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Media contact: (202) 691-5902 TUESDAY, DECEMBER 6, 2005. 

PRODUCTIVITY AND COSTS 

Third Quarter 2005, revised 

 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised 

productivity data—as measured by output per hour of all persons—for the third quarter of 2005. 

The seasonally adjusted annual rates of productivity growth in the third quarter were: 

 5.4 percent in the business sector and 

4.7 percent in the nonfarm business sector. 

In both sectors, changes in productivity are higher than the preliminary estimates published 

November 3, reflecting upward revisions to output. Movements in hours were unchanged in both 

sectors. 

 In manufacturing, revised productivity increases in the third quarter were: 

3.4 percent in manufacturing, 

6.5 percent in durable goods manufacturing, and 

 0.2 percent in nondurable goods manufacturing. 

Productivity grew more slowly in the manufacturing sector than was reported on Nov. 3. 

The third-quarter change in manufacturing output was revised down and the decrease in hours 

was less than reported last month. Output and hours in manufacturing, which includes about 13 

percent of U.S. business sector employment, tend to vary more from quarter to quarter than data 

for the aggregate business and nonfarm business sectors. Third-quarter measures are 

summarized in table A and appear in detail in tables 1 through 5. 

 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 (page 8). 
2 

Table A. Productivity and costs: Revised third-quarter 2005 measures 

(Seasonally adjusted annual rates) 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

 Percent change from preceding quarter 

Business 5.4 5.0 -0.4 4.2 -0.8 -1.1 

Nonfarm business 4.7 4.8 0.1 3.7 -1.4 -1.0 

Manufacturing 3.4 2.4 -1.0 3.1 -1.9 -0.3 

 Durable 6.5 6.9 0.3 2.6 -2.4 -3.6 

 Nondurable 0.2 -3.1 -3.3 3.8 -1.3 3.6 

 Percent change from same quarter a year ago 

Business 3.1 4.2 1.1 5.0 1.1 1.9 

Nonfarm business 3.1 4.4 1.2 5.0 1.2 1.8 

Manufacturing 4.5 3.0 -1.4 6.2 2.4 1.7 

 Durable 6.3 5.6 -0.7 5.6 1.8 -0.7 

 Nondurable 2.5 -0.2 -2.6 7.3 3.4 4.7 

Business 

 From the second quarter to the third quarter of 2005, business sector productivity rose at 

an annual rate of 5.4 percent, as output increased 5.0 percent and hours of all persons engaged in 

the sector dropped slightly, 0.4 percent (table 1). Output per hour had increased 0.8 percent in 

the second quarter. 

 Hourly compensation in the business sector increased 4.2 percent during the third quarter 

of 2005, following a decline of 0.1 percent in the second quarter (as revised). Hourly 

compensation includes wages and salaries, supplements, employer contributions to employee 

benefit plans, and taxes. Real hourly compensation, which takes into account changes in 

consumer prices, fell 0.8 percent in the third quarter and 4.0 percent in the second quarter. 

Unit labor costs fell 1.1 percent in the third quarter of 2005 following a decline of 0.9 

percent one quarter earlier. The implicit price deflator for the business sector, which reflects 

changes both in unit labor costs and in unit nonlabor payments, rose 2.8 percent in the third 

quarter of 2005. 

Nonfarm business 

 Output per hour of all persons in the nonfarm business sector increased 4.7 percent 

during the third quarter of 2005, reflecting increases in output and hours of 4.8 percent and 0.1 

percent, respectively (table 2). In the previous quarter, productivity in nonfarm businesses had 

risen 2.1 percent as output grew 4.4 percent and hours increased 2.2 percent. 
3 

 Hourly compensation grew 3.7 percent in the third quarter of 2005, following the 0.9-

percent rise in the second quarter (as revised). When the rise in consumer prices is taken into 

account, real hourly compensation declined 1.4 percent in the third quarter of 2005 and 3.1 

percent one quarter earlier. 

Unit labor costs fell 1.0 percent in the third quarter, similar to the previous quarter, when 

they dropped 1.2 percent. The implicit price deflator for nonfarm business increased 3.1 percent 

in the third quarter of 2005. 

Manufacturing 

 Productivity increased 3.4 percent in manufacturing in the third quarter of 2005, as output 

increased 2.4 percent and hours of all persons decreased 1.0 percent (seasonally adjusted annual 

rates). Productivity growth in manufacturing grew more slowly than in the second quarter of the 

year, when it rose 4.0 percent (as revised). In the second quarter of 2005, output rose 1.2 percent 

and hours of all persons dropped 2.6 percent. In durable goods industries, productivity increased 

6.5 percent in the third quarter, reflecting increases of 6.9 percent in output and 0.3 percent in 

hours. Productivity grew more slowly in the nondurable goods industries, 0.2 percent, as output 

declined 3.1 percent and hours fell 3.3 percent (tables 3, 4, and 5). Hours in nondurable goods 

manufacturing have fallen in every quarter beginning with the third quarter of 1999. 

 The hourly compensation of all manufacturing workers rose 3.1 percent in the third 

quarter of 2005. In durable goods manufacturing, hourly compensation increased 2.6 percent 

and in nondurable goods manufacturing it grew 3.8 percent. When the increase in consumer 

prices is taken into account, real hourly compensation for all manufacturing workers fell 1.9 

percent in the third quarter. 

 Unit labor costs in manufacturing declined 0.3 percent in the third quarter of 2005 and 

0.2 percent in the previous quarter. In durable goods manufacturing, unit labor costs declined 

3.6 percent in the third quarter while unit labor costs in nondurable goods manufacturing rose 3.6 

percent. 
4 

Nonfinancial Corporations 

Third-quarter 2005 measures of productivity and costs also were released for 

nonfinancial corporations (tables B and 6). Output per all-employee hour grew at a 3.2 percent 

annual rate, more slowly than the 4.3 percent increase in the previous quarter (as revised). 

