TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
Appendix table 1.
Appendix table 2.
Appendix table 3.
Appendix table 4.
Appendix table 5.
Appendix table 6.

 
 
Historical, technical                                   USDL 96-236
  information:  (202) 606-5606                          TRANSMISSION OF THIS
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                                                        TUESDAY, JUNE 18, 1996
 
                            PRODUCTIVITY AND COSTS
                              First Quarter 1996
 
 
       The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 1996.  The revised seasonally-adjusted
annual rates of productivity change in the first quarter were:
 
          2.3 percent in the business sector, and
          2.1 percent in the nonfarm business sector.
 
In both sectors, the first-quarter productivity gains were the largest since
the fourth quarter of 1993.
 
       In manufacturing, productivity changes in the first quarter were:
 
          5.5 percent in manufacturing,
          8.1 percent in durable goods manufacturing, and
          2.4 percent in nondurable goods manufacturing.
 
       Manufacturing productivity growth in the first quarter was higher than
in the fourth quarter of 1995, reflecting both a larger increase in output and
a bigger drop in the hours of all persons in the sector.  Output and hours in
manufacturing, which includes about 18 percent of U.S. business-sector
employment, tend to vary  more from quarter to quarter than data for the more
aggregate business and nonfarm business sectors.  First-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
independent indexes of industrial production prepared by the Board of
Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.
 
 
 
----------------------------------------------------------------------
Table A.  Productivity and costs:  Revised first-quarter 1996 measures
(Seasonally adjusted annual rates)
----------------------------------------------------------------------
                                                       Real
                                             Hourly    hourly   Unit
                 Produc-                     compen-   compen-  labor
    Sector       tivity   Output    Hours    sation    sation   costs
----------------------------------------------------------------------
                         Percent change from preceding quarter
 Business         2.3      3.3       1.0       3.1      -0.1     0.8
 Nonfarm business 2.1      3.1       1.0       3.3       0.1     1.2
 Manufacturing    5.5      2.3      -3.0      -0.7      -3.9    -5.9
 Durable          8.1      5.8      -2.1      -3.2      -6.3   -10.5
 Nondurable       2.4     -2.0      -4.3       3.3       0.0     0.8
----------------------------------------------------------------------
                 Percent change from same quarter a year ago
 Business         1.2      2.2       1.0       3.6       0.8     2.4
 Nonfarm business 1.1      2.2       1.1       3.6       0.8     2.4
 Manufacturing    4.3      1.0      -3.1       2.0      -0.8    -2.2
 Durable          5.0      3.1      -1.8       0.7      -2.0    -4.0
 Nondurable       3.6     -1.6      -5.0       3.7       0.9     0.1
----------------------------------------------------------------------
 
 
Business
 
       From the fourth quarter of 1995 to the first quarter of 1996, business
productivity increased at a 2.3 percent annual rate.  Output rose 3.3 percent,
and hours of all persons engaged in the sector increased 1.0 percent
(seasonally adjusted annual rates).  During the fourth quarter of 1995,
productivity had dropped 0.3 percent (as revised), and output and hours rose
0.7 and 1.1 percent, respectively (table 1).
 
       Hourly compensation increased 3.1 percent during the first quarter of
1996, similar to the 3.2 percent rise in the fourth quarter of 1995.  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 0.8 percent annual rate
during the first quarter.  These costs had risen 3.5 percent in the fourth
quarter of 1995.
 
       Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), fell at a 0.1 percent
annual rate in the first quarter; it had risen 0.8 percent in the fourth
quarter of 1995.
 
       The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased 1.6 percent in the
first quarter, compared with a 0.8 percent increase during the fourth quarter
of 1995.
 
 
Nonfarm business
 
       Productivity rose 2.1 percent in nonfarm businesses during the first
quarter of 1996 as output rose 3.1 percent and hours of all persons increased
1.0 percent.  During the fourth quarter of 1995, productivity dropped 0.8
percent in nonfarm businesses, reflecting gains of 0.6 percent in output and
1.5 percent in hours (table 2).
 
       Hourly compensation increased at a 3.3 percent annual rate in the first
quarter, compared with a 2.9 percent increase one quarter earlier.  When the
rise in the CPI-U is taken into account, real hourly compensation rose 0.1
percent, less than the 0.5 percent gain recorded in the fourth quarter of
1995.  Unit labor costs rose 1.2 percent, after having increased 3.7 percent
the previous quarter.
 
       The implicit price deflator for nonfarm business output rose 1.4
percent in the first quarter, compared with a 0.7 percent rise one quarter
earlier.
 
 
Manufacturing
 
       Productivity increased 5.5 percent in manufacturing in the first
quarter of 1996, as output rose 2.3 percent and hours of all persons dropped
3.0 percent (seasonally adjusted annual rates).  Productivity and output
showed larger increases in durable goods industries than in nondurables.  In
the fourth quarter of 1995, productivity in the manufacturing sector rose
3.7 percent as output increased 1.4 percent and hours of all persons fell 2.2
percent.  Hours of all persons in the manufacturing sector have now fallen
for four straight quarters--this occurred in both the durable and the
nondurable subsectors (tables 4 and 5).
 
       Hourly compensation of all manufacturing workers dropped 0.7 percent
during the first quarter, compared with an increase of 2.8 percent in the
previous quarter.  In the first quarter of 1996, real hourly compensation fell
3.9 percent when the increase in consumer prices is taken into account,
compared with a 0.4 percent increase in the fourth quarter.  The first-quarter
movement in hourly compensation was affected by a pension contribution made in
1995 by a large durable goods manufacturer.  As a result of this, the first-
quarter movements in hourly compensation were very different in the durable
and nondurable subsectors.  In durable goods manufacturing, hourly
compensation fell at a 3.2 percent annual rate, and real hourly compensation
fell 6.3 percent.  However, in nondurable goods manufacturing, hourly
compensation rose 3.3 percent and real hourly compensation was unchanged.
 
       Unit labor costs dropped at a 5.9 percent annual rate in the first
quarter of 1996, compared with a decrease of 0.8 percent during the fourth
quarter of 1995.
 
 
-------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter
productivity and cost measures
(Seasonally adjusted annual rates
-------------------------------------------------------------------
 
                                    Real
                            Hourly  hourly  Unit          Implicit
        Produc-             compen- compen- labor Unit    price
Period  tivity Output Hours sation  sation  costs profits deflator
-------------------------------------------------------------------
                   Percent change from preceding quarter
 
1996 I   1.3     2.3   1.0    2.6   -0.7     1.3   13.5     1.8
-------------------------------------------------------------------
               Percent change from same quarter a year ago
 
1996 I   2.7     3.9   1.1    3.4    0.6     0.6   10.9     1.4
-------------------------------------------------------------------
 
 
 
Nonfinancial corporations
 
       Preliminary first-quarter 1996 measures of productivity and costs also
were announced today for nonfinancial corporations (tables B and 6).
Productivity rose 1.3 percent in the first quarter, output 2.3 percent, and
hours 1.0 percent (seasonally adjusted annual rates).  In the fourth quarter
of 1995, productivity had increased 2.0 percent.  Nonfinancial corporations
include all corporations doing business in the United States, except banks,
stock and commodity brokers, and finance and insurance agencies.
 
       Hourly compensation increased 2.6 percent, but fell 0.7 percent when
the rise in the CPI-U is taken into account (table 6).
 
