USDL 01-132
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
TUESDAY, MAY 8, 2001.
                                    
Internet address:      http://stats.bls.gov/lprhome.htm
Historical, technical  
  information:         (202) 691-5606
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                         PRODUCTIVITY AND COSTS
                           First Quarter 2001


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of
all persons--for the first quarter of 2001.  The seasonally adjusted
annual rates of productivity change in the first quarter were:

              -0.4 percent in the business sector and
              -0.1 percent in the nonfarm business sector.

     Although productivity fell slightly in the business and nonfarm
business sectors, both output and hours registered increases.  In the
business sector, output rose 1.8 percent and hours of all persons
increased 2.2 percent.  Output in nonfarm business rose 1.9 percent, and
hours grew 2.0 percent.  First-quarter measures are summarized in table A
and appear in detail in tables 1 through 5.

     In manufacturing, productivity changes in the first quarter were:

               0.3 percent in manufacturing,
              -0.1 percent in durable goods manufacturing, and
               0.6 percent in nondurable goods manufacturing.

     Productivity growth in manufacturing in the first quarter of 2001
reflected a decline of 5.7 percent in output and a drop of 6.0 percent in
the hours of all persons.  Output and hours in manufacturing, which
includes about 16 percent of U.S. business-sector employment, tend to
vary more from quarter to quarter than data for the more aggregate
business and nonfarm business sectors.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures
of gross domestic product prepared by the Bureau of Economic Analysis of
the U.S. Department of Commerce.  Quarterly output measures for
manufacturing reflect indexes of industrial production independently
prepared by the Board of Governors of the Federal Reserve System.  See
Technical Notes for further information on data sources.

------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary first-quarter 2001 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           -0.4       1.8      2.2     5.2       1.0       5.6
Nonfarm business   -0.1       1.9      2.0     5.2       1.0       5.2
Manufacturing       0.3      -5.7     -6.0     4.7       0.6       4.4
  Durable          -0.1      -7.4     -7.3     4.0      -0.1       4.1
  Nondurable        0.6      -3.3     -3.9     6.3       2.1       5.7
-----------------------------------------------------------------------                      
                      Percent change from same quarter a year ago

Business            3.0       2.8     -0.2     6.4       2.9       3.3
Nonfarm business    2.8       2.8      0.1     6.0       2.5       3.1
Manufacturing       4.7       1.0     -3.5     6.1       2.6       1.4
  Durable           7.0       3.2     -3.5     5.9       2.4      -1.0
  Nondurable        1.8      -1.7     -3.5     6.5       3.0       4.6
-----------------------------------------------------------------------


Business

     Productivity in the business sector declined at a 0.4 percent annual
rate from the fourth quarter of 2000 to the first quarter of 2001, as
output increased 1.8 percent and hours of all persons engaged in the
sector rose 2.2 percent (seasonally adjusted annual rates).  Productivity
last declined in the business sector during the first quarter of 1995,
when it fell 1.3 percent.  Revised data for the fourth quarter of 2000
show that output per hour increased 2.9 percent, as output increased 0.7
percent and hours of all persons fell 2.1 percent (table 1).

     Hourly compensation increased 5.2 percent during the first quarter
of 2001.  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, increased
at a 5.6 percent rate during first-quarter 2001 and at a 4.5 percent rate
in fourth-quarter 2000.

     Real hourly compensation, which takes into account changes in
consumer prices, rose at a 1.0 percent annual rate in first-quarter 2001,
following a 4.4 percent increase during fourth-quarter 2000.

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, rose at a
2.7 percent annual rate in the first quarter.

Nonfarm business

     Productivity declined 0.1 percent in the nonfarm business sector in
the first quarter, as output increased 1.9 percent and hours of all
persons rose 2.0 percent.  During the fourth quarter of 2000,
productivity had increased 2.0 percent in this sector, as output rose 0.8
percent and hours fell 1.3 percent (table 2).

     Hourly compensation increased at a 5.2 percent annual rate in the
first quarter of 2001.  When the rise in consumer prices was taken into
account, real hourly compensation rose 1.0 percent in the first quarter;
it had increased 3.6 percent in the fourth quarter of 2000.

     Unit labor costs rose 5.2 percent in the first quarter, after rising
4.5 percent in the fourth quarter of 2000.  The first-quarter increase
was the largest since the fourth quarter of 1997, when it rose 5.5
percent.  The implicit price deflator for nonfarm business output rose
2.5 percent in the first quarter, compared with a 1.6 percent rise one
quarter earlier.


Manufacturing

     Productivity increased at a 0.3 percent seasonally adjusted annual
rate in manufacturing in the first quarter of 2001, as output decreased
5.7 percent and hours of all persons declined 6.0 percent.  Although
output and hours also had fallen in the fourth quarter--by 1.5 and 6.6
percent, respectively--productivity grew more rapidly, by 5.5 percent.
In the first quarter of 2001, productivity fell 0.1 percent in durable
goods manufacturing, where output dropped 7.4 percent and hours fell 7.3
percent.  Nondurable goods manufacturing productivity rose 0.6 percent,
reflecting a 3.3 percent decline in output and a 3.9 percent drop in
hours of all persons.

     Hourly compensation of all manufacturing workers rose 4.7 percent
during the first quarter, and real hourly compensation increased 0.6
percent.  The hourly compensation of workers in durable goods
manufacturing rose 4.0 percent, while that of employees in nondurable
goods manufacturing grew 6.3 percent.