Output increased 4.0 percent in the third quarter, and hours of all employees rose 0.8 percent 

(seasonally adjusted annual rates). The nonfinancial corporate 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: Third-quarter 2005 productivity and cost measures 

(Seasonally adjusted annual rates) 

Period 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator 

Percent change from preceding quarter 

2005 III 3.2 4.0 0.8 4.5 -0.6 1.3 -2.9 1.7 

Percent change from same quarter a year ago 

2005 III 4.7 6.0 1.3 5.4 1.5 0.7 13.3 1.6 

Hourly compensation in nonfinancial corporations increased 4.5 percent in the third 

quarter, up from the second quarter increase of 0.8 percent. When the rise in consumer prices is 

taken into account, real hourly compensation fell 0.6 percent in the third quarter. 

Unit labor costs for the sector rose 1.3 percent in third quarter 2005 after falling 3.4 

percent one quarter earlier. Unit nonlabor costs rose 5.5 percent, while unit profits dropped at a 

2.9 percent annual rate in the third quarter. As a result of these movements, the implicit price 

deflator for the output of nonfinancial corporations—which reflects a weighted average of these 

three measures—increased 1.7 percent. 
5 

Revised Measures 

Current and previous measures for the second and third quarters of 2005 for the business, 

nonfarm business, and manufacturing sectors are compared in table C. In the third quarter, 

productivity in the business and nonfarm business sectors was revised up 0.6 percentage point, 

reflecting similar upward revisions in the output measures. Unit labor costs in the business and 

nonfarm business sectors showed the same 0.5 percentage-point downward revision in the third 

quarter, reflecting the higher productivity figures. In manufacturing, a downward revision to 

output combined with an upward revision to hours to dampen the third-quarter productivity 

change to 3.4 percent. Hourly compensation in manufacturing was revised up slightly. The 

combination of a downward revision to productivity and an upward revision to hourly 

compensation made the decline in unit labor costs, 0.3 percent, much shallower than the 1.6-

percent drop reported on Nov. 3. 

Table C. Previous and revised productivity and related measures: 

Quarterly percent change at s as e onally adjusted annual rate 

Sector 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Third quarter 2005 

Business: 

 Previous........................ 4.8 4.3 -0.4 4.2 -0.9 -0.6 

 Revised......................... 5.4 5.0 -0.4 4.2 -0.8 -1.1 

Nonfarm business: 

 Previous........................ 4.1 4.2 0.1 3.6 -1.4 -0.5 

 Revised......................... 4.7 4.8 0.1 3.7 -1.4 -1.0 

Manufacturing: 

 Previous........................ 4.5 3.1 -1.4 2.9 -2.1 -1.6 

 Revised......................... 3.4 2.4 -1.0 3.1 -1.9 -0.3 

Second quarter 2005 

Business: 

 Previous........................ 0.8 4.0 3.1 3.0 -1.1 2.2 

 Revised......................... 0.8 4.0 3.1 -0.1 -4.0 -0.9 

Nonfarm business: 

 Previous........................ 2.1 4.4 2.2 4.0 -0.1 1.8 

 Revised......................... 2.1 4.4 2.2 0.9 -3.1 -1.2 

Manufacturing: 

 Previous........................ 3.6 0.9 -2.6 7.9 3.6 4.2 

 Revised......................... 4.0 1.2 -2.6 3.8 -0.4 -0.2 
6 

The second-quarter 2005 measures of hourly compensation, real hourly compensation, 

and unit labor costs were revised to reflect new information on compensation. In the business 

sector, hourly compensation now shows a slight decline in the second quarter of 0.1 percent, 

down substantially from the 3.0 percent increase previously reported. Unit labor costs were 

revised down by a similar amount and now reflect a 0.9 percent drop rather than a 2.2-percent 

increase. The downward revisions to hourly compensation and unit labor costs in nonfarm 

businesses were similar to those of the larger sector. In the second quarter of 2005, hourly 

compensation in nonfarm businesses rose 0.9 percent (revised down from 4.0 percent) and unit 

labor costs fell 1.2 percent (revised down from a 1.8-percent increase). 

In manufacturing, hourly compensation also rose more slowly, 3.8 percent, than reported 

on Nov. 3. Real hourly compensation dropped 0.4 percent rather than rising, after revision. 

Manufacturing output and productivity also were revised to incorporate historical revisions and 

new seasonal factors in the Index of Industrial Production (IIP) released on November 7. 

(http://www.federalreserve.gov/releases/G17/revisions/current/g17rev.pdf) As a result of these 

revisions, productivity in the second quarter of 2005 rose more rapidly, 4.0 percent, than 

previously reported. As a result of the upward revision to productivity and a downward revision 

to hourly compensation, manufacturing unit labor costs, which had been reported as rising at a 

4.2 percent annual rate, actually fell slightly, 0.2 percent. Appendix tables 1-3 show revised 

quarterly manufacturing measures for 2000-2002. In the manufacturing sector, annual indexes 

for 1987-2001 are unchanged. Quarterly measures for all years may have been affected by the 

historical revisions and rebasing of the IIP. 

Revised measures: Nonfinancial corporations 

 Measures for the nonfinancial corporate sector also were revised to reflect updated 

information on output and employee compensation during the second quarter of 2005 (table D). 

With hours unchanged, productivity was revised down along with output. Hourly compensation 

also was revised down, from 3.7 to 0.8 percent. Since hourly compensation was revised down 

more than productivity, unit labor costs show more of a decline, 3.4 percent, than previously 

reported on Nov. 3. 

Table D. Nonfinancial corporations: Previous and revised productivity and cost measures 

Quarterly percent c anges at e h s asonally adjusted annual rates 

Productivity Output Hours 

Hourly 

compensation 

Real 

hourly 

compensation 

Unit 

labor 

costs 

Unit 

profits 

Implicit 

price 

deflator

Second quarter 2005 

Previous 6.3 9.0 2.6 3.7 -0.5 -2.4 41.7 1.4 

Revised 4.3 7.1 2.6 0.8 -3.2 -3.4 44.3 1.4 
7 

The index numbers and rates of change reported by BLS for productivity and costs in its news 

release are rounded to one decimal place. Effective with the release of today's data, all percent 

changes in this release and on the BLS web site are calculated using index numbers to three 

decimal places. These index numbers are available at the BLS web site, 

http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector 

Productivity. (Telephone 202—691-5606 or email DPRWEB@BLS.GOV) 

Previously, the percent changes were calculated using the data underlying the index numbers 

rather than the index numbers themselves. The change in calculation method may cause 

published productivity growth rates to change slightly—likely by no more than a tenth—from 

the rates that were calculated using the earlier method. The convention of publishing in the news 

release index values rounded to one decimal place will continue. 