       Unit labor costs for nonfinancial corporations increased 1.3 percent in
the first quarter, slightly more than the 0.9 percent increase recorded in the
fourth quarter of 1995.  Unit nonlabor costs fell 1.5 percent in the first
quarter of 1996, and unit profits increased 13.5 percent.  During the fourth
quarter of 1995, unit nonlabor costs rose 1.5 percent, and unit profits
dropped 4.4 percent (annual rates).  The implicit price deflator for
nonfinancial corporate output rose 1.8 percent in the first quarter and 0.5
percent in the fourth quarter.
 
 
 
REVISED MEASURES
 
       Current and previous measures for the first quarter of 1996 for
business, nonfarm business, and manufacturing are compared in table C.
Productivity and output increased less rapidly than originally reported on
May 16, based on information then available.
 
       With this release of Productivity and Costs, labor input measures have
been revised to reflect the regular annual benchmarking of employment levels
derived from the monthly Current Employment Statistics survey to more
comprehensive counts from unemployment insurance records.  In addition, labor
input series that are computed from household survey data have been revised.
These series now reflect 1990 census-based population controls, adjusted for
the estimated undercount, and they also include new average weekly hours data
that include information on those persons not at work. Finally, they
incorporate new seasonal adjustment factors that have been computed for
measures that depend on these revised series.  See tables 1-6 and appendix
tables 1-6 for the revised data.
 
 
---------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
----------------------------------------------------------------------
                                                     Real
                                           Hourly    hourly    Unit
             Produc-                       compen-   compen-   labor
Sector       tivity    Output    Hours     sation    sation    costs
----------------------------------------------------------------------
First quarter 1996
Business:
 Previous     2.8       4.0      1.1        3.0      -0.2       0.2
 Current      2.3       3.3      1.0        3.1      -0.1       0.8
 
Nonfarm business:
 Previous     2.6       3.7      1.0        3.3       0.0       0.6
 Current      2.1       3.1      1.0        3.3       0.1       1.2
 
Manufacturing:
 Previous     6.3       2.8     -3.2       -0.8      -3.9      -6.6
 Current      5.5       2.3     -3.0       -0.7      -3.9      -5.9
----------------------------------------------------------------------
 
 
Next release date
 
       The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Wednesday, August 14, 1996.  Preliminary second-quarter measures for
business, nonfarm business, and manufacturing will be released at that time.
 
 
                      TECHNICAL NOTES
 
Labor Hours: The primary source of hours and employment data is the BLS
Current Employment Statistics (CES) program, which provides monthly survey
data on total employment and average weekly paid hours of production and
nonsupervisory workers in nonagricultural establishments. Jobs rather than
persons are counted. Weekly paid hours are adjusted to hours at work using the
BLS Hours at Work survey, conducted for this purpose.
       Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of
Commerce and the CPS are used to measure labor input for government
enterprises, proprietors, and unpaid family workers.
 
Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 76 percent of
the value of GDP in 1992.  Nonfarm business, which also excludes farming,
accounted for about 75 percent of GDP in 1992.
        Annual manufacturing indexes are constructed by deflating current-
dollar industry value of production data from the U.S. Bureau of the Census
with  deflators from the BEA.  These deflators are based on data from the BLS
producer price program and other sources.  The industry shipments are
aggregated using annual weights, and 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-
occupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 52 percent of the value of GDP in 1992.
 
Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour.  Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
 
       Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
TDD message referral phone number: 1-800-326-2577.
 
 Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
and prices, 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
 
 1994       I     100.3      104.8     104.5    r104.0       r99.4    r103.7      r104.4       103.9
           II    r100.4      106.5    r106.1    r104.3       r99.1     103.9      r105.2       104.4
          III    r101.0      107.6    r106.6    r104.6       r98.5    r103.6      r107.7       105.1
           IV    r101.2      108.7    r107.4    r105.4       r98.7    r104.2      r108.1       105.6
 
       ANNUAL    r100.6      106.9    r106.2    r104.5       r98.9     103.8      r106.4       104.8
 
 1995       I    r100.7      108.8    r108.1    r106.3       r98.8    r105.5      r107.8       106.3
           II    r101.1      108.9    r107.7    r107.4       r99.0    r106.2      r108.1       106.9
          III    r101.5      110.1    r108.5    r108.4       r99.4    r106.9      r108.4       107.4
           IV    r101.4      110.3    r108.8    r109.3       r99.7    r107.8      r107.4       107.7
 
       ANNUAL    r101.1      109.6    r108.3    r107.8       r99.2    r106.6      r107.9       107.1
 
 1996       I    r102.0     r111.2    r109.1    r110.1       r99.6    r108.0      r108.2       108.1
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I     r-1.8        1.8      r3.6      r2.8        r0.7      r4.6       r-1.3         2.4
           II      r0.4        6.7      r6.3      r1.3       r-1.2      r0.9        r3.3         1.8
          III      r2.2        4.1      r1.9      r0.9       r-2.7     r-1.2        r9.8         2.6
           IV      r0.8        4.0      r3.2      r3.1        r0.9       2.3         1.5         2.0
 
       ANNUAL      r0.5        4.2      r3.7      r1.9       r-0.6       1.4         3.5         2.2
 
 1995       I     r-1.7        0.6      r2.3       3.4         0.5      r5.2       r-1.1         2.8
           II      r1.5        0.3     r-1.1      r4.1        r0.7      r2.6        r1.1         2.1
          III      r1.4        4.4      r3.0      r4.1        r2.0      r2.6        r1.3         2.1
           IV     r-0.3        0.7      r1.1      r3.2        r0.8      r3.5       r-3.8         0.8
 
       ANNUAL      r0.5        2.5      r2.0      r3.2        r0.3      r2.7        r1.5         2.2
 
 1996       I      r2.3       r3.3      r1.0      r3.1       r-0.1      r0.8        r3.1         1.6
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1994       I      r0.1        3.3      r3.2      r2.3       r-0.2      r2.2        r2.2         2.2
           II      r0.7        4.4      r3.7       2.0        -0.4      r1.3        r3.3         2.0
          III      r1.1        4.7      r3.6      r1.7       r-1.1       0.6        r5.3         2.3
           IV      r0.4        4.2      r3.7      r2.0       r-0.6       1.6        r3.2         2.2
 
       ANNUAL      r0.5        4.2      r3.7      r1.9       r-0.6       1.4         3.5         2.2
 
 1995       I      r0.4        3.8      r3.4      r2.2       r-0.7      r1.8        r3.3         2.3
           II      r0.7        2.3      r1.5      r2.9       r-0.2      r2.2        r2.7         2.4
          III      r0.5        2.3      r1.8      r3.7        r1.0      r3.2         0.7         2.3
           IV      r0.2        1.5      r1.3      r3.7        r1.0       3.5       r-0.6         2.0
 
       ANNUAL      r0.5        2.5      r2.0      r3.2        r0.3      r2.7        r1.5         2.2
 
 1996       I      r1.2       r2.2      r1.0      r3.6        r0.8      r2.4        r0.4         1.7
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      June 18, 1996
 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
 
 1994       I    r100.2      104.8    r104.6     103.7        99.2    r103.5      r104.7       103.9
           II     100.4      106.6     106.1    r104.2       r99.0     103.8       105.8       104.5
          III    r100.9      107.7    r106.7    r104.4       r98.3    r103.5      r108.5       105.3
           IV    r101.2      108.8    r107.5    r105.3       r98.6     104.1      r108.7       105.7
 