     Unit labor costs in manufacturing rose 4.4 percent in the first
quarter of 2001, as unit labor costs of durable goods producers rose 4.1
percent and those of nondurable goods producers increased at a 5.7
percent annual rate.  The increase for total manufacturing was the
largest since a 7.2 percent increase in the first quarter of 1991.


Fourth-quarter and annual measures for nonfinancial corporations

     Fourth-quarter and annual 2000 measures of productivity and costs
also were announced today for the nonfinancial corporate sector (tables
B, C, and 6).  Output per all-employee hour rose 0.3 percent from the
third to the fourth quarter of 2000, as output fell 0.7 percent and
employee hours fell further, 1.0 percent.  This was the smallest increase
in labor productivity since the second quarter of 1997, when it rose 0.1
percent.  The sector includes all corporations doing business in the
United States, except those classified as depository institutions,
nondepository institutions, security and commodity brokers, insurance
carriers, regulated investment offices, small business investment
offices, and real estate investment trusts.

-------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth-quarter 2000 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

2000 IV 0.3      -0.7    -1.0   7.4      4.3     7.1    -38.5    1.2
-------------------------------------------------------------------------                 
                 Percent change from same quarter a year ago

2000 IV 3.3      4.0     0.7    5.6      2.2     2.2    -7.8     1.6
-------------------------------------------------------------------------

     Hourly compensation increased 7.4 percent in the fourth quarter, and
real hourly compensation rose 4.3 percent.  Unit labor costs grew 7.1
percent in the fourth quarter of 2000.  This was the largest increase
since a 7.9 percent rise occurred in the first quarter of 1982.  In the
fourth quarter, unit profits declined 38.5 percent--they have fallen in 8
of the last 13 quarters.  The implicit price deflator for nonfinancial
corporate output rose 1.2 percent during the fourth quarter of 2000,
somewhat faster than the 0.5 percent increase observed in the third
quarter.

     Productivity grew 4.2 percent in 2000 for nonfinancial corporations,
the fastest increase since 1971, when it rose by the same amount
(table C).  Nonfinancial corporate output grew 6.1 percent in 2000,
slightly faster than the 5.9 percent increase of the previous year.
Employee hours increased 1.8 percent in 2000 and 2.3 percent in 1999.

---------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity
and related measures, 1991-2000
---------------------------------------------------------------------
Measure             1991 1992 1993 1994 1995 1996 1997 1998 1999 2000  
---------------------------------------------------------------------
Productivity         2.3  2.4  0.7  2.4  1.0  3.2  0.9  3.5  3.5  4.2  
Output              -0.8  2.6  3.0  6.4  4.2  5.0  5.9  6.3  5.9  6.1  
Hours               -3.1  0.2  2.3  3.9  3.1  1.8  5.0  2.6  2.3  1.8  
Hourly compensation  4.9  5.0  2.0  2.1  1.9  2.6  1.3  5.0  4.5  4.8  
Real hourly
compensation         1.2  2.3 -0.5 -0.1 -0.6 -0.1 -0.9  3.6  2.3  1.4  
Unit labor costs     2.5  2.5  1.3 -0.3  0.8 -0.5  0.4  1.4  1.0  0.6  
Unit nonlabor costs  4.1 -2.0  0.2  1.0  0.9 -1.5  0.3  0.3  1.3  3.1  
Total unit cost      2.9  1.3  1.0  0.1  0.8 -0.8  0.4  1.1  1.0  1.2  
Unit profits        -1.4  7.6 13.2 16.3  5.5  9.5  3.1 -5.1 -0.9  1.1  
Implicit price
deflator             2.6  1.8  2.1  1.6  1.4  0.4  0.7  0.3  0.8  1.2  
---------------------------------------------------------------------
     
     Hourly compensation grew 4.8 percent in 2000, and real hourly
compensation increased 1.4 percent.  Total unit costs rose 1.2 percent,
reflecting an increase of 0.6 percent in unit labor costs and a 3.1-
percent rise in unit nonlabor costs.  Unit profits rose 1.1 percent in
2000, the first increase in the series since 1997 (when they rose 3.1
percent).  The implicit price deflator, which reflects both the unit
costs and unit profits measures, rose 1.2 percent in 2000.

REVISED MEASURES

     Current and previous measures for the fourth quarter of 2000 for the
business, nonfarm business, and manufacturing sectors are compared in
table D.  Some of the quarterly movements differ from those reported on
March 6, based on information then available.  In business and nonfarm
business, productivity was revised down and unit labor costs
correspondingly revised up.  In manufacturing, productivity was revised
up and unit labor costs down.

---------------------------------------------------------------------
Table D. 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
---------------------------------------------------------------------                                                                
                             Fourth quarter 2000
Business:                                                       
  Previous          3.1      0.8      -2.2    7.5      4.5       4.3
  Current           2.9      0.7      -2.1    7.5      4.4       4.5
Nonfarm business:                                               
  Previous          2.2      0.8      -1.4    6.6      3.6       4.3
  Current           2.0      0.8      -1.3    6.6      3.6       4.5
Manufacturing:                                                  
  Previous          5.3     -1.8      -6.7    8.4      5.4       3.0
  Current           5.5     -1.5      -6.6    8.4      5.3       2.8
---------------------------------------------------------------------
     
     The Consumer Price Index Research Series has been updated.  This
affected indexes of real hourly compensation for all years.  In
manufacturing, historical output has been revised.  (See Multifactor
Productivity Trends, 1999, USDL 01-125.)  Appendix tables 1-3 present
revised data for 1996-98.
                                    