Next release date 

The next release of Productivity and Costs is scheduled for 8:30 AM EST, Thursday, 

February 2, 2006. Preliminary fourth-quarter and annual 2005 measures will be released at that 

time. 

 Scheduled release dates for productivity and costs measures for major sectors of the U.S. 

economy in 2006 are: 

Reference period 2006 release date

2005:

Fourth quarter, Annual February 2 

Fourth quarter, Annual (revised) March 7 

2006:

First quarter May 4 

First quarter (revised) June 1 

Second quarter August 8 

Second quarter (revised) September 6 

Third quarter November 2 

Third quarter (revised) December 5 

 These dates are based on presently available schedules for the release of underlying 

source data in 2006. Each issue of Productivity and Costs contains a "Next release date"

paragraph that readers should use to confirm the dates above. 
8 

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. Weekly paid hours are adjusted to 

hours at work using data from the National 

Compensation Survey (NCS). The BLS Hours at 

Work survey, conducted for this purpose, was used 

for years prior to 2001. The Office of Productivity 

and Technology estimates average weekly hours at 

work for nonproduction and supervisory workers 

using information from the Current Population 

Survey (CPS), the CES, and the NCS. 

Data from the CPS are used for farm labor, 

nonfarm proprietors, and nonfarm unpaid family 

workers. Estimates of labor input for government 

enterprises are derived from the CPS, the CES, and 

the National Income and Product Accounts (NIPA) 

prepared by the Bureau of Economic Analysis 

(BEA) of the Department of Commerce. 

Output: Business sector output is an annualweighted index constructed after excluding from 

gross domestic product (GDP) the following 

outputs: general government, nonprofit institutions, and private households (including owneroccupied housing). Corresponding exclusions also 

are made in labor inputs. Business output 

accounted for about 78 percent of the value of 

GDP in 2000. Nonfarm business, which also 

excludes farming, accounted for about 77 percent 

of GDP in 2000. 

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 3-digit NAICS industries: wood product 

manufacturing; nonmetallic mineral product 

manufacturing; primary metal manufacturing; 

fabricated metal product manufacturing; 

machinery manufacturing; computer and electronic 

product manufacturing; electrical equipment and 

appliance manufacturing; transportation equipment 

manufacturing; furniture and related product 

manufacturing; and miscellaneous manufacturing. 

Nondurables include: food manufacturing; 

beverage and tobacco product manufacturing; 

textile mills; textile product mills; apparel 

manufacturing; leather and allied product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal products manufacturing; chemical manufacturing; and 

plastics and rubber products manufacturing. 

Nonfinancial corporate output is an annualweighted index calculated on the basis of the costs 

incurred and the incomes earned from production. 

The output measure excludes the following outputs 

from GDP: general government; nonprofit 

institutions; private households; unincorporated 

business; and those corporations classified as 

offices of bank holding companies, offices of other 

holding companies, or offices in the finance and 

insurance sector. Nonfinancial corporations 

accounted for about 54 percent of the value of 

GDP in 2000. 

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: 202-691-5606; Federal 

Relay Service number: 1-800-877-8339. 
9 

 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 

 2003 I 125.6 144.6 115.2 147.8 115.5 117.7 116.4 117.2 

 II 127.9 146.4 114.5 150.3 117.3 117.5 117.2 117.4 

 III 130.5 149.8 114.8 152.0 118.0 116.4 120.3 117.9 

 IV 130.6 150.8 115.5 152.8 118.4 117.0 120.5 118.3 

 ANNUAL 128.6 147.9 115.0 150.7 117.3 117.2 118.6 117.7 

 2004 I 131.7 152.6 115.9 154.4 118.5 117.3 123.0 119.4 

 II 132.8 154.1 116.1 155.7 118.2 117.2 126.1 120.5 

 III 133.3 155.8 116.9 158.2 119.6 118.7 124.2 120.7 

 IV 134.3 157.2 117.1 162.5 121.8 121.0 122.3 121.5 

 ANNUAL 133.0 154.9 116.5 157.7 119.5 118.6 123.9 120.6 

 2005 I 135.3 158.9 117.5 164.4 122.5 121.5 123.6 122.3 

 II 135.5 160.4 118.4 r164.3 r121.2 r121.2 r126.2 123.1 

 III r137.3 r162.4 r118.3 r166.0 r121.0 r120.9 r129.1 r123.9 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I 2.8 1.7 -1.1 5.5 1.3 2.6 0.5 1.8 

 II 7.6 4.9 -2.6 7.0 6.5 -0.6 2.8 0.6 

 III 8.4 9.9 1.3 4.5 2.3 -3.6 10.7 r1.6 

 IV 0.3 2.6 2.3 2.3 1.4 2.1 0.9 1.6 

 ANNUAL 3.9 3.4 -0.5 3.9 1.6 0.0 3.7 1.4 

 2004 I 3.4 4.9 1.5 4.2 0.3 0.8 8.6 3.7 

 II 3.4 4.0 0.6 3.3 -1.0 -0.1 10.3 3.8 

 III 1.4 4.4 3.0 6.5 4.8 5.0 r-5.9 0.7 

 IV 3.1 3.6 0.5 11.3 7.5 7.9 -6.0 2.4 

 ANNUAL 3.4 4.8 1.3 4.6 1.9 1.2 4.4 2.4 

 2005 I 2.9 4.4 1.4 4.7 2.3 1.7 4.4 2.7 

 II 0.8 4.0 3.1 r-0.1 r-4.0 r-0.9 r8.7 2.6 

 III r5.4 r5.0 -0.4 4.2 r-0.8 r-1.1 r9.4 r2.8 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I 2.4 2.0 -0.4 3.0 0.1 0.6 2.7 1.4 