       ANNUAL    r100.6      106.9    r106.3    r104.3       r98.7    r103.7      r107.0       104.9
 
 1995       I    r100.8      109.0    r108.1    r106.2       r98.7     105.3      r108.6       106.5
           II    r101.2      109.1    r107.8    r107.3       r98.9    r106.0      r108.8       107.0
          III    r101.7      110.4    r108.6    r108.4       r99.4     106.6      r109.1       107.5
           IV    r101.4      110.6    r109.0    r109.1       r99.5     107.6      r107.8       107.7
 
       ANNUAL    r101.2      109.8    r108.4    r107.7       r99.1    r106.4      r108.6       107.2
 
 1996       I    r102.0     r111.4    r109.3    r110.0       r99.5    r107.9      r108.3      r108.0
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1994       I     r-1.9        0.9      r2.9      r2.9        r0.9      r4.9       r-1.6         2.5
           II      r0.9        6.8      r5.9      r1.9       r-0.6      r1.0        r4.3         2.2
          III      r2.0        4.2      r2.1      r0.7       r-3.0     r-1.3       r10.7         2.9
           IV      r1.1        4.2      r3.1      r3.5        r1.3       2.4        r0.8         1.8
 
       ANNUAL       0.5        4.0      r3.5      r2.0       r-0.5      r1.5        r3.6         2.3
 
 1995       I     r-1.4        0.8      r2.2      r3.5        r0.6       4.9       r-0.6         2.9
           II      r1.6        0.5     r-1.0      r4.1        r0.6      r2.5        r0.9         1.9
          III       1.7        4.7       2.9      r4.1        r2.1      r2.4        r0.9         1.8
           IV     r-0.8        0.6      r1.5      r2.9        r0.5      r3.7       r-4.5         0.7
 
       ANNUAL      r0.7        2.7      r2.0      r3.3        r0.4      r2.6        r1.5         2.2
 
 1996       I      r2.1       r3.1       1.0       3.3        r0.1      r1.2        r1.8         1.4
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1994       I      r0.0        3.2      r3.2      r2.2       r-0.3      r2.2        r1.9         2.1
           II       0.8        4.3       3.5       2.1        -0.3       1.3        r3.5         2.1
          III       0.9        4.3       3.4       1.9       r-1.0       1.0        r5.3         2.5
           IV      r0.5        4.0      r3.5      r2.3       r-0.4      r1.7         3.4         2.3
 
       ANNUAL       0.5        4.0      r3.5      r2.0       r-0.5      r1.5        r3.6         2.3
 
 1995       I      r0.7        4.0      r3.3      r2.4       r-0.4      r1.7        r3.7         2.4
           II      r0.8        2.4      r1.6      r2.9       r-0.1      r2.1        r2.9         2.4
          III      r0.7        2.6      r1.8      r3.8        r1.1       3.0         0.5         2.1
           IV      r0.3        1.7      r1.4      r3.6        r1.0       3.4        -0.9         1.8
 
       ANNUAL      r0.7        2.7      r2.0      r3.3        r0.4      r2.6        r1.5         2.2
 
 1996       I      r1.1       r2.2      r1.1      r3.6        r0.8      r2.4       r-0.3         1.5
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      June 18, 1996
 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
 
 1994       I           r104.8        107.3       r102.4       r104.5           r99.9        r99.8
           II           r106.2        109.5        103.2       r104.8            99.5         98.7
          III           r106.6        110.9       r104.0       r105.4           r99.3        r98.9
           IV           r107.7        113.0       r105.0       r106.3           r99.5         98.7
 
       ANNUAL           r106.1        110.2       r103.8       r105.1           r99.5         99.0
 
 1995       I           r108.3        114.1        105.3        107.0           r99.4         98.7
           II           r109.0        113.5       r104.1       r107.5           r99.1         98.6
          III           r110.4        114.2       r103.4       r108.5           r99.5         98.2
           IV           r111.5        114.6       r102.8       r109.3           r99.6        r98.0
 
       ANNUAL           r109.8        114.1       r103.9       r108.0           r99.5         98.4
 
 1996       I           r112.9       r115.3       r102.1       r109.1           r98.7        r96.6
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I             r6.7          8.8         r2.0         r3.6            r1.6        r-2.9
           II             r5.5          8.5         r2.9         r1.0           r-1.5        r-4.2
          III             r1.7          5.1         r3.4         r2.6           r-1.1         r0.9
           IV             r4.1          7.9         r3.6         r3.2            r0.9        r-0.8
 
       ANNUAL             r4.0          6.5         r2.4         r2.7            r0.1         -1.3
 
 1995       I             r2.4          3.9         r1.4         r2.6           r-0.3         r0.2
           II             r2.7         -2.1        r-4.7         r1.9           r-1.4        r-0.7
          III             r5.3          2.6        r-2.5         r3.9            r1.8        r-1.3
           IV             r3.7          1.4        r-2.2         r2.8            r0.4        r-0.8
 
       ANNUAL             r3.4          3.5         r0.1         r2.8            r0.0         -0.6
 
 1996       I             r5.5         r2.3        r-3.0        r-0.7            -3.9        r-5.9
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              3.1          4.7          1.5          3.2             0.7          0.1
           II             r4.5          6.5         r1.9         r2.9            r0.4        r-1.6
          III             r4.5          7.1         r2.4         r2.8           r-0.1         -1.7
           IV             r4.5          7.6         r3.0         r2.6           r-0.1         -1.8
 
       ANNUAL             r4.0          6.5         r2.4         r2.7            r0.1         -1.3
 
 1995       I             r3.4          6.3         r2.8         r2.3           r-0.5         -1.0
           II             r2.7          3.6         r0.9         r2.6           r-0.5         -0.1
          III             r3.6          3.0        r-0.6         r2.9            r0.3         -0.7
           IV             r3.5          1.4        r-2.0         r2.8            r0.1         -0.7
 
       ANNUAL             r3.4          3.5         r0.1         r2.8            r0.0         -0.6
 
 1996       I             r4.3         r1.0        r-3.1         r2.0           r-0.8        r-2.2
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                June 18, 1996
 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
 
 1994       I           r107.0        110.4       r103.2       r104.4           r99.8        r97.6
           II            108.2        112.6        104.1       r104.6            99.3         96.6
          III           r109.0        114.8       r105.3       r105.1           r98.9        r96.4
           IV           r110.3        117.5       r106.6       r105.7           r99.0         95.9
 
       ANNUAL           r108.4        113.8       r105.0       r104.7           r99.1         96.6
 
 1995       I           r111.5        119.5       r107.2       r106.1           r98.7         95.2
           II           r111.8        119.0       r106.4       r106.4           r98.1         95.1
          III           r113.6        120.4       r106.0       r107.4           r98.5         94.5
           IV           r114.8        121.5       r105.9       r107.8           r98.3         93.9
 
       ANNUAL           r112.9        120.1       r106.4       r106.9           r98.4         94.7
 
 1996       I           r117.0        123.2       r105.3       r106.9           r96.7        r91.4
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I             r7.4         11.0         r3.3          3.4            r1.4        r-3.7
           II             r4.8          8.6         r3.6         r0.7           r-1.8        r-4.0
          III             r3.0          7.8         r4.7         r2.0           r-1.7         -1.0
           IV             r4.7          9.9         r5.0         r2.6            r0.3        r-2.0
 
