      1.0      1.0      4.2      1.4
 
                 ANNUAL      2.2       6.1      3.8      2.0      -0.6      -0.2      0.2     -0.1     12.2      1.1
 
           1995       I      1.5       5.4      3.9      2.5      -0.3       1.0     -0.5      0.6      2.7      0.8
                     II      3.0       5.1      2.0      3.2       0.1       0.2      1.2      0.5     -0.4      0.4
           ----------------------------------------------------------------------------------------------------------
           See footnotes following table 6.                                        September 7, 1995
           r=revised                                                               Source: Bureau of Labor Statistics
 
 
                                        20
 
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 second revisions after an additional 60 days.  In the business sector, the
probability is 0.95 that the third publication (second revision) of a quarterly
index of output per hour of all persons will differ from the initial value by
between -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)  Unit nonlabor cost includes capital consumption allowances, interest,
     rental income of persons, and indirect taxes. For nonfinancial
     corporations, rental income of persons is zero by definition.
 
(7)  Total unit cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.