 II 3.8 2.6 -1.1 3.6 1.4 -0.2 3.9 1.3 

 III 4.7 4.2 -0.5 4.3 2.0 -0.4 4.6 1.4 

 IV 4.7 4.7 0.0 4.8 2.9 0.1 3.7 1.4 

 ANNUAL 3.9 3.4 -0.5 3.9 1.6 0.0 3.7 1.4 

 2004 I 4.9 5.5 0.6 4.5 2.6 -0.4 5.7 1.9 

 II 3.8 5.3 1.4 3.6 0.8 -0.2 7.6 2.7 

 III 2.1 4.0 1.8 4.1 1.4 1.9 3.3 2.4 

 IV 2.8 4.2 1.4 6.3 2.8 3.4 1.5 2.6 

 ANNUAL 3.4 4.8 1.3 4.6 1.9 1.2 4.4 2.4 

 2005 I 2.7 4.1 1.3 6.4 3.3 3.6 0.5 2.4 

 II 2.1 4.1 2.0 r5.5 r2.5 r3.4 r0.1 2.1 

 III r3.1 r4.2 1.1 r5.0 r1.1 r1.9 r3.9 2.7 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. Dec. 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
10 

 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 

 2003 I 124.9 144.8 115.9 147.0 114.9 117.7 118.2 117.9 

 II 126.9 146.5 115.4 149.3 116.5 117.6 118.7 118.0 

 III 129.9 150.2 115.6 151.2 117.4 116.4 121.6 118.3 

 IV 130.1 151.2 116.2 152.2 117.9 116.9 121.3 118.6 

 ANNUAL 128.0 148.2 115.8 149.9 116.7 117.1 120.0 118.2 

 2004 I 130.8 152.8 116.8 153.5 117.8 117.3 123.5 119.6 

 II 132.2 154.5 116.8 154.9 117.6 117.1 126.5 120.6 

 III 132.7 156.3 117.8 157.2 118.8 118.5 125.3 121.0 

 IV 133.5 157.7 118.2 161.0 120.7 120.7 123.7 121.8 

 ANNUAL 132.3 155.3 117.4 156.7 118.7 118.4 124.7 120.7 

 2005 I 134.5 159.4 118.5 163.2 121.6 121.3 125.0 122.7 

 II 135.3 161.2 119.2 r163.6 r120.6 r120.9 r127.9 123.5 

 III r136.8 r163.1 119.2 r165.0 r120.2 r120.6 r130.9 r124.4 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I 3.1 2.0 -1.1 5.8 1.5 2.6 0.8 1.9 

 II 6.6 4.7 -1.8 6.2 5.8 -0.3 1.7 0.4 

 III 9.6 10.4 0.8 5.1 2.9 -4.1 10.2 1.0 

 IV 0.8 2.8 2.0 2.7 1.8 2.0 -1.1 0.8 

 ANNUAL 3.8 3.3 -0.5 4.0 1.6 0.2 3.2 1.3 

 2004 I 2.1 4.2 2.0 3.5 -0.5 1.3 7.4 3.6 

 II 4.5 4.6 0.1 3.7 -0.7 -0.8 10.0 3.2 

 III 1.3 4.6 3.3 6.1 4.4 r4.8 -3.6 1.5 

 IV 2.5 3.9 1.4 10.2 6.4 7.6 -5.1 2.6 

 ANNUAL 3.4 4.8 1.4 4.5 1.8 1.1 3.9 2.1 

 2005 I 3.2 4.3 1.1 5.5 3.1 2.2 4.4 3.0 

 II 2.1 4.4 2.2 r0.9 r-3.1 r-1.2 r9.4 2.7 

 III r4.7 r4.8 0.1 r3.7 -1.4 r-1.0 r10.0 r3.1 

 --------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I 2.0 1.7 r-0.3 3.0 0.1 1.0 2.7 1.6 

 II 3.5 2.5 -0.9 3.5 1.3 0.1 3.2 1.2 

 III 4.8 4.2 -0.5 4.4 2.1 -0.4 4.1 1.2 

 IV 5.0 4.9 0.0 5.0 3.0 0.0 2.8 1.0 

 ANNUAL 3.8 3.3 -0.5 4.0 1.6 0.2 3.2 1.3 

 2004 I 4.7 5.5 0.7 4.4 2.5 -0.3 4.5 1.5 

 II 4.2 5.5 1.2 3.7 0.9 -0.4 6.5 2.1 

 III 2.2 4.0 1.9 4.0 1.2 1.8 3.0 2.3 

 IV 2.6 4.3 1.7 5.8 2.4 3.2 1.9 2.7 

 ANNUAL 3.4 4.8 1.4 4.5 1.8 1.1 3.9 2.1 

 2005 I 2.9 4.4 1.5 6.3 3.3 3.4 1.2 2.6 

 II 2.3 4.3 2.0 r5.6 r2.6 r3.3 r1.1 2.4 

 III r3.1 r4.4 1.2 r5.0 r1.2 r1.8 r4.5 r2.8 

 --------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. Dec. 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
11 

 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 

 2003 I r153.1 r133.1 86.9 156.5 122.3 r102.2 

 II r154.8 r132.3 85.5 159.2 124.3 r102.8 

 III r158.7 r133.6 84.2 161.5 125.4 r101.8 

 IV r159.8 r135.7 84.9 163.2 126.5 r102.1 

 ANNUAL r156.6 r133.7 85.4 160.1 124.6 r102.2 

 2004 I r161.2 r137.6 85.4 159.1 122.1 r98.7 

 II r164.4 r139.8 85.1 161.1 122.3 r98.0 

 III r166.2 r141.2 85.0 164.9 124.7 r99.2 

 IV r168.5 r142.7 84.7 169.3 126.9 r100.5 

 

 ANNUAL r165.1 r140.4 85.0 163.6 124.0 r99.1 

 2005 I r170.5 r144.2 84.6 172.2 128.3 r101.0 

 II r172.2 r144.7 84.0 r173.8 r128.2 r101.0 

 III r173.7 r145.5 r83.8 r175.2 r127.6 r100.9 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I r7.0 r0.3 -6.3 17.9 13.1 r10.2 