                            Next release date

     The next release of Productivity and Costs is scheduled for 8:30 AM
EDT, Tuesday, June 5, 2001.  First-quarter measures for nonfinancial
corporations and revised measures for business, nonfarm business, and
manufacturing will be released at that time.


                                      
                               TECHNICAL NOTES

Labor Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector-wage and salary workers, the self-
employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours
are adjusted to hours at work using the BLS Hours at Work survey, conducted
for this purpose.
     Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of Com
merce and the CPS are used to measure labor input for government enterprises,
proprietors, and unpaid family workers.

Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 77 percent of
the value of GDP in 1996. Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
     Annual indexes for manufacturing and its durable and nondurable goods
components are constructed by deflating current-dollar industry value of
production data from the U.S. Bureau of the Census with deflators from the
BEA.  These deflators are based on data from the BLS producer price program
and other sources.  The industry shipments are aggregated using annual
weights, and intrasector transactions are removed.  Quarterly manufacturing
output measures are based on the index of industrial production prepared
monthly by the Board of Governors of the Federal Reserve System adjusted to
be consistent with annual indexes of manufacturing sector output prepared by
BLS.  Durables include the following 2-digit SIC industries: Primary metal
industries; fabricated metal products; nonelectrical machinery; industrial
and commercial machinery and computer equipment; electronic and other
electrical equipment; transportation equipment; instruments; lumber and
lumber products; furniture and fixtures; stone, clay, and glass and concrete
products; and miscellaneous manufactures. Nondurables include: Food and
kindred products, tobacco products, textile mill products, apparel products,
paper and allied products, printing and publishing, chemicals and chemical
products, petroleum refining and related industries, rubber and plastic
products, and leather and leather products.
     Nonfinancial corporate output is an annual-weighted index constructed by
excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-oc
cupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 53 percent of the value of GDP in 1996.

Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.

     Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-691-5200; Federal Relay Service
number: 1-800-877-8339.

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally
  adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1999       I     112.5      132.3     117.5     123.0       106.4      109.3       115.1      111.4
            II     112.7      133.1     118.1     124.3      r106.9      110.4       114.2      111.8
           III     114.0      135.3     118.7     125.9       107.4      110.5       114.4      111.9
            IV     116.1      138.5     119.3     127.1      r107.5      109.5       116.9      112.2

        ANNUAL     113.8      134.8     118.4     125.1       107.1      109.9       115.1      111.8

  2000       I     116.6      140.3     120.3     128.2      r107.4      110.0       118.2      113.0
            II     118.6      142.4     120.1     130.4      r108.5      110.0       120.0      113.7
           III     119.3      143.3     120.1     132.2       109.1      110.8       119.5      114.0
            IV    r120.1      143.5    r119.5     134.6       110.3     r112.1       118.7      114.5

        ANNUAL     118.6      142.4     120.0     131.4      r108.9      110.7       119.1      113.8

  2001       I     120.0      144.2     120.1     136.4       110.5      113.6       118.2      115.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       2.7        3.8       1.1       4.5         2.9        1.8         2.0        1.9
            II       0.5        2.6       2.1       4.5        r1.6        4.0        -3.4        1.2
           III       4.7        6.6       1.9       5.1        r2.0        0.4         0.8        0.5
            IV       7.6        9.9       2.1       3.8        r0.5       -3.6         9.0        1.0

        ANNUAL       2.8        4.8       2.0       4.6         2.4        1.8         0.0        1.1

  2000       I       1.7        5.3       3.5       3.7       r-0.3        1.9         4.8        3.0
            II       7.0        6.3      -0.7       7.1         4.0        0.0         6.1        2.4
           III       2.4        2.3      -0.1       5.7         2.0        3.1        -1.7        1.2
            IV      r2.9       r0.7     r-2.1       7.5        r4.4       r4.5       r-2.6       r1.7

        ANNUAL       4.2        5.6       1.3       5.0        r1.6        0.8         3.4        1.8

  2001       I      -0.4        1.8       2.2       5.2         1.0        5.6        -1.9        2.7
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.3        4.3       2.0       4.7         3.1        2.4        -1.0        1.1
            II       2.1        4.2       2.0       4.6         2.6        2.4        -0.8        1.2
           III       2.8        4.9       2.1       4.6         2.3        1.8        -0.1        1.0
            IV       3.8        5.7       1.8       4.5        r1.8        0.6         2.0        1.1

        ANNUAL       2.8        4.8       2.0       4.6         2.4        1.8         0.0        1.1

  2000       I       3.6        6.1       2.4       4.3         1.0        0.6         2.7        1.4
            II       5.2        7.0       1.7       4.9        r1.5       -0.3         5.1        1.7
           III       4.7        5.9       1.2       5.0         1.6        0.3         4.5        1.9
            IV       3.5       r3.6       0.1       6.0         2.5       r2.4         1.6       r2.1

        ANNUAL       4.2        5.6       1.3       5.0        r1.6        0.8         3.4        1.8

  2001       I       3.0        2.8      -0.2       6.4         2.9        3.3        -0.1        2.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 8, 2001
  r=revised                                                              Source: Bureau of Labor Statistics
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, 
  seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1999       I     111.9      132.6     118.4     122.1       105.6      109.0       116.7      111.8
            II     112.0      133.4     119.1     123.4      r106.1      110.2       115.8      112.2
           III     113.4      135.6     119.6     125.0       106.6      110.2       116.1      112.4
            IV     115.6      138.9     120.2     126.3      r106.9      109.3       118.6      112.7

