USDL 99-32
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EST,
TUESDAY, FEBRUARY 9, 1999.

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                           PRODUCTIVITY AND COSTS
                     Preliminary Fourth-Quarter Measures
                          and Annual Averages, 1998


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the fourth quarter and for the full year 1998.  In the fourth
quarter, productivity advanced 3.9 percent in the business sector as output
grew 6.6 percent and hours worked rose less--2.6 percent (seasonally adjusted
annual rates).  In the nonfarm business sector, productivity rose 3.7 percent
as output increased 6.8 percent and hours grew 3.0 percent.

                                     Fourth  Annual averages
                                    quarter     1997-1998
     Business sector                   3.9          2.3
     Nonfarm business sector           3.7          2.2
     
     For the year 1998, the increases in productivity were higher than those
posted in 1997 (as revised) in both the business and nonfarm business
sectors.  Fourth-quarter productivity and related measures are summarized in
table A and annual data in table B.  Detailed information is presented in
tables 1 through 5.

     In the manufacturing sector, increases in productivity were:

                                     Fourth  Annual averages
                                    quarter     1997-1998
     Manufacturing sector              5.6          4.3
       Durable goods manufacturing     8.4          6.8
       Nondurable goods manufacturing  2.2          1.2

     Manufacturing productivity grew at a 5.6 percent annual rate in the
fourth quarter, reflecting an 8.4-percent increase in durable goods
manufacturing and a 2.2-percent increase in nondurable goods.  On an annual
basis, manufacturing productivity increased 4.3 percent in 1998--the third
consecutive increase of more than four percent.  (Output and hours in
manufacturing, which includes about 17 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.)

-----------------------------------------------------------------------
Table A. Productivity and costs: Preliminary fourth-quarter 1998
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           3.9       6.6      2.6     3.9       2.0       0.1
Nonfarm business   3.7       6.8      3.0     3.5       1.5      -0.2
Manufacturing      5.6       5.1     -0.5     3.2       1.3      -2.2
  Durable          8.4       8.4      0.0     3.2       1.3      -4.8
  Nondurable       2.2       0.9     -1.2     3.1       1.2       0.9
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business           2.7       4.8      2.1     4.2       2.6       1.5
Nonfarm business   2.5       4.8      2.3     4.0       2.5       1.5
Manufacturing      3.9       2.6     -1.3     3.2       1.7      -0.7
  Durable          6.3       5.3     -1.0     2.2       0.7      -3.8
  Nondurable       1.1      -0.7     -1.8     4.9       3.3       3.7
-----------------------------------------------------------------------


     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.

                    THIRD-TO-FOURTH QUARTER CHANGES, 1998

Business

     Productivity in the business sector grew 3.9 percent in the fourth
quarter of 1998, reflecting an increase of 6.6 percent in output combined
with a 2.6 percent rise in the hours of all persons engaged in the sector.
In the third quarter of 1998, productivity rose 2.6 percent (as revised) as
output grew 4.0 percent and hours 1.4 percent (seasonally adjusted annual
rates).

     Hourly compensation increased at a 3.9 percent annual rate in the fourth
quarter of 1998, similar to the 3.7 percent growth during the third quarter.
This measure includes wages and salaries, supplements, employer contributions
to employee-benefit plans, and taxes.  Unit labor costs, which reflect
changes in both hourly compensation and productivity, increased at just a 0.1
percent annual rate during the fourth quarter.  During the third quarter of
1998, unit labor costs rose 1.0 percent.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 2.0 percent
annual rate for persons in the business sector.  This measure rose 1.8
percent during the third quarter.

     The implicit price deflator for business output, which reflects changes
in both unit labor costs and unit nonlabor payments, increased at an annual
rate of 0.3 percent in the fourth quarter of 1998.  This measure increased
0.5 percent in the third quarter.

Nonfarm business

     In the nonfarm business sector, productivity increased 3.7 percent in
the fourth quarter as output rose 6.8 percent and hours of all persons--
employees, proprietors, and unpaid family workers--rose 3.0 percent
(seasonally adjusted annual rates).  As in the larger business sector,
productivity grew faster in the fourth quarter than it had in the previous
quarter.  During the third quarter of 1998, nonfarm productivity rose 2.5
percent as output and hours increased 4.0 and 1.4 percent, respectively
(table 2).

     Hourly compensation in the nonfarm business sector rose 3.5 percent in
the fourth quarter, and real hourly compensation increased 1.5 percent when
the increase in the CPI-U was taken into account.  During the third quarter,
hourly compensation had increased by 3.9 percent, and real hourly
compensation had risen 2.1 percent.

     Unit labor costs fell 0.2 percent in the fourth quarter, after rising
1.4 percent in the previous quarter.  The implicit price deflator for nonfarm
business output rose 0.3 percent in the fourth quarter of 1998, reflecting
both the drop in unit labor costs and an increase in unit nonlabor payments.

Manufacturing

     Manufacturing productivity grew at a 5.6 percent seasonally adjusted
annual rate in the fourth quarter of 1998 as output rose 5.1 percent and
hours fell 0.5 percent (table 3). A large productivity increase occurred in
durable goods manufacturing, where productivity and output both rose 8.4
percent and hours were unchanged (table 4).  Among nondurable goods
manufacturers, productivity rose 2.2 percent in the fourth quarter as output
increased 0.9 percent while hours dropped 1.2 percent (table 5).  In the
third quarter, total manufacturing productivity had risen 4.7 percent (as
revised), reflecting a 0.4-percent rise in output and a 4.1 percent fall in
hours of all persons working in the sector.