 II r4.3 r-2.4 -6.5 6.9 6.5 r2.5 

 III r10.4 r3.9 -5.9 5.9 3.7 r-4.0 

 IV r3.0 r6.4 3.3 4.3 3.4 r1.3 

 ANNUAL r5.9 r0.7 -4.9 8.3 r5.8 r2.2 

 2004 I r3.4 r5.9 2.4 -9.7 -13.1 r-12.7 

 II r8.3 r6.6 -1.6 5.1 0.7 r-3.0 

 III 4.4 r4.1 -0.3 9.8 8.0 r5.1 

 IV r5.7 r4.3 -1.3 11.2 7.4 r5.2 

 ANNUAL r5.4 r5.0 -0.4 2.2 -0.5 r-3.1 

 2005 I r4.9 r4.2 -0.7 7.1 4.6 r2.1 

 II r4.0 r1.2 -2.6 r3.8 r-0.4 r-0.2 

 III r3.4 r2.4 r-1.0 r3.1 r-1.9 r-0.3 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I r6.1 r1.6 -4.2 8.2 5.2 r2.0 

 II r5.2 r-0.5 -5.4 7.8 5.5 r2.5 

 III r6.3 r-0.1 -6.0 8.4 6.0 r2.0 

 IV r6.1 r2.0 -3.9 8.7 6.6 r2.4 

 ANNUAL r5.9 r0.7 -4.9 8.3 r5.8 r2.2 

 2004 I r5.2 r3.4 -1.8 1.6 -0.2 r-3.4 

 II r6.2 r5.7 -0.5 1.2 -1.6 -4.7 

 III r4.7 r5.7 0.9 2.1 -0.6 r-2.5 

 IV r5.4 r5.2 -0.2 3.7 0.3 r-1.6 

 ANNUAL r5.4 r5.0 -0.4 2.2 -0.5 r-3.1 

 2005 I r5.8 r4.8 -1.0 8.3 5.1 r2.3 

 II r4.7 r3.4 -1.2 r7.9 r4.8 r3.0 

 III r4.5 r3.0 r-1.4 r6.2 r2.4 r1.7 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
12 

 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 

 2003 I r174.1 r157.0 90.1 154.9 121.1 r89.0 

 II r176.4 r156.3 88.6 157.7 123.1 r89.4 

 III r182.8 r159.3 87.1 160.1 124.3 r87.6 

 IV r184.5 r162.9 88.3 161.9 125.5 r87.8 

 ANNUAL r179.4 r158.9 88.5 158.6 123.5 r88.4 

 2004 I r186.3 r166.3 89.3 155.5 119.4 r83.5 

 II r190.2 r169.1 88.9 158.2 120.1 r83.2 

 III r192.7 r172.0 89.2 162.1 122.6 r84.1 

 IV r196.1 r174.5 89.0 166.0 124.4 r84.6 

 ANNUAL r191.3 r170.5 89.1 160.4 121.6 r83.9 

 2005 I r199.6 r177.4 88.9 169.0 125.9 r84.7 

 II r201.8 r178.6 88.5 r170.1 r125.5 r84.3 

 III r205.0 r181.5 r88.6 r171.2 r124.7 r83.5 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I r7.6 r0.7 -6.4 22.2 17.2 r13.6 

 II r5.4 r-1.8 -6.9 7.3 6.9 r1.8 

 III r15.2 r8.0 -6.3 6.2 3.9 r-7.8 

 IV r3.7 r9.5 r5.6 4.7 3.8 r1.0 

 ANNUAL r8.0 r2.3 -5.3 9.3 6.9 r1.3 

 2004 I r4.0 r8.5 4.3 -14.9 -18.1 r-18.1 

 II r8.7 r7.0 -1.5 6.9 r2.4 r-1.6 

 III r5.5 r6.9 1.3 10.3 8.5 r4.6 

 IV r7.3 r6.1 -1.1 9.9 6.1 r2.5 

 ANNUAL r6.6 r7.3 0.6 1.1 -1.5 r-5.2 

 2005 I r7.3 r6.8 -0.5 7.5 5.1 r0.2 

 II r4.3 r2.6 -1.7 r2.6 r-1.5 r-1.6 

 III r6.5 r6.9 r0.3 r2.6 r-2.4 r-3.6 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I r8.0 r2.9 -4.7 9.1 6.0 r1.0 

 II r7.2 r0.6 -6.1 8.7 6.4 r1.4 

 III r8.8 r1.6 -6.7 9.6 7.3 r0.7 

 IV r7.9 r4.0 -3.6 9.9 7.8 r1.9 

 ANNUAL r8.0 r2.3 -5.3 9.3 6.9 r1.3 

 2004 I r7.0 r5.9 -1.0 0.4 -1.4 r-6.1 

 II 7.8 r8.2 0.4 0.3 -2.5 -6.9 

 III r5.4 r8.0 2.4 1.3 -1.4 r-3.9 

 IV r6.3 r7.1 0.7 2.5 -0.9 r-3.6 

 ANNUAL r6.6 r7.3 0.6 1.1 -1.5 r-5.2 

 2005 I r7.2 r6.7 -0.5 8.7 5.5 r1.4 

 II r6.1 r5.6 -0.5 r7.5 r4.5 r1.4 

 III r6.3 r5.6 r-0.7 r5.6 r1.8 r-0.7 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
13 

 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 

 2003 I r131.8 r108.3 82.1 158.0 123.5 r119.9 

 II r132.7 r107.4 80.9 160.5 125.3 r120.9 

 III r134.2 r107.1 79.8 162.7 126.3 r121.2 

 IV r135.2 r107.8 79.7 163.9 127.0 r121.2 

 ANNUAL r133.5 r107.7 80.6 161.2 125.5 r120.8 

 2004 I r136.4 r108.5 79.6 164.1 125.9 r120.3 

 II r139.0 r110.1 79.3 164.7 125.1 r118.5 

 III r140.3 r110.3 78.7 168.1 127.1 r119.8 

 IV r141.5 r110.9 78.3 173.5 130.1 r122.6 

 ANNUAL r139.3 r110.0 79.0 167.6 127.0 r120.3 

 2005 I r142.3 r111.1 78.1 176.1 131.3 r123.8 

 II r143.7 r111.0 77.3 r178.7 r131.8 r124.4 

 III r143.7 r110.1 r76.6 r180.3 r131.4 r125.5 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I r6.2 r-0.2 -6.0 10.3 5.9 r3.9 