       ANNUAL             r4.9          8.5         r3.5         r2.4           r-0.1         -2.3
 
 1995       I             r4.4          7.0         r2.4         r1.5           r-1.3        r-2.8
           II             r1.2         -1.9        r-3.1         r0.9           r-2.5        r-0.3
          III             r6.4          5.1        r-1.2         r3.8            r1.7        r-2.4
           IV             r4.3          3.6        r-0.7         r1.6           r-0.8        r-2.6
 
       ANNUAL             r4.1          5.5         r1.3         r2.1           r-0.7         -2.0
 
 1996       I             r8.1         r5.8        r-2.1         -3.2            -6.3       r-10.5
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              4.4          6.8          2.3          3.2             0.7        r-1.1
           II             r5.3          8.4         r2.9         r2.8            r0.4         -2.4
          III             r5.8          9.5         r3.5         r2.6           r-0.2        r-3.0
           IV             r5.0          9.3         r4.1         r2.2           r-0.5         -2.7
 
       ANNUAL             r4.9          8.5         r3.5         r2.4           r-0.1         -2.3
 
 1995       I             r4.2          8.3         r3.9         r1.7           r-1.1        r-2.5
           II             r3.3          5.6         r2.2         r1.7           r-1.3         -1.5
          III             r4.2          4.9         r0.7         r2.2           r-0.4         -1.9
           IV             r4.1          3.4        r-0.7         r1.9           r-0.7         -2.0
 
       ANNUAL             r4.1          5.5         r1.3         r2.1           r-0.7         -2.0
 
 1996       I             r5.0          3.1        r-1.8         r0.7           r-2.0         -4.0
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                June 18, 1996
 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
 
 1994       I           r102.8        104.3       r101.4       r104.6          r100.0       r101.7
           II            104.3        106.3       r101.9        104.9           r99.7       r100.5
          III           r104.4        106.9       r102.4        105.8            99.6       r101.3
           IV            105.3        108.3        102.8        106.8           r99.9       r101.4
 
       ANNUAL            104.2        106.5        102.2       r105.4            99.8        101.2
 
 1995       I           r105.4        108.4       r102.8       r107.9          r100.3        102.3
           II           r106.7        107.8       r101.0       r108.7          r100.2       r101.9
          III           r107.8        107.7        r99.9       r109.7          r100.7       r101.8
           IV           r108.6        107.3         98.8        111.0           101.2       r102.2
 
       ANNUAL           r107.1        107.8       r100.6        109.4          r100.7        102.1
 
 1996       I           r109.2       r106.8         97.7        111.9           101.2       r102.4
 --------------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1994       I             r6.2          6.4          0.1         r3.7            r1.6        r-2.4
           II              6.0          8.1          1.9         r1.3           r-1.2        r-4.4
          III             r0.3          2.0         r1.7         r3.3           r-0.5         r3.0
           IV             r3.5          5.4         r1.8          3.9             1.6         r0.4
 
       ANNUAL             r3.1          4.1         r1.0          2.8             0.2         -0.4
 
 1995       I             r0.5          0.6         r0.1         r4.1            r1.2         r3.7
           II             r4.8         -2.5        r-7.0         r3.4            r0.0        r-1.4
          III             r4.1         -0.3        r-4.3          3.7            r1.7        r-0.4
           IV             r3.0         -1.4        r-4.3         r4.5            r2.1         r1.5
 
       ANNUAL              2.9          1.3         -1.6         r3.7             0.9          0.8
 
 1996       I             r2.4        r-2.0        r-4.3         r3.3            r0.0         r0.8
 --------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1994       I              1.9          2.4          0.5          3.0             0.5          1.1
           II             r3.9          4.4         r0.5         r2.7            r0.3         -1.2
          III              3.2          4.3          1.0          2.7            -0.2         -0.5
           IV             r4.0          5.4         r1.4         r3.0             0.4         -0.9
 
       ANNUAL             r3.1          4.1         r1.0          2.8             0.2         -0.4
 
 1995       I              2.5          4.0         r1.4          3.1            r0.3          0.6
           II             r2.2          1.3        r-0.9         r3.7            r0.6          1.4
          III             r3.2          0.7        r-2.4         r3.8            r1.1          0.6
           IV              3.1         -0.9         -3.9          3.9             1.2          0.8
 
       ANNUAL              2.9          1.3         -1.6         r3.7             0.9          0.8
 
 1996       I             r3.6        r-1.6        r-5.0         r3.7            r0.9         r0.1
 --------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                June 18, 1996
 r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
 and prices, seasonally adjusted
 
               Output                      Hourly    Real                Unit     Total    Unit   Implicit
     Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
     and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
     quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
 ----------------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1994       I    102.4     107.2   r104.6   r103.4     r98.9     100.9    102.3    101.3    120.8    102.8
           II    102.6     108.9    106.2    103.8      98.6     101.2     98.7    100.5    134.5    103.1
          III   r102.4     109.6   r107.0   r104.0     r97.9     101.6     99.3    100.9    136.5    103.7
           IV   r103.0     111.6   r108.3   r105.0     r98.3     101.9     98.2    100.9    141.3    104.0
 
       ANNUAL   r102.6     109.3   r106.6   r104.0     r98.5     101.4     99.6    100.9    133.4    103.4
 
 1995       I   r102.1     111.3   r109.0   r105.4     r97.9     103.2    100.0    102.3    131.0    104.5
           II   r102.6     111.8   r108.9   r106.4     r98.1     103.7    101.2    103.0    130.5    105.1
          III   r104.1     113.9   r109.4   r107.5     r98.6     103.3     99.9    102.3    142.3    105.4
           IV   r104.6     114.9   r109.9   r108.2     r98.7     103.5    100.2    102.6    140.7    105.5
 
       ANNUAL   r103.4     113.0   r109.3   r106.9     r98.4     103.4    100.3    102.6    136.2    105.2
 
 1996       I    104.9     115.6    110.2    108.9      98.5     103.8     99.8    102.8    145.2    106.0
 ----------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
 1994       I     r0.0       4.2     r4.2      2.2       0.2       2.2     13.2      5.0    -21.8      2.2
           II     r0.6       6.8     r6.2     r1.5     r-1.1       0.9    -13.4     -3.2     53.6      1.2
          III    r-0.7       2.5     r3.2     r0.9     r-2.8       1.5      2.3      1.7      6.3      2.2
           IV     r2.4       7.5     r5.0     r3.9      r1.6       1.4     -4.4     -0.2     14.8      1.3
 
       ANNUAL     r1.2       5.5     r4.2     r1.8     r-0.8       0.5     -0.3      0.3     16.2      1.7
 
 1995       I     -3.5      -1.1      2.5      1.4      -1.4       5.1      7.9      5.9    -26.1      2.1
           II     r2.0       1.6    r-0.3     r3.9      r0.4       1.9      4.7      2.6     -1.6      2.2
          III     r5.8       7.8     r1.9     r4.2      r2.1      -1.5     -5.2     -2.5     41.4      1.1
           IV     r2.0       3.8     r1.8     r2.9      r0.5       0.9      1.5      1.1     -4.4      0.5
 
       ANNUAL     r0.8       3.3     r2.5     r2.8     r-0.1       2.0      0.7      1.7      2.1      1.7
 
 1996       I      1.3       2.3      1.0      2.6      -0.7       1.3     -1.5      0.5     13.5      1.8
 ----------------------------------------------------------------------------------------------------------
                           Percent change from corresponding quarter of previous year
 