        ANNUAL     113.2      135.1     119.3     124.2       106.4      109.7       116.8      112.3

  2000       I     116.2      140.7     121.1     127.6      r106.9      109.8       120.1      113.6
            II     118.0      142.9     121.1     129.4      r107.7      109.7       121.8      114.1
           III     118.8      143.7     120.9     131.4      r108.4      110.6       121.4      114.5
            IV    r119.4      144.0    r120.6     133.5      r109.3      111.8       120.6      115.0

        ANNUAL     118.1      142.8     120.9     130.5      r108.1      110.5       121.0      114.3

  2001       I     119.4      144.6     121.1     135.2       109.6      113.2       120.0      115.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I       2.0        3.6       1.6       3.8        r2.2        1.8         3.0        2.2
            II       0.2        2.4       2.2       4.5        r1.6        4.3        -3.0        1.5
           III       5.0        7.0       1.9       5.2        r2.2        0.2         1.3        0.6
            IV       8.0       10.0       1.8       4.2        r0.9       -3.5         8.9        1.0

        ANNUAL       2.6        4.8       2.2       4.4         2.3        1.8         0.5        1.3

  2000       I       2.1        5.2       3.0       4.1        r0.1        1.9         5.1        3.2
            II       6.3        6.5       0.2       6.0        r3.0       -0.2         5.7        2.0
           III       3.0        2.3      -0.7       6.2         2.6        3.2        -1.2        1.4
            IV      r2.0        0.8     r-1.3       6.6         3.6       r4.5       r-2.8       r1.6

        ANNUAL       4.3        5.7       1.3       5.1        r1.6        0.7         3.6        1.8

  2001       I      -0.1        1.9       2.0       5.2         1.0        5.2        -1.8        2.5
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I       2.1        4.3       2.1       4.5         2.9        2.4        -0.6        1.2
            II       1.7        4.1       2.3       4.3         2.3        2.5        -0.4        1.4
           III       2.6        4.9       2.3       4.4        r2.0        1.7         0.3        1.2
            IV       3.8        5.7       1.9       4.4        r1.7        0.6         2.5        1.3

        ANNUAL       2.6        4.8       2.2       4.4         2.3        1.8         0.5        1.3

  2000       I       3.8        6.1       2.2       4.5        r1.2        0.7         3.0        1.6
            II       5.3        7.2       1.7       4.9        r1.5       -0.4         5.2        1.7
           III       4.8        6.0       1.1       5.1        r1.6        0.3         4.6        1.9
            IV      r3.3       r3.6       0.3       5.7         2.3        2.3         1.6       r2.1

        ANNUAL       4.3        5.7       1.3       5.1        r1.6        0.7         3.6        1.8

  2001       I       2.8        2.8       0.1       6.0         2.5        3.1        -0.1        1.9
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 8, 2001
  r=revised                                                              Source: Bureau of Labor Statistics
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I           r127.5       r132.8        104.2        119.9          103.7         r94.0
            II           r128.4       r134.1        104.5        121.2         r104.2         r94.4
           III           r129.8       r135.8        104.7        122.8          104.7         r94.6
            IV           r132.7       r138.0        104.0        124.1         r105.0         r93.5

        ANNUAL           r129.6       r135.2        104.3        122.0          104.5         r94.1

  2000       I           r135.4       r140.3        103.7        125.7         r105.3         r92.8
            II           r137.5       r143.1        104.1        127.0          105.7         r92.4
           III           r139.7       r144.4        103.4        129.1         r106.5         r92.4
            IV           r141.6       r143.9        101.6        131.8         r107.9         r93.1

        ANNUAL           r138.5       r142.9        103.2        128.4         r106.4         r92.7

  2001       I            141.7        141.8        100.1        133.3          108.1          94.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I             r5.1         r2.5         -2.5          2.8            1.2         r-2.2
            II             r3.0         r4.1          1.1          4.6           r1.7          r1.5
           III             r4.4         r5.1          0.7          5.3           r2.2          r0.9
            IV             r9.3         r6.4         -2.7          4.5           r1.2         r-4.4

        ANNUAL             r4.5         r3.7         -0.8          4.0            1.9         r-0.5

  2000       I              8.3          7.1         -1.1          5.0           r1.0          -3.0
            II              6.3          8.0          1.6          4.3            1.3          -1.9
           III              6.7         r3.7         -2.8          6.9            3.3           0.2
            IV             r5.5        r-1.5        r-6.6          8.4           r5.3          r2.8

        ANNUAL             r6.9         r5.7         -1.1          5.2           r1.8         r-1.6

  2001       I              0.3         -5.7         -6.0          4.7            0.6           4.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I             r4.6         r2.9         -1.6          3.9            2.3         r-0.7
            II             r4.3         r3.3         -0.9          3.8            1.8         r-0.5
           III             r3.7         r3.8          0.1          4.0            1.7          r0.3
            IV             r5.4         r4.5         -0.8          4.3           r1.6         r-1.1

        ANNUAL             r4.5         r3.7         -0.8          4.0            1.9         r-0.5

  2000       I             r6.2         r5.7         -0.5          4.8           r1.5         r-1.3
            II             r7.1         r6.7         -0.4          4.8           r1.4         r-2.1
           III             r7.6         r6.3         -1.2          5.2           r1.7         r-2.3
            IV             r6.7         r4.3         -2.3          6.2            2.7          -0.5