 II r2.9 r-3.2 -5.9 6.3 5.9 r3.3 

 III r4.6 r-0.8 -5.2 5.6 3.4 r1.0 

 IV r3.0 r2.6 -0.4 3.0 2.1 r0.0 

 ANNUAL r3.2 r-1.1 -4.2 6.4 4.0 r3.0 

 2004 I r3.4 r2.6 -0.8 0.5 -3.3 r-2.8 

 II r7.8 r6.0 -1.7 1.7 -2.6 r-5.7 

 III r3.8 r0.7 -3.0 8.4 6.6 r4.4 

 IV r3.7 r2.0 r-1.6 13.7 9.7 r9.6 

 ANNUAL 4.3 2.2 -2.1 3.9 1.2 -0.4 

 2005 I r2.0 r0.9 -1.1 6.1 3.7 r4.1 

 II r4.0 r-0.4 -4.3 r5.8 r1.6 r1.7 

 III r0.2 r-3.1 r-3.3 r3.8 r-1.3 r3.6 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I r3.4 r-0.1 -3.4 6.7 3.7 r3.1 

 II r2.6 r-1.9 -4.3 6.4 4.1 r3.7 

 III r2.8 r-2.1 -4.8 6.2 3.9 r3.3 

 IV 4.2 -0.4 -4.4 6.3 4.3 2.0 

 ANNUAL r3.2 r-1.1 -4.2 6.4 4.0 r3.0 

 2004 I r3.5 r0.3 -3.1 3.8 2.0 r0.3 

 II r4.7 r2.6 -2.0 2.7 -0.2 r-1.9 

 III 4.5 3.0 -1.5 3.3 0.6 -1.1 

 IV r4.7 r2.8 -1.8 5.9 2.4 r1.2 

 ANNUAL 4.3 2.2 -2.1 3.9 1.2 -0.4 

 2005 I r4.3 r2.4 -1.8 7.4 4.3 r2.9 

 II r3.4 r0.8 -2.5 r8.5 r5.4 r4.9 

 III r2.5 r-0.2 r-2.6 r7.3 r3.4 r4.7 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
14 

 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 

 2003 I 130.4 152.3 116.8 144.6 113.0 110.9 111.4 111.0 107.8 110.7 

 II 132.7 154.3 116.3 147.0 114.8 110.8 110.5 110.7 113.7 111.0 

 III 135.1 156.9 116.2 148.9 115.6 110.2 110.9 110.4 119.9 111.3 

 IV 135.9 158.7 116.8 149.8 116.0 110.2 110.8 110.4 124.8 111.7 

 ANNUAL 133.5 155.6 116.5 147.6 114.8 110.5 110.9 110.6 116.7 111.2 

 2004 I 136.1 160.0 117.5 150.3 115.4 110.4 111.4 110.7 130.2 112.4 

 II 136.9 161.3 117.8 151.7 115.2 110.8 111.5 111.0 138.6 113.4 

 III 139.4 165.0 118.4 154.0 116.5 110.5 110.3 110.5 139.7 113.1 

 IV 142.3 169.0 118.8 158.0 118.4 111.0 108.8 110.5 143.1 113.4 

 ANNUAL 138.7 163.8 118.1 153.5 116.4 110.7 110.5 110.6 138.0 113.1 

 2005 I 143.2 170.3 118.9 160.3 119.4 111.9 108.2 110.9 145.6 114.0 

 II r144.8 r173.3 119.7 r160.6 r118.4 r110.9 r107.3 110.0 r159.5 114.4 

 III 145.9 175.0 119.9 162.4 118.3 111.3 108.8 110.6 158.4 114.9 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2003 I 1.1 -1.8 -2.8 3.9 -0.3 2.9 6.7 3.9 -11.6 2.4 

 II 7.3 5.5 -1.7 6.9 6.4 -0.4 -3.1 -1.1 23.8 0.9 

 III 7.3 6.9 -0.3 5.2 2.9 -1.9 1.3 -1.1 23.9 1.0 

 IV 2.4 4.5 2.1 2.4 1.5 0.0 -0.3 -0.1 17.2 1.5 

 ANNUAL 4.1 2.7 -1.4 3.9 1.6 -0.2 0.1 -0.1 19.0 1.4 

 2004 I 0.8 3.4 2.6 1.5 -2.3 0.7 2.1 1.1 18.6 2.7 

 II 2.3 3.3 1.0 3.7 -0.7 1.3 0.3 1.1 28.2 3.7 

 III 7.4 9.4 1.9 6.3 4.6 -1.0 -4.2 -1.9 3.4 -1.3 

 IV 8.5 9.9 1.3 10.6 6.8 1.9 -5.2 0.0 10.0 1.1 

 ANNUAL 3.9 5.3 1.4 4.0 1.3 0.2 -0.4 0.0 18.3 1.7 

 2005 I 2.7 3.3 0.5 5.9 3.5 3.1 -2.5 1.6 7.1 2.2 

 II r4.3 r7.1 2.6 r0.8 r-3.2 r-3.4 r-3.1 r-3.3 r44.3 1.4 

 III 3.2 4.0 0.8 4.5 -0.6 1.3 5.5 2.4 -2.9 1.7 

 ---------------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2003 I 3.5 2.0 -1.5 3.2 0.3 -0.3 -1.4 -0.6 25.6 1.2 

 II 3.8 2.0 -1.8 3.6 1.4 r-0.2 -0.1 -0.1 20.4 1.4 

 III 4.6 3.1 -1.5 4.3 2.1 -0.3 0.8 0.0 19.6 1.6 

 IV 4.5 3.7 -0.7 4.6 2.6 0.1 1.1 0.4 12.3 1.5 

 ANNUAL 4.1 2.7 -1.4 3.9 1.6 -0.2 0.1 -0.1 19.0 1.4 

 2004 I 4.4 5.1 0.7 4.0 2.1 -0.4 0.0 -0.3 20.8 1.5 

 II 3.2 4.6 1.3 3.2 0.3 0.0 0.8 0.2 21.9 2.2 

 III 3.2 5.2 1.9 3.5 0.7 0.3 -0.6 0.0 16.5 1.6 

 IV 4.7 6.5 1.7 5.5 2.0 0.7 -1.8 0.1 14.7 1.5 

 ANNUAL 3.9 5.3 1.4 4.0 1.3 0.2 -0.4 0.0 18.3 1.7 

 2005 I 5.2 6.4 1.2 6.6 3.5 1.3 -2.9 0.2 11.8 1.4 

 II r5.7 r7.4 1.6 r5.9 r2.8 r0.1 r-3.7 -0.9 r15.1 0.8 

 III 4.7 6.0 1.3 5.4 1.5 0.7 -1.4 0.1 13.3 1.6 

 ---------------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
15 

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 –1.4 and +1.4 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 second quarter of 2005. 