 1994       I      2.2       5.8      3.5      1.9      -0.6      -0.3      1.6      0.2     17.4      1.5
           II      1.6       5.9      4.2     r1.9     r-0.5       0.3     -1.3     -0.2     20.6      1.6
          III      1.0       5.2      4.2      1.6     r-1.3       0.6     -0.5      0.3     18.1      1.9
           IV     r0.6       5.2     r4.6     r2.1     r-0.5       1.5     -1.0      0.8     10.0      1.7
 
       ANNUAL     r1.2       5.5     r4.2     r1.8     r-0.8       0.5     -0.3      0.3     16.2      1.7
 
 1995       I    r-0.3       3.9     r4.2     r1.9     r-0.9       2.2     -2.2      1.0      8.4      1.7
           II     r0.0       2.6     r2.6     r2.5     r-0.6       2.5      2.5      2.5     -3.0      1.9
          III     r1.6       3.9     r2.2     r3.3      r0.7       1.7      0.6      1.4      4.2      1.7
           IV     r1.5       3.0     r1.4     r3.1      r0.4       1.6      2.1      1.7     -0.4      1.5
 
       ANNUAL     r0.8       3.3     r2.5     r2.8     r-0.1       2.0      0.7      1.7      2.1      1.7
 
 1996       I      2.7       3.9      1.1      3.4       0.6       0.6     -0.2      0.4     10.9      1.4
 ----------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                        June 18, 1996
 r=revised                                                               Source: Bureau of Labor Statistics
 
 
SOURCES:  Output data are from the Bureau of Economic Analysis and the Census Bureau of
the U.S. Department of Commerce; the Bureau of Labor Statistics, U.S. Department of Labor;
and the Federal Reserve Board.  Compensation and hours data are from the Bureau of Labor
Statistics  and the Bureau of Economic Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more complete
information becomes available.  The measures are first published 30 days after the close of the
reference period; revisions appear 30 days later, and second revisions after an additional 60 days.
 
 
 
Footnotes, Tables 1-6
 
(1)  Wages and salaries of employees plus employers' contributions for social insurance and
private benefit plans.  Except for nonfinancial corporations, where there are no self-
employed, data also include an estimate of wages, salaries, and supplemental payments
for the self-employed.
 
(2)  Compensation per hour adjusted for changes in the Consumer Price Index for All Urban
Consumers.
 
(3)  Unit nonlabor payments include profits, capital consumption allowances, interest, rental
income of persons, and indirect taxes.
 
(4)  Current dollar output divided by the output index.
 
(5)  Quarterly changes:  Percent change compounded at annual rate from the original data rather
than index numbers.  Annual changes:  Percent change between annual average levels.
 
(6)  Unit nonlabor cost includes capital consumption allowances, interest, rental income of
persons, and indirect taxes.  For nonfinancial corporations, rental income of persons is
zero by definition.
 
(7)  Total unit cost is the sum of unit labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital consumption
adjustments.
 
 Appendix 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
 
 1991       I     95.9       96.3     100.4      93.4        97.1        97.4     95.6        96.7
           II     96.6       96.9     100.2      94.7        97.9        97.9     96.5        97.4
          III     97.1       97.2     100.1      95.7        98.2        98.6     97.1        98.1
           IV     97.4       97.3      99.9      96.8        98.5        99.3     97.3        98.6
 
       ANNUAL     96.7       96.9     100.2      95.1        97.9        98.3     96.6        97.7
 
 1992       I     99.3       98.8      99.5      98.6        99.7        99.3     99.2        99.3
           II     99.9       99.6      99.8      99.5        99.8        99.6    100.0        99.7
          III     99.7       99.8     100.1     100.7       100.3       101.0     98.6       100.1
           IV    101.1      101.7     100.7     101.2        99.9       100.1    102.2       100.9
 
       ANNUAL    100.0      100.0     100.0     100.0       100.0       100.0    100.0       100.0
 
 1993       I    100.2      101.4     101.3     101.7        99.6       101.5    102.1       101.7
           II     99.7      102.0     102.3     102.3        99.6       102.6    101.8       102.3
          III     99.9      102.8     102.9     102.8        99.6       102.9    102.3       102.7
           IV    100.8      104.3     103.6     103.3        99.3       102.5    104.7       103.3
 
       ANNUAL    100.1      102.6     102.5     102.5        99.5       102.4    102.8       102.5
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1991       I      2.0       -3.4      -5.3       4.2         1.1         2.2     11.0         5.2
           II      3.1        2.3      -0.8       5.5         3.1         2.3      3.7         2.8
          III      1.8        1.3      -0.5       4.6         1.5         2.8      2.8         2.8
           IV      1.5        0.7      -0.8       4.4         1.0         2.9      0.8         2.1
 
       ANNUAL      0.6       -1.8      -2.3       4.8         0.6         4.2      3.4         3.9
 
 1992       I      8.1        6.2      -1.7       8.0         5.2        -0.1      8.1         2.8
           II      2.1        3.2       1.1       3.4         0.1         1.3      3.0         1.9
          III     -0.5        0.8       1.3       4.9         1.9         5.5     -5.2         1.5
           IV      5.5        7.9       2.3       2.1        -1.4        -3.2     15.1         3.0
 
       ANNUAL      3.4        3.2      -0.2       5.2         2.1         1.7      3.5         2.4
 
 1993       I     -3.4       -1.1       2.4       1.9        -1.0         5.6     -0.2         3.4
           II     -1.9        2.2       4.2       2.6        -0.3         4.6     -1.0         2.5
          III      0.7        3.0       2.3       1.9         0.1         1.2      1.7         1.4
           IV      3.5        6.3       2.7       1.8        -1.3        -1.6     10.0         2.4
 
       ANNUAL      0.1        2.6       2.5       2.5        -0.5         2.4      2.8         2.5
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1991       I     -0.3       -3.0      -2.7       5.3         0.1         5.6      2.7         4.6
           II      0.0       -2.7      -2.7       4.7        -0.1         4.7      2.7         4.0
          III      0.7       -1.5      -2.2       4.5         0.6         3.8      3.7         3.8
           IV      2.1        0.2      -1.9       4.7         1.7         2.5      4.5         3.2
 
       ANNUAL      0.6       -1.8      -2.3       4.8         0.6         4.2      3.4         3.9
 
 1992       I      3.6        2.6      -0.9       5.6         2.7         2.0      3.8         2.6
           II      3.3        2.8      -0.5       5.1         1.9         1.7      3.6         2.4
          III      2.7        2.7       0.0       5.2         2.0         2.4      1.6         2.1
           IV      3.7        4.5       0.8       4.6         1.4         0.8      5.0         2.3
 
       ANNUAL      3.4        3.2      -0.2       5.2         2.1         1.7      3.5         2.4
 
 1993       I      0.8        2.6       1.8       3.1        -0.1         2.2      2.9         2.5
           II     -0.1        2.4       2.5       2.9        -0.2         3.0      1.9         2.6
          III      0.2        3.0       2.8       2.1        -0.7         2.0      3.7         2.6
           IV     -0.3        2.6       2.9       2.1        -0.6         2.4      2.5         2.4
 
       ANNUAL      0.1        2.6       2.5       2.5        -0.5         2.4      2.8         2.5
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      June 18, 1996
                                                                       Source: Bureau of Labor Statistics
 