        ANNUAL             r6.9         r5.7         -1.1          5.2           r1.8         r-1.6

  2001       I              4.7          1.0         -3.5          6.1            2.6           1.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
  r=revised                                                       Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I           r140.4       r153.8        109.6        117.5          101.7         r83.7
            II           r142.3       r156.2        109.8        119.2          102.4         r83.8
           III           r144.1       r159.5        110.7        120.9          103.1         r83.9
            IV           r147.6       r162.2        109.9        122.5         r103.7         r83.0

        ANNUAL           r143.6       r157.9        110.0        120.0          102.8         r83.6

  2000       I           r152.5       r167.2        109.7        123.8          103.8         r81.2
            II           r156.2       r172.6        110.5        124.9          104.0         r80.0
           III           r160.5       r176.0        109.7        126.9          104.7         r79.1
            IV           r163.1       r175.9        107.8        129.8          106.3         r79.6

        ANNUAL           r158.0       r172.9        109.4        126.3         r104.7         r79.9

  2001       I            163.1        172.5        105.8        131.1          106.2          80.4
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I             r7.6         r3.0         -4.3          4.1            2.5         r-3.2
            II             r5.5         r6.2          0.7          6.0           r3.0          r0.5
           III             r5.2         r8.7          3.4          5.7           r2.7          r0.5
            IV             r9.9         r7.1         -2.6          5.6           r2.3         r-3.9

        ANNUAL             r6.9         r6.1         -0.8          4.8            2.7         r-2.0

  2000       I             13.9         12.7         -1.1          4.2           r0.2          -8.6
            II             10.2         13.7          3.2          3.7           r0.8          -5.9
           III             11.5          8.1         -3.0          6.3            2.7          -4.6
            IV              6.6        r-0.4        r-6.6          9.4           r6.3           2.6

        ANNUAL            r10.0         r9.5         -0.5          5.2           r1.8         r-4.4

  2001       I             -0.1         -7.4         -7.3          4.0           -0.1           4.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I             r7.4         r5.7         -1.6          4.2            2.6         r-3.0
            II             r7.4         r6.1         -1.2          4.7            2.7         r-2.5
           III             r5.9         r6.4          0.4          5.1           r2.7         r-0.8
            IV             r7.0         r6.2         -0.7          5.4           r2.6         r-1.6

        ANNUAL             r6.9         r6.1         -0.8          4.8            2.7         r-2.0

  2000       I             r8.6         r8.7          0.1          5.4           r2.0         r-2.9
            II             r9.8        r10.5          0.7          4.8           r1.5         r-4.5
           III            r11.4        r10.4         -0.9          5.0            1.5         r-5.7
            IV             10.5          8.4         -1.9          5.9           r2.5          -4.2

        ANNUAL            r10.0         r9.5         -0.5          5.2           r1.8         r-4.4

  2001       I              7.0          3.2         -3.5          5.9            2.4          -1.0
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
  r=revised                                                       Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1999       I           r116.6       r113.1         97.0        122.5          106.0        r105.1
            II           r116.5       r113.5         97.4        123.2         r105.9        r105.8
           III           r117.7       r113.7         96.7        124.4          106.2        r105.8
            IV           r120.1       r115.3         96.0        125.2         r106.0        r104.3

        ANNUAL           r117.7       r113.9         96.8        123.8          106.1        r105.2

  2000       I           r120.6       r115.4         95.7        127.2         r106.6        r105.5
            II           r121.2       r115.8         95.5        128.8         r107.1        r106.2
           III           r121.5       r115.3         94.9        131.3          108.3        r108.1
            IV           r122.6       r114.4         93.3        133.4         r109.2        r108.8

        ANNUAL           r121.4       r115.2         94.9        130.1         r107.8        r107.1

  2001       I            122.8        113.4         92.4        135.4          109.8         110.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I             r1.5         r1.8          0.3          0.9          r-0.6         r-0.6
            II            r-0.2         r1.5          1.8          2.3          r-0.5          r2.5
           III             r4.0         r0.7         -3.2          4.0           r1.0          r0.0
            IV              8.6          5.6         -2.8          2.5          r-0.7          -5.6

        ANNUAL             r1.5         r0.7         -0.8          2.6            0.5          r1.0

  2000       I              1.6          0.5         -1.1          6.5           r2.4           4.8
            II              2.0          1.2         -0.8          5.0           r2.0           3.0
           III              0.9         -1.5         -2.4          8.0            4.3           7.0
            IV              3.8        r-3.1         -6.7         r6.7           r3.6          r2.7

        ANNUAL              3.2          1.2         -2.0          5.1            1.7           1.8

  2001       I              0.6         -3.3         -3.9          6.3            2.1           5.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I             r1.2        r-0.3         -1.5          3.3            1.8          r2.1
            II             r0.5         r0.0         -0.6          2.4            0.4          r1.8
           III             r1.0         r0.7         -0.3          2.2          r-0.1          r1.2
            IV             r3.4         r2.4         -1.0          2.4          r-0.2         r-1.0

        ANNUAL             r1.5         r0.7         -0.8          2.6            0.5          r1.0

  2000       I             r3.4         r2.0         -1.3          3.8           r0.5          r0.4
            II             r4.0          2.0         -2.0          4.5           r1.2           0.4
           III              3.2          1.4         -1.8          5.5            2.0           2.2
            IV              2.1         -0.8         -2.8         r6.5            3.1           4.4