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 selfemployed, 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 1978-2004 is based on the Consumer Price Index research 

series (CPI-U-RS). 

(3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production 

and imports less subsidies, net interest and miscellaneous payments, business current 

transfer payments, rental income of persons, and the current surplus of government 

enterprises. 

(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 consumption of fixed capital, taxes on production and imports 

less subsidies, net interest and miscellaneous payments, and business current transfer 

payments. 

(7) Total unit costs are the sum of unit labor and nonlabor costs. 

(8) Unit profits include corporate profits before tax with inventory valuation and capital 

consumption adjustments. 
16 

 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 

 2000 I r132.9 r138.3 104.1 133.2 112.1 r100.3 

 II r134.1 r139.6 104.1 132.5 110.7 r98.8 

 III r133.8 r138.9 103.8 135.9 112.4 r101.5 

 IV r135.1 r137.8 102.0 136.7 112.3 r101.2 

 ANNUAL 134.1 138.6 103.4 134.7 112.0 100.5 

 2001 I r134.8 r135.1 100.2 138.1 112.4 r102.5 

 II r135.9 r133.2 98.0 137.3 110.9 r101.0 

 III r136.9 r131.2 95.8 137.0 110.4 r100.1 

 IV r140.4 r129.8 92.5 139.0 112.2 r99.0 

 ANNUAL 136.9 132.3 96.6 137.8 111.5 100.7 

 2002 I 144.4 r131.0 90.8 144.7 116.3 100.2 

 II r147.1 r133.0 90.4 147.6 117.7 r100.4 

 III r149.3 r133.7 89.6 149.0 118.3 r99.8 

 IV r150.6 r133.0 88.4 150.2 118.6 r99.8 

 ANNUAL r147.8 r132.7 89.8 147.9 117.7 r100.0 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2000 I r6.6 r4.6 -1.9 21.8 17.3 r14.3 

 II r3.7 r3.8 0.0 -2.1 -5.1 r-5.6 

 III r-0.8 r-2.1 -1.4 10.6 6.6 r11.4 

 IV r3.8 r-3.1 -6.7 2.4 -0.4 r-1.3 

 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 

 2001 I r-0.8 r-7.5 -6.7 4.3 0.4 r5.1 

 II r3.4 r-5.4 -8.5 -2.4 -5.4 r-5.5 

 III r2.8 r-6.1 -8.6 -0.9 -1.7 r-3.6 

 IV r10.6 r-4.1 -13.3 5.9 6.5 r-4.3 

 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 

 2002 I r11.9 r3.9 -7.2 17.4 15.7 r4.9 

 II r7.7 r6.0 r-1.5 8.4 5.0 r0.7 

 III r6.2 r2.2 r-3.8 4.0 1.8 r-2.1 

 IV r3.5 r-2.0 -5.3 3.2 1.1 r-0.3 

 ANNUAL r7.9 r0.3 -7.1 7.3 5.6 r-0.6 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2000 I r4.8 r4.0 -0.8 9.8 6.4 r4.8 

 II r5.3 r4.3 -0.9 8.5 5.1 r3.1 

 III 5.1 3.3 -1.7 10.0 6.4 4.7 

 IV r3.3 r0.7 -2.5 7.8 4.2 r4.4 

 ANNUAL 4.7 3.0 -1.6 9.2 5.6 4.2 

 2001 I 1.5 -2.3 -3.7 3.7 0.3 2.2 

 II r1.4 r-4.6 -5.9 3.6 0.2 r2.2 

 III 2.3 -5.5 -7.6 0.8 -1.8 -1.4 

 IV r3.9 r-5.8 -9.3 1.7 -0.1 r-2.2 

 ANNUAL 2.1 -4.6 -6.5 2.3 -0.5 0.2 

 2002 I r7.1 r-3.0 -9.4 4.7 3.5 r-2.2 

 II r8.2 r-0.2 -7.8 7.5 6.2 r-0.6 

 III r9.1 r1.9 -6.6 8.8 7.1 r-0.3 

 IV r7.3 r2.5 -4.5 8.1 5.7 r0.8 

 ANNUAL r7.9 r0.3 -7.1 7.3 5.6 r-0.6 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
17 

 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 

 2000 I r149.7 r165.0 110.2 133.4 112.3 r89.1 

 II r151.0 r167.0 110.7 131.9 110.1 r87.3 

 III r150.9 r166.3 110.2 135.7 112.3 89.9 

 IV r151.4 r164.5 108.6 135.4 111.3 r89.4 

 ANNUAL 150.9 165.7 109.8 134.2 111.6 89.0 

 2001 I r150.8 r160.7 106.5 136.4 111.0 r90.4 

 II r151.9 r157.9 103.9 135.8 r109.7 r89.4 

 III r153.1 r154.2 100.7 135.6 109.3 r88.5 

 IV r156.2 r150.9 r96.6 137.9 111.3 r88.3 

 ANNUAL 153.0 155.9 101.9 136.4 110.3 89.2 

 2002 I r161.2 r152.5 94.6 142.0 114.2 88.1 

 II 164.6 155.3 94.3 145.0 115.7 r88.1 

 III r167.9 r156.8 93.4 146.0 115.9 r86.9 

 IV r171.0 r156.7 r91.7 147.4 116.4 r86.2 

 ANNUAL r166.2 155.3 93.5 145.1 115.5 87.3 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2000 I r10.8 r8.9 -1.7 25.0 20.3 r12.8 