 Appendix 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
 
 1991       I     96.1       96.5     100.4      93.4        97.1        97.1     95.8        96.7
           II     96.8       97.0     100.1      94.7        97.9        97.8     96.4        97.3
          III     97.4       97.4     100.0      95.8        98.3        98.4     97.3        98.0
           IV     97.6       97.5      99.9      96.7        98.5        99.1     97.4        98.5
 
       ANNUAL     96.9       97.1     100.2      95.1        97.9        98.1     96.8        97.6
 
 1992       I     99.3       98.8      99.5      98.6        99.7        99.3     99.2        99.2
           II     99.9       99.6      99.7      99.6        99.9        99.6    100.0        99.8
          III     99.7       99.8     100.1     100.7       100.3       101.0     98.4       100.1
           IV    101.1      101.8     100.7     101.2        99.9       100.1    102.3       100.9
 
       ANNUAL    100.0      100.0     100.0     100.0       100.0       100.0    100.0       100.0
 
 1993       I    100.2      101.6     101.4     101.5        99.5       101.4    102.7       101.8
           II     99.6      102.2     102.6     102.0        99.3       102.4    102.2       102.4
          III    100.0      103.2     103.2     102.5        99.3       102.5    103.0       102.7
           IV    100.7      104.6     103.9     103.0        98.9       102.3    105.1       103.3
 
       ANNUAL    100.1      102.9     102.8     102.3        99.3       102.1    103.3       102.5
 ---------------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)
 
 1991       I      2.6       -3.0      -5.5       4.5         1.4         1.9     12.6         5.5
           II      3.0        2.1      -0.9       5.7         3.2         2.6      2.2         2.5
          III      2.2        1.7      -0.5       4.7         1.6         2.5      4.1         3.0
           IV      1.0        0.5      -0.5       4.2         0.8         3.1      0.3         2.1
 
       ANNUAL      0.7       -1.8      -2.5       4.9         0.7         4.2      3.9         4.1
 
 1992       I      7.2        5.6      -1.4       7.7         5.0         0.5      7.7         3.0
           II      2.5        3.1       0.6       4.1         0.8         1.6      3.0         2.1
          III     -1.0        0.7       1.7       4.6         1.6         5.6     -6.1         1.4
           IV      5.9        8.4       2.4       2.0        -1.5        -3.7     16.9         3.2
 
       ANNUAL      3.2        3.0      -0.2       5.2         2.1         1.9      3.3         2.4
 
 1993       I     -3.7       -0.9       2.9       1.3        -1.6         5.2      1.4         3.8
           II     -2.1        2.4       4.6       2.1        -0.8         4.3     -1.8         2.1
          III      1.6        4.1       2.5       1.7        -0.1         0.1      3.1         1.2
           IV      2.5        5.3       2.7       1.9        -1.2        -0.6      8.5         2.6
 
       ANNUAL      0.1        2.9       2.8       2.3        -0.7         2.1      3.3         2.5
 ---------------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
 
 1991       I     -0.3       -3.1      -2.8       5.4         0.1         5.7      3.4         4.9
           II      0.1       -2.7      -2.8       4.9         0.1         4.8      3.0         4.2
          III      1.0       -1.5      -2.4       4.7         0.9         3.7      4.4         4.0
           IV      2.2        0.3      -1.9       4.7         1.7         2.5      4.7         3.3
 
       ANNUAL      0.7       -1.8      -2.5       4.9         0.7         4.2      3.9         4.1
 
 1992       I      3.3        2.5      -0.8       5.6         2.6         2.2      3.5         2.7
           II      3.2        2.7      -0.5       5.2         2.0         1.9      3.7         2.6
          III      2.4        2.5       0.1       5.1         2.0         2.7      1.1         2.1
           IV      3.6        4.4       0.8       4.6         1.4         1.0      5.1         2.4
 
       ANNUAL      3.2        3.0      -0.2       5.2         2.1         1.9      3.3         2.4
 
 1993       I      0.9        2.8       1.9       3.0        -0.2         2.1      3.5         2.6
           II     -0.3        2.6       2.9       2.5        -0.6         2.8      2.3         2.6
          III      0.4        3.5       3.1       1.8        -1.0         1.4      4.7         2.6
           IV     -0.4        2.7       3.2       1.8        -0.9         2.2      2.7         2.4
 
       ANNUAL      0.1        2.9       2.8       2.3        -0.7         2.1      3.3         2.5
 ---------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                      June 18, 1996
                                                                       Source: Bureau of Labor Statistics
 
 Appendix table 3.
 Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
 
                                                                          Real
                   Output per                 Hours       Compensa-       compensa-      Unit
      Year and     hour of                    of all      tion per        tion per       labor
      quarter      all persons     Output     persons     hour(1)         hour(2)        costs
 -----------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1991       I         95.1          95.9       100.8        94.0            97.8          98.9
           II         95.8          96.2       100.4        95.2            98.4          99.4
          III         97.5          98.0       100.5        96.5            99.0          99.0
           IV         98.2          98.3       100.2        97.5            99.2          99.3
 
       ANNUAL         96.5          97.1       100.6        95.7            98.6          99.1
 
 1992       I         98.7          98.3        99.6        98.6            99.7          99.9
           II         99.6          99.8       100.2        99.7           100.0         100.0
          III        100.4         100.5       100.0       100.6           100.1         100.1
           IV        101.1         101.4       100.3       101.0            99.7          99.9
 
       ANNUAL        100.0         100.0       100.0       100.0           100.0         100.0
 
 1993       I        101.6         102.5       100.9       101.3            99.3          99.7
           II        101.6         102.8       101.2       101.9            99.1         100.3
          III        102.0         103.6       101.6       102.6            99.4         100.6
           IV        103.1         105.1       101.9       103.6            99.5         100.5
 
       ANNUAL        102.1         103.5       101.4       102.4            99.4         100.3
 -----------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1991       I         -0.5          -8.7        -8.3         5.5             2.4           6.0
           II          2.9           1.4        -1.4         5.0             2.5           2.1
          III          7.4           7.9         0.4         5.7             2.5          -1.7
           IV          2.8           1.3        -1.5         4.3             0.9           1.4
 
       ANNUAL          2.5          -1.7        -4.1         5.2             1.0           2.7
 
 1992       I          2.2           0.0        -2.2         4.6             1.9           2.4
           II          3.8           6.1         2.2         4.4             1.1           0.6
          III          3.3           2.7        -0.6         3.6             0.6           0.3
           IV          2.5           3.7         1.3         1.6            -1.8          -0.8
 
       ANNUAL          3.6           3.0        -0.6         4.5             1.5           0.9
 
 1993       I          2.3           4.6         2.3         1.2            -1.7          -1.1
           II         -0.3           1.1         1.4         2.4            -0.5           2.6
          III          1.7           3.0         1.3         2.9             1.0           1.2
           IV          4.4           5.9         1.4         3.9             0.7          -0.5
 
       ANNUAL          2.1           3.5         1.4         2.4            -0.6           0.3
 -----------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1991       I          1.6          -3.2        -4.6         5.6             0.3           4.0
           II          2.4          -2.8        -5.1         5.1             0.2           2.6
          III          3.0          -1.3        -4.1         5.4             1.5           2.3
           IV          3.1           0.3        -2.8         5.1             2.1           1.9
 