        ANNUAL              3.2          1.2         -2.0          5.1            1.7           1.8

  2001       I              1.8         -1.7         -3.5          6.5            3.0           4.6
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
  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    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1998       I    110.6    132.1     119.4    113.7      99.9     102.8    100.7    102.3    150.8    106.4
            II    111.7    133.8     119.7    115.2    r101.0     103.1    101.2    102.6    147.7    106.4
           III    113.1    136.0     120.3    116.7     101.8     103.2    100.7    102.5    152.0    106.7
            IV    113.7    137.8     121.2    117.8     102.4     103.6    102.1    103.2    145.3    106.8

        ANNUAL    112.3    134.9     120.2    115.9     101.3     103.2    101.2    102.6    148.9    106.6

  1999       I    114.6    139.6     121.9    119.0     103.0     103.9    101.3    103.2    150.6    107.2
            II    115.3    141.4     122.6    120.3    r103.4     104.3    102.2    103.7    148.6    107.5
           III    116.6    143.8     123.3    121.8     103.9     104.5    102.9    104.0    144.4    107.5
            IV    118.3    146.9     124.2    123.0    r104.1     104.0    103.4    103.9    147.0    107.5

        ANNUAL    116.2    142.9     123.0    121.1     103.7     104.2    102.5    103.7    147.6    107.4

  2000       I    119.2    149.1     125.1    123.9     103.9     104.0    104.2    104.0    152.2    108.1
            II    120.8    151.4     125.3    125.8    r104.7     104.2    104.9    104.3    156.3    108.8
           III    122.1    153.0     125.3    127.7    r105.3     104.5    105.5    104.8    153.0    108.9
            IV    122.2    152.8     125.0    130.0     106.4     106.3    107.9    106.8    135.5    109.2

        ANNUAL    121.1    151.6     125.2    126.8     105.1     104.8    105.6    105.0    149.2    108.8

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1998       I      3.5      5.9       2.3      6.5       5.8       2.9      0.5      2.3    -14.5      0.1
            II      4.2      5.3       1.0      5.5      r4.3       1.3      1.9      1.4     -8.0      0.3
           III      4.8      6.9       2.0      5.1       3.5       0.2     -2.1     -0.4     12.4      1.1
            IV      2.4      5.4       2.9      3.9      r2.0       1.5      5.9      2.7    -16.6      0.2

        ANNUAL      3.5      6.3       2.6      5.0       3.6       1.4      0.3      1.1     -5.1      0.3

  1999       I      3.0      5.4       2.3      4.3      r2.7       1.2     -3.2      0.0     15.6      1.7
            II      2.7      5.1       2.4      4.4      r1.5       1.6      3.4      2.1     -5.3      1.2
           III      4.4      6.9       2.4      5.0      r2.0       0.6      2.9      1.2    -10.8     -0.3
            IV      5.8      8.8       2.8      4.1      r0.8      -1.7      2.1     -0.7      7.3      0.2

        ANNUAL      3.5      5.9       2.3      4.5       2.3       1.0      1.3      1.0     -0.9      0.8

  2000       I      3.1      6.2       3.0      2.9     r-1.0      -0.2      3.0      0.7     14.9      2.3
            II      5.6      6.4       0.7      6.3      r3.3       0.7      2.6      1.2     11.4      2.4
           III      4.4      4.4       0.0      6.0       2.4       1.5      2.6      1.8     -8.3      0.5
            IV      0.3     -0.7      -1.0      7.4       4.3       7.1      9.4      7.7    -38.5      1.2

        ANNUAL      4.2      6.1       1.8      4.8       1.4       0.6      3.1      1.2      1.1      1.2

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1998       I      2.8      6.6       3.7      3.7       2.3       0.9      0.1      0.7     -2.6      0.3
            II      3.9      6.5       2.5      5.3       3.8       1.4     -0.3      0.9     -5.0      0.2
           III      3.8      6.1       2.2      5.8       4.3       1.9     -0.3      1.3     -5.3      0.5
            IV      3.7      5.9       2.1      5.3       3.9       1.5      1.5      1.5     -7.3      0.4

        ANNUAL      3.5      6.3       2.6      5.0       3.6       1.4      0.3      1.1     -5.1      0.3

  1999       I      3.6      5.7       2.0      4.7       3.1       1.0      0.6      0.9     -0.1      0.8
            II      3.2      5.7       2.4      4.4       2.4       1.1      0.9      1.1      0.6      1.0
           III      3.1      5.7       2.5      4.4      r2.0       1.2      2.2      1.5     -5.0      0.7
            IV      4.0      6.5       2.5      4.4      r1.7       0.4      1.3      0.7      1.2      0.7

        ANNUAL      3.5      5.9       2.3      4.5       2.3       1.0      1.3      1.0     -0.9      0.8

  2000       I      4.0      6.8       2.6      4.1      r0.8       0.1      2.8      0.8      1.0      0.8
            II      4.7      7.1       2.2      4.6      r1.2      -0.2      2.6      0.6      5.2      1.1
           III      4.7      6.4       1.6      4.8      r1.3       0.1      2.6      0.7      5.9      1.3
            IV      3.3      4.0       0.7      5.6       2.2       2.2      4.4      2.8     -7.8      1.6

        ANNUAL      4.2      6.1       1.8      4.8       1.4       0.6      3.1      1.2      1.1      1.2

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 8, 2001
  r=revised                                                               Source: Bureau of Labor Statistics




SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.6 and +2.2 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the fourth quarter of 2000.  



Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social 
insurance and private benefit plans.  Except for nonfinancial 
corporations, where there are no self-employed, data also include an 
estimate of wages, salaries, and supplemental payments for the self-
employed.

(2)  The change for recent quarters is based on the Consumer Price Index for 
all urban consumers (CPI-U).  The trend from 1978-2000 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances, 
interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the 
original data rather than index numbers.  Annual changes:  Percent 
change between annual average levels.

(6)  Unit nonlabor costs include 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 costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and 
capital consumption adjustments.
Appendix table 1. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I          111.3         114.2        102.6        108.4           99.2          97.4
            II          112.2         116.5        103.8        108.9           98.9          97.1
           III          113.3         118.0        104.1        109.6           98.9          96.7
            IV          114.2         119.1        104.3        110.3           98.8          96.5

        ANNUAL          112.8         117.0        103.7        109.3           99.0          96.9

  1997       I          115.2         121.1        105.1        110.3           98.3          95.8
            II          116.1         122.7        105.6        110.4           98.1          95.1
           III          118.9         125.1        105.3        111.5           98.7          93.8
            IV          120.3         127.4        105.9        113.4           99.8          94.3

        ANNUAL          117.6         124.1        105.5        111.4           98.8          94.7

  1998       I          121.9         129.0        105.8        115.4          101.4          94.7
            II          123.1         129.8        105.5        116.8          102.3          94.9
           III          125.2         130.8        104.5        118.0          103.0          94.3
            IV          125.9         132.0        104.8        119.0          103.4          94.5

        ANNUAL          124.0         130.4        105.2        117.3          102.6          94.6

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I            3.7           0.4         -3.2         -0.6           -3.6          -4.1
            II            3.1           8.1          4.9          1.9           -1.5          -1.1
           III            4.2           5.3          1.1          2.3            0.3          -1.8
            IV            3.3           3.9          0.6          2.7           -0.6          -0.5

        ANNUAL            3.5           3.1         -0.3          1.3           -1.4          -2.1

  1997       I            3.5           6.7          3.1          0.2           -2.1          -3.2
            II            3.2           5.5          2.2          0.3           -0.6          -2.8
           III            9.8           8.2         -1.4          4.0            2.2          -5.3
            IV            4.9           7.4          2.5          7.0            4.7           2.0

        ANNUAL            4.3           6.1          1.7          1.9           -0.2          -2.3

  1998       I            5.4           5.1         -0.3          7.2            6.4           1.7
            II            4.1           2.5         -1.5          4.9            3.6           0.8
           III            6.9           3.2         -3.5          4.4            2.9          -2.4
            IV            2.3           3.5          1.2          3.4            1.5           1.1

        ANNUAL            5.4           5.1         -0.3          5.3            3.8          -0.1

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I            3.6           1.1         -2.4          1.5           -1.0          -2.0
            II            3.3           3.2         -0.1          1.1           -1.5          -2.2
           III            3.4           3.9          0.4          1.1           -1.5          -2.3
            IV            3.5           4.4          0.8          1.6           -1.4          -1.9

        ANNUAL            3.5           3.1         -0.3          1.3           -1.4          -2.1

  1997       I            3.5           6.0          2.4          1.8           -1.0          -1.7
            II            3.5           5.3          1.8          1.3           -0.7          -2.1
           III            4.9           6.1          1.1          1.8           -0.3          -3.0
            IV            5.3           6.9          1.6          2.8            1.0          -2.3

        ANNUAL            4.3           6.1          1.7          1.9           -0.2          -2.3

  1998       I            5.8           6.6          0.7          4.6            3.2          -1.1
            II            6.0           5.8         -0.2          5.8            4.2          -0.2
           III            5.3           4.6         -0.7          5.9            4.4           0.5
            IV            4.7           3.6         -1.0          5.0            3.6           0.3

        ANNUAL            5.4           5.1         -0.3          5.3            3.8          -0.1

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
                                                                  Source: Bureau of Labor Statistics

Appendix table 2. Durable manufacturing sector: Revised productivity, hourly compensation, and
unit, labor costs seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I          116.3         122.7        105.6        106.9           97.8          91.9
            II          117.5         126.2        107.4        107.0           97.1          91.1
           III          118.8         128.1        107.8        107.5           97.0          90.5
            IV          119.9         129.4        108.0        108.0           96.7          90.1

        ANNUAL          118.1         126.6        107.2        107.3           97.2          90.9

  1997       I          120.5         132.0        109.5        107.8           96.0          89.4
            II          122.2         134.9        110.3        107.8           95.8          88.2
           III          125.7         138.6        110.3        108.9           96.3          86.6
            IV          128.2         142.3        111.0        111.0           97.7          86.6

        ANNUAL          124.2         137.0        110.3        108.9           96.5          87.7

  1998       I          130.7         145.6        111.4        112.8           99.1          86.3
            II          132.5         147.2        111.0        113.9           99.8          85.9
           III          136.1         149.9        110.2        115.1          100.4          84.5
            IV          137.9         152.7        110.8        116.3          101.1          84.4

        ANNUAL          134.3         148.8        110.8        114.5          100.1          85.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I            4.9           2.4         -2.3         -3.1           -6.0          -7.6
            II            4.2          11.9          7.4          0.6           -2.8          -3.5
           III            4.5           6.1          1.5          1.7           -0.3          -2.7
            IV            3.7           4.2          0.5          1.9           -1.4          -1.8