 II r3.4 r5.1 1.6 -4.5 -7.5 r-7.7 

 III r-0.1 r-1.7 -1.6 12.1 8.1 r12.2 

 IV r1.4 r-4.3 -5.6 -0.7 -3.5 r-2.0 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I r-1.6 r-9.1 -7.6 2.7 -1.1 r4.3 

 II r2.9 r-6.8 -9.4 -1.7 -4.7 r-4.5 

 III r3.2 r-9.0 -11.8 -0.6 -1.4 r-3.6 

 IV r8.3 r-8.1 -15.2 7.1 7.7 r-1.1 

 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I r13.4 r4.2 -8.1 12.4 10.7 -0.9 

 II r8.8 r7.7 -1.0 8.9 5.4 r0.0 

 III r8.3 r3.9 -4.0 2.8 0.7 r-5.1 

 IV r7.4 r-0.3 -7.2 3.7 1.6 r-3.5 

 ANNUAL 8.6 -0.4 -8.3 6.4 4.7 -2.1 

 -------------------------------------------------------------------------------------------------- 

 Percent change from corresponding quarter of previous year 

 2000 I 5.9 r6.1 0.2 11.2 7.7 5.0 

 II r5.6 r6.1 0.6 8.9 5.5 r3.2 

 III r5.5 r4.3 -1.2 10.9 7.2 r5.0 

 IV r3.8 r1.9 -1.8 7.4 3.8 r3.4 

 ANNUAL 5.3 4.6 -0.7 9.7 6.1 4.2 

 2001 I r0.8 r-2.6 -3.4 2.2 -1.1 r1.4 

 II r0.6 r-5.5 -6.1 3.0 -0.4 r2.3 

 III r1.5 r-7.3 -8.7 -0.1 -2.7 r-1.5 

 IV r3.2 r-8.3 -11.1 1.8 0.0 r-1.3 

 ANNUAL 1.4 -5.9 -7.2 1.6 -1.2 0.2 

 2002 I r6.9 r-5.1 -11.2 4.1 2.9 r-2.6 

 II r8.4 r-1.6 -9.2 6.8 5.5 r-1.4 

 III r9.7 r1.7 -7.2 7.7 6.1 r-1.8 

 IV r9.5 r3.8 -5.1 6.9 4.5 r-2.4 

 ANNUAL 8.6 -0.4 -8.3 6.4 4.7 -2.1 

 -------------------------------------------------------------------------------------------------- 

 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics 
18 

 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 

 2000 I r117.2 r111.3 95.0 130.5 109.8 r111.4 

 II r118.4 r111.8 94.4 131.4 109.7 r110.9 

 III r117.8 r110.9 94.1 133.7 110.7 r113.5 

 IV 119.9 110.4 92.0 136.6 112.2 113.9 

 ANNUAL 118.5 111.1 93.7 133.2 110.8 112.4 

 2001 I r119.8 r108.8 90.8 139.2 113.3 r116.2 

 II r120.7 107.8 89.2 138.0 111.5 114.3 

 III 120.9 107.1 88.6 137.8 111.1 114.0 

 IV r124.5 r107.4 86.3 139.3 112.4 111.9 

 ANNUAL 121.5 107.8 88.7 138.6 112.1 114.1 

 

 2002 I r127.4 r108.4 85.0 148.1 119.1 r116.3 

 II r129.4 r109.4 84.5 150.8 120.3 r116.5 

 III r130.5 r109.4 83.8 153.1 121.5 r117.3 

 IV r129.8 r108.3 83.4 154.2 121.7 r118.8 

 ANNUAL r129.3 r108.9 84.2 151.5 120.6 r117.2 

 -------------------------------------------------------------------------------------------------- 

 Percent change from previous quarter at annual rate(5) 

 2000 I r0.8 r-1.5 -2.2 15.4 11.1 r14.4 

 II r4.5 r1.5 -2.8 2.7 -0.4 r-1.7 

 III r-2.1 r-3.0 -1.0 7.4 3.5 r9.6 

 IV r7.3 r-1.9 -8.5 8.9 5.9 r1.5 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I r-0.4 r-5.5 -5.1 7.8 3.8 r8.3 

 II 3.2 -3.8 -6.8 -3.4 -6.3 r-6.4 

 III r0.6 r-2.3 -2.9 -0.6 -1.4 r-1.1 

 IV r12.4 r1.0 -10.1 4.3 4.9 r-7.2 

 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 

 2002 I r9.6 r3.6 -5.5 28.0 26.2 r16.7 

 II r6.5 r3.9 -2.4 7.4 4.0 r0.9 

 III r3.5 r0.2 -3.2 6.3 4.1 r2.7 

 IV r-2.2 r-4.1 -2.0 2.8 0.7 r5.0 

 ANNUAL r6.4 r1.0 -5.1 9.4 7.6 r2.7 

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 Percent change from corresponding quarter of previous year 

 2000 I r3.6 r1.0 -2.5 6.7 3.4 r3.1 

 II r5.2 r1.5 -3.5 7.3 3.9 r2.0 

 III r4.3 r1.6 -2.6 8.2 4.6 r3.7 

 IV r2.6 r-1.2 -3.7 8.5 4.9 r5.8 

 ANNUAL 4.0 0.7 -3.2 7.8 4.3 3.6 

 2001 I r2.2 r-2.3 -4.4 6.7 3.2 r4.3 

 II r1.9 r-3.6 -5.4 5.1 1.6 r3.1 

 III r2.6 r-3.4 -5.9 3.1 0.4 r0.4 

 IV 3.8 -2.7 -6.3 1.9 0.1 -1.8 

 ANNUAL 2.5 -3.0 -5.3 4.0 1.2 1.5 

 2002 I r6.4 r-0.4 -6.4 6.4 5.1 r0.1 

 II r7.2 r1.5 -5.3 9.3 7.9 r1.9 

 III r8.0 r2.2 -5.4 11.1 9.4 r2.9 

 IV r4.3 r0.8 -3.3 10.7 8.3 r6.2 

 ANNUAL r6.4 r1.0 -5.1 9.4 7.6 r2.7 

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 See footnotes following Table 6. December 6, 2005 

 r=revised Source: Bureau of Labor Statistics