       ANNUAL          2.5          -1.7        -4.1         5.2             1.0           2.7
 
 1992       I          3.8           2.6        -1.2         4.9             2.0           1.0
           II          4.0           3.8        -0.3         4.7             1.6           0.7
          III          3.0           2.5        -0.5         4.2             1.1           1.2
           IV          2.9           3.1         0.2         3.6             0.4           0.6
 
       ANNUAL          3.6           3.0        -0.6         4.5             1.5           0.9
 
 1993       I          3.0           4.3         1.3         2.7            -0.5          -0.2
           II          1.9           3.0         1.1         2.2            -0.9           0.3
          III          1.5           3.1         1.5         2.0            -0.8           0.5
           IV          2.0           3.6         1.6         2.6            -0.1           0.6
 
       ANNUAL          2.1           3.5         1.4         2.4            -0.6           0.3
 -----------------------------------------------------------------------------------------------
 See footnotes following table 6.                             June 18, 1996
                                                              Source: Bureau of Labor Statistics
 
 Appendix table 4.
 Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
 
                                                                          Real
                   Output per                 Hours       Compensa-       compensa-      Unit
      Year and     hour of                    of all      tion per        tion per       labor
      quarter      all persons     Output     persons     hour(1)         hour(2)        costs
 -----------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1991       I         93.0          94.8       101.9        93.7            97.5         100.8
           II         93.5          95.2       101.7        94.7            98.0         101.3
          III         95.8          97.1       101.4        96.3            98.8         100.5
           IV         97.1          97.6       100.5        97.4            99.2         100.3
 
       ANNUAL         94.8          96.2       101.5        95.4            98.3         100.7
 
 1992       I         97.9          97.8        99.9        98.6            99.7         100.7
           II         99.7          99.9       100.2        99.7           100.0         100.0
          III        100.6         100.5        99.9       100.6           100.2         100.0
           IV        101.5         101.8       100.3       100.9            99.6          99.4
 
       ANNUAL        100.0         100.0       100.0       100.0           100.0         100.0
 
 1993       I        102.4         103.3       100.9       101.1            99.1          98.7
           II        102.8         104.0       101.1       101.7            99.0          98.9
          III        103.0         104.8       101.8       102.4            99.1          99.4
           IV        105.1         107.5       102.3       103.5            99.5          98.5
 
       ANNUAL        103.4         104.9       101.5       102.2            99.2          98.9
 -----------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1991       I         -1.5         -12.3       -11.0         6.4             3.2           8.0
           II          2.3           1.7        -0.6         4.5             2.1           2.2
          III         10.1           8.6        -1.4         6.6             3.4          -3.2
           IV          5.6           1.8        -3.6         4.9             1.5          -0.6
 
       ANNUAL          2.5          -3.2        -5.6         5.4             1.2           2.9
 
 1992       I          3.3           0.8        -2.4         4.9             2.2           1.5
           II          7.5           9.0         1.4         4.5             1.1          -2.8
          III          3.7           2.6        -1.1         3.7             0.7           0.0
           IV          3.6           5.1         1.4         1.1            -2.4          -2.5
 
       ANNUAL          5.5           4.0        -1.5         4.8             1.7          -0.7
 
 1993       I          3.7           6.3         2.5         1.1            -1.8          -2.6
           II          1.3           2.4         1.0         2.2            -0.7           0.9
          III          0.9           3.4         2.5         2.6             0.7           1.7
           IV          8.2          10.7         2.3         4.5             1.3          -3.4
 
       ANNUAL          3.4           4.9         1.5         2.2            -0.8          -1.1
 -----------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1991       I          1.6          -4.7        -6.2         5.7             0.4           4.0
           II          1.8          -4.8        -6.5         5.0             0.2           3.2
          III          2.7          -3.1        -5.6         5.7             1.8           2.9
           IV          4.0          -0.3        -4.2         5.6             2.6           1.5
 
       ANNUAL          2.5          -3.2        -5.6         5.4             1.2           2.9
 
 1992       I          5.3           3.2        -2.0         5.2             2.3          -0.1
           II          6.6           5.0        -1.5         5.2             2.1          -1.3
          III          5.0           3.5        -1.5         4.5             1.4          -0.5
           IV          4.5           4.3        -0.2         3.5             0.4          -1.0
 
       ANNUAL          5.5           4.0        -1.5         4.8             1.7          -0.7
 
 1993       I          4.6           5.7         1.0         2.6            -0.6          -2.0
           II          3.1           4.1         0.9         2.0            -1.0          -1.0
          III          2.4           4.3         1.8         1.7            -1.0          -0.6
           IV          3.5           5.6         2.1         2.6            -0.1          -0.9
 
       ANNUAL          3.4           4.9         1.5         2.2            -0.8          -1.1
 -----------------------------------------------------------------------------------------------
 See footnotes following table 6.                             June 18, 1996
                                                              Source: Bureau of Labor Statistics
 
 Appendix table 5.
 Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
 
                                                                          Real
                   Output per                 Hours       Compensa-       compensa-      Unit
      Year and     hour of                    of all      tion per        tion per       labor
      quarter      all persons     Output     persons     hour(1)         hour(2)        costs
 -----------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1991       I         97.4          96.7        99.4        94.3            98.1          96.8
           II         98.2          97.0        98.7        95.5            98.8          97.3
          III         99.2          98.6        99.4        96.6            99.2          97.4
           IV         99.0          98.7        99.8        97.5            99.3          98.6
 
       ANNUAL         98.3          97.8        99.4        95.9            98.8          97.5
 
 1992       I         99.5          98.8        99.3        98.6            99.7          99.0
           II         99.5          99.6       100.2        99.6           100.0         100.2
          III        100.3         100.4       100.2       100.5           100.1         100.3
           IV        100.7         101.1       100.4       101.2            99.9         100.5
 
       ANNUAL        100.0         100.0       100.0       100.0           100.0         100.0
 
 1993       I        100.9         101.8       100.9       101.5            99.5         100.6
           II        100.4         101.8       101.4       102.2            99.4         101.7
          III        101.2         102.5       101.3       103.0            99.7         101.8
           IV        101.3         102.7       101.4       103.6            99.6         102.3
 
       ANNUAL        101.0         102.2       101.2       102.6            99.6         101.6
 -----------------------------------------------------------------------------------------------
                        Percent change from previous quarter at annual rate(5)
 
 1991       I         -0.3          -4.8        -4.5         4.8             1.7           5.2
           II          3.6           0.9        -2.6         5.6             3.1           1.9
          III          3.9           6.9         2.9         4.5             1.4           0.6
           IV         -0.9           0.6         1.5         3.9             0.5           4.8
 
       ANNUAL          1.9          -0.2        -2.0         5.2             1.0           3.3
 
 1992       I          2.3           0.5        -1.8         4.3             1.6           2.0
           II         -0.3           3.1         3.4         4.5             1.1           4.8
          III          3.3           3.3         0.0         3.6             0.6           0.3
           IV          1.7           2.8         1.1         2.5            -1.0           0.8
 
       ANNUAL          1.7           2.3         0.6         4.3             1.2           2.5
 
 1993       I          0.9           2.9         2.0         1.3            -1.6           0.4
           II         -1.9          -0.1         1.9         2.6            -0.3           4.7
          III          3.0           2.8        -0.3         3.2             1.3           0.1
           IV          0.4           0.7         0.3         2.6            -0.5           2.2
 