        ANNUAL            4.4           5.4          0.9         -0.2           -2.8          -4.4

  1997       I            2.3           8.2          5.8         -0.7           -3.0          -2.9
            II            5.7           9.0          3.1          0.2           -0.7          -5.2
           III           11.7          11.6         -0.2          3.9            2.2          -7.0
            IV            8.4          11.2          2.6          8.1            5.8          -0.3

        ANNUAL            5.1           8.2          2.9          1.4           -0.7          -3.5

  1998       I            8.0           9.4          1.3          6.5            5.7          -1.4
            II            5.6           4.4         -1.1          4.1            2.9          -1.5
           III           11.2           7.7         -3.1          4.1            2.6          -6.4
            IV            5.4           7.6          2.1          4.4            2.5          -0.9

        ANNUAL            8.1           8.7          0.5          5.2            3.7          -2.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I            4.1           2.9         -1.1          0.2           -2.4          -3.8
            II            4.5           6.0          1.4         -0.6           -3.2          -4.9
           III            4.5           6.4          1.8         -0.6           -3.1          -4.9
            IV            4.3           6.1          1.7          0.2           -2.6          -3.9

        ANNUAL            4.4           5.4          0.9         -0.2           -2.8          -4.4

  1997       I            3.7           7.6          3.7          0.8           -1.9          -2.7
            II            4.0           6.8          2.7          0.7           -1.3          -3.2
           III            5.8           8.2          2.3          1.3           -0.7          -4.3
            IV            7.0          10.0          2.8          2.8            1.0          -3.9

        ANNUAL            5.1           8.2          2.9          1.4           -0.7          -3.5

  1998       I            8.4          10.3          1.7          4.6            3.2          -3.5
            II            8.4           9.1          0.6          5.7            4.1          -2.6
           III            8.3           8.2         -0.1          5.7            4.2          -2.4
            IV            7.5           7.3         -0.2          4.8            3.4          -2.5

        ANNUAL            8.1           8.7          0.5          5.2            3.7          -2.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
                                                                  Source: Bureau of Labor Statistics

Appendix table 3. Nondurable manufacturing sector: Revised productivity, hourly compensation, and
unit, labor costs seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I          107.3         105.9         98.7        110.3          101.0         102.8
            II          108.0         106.9         99.0        111.3          101.0         103.1
           III          109.1         108.2         99.1        112.2          101.3         102.8
            IV          110.0         109.3         99.3        113.3          101.5         103.0

        ANNUAL          108.6         107.6         99.0        111.8          101.3         102.9

  1997       I          111.7         110.8         99.2        113.7          101.3         101.8
            II          112.0         111.3         99.4        113.8          101.1         101.6
           III          114.2         112.6         98.6        114.8          101.6         100.6
            IV          114.4         113.4         99.1        116.3          102.4         101.6

        ANNUAL          113.1         112.0         99.1        114.6          101.7         101.4

  1998       I          115.2         113.5         98.5        118.6          104.2         102.9
            II          115.9         113.6         98.0        120.3          105.4         103.9
           III          116.5         113.0         97.0        121.8          106.3         104.5
            IV          116.1         112.6         96.9        122.2          106.2         105.3

        ANNUAL          115.9         113.1         97.6        120.7          105.6         104.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I            2.6          -1.9         -4.4          3.4            0.2           0.8
            II            2.5           3.9          1.3          3.7            0.2           1.1
           III            4.3           4.8          0.5          3.2            1.2          -1.1
            IV            3.3           4.2          0.9          4.1            0.8           0.8

        ANNUAL            2.9           0.8         -2.1          3.6            0.8           0.7

  1997       I            6.3           5.6         -0.7          1.3           -1.0          -4.7
            II            0.9           1.8          0.9          0.3           -0.6          -0.6
           III            8.1           4.6         -3.2          3.8            2.0          -4.0
            IV            0.9           3.2          2.3          5.1            2.9           4.2

        ANNUAL            4.1           4.1          0.0          2.5            0.4          -1.5

  1998       I            2.8           0.1         -2.6          8.1            7.4           5.2
            II            2.3           0.3         -1.9          6.1            4.9           3.7
           III            2.1          -2.0         -4.1          4.8            3.3           2.7
            IV           -1.2          -1.4         -0.2          1.6           -0.3           2.8

        ANNUAL            2.5           1.0         -1.5          5.3            3.9           2.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I            3.3          -1.0         -4.1          3.6            0.9           0.3
            II            2.4           0.1         -2.3          3.5            0.8           1.1
           III            2.7           1.2         -1.5          3.6            0.9           0.9
            IV            3.2           2.7         -0.4          3.6            0.6           0.4

        ANNUAL            2.9           0.8         -2.1          3.6            0.8           0.7

  1997       I            4.1           4.6          0.5          3.0            0.3          -1.0
            II            3.7           4.1          0.4          2.2            0.1          -1.4
           III            4.6           4.0         -0.5          2.3            0.3          -2.2
            IV            4.0           3.8         -0.2          2.6            0.8          -1.4

        ANNUAL            4.1           4.1          0.0          2.5            0.4          -1.5

  1998       I            3.1           2.4         -0.7          4.3            2.9           1.1
            II            3.5           2.0         -1.4          5.8            4.3           2.2
           III            2.0           0.4         -1.6          6.0            4.6           4.0
            IV            1.5          -0.8         -2.2          5.1            3.8           3.6

        ANNUAL            2.5           1.0         -1.5          5.3            3.9           2.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 8, 2001
                                                                  Source: Bureau of Labor Statistics