       ANNUAL          1.0           2.2         1.2         2.6            -0.4           1.6
 -----------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year
 
 1991       I          0.8          -1.6        -2.4         5.9             0.6           5.0
           II          2.5          -0.7        -3.2         5.5             0.6           2.9
          III          2.8           0.7        -2.0         5.2             1.3           2.4
           IV          1.6           0.8        -0.7         4.7             1.7           3.1
 
       ANNUAL          1.9          -0.2        -2.0         5.2             1.0           3.3
 
 1992       I          2.2           2.2         0.0         4.6             1.7           2.3
           II          1.3           2.7         1.5         4.3             1.2           3.0
          III          1.1           1.9         0.8         4.1             1.0           2.9
           IV          1.8           2.4         0.6         3.7             0.6           1.9
 
       ANNUAL          1.7           2.3         0.6         4.3             1.2           2.5
 
 1993       I          1.4           3.0         1.6         3.0            -0.2           1.5
           II          1.0           2.2         1.2         2.5            -0.6           1.5
          III          0.9           2.1         1.2         2.4            -0.4           1.5
           IV          0.6           1.6         1.0         2.4            -0.3           1.8
 
       ANNUAL          1.0           2.2         1.2         2.6            -0.4           1.6
 -----------------------------------------------------------------------------------------------
 See footnotes following table 6.                             June 18, 1996
                                                              Source: Bureau of Labor Statistics
 
 Appendix table 6.
 Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices,
 seasonally adjusted
 
               Output                      Hourly    Real               Unit     Total    Unit    Implicit
      Year     per all-                    compen-   hourly     Unit    non-     unit     pro-    price
      and      employee          Employee  sation    compen-    labor   labor    cost     fits    deflator
      quarter  hour      Output  hours      (1)      sation(2)  costs   cost(6)  (7)      (8)       (4)
 ----------------------------------------------------------------------------------------------------------
                                            Indexes 1992=100
 
 1991       I    97.0      97.0     99.9     93.9     97.7       96.8   102.8     98.4     95.9     98.2
           II    97.3      96.8     99.5     95.1     98.4       97.8   103.3     99.3     92.1     98.8
          III    97.6      97.2     99.5     96.2     98.7       98.5   103.4     99.8     90.3     99.1
           IV    98.0      97.5     99.5     97.2     98.9       99.1   102.8    100.1     89.2     99.3
 
       ANNUAL    97.4      97.1     99.7     95.5     98.4       98.0   103.1     99.4     91.9     98.8
 
 1992       I    99.1      98.6     99.4     98.6     99.7       99.5   100.4     99.7     97.5     99.6
           II    99.4      99.2     99.9     99.6     99.9      100.2    99.8    100.1     98.0     99.9
          III   100.2     100.1    100.0    100.7    100.2      100.5   101.0    100.6     93.8    100.1
           IV   101.4     102.0    100.7    101.2     99.9       99.8    98.8     99.6    110.4    100.4
 
       ANNUAL   100.0     100.0    100.0    100.0    100.0      100.0   100.0    100.0    100.0    100.0
 
 1993       I   100.2     101.3    101.1    101.5     99.4      101.3   100.7    101.1    102.9    101.2
           II   101.0     102.9    101.9    101.9     99.1      100.9   100.0    100.7    111.5    101.5
          III   101.4     104.2    102.7    102.4     99.2      100.9    99.8    100.6    115.6    101.8
           IV   102.4     106.1    103.5    102.8     98.8      100.4    99.2    100.1    128.5    102.3
 
       ANNUAL   101.3     103.6    102.2    102.2     99.2      100.9    99.9    100.6    114.8    101.7
 ----------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
 1991       I     2.8      -3.2     -5.9      3.9      0.9        1.1     6.8      2.6     34.7      4.7
           II     0.9      -0.7     -1.7      5.5      3.0        4.5     2.0      3.8    -15.2      2.3
          III     1.5       1.5      0.0      4.4      1.3        2.9     0.3      2.1     -7.3      1.4
           IV     1.7       1.6     -0.1      4.2      0.8        2.4    -2.3      1.1     -5.0      0.7
 
       ANNUAL     1.6      -1.4     -2.9      4.7      0.5        3.1     4.1      3.4     -2.1      3.0
 
 1992       I     4.6       4.4     -0.2      6.1      3.4        1.5    -9.0     -1.5     42.5      1.1
           II     1.0       2.7      1.7      4.0      0.7        3.0    -2.4      1.5      2.4      1.6
          III     3.3       3.7      0.4      4.5      1.4        1.2     4.7      2.1    -16.2      0.6
           IV     4.8       7.7      2.8      2.1     -1.4       -2.6    -8.2     -4.1     92.0      1.2
 
       ANNUAL     2.7       3.0      0.3      4.7      1.7        2.0    -3.0      0.6      8.8      1.2
 
 1993       I    -4.5      -2.9      1.6      1.1     -1.8        5.8     7.8      6.4    -24.5      3.4
           II     3.1       6.6      3.4      1.6     -1.2       -1.4    -2.7     -1.7     38.0      1.0
          III     1.9       5.0      3.1      2.0      0.1        0.1    -1.0     -0.2     15.4      1.1
           IV     4.0       7.5      3.4      1.7     -1.4       -2.1    -2.2     -2.2     52.4      1.9
 
       ANNUAL     1.3       3.6      2.2      2.2     -0.8        0.9    -0.1      0.6     14.8      1.7
 ----------------------------------------------------------------------------------------------------------
                           Percent change from corresponding quarter of previous year
 
 1991       I     1.9      -1.4     -3.2      5.3      0.0        3.3     5.5      3.9     -0.7      3.6
           II     0.9      -2.6     -3.5      4.8     -0.1        3.8     5.9      4.4    -10.0      3.2
          III     1.9      -1.2     -3.0      4.4      0.5        2.5     3.5      2.8      3.4      2.8
           IV     1.7      -0.2     -2.0      4.5      1.5        2.7     1.6      2.4      0.2      2.2
 
       ANNUAL     1.6      -1.4     -2.9      4.7      0.5        3.1     4.1      3.4     -2.1      3.0
 
 1992       I     2.2       1.7     -0.5      5.0      2.1        2.8    -2.3      1.3      1.6      1.4
           II     2.2       2.5      0.3      4.7      1.5        2.4    -3.4      0.8      6.5      1.2
          III     2.6       3.1      0.4      4.7      1.6        2.0    -2.4      0.8      3.8      1.0
           IV     3.4       4.6      1.2      4.1      1.0        0.7    -3.9     -0.5     23.8      1.1
 
       ANNUAL     2.7       3.0      0.3      4.7      1.7        2.0    -3.0      0.6      8.8      1.2
 
 1993       I     1.1       2.7      1.6      2.9     -0.3        1.8     0.3      1.4      5.6      1.7
           II     1.6       3.7      2.1      2.3     -0.8        0.7     0.2      0.6     13.8      1.6
          III     1.2       4.0      2.7      1.7     -1.1        0.5    -1.2      0.0     23.2      1.7
           IV     1.1       4.0      2.9      1.6     -1.1        0.6     0.4      0.5     16.3      1.8
 
       ANNUAL     1.3       3.6      2.2      2.2     -0.8        0.9    -0.1      0.6     14.8      1.7
 ----------------------------------------------------------------------------------------------------------
 See footnotes following table 6.                                        June 18, 1996
                                                                         Source: Bureau of Labor Statistics