     The average hourly compensation of manufacturing workers increased 3.2
percent in both the third and fourth quarters.  When the increase in consumer
prices was taken into account, real hourly compensation in both quarters rose
1.3 percent.

     Since the fourth-quarter increase in manufacturing productivity outpaced
the increase in hourly compensation, unit labor costs for the manufacturing
sector fell 2.2 percent.  Unit labor costs in manufacturing also had fallen
in the previous quarter, 1.5 percent.  Unit labor costs in the fourth quarter
of 1998 fell 4.8 percent in durable goods manufacturing but rose 0.9 percent
in nondurable goods manufacturing.  Unit labor costs in durable goods
manufacturing have risen in only 2 of the last 21 quarters (the fourth
quarter of 1997, by 2.2 percent, and the first quarter of 1998, by 0.6
percent).
     
                      ANNUAL AVERAGE CHANGES, 1997-1998

Business

     Business sector productivity increased 2.3 percent when the annual
average for 1998 is compared with the annual average for 1997 (table B).
Output rose 4.6 percent in 1998, and hours of all persons engaged in the
sector grew 2.2 percent.  The 1998 productivity increase was larger than the
1.5-percent rise posted in 1997 (as revised).  Output increased 4.6 percent
in both years, but business sector hours increased less in 1998 than in 1997,
when hours rose 3.1 percent.
     
     
-----------------------------------------------------------------------------
 Table B. Annual changes in productivity and related measures,
1989-1998
-----------------------------------------------------------------------------
        Measure             1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
-----------------------------------------------------------------------------
 Business:                                                     
  Productivity ...........   0.8  0.7  0.6  3.4  0.1  0.6  0.3  2.7  1.5  2.3
  Output .................   3.4  0.8 -1.7  3.2  2.7  4.1  2.7  4.2  4.6  4.6
  Hours ..................   2.5  0.2 -2.3 -0.2  2.6  3.5  2.4  1.5  3.1  2.2
  Hourly compensation ....   2.8  5.7  4.8  5.2  2.5  1.8  2.3  3.6  3.6  4.3
  Real hourly compensation  -1.9  0.3  0.5  2.1 -0.5 -0.7 -0.5  0.7  1.2  2.7
  Unit labor costs .......   1.9  5.0  4.1  1.7  2.4  1.2  2.0  0.9  2.1  2.0
-----------------------------------------------------------------------------
 Nonfarm Business:                                               
  Productivity ...........   0.6  0.5  0.7  3.1  0.1  0.5  0.6  2.4  1.2  2.2
  Output .................   3.2  0.7 -1.8  3.0  3.0  3.9  3.0  4.1  4.5  4.6
  Hours ..................   2.6  0.3 -2.4 -0.1  2.9  3.3  2.4  1.6  3.2  2.4
  Hourly compensation ....   2.7  5.5  4.9  5.1  2.2  1.9  2.4  3.5  3.5  4.2
  Real hourly compensation  -2.0  0.1  0.7  2.1 -0.7 -0.6 -0.5  0.6  1.2  2.6
  Unit labor costs .......   2.1  5.0  4.2  1.9  2.2  1.4  1.8  1.1  2.3  2.0
-----------------------------------------------------------------------------
 Manufacturing:                                                
  Productivity ...........   0.2  2.5  2.3  5.1  2.2  3.0  3.9  4.1  4.9  4.3
  Output .................   0.7  0.4 -2.0  4.7  3.6  5.3  4.3  3.7  6.5  4.2
  Hours ..................   0.5 -2.1 -4.2 -0.4  1.4  2.2  0.4 -0.4  1.6 -0.1
  Hourly compensation ....   3.2  4.7  5.3  4.3  2.9  2.8  2.4  2.2  4.2  4.5
  Real hourly compensation  -1.6 -0.6  1.1  1.3 -0.1  0.2 -0.4 -0.8  1.8  2.9
  Unit labor costs .......   3.0  2.2  2.9 -0.7  0.7 -0.3 -1.4 -1.8 -0.7  0.2
-----------------------------------------------------------------------------


     Hourly compensation in the business sector rose 4.3 percent in 1998, and
real hourly compensation grew 2.7 percent.  The increase in real hourly
compensation was the largest since 1986, when it grew 3.3 percent.  Unit
labor costs rose 2.0 percent in 1998, about the same as the 2.1 percent
increase in the previous year.  The implicit price deflator rose 0.6 percent
in 1998.

Nonfarm business

     Productivity increased 2.2 percent in the nonfarm business sector during
1998 as output rose 4.6 percent and hours of all persons increased 2.4
percent.  The increase in labor productivity in 1997, 1.2 percent, occurred as
output and hours rose 4.5 and 3.2 percent, respectively.
     
     In 1998, hourly compensation rose 4.2 percent, compared with a 3.5
percent increase in 1997.  Real hourly compensation increased 2.6 percent in
1998.  Unit labor costs in the nonfarm business sector grew 2.0 percent in
1998, slightly less than the 2.3-percent increase in 1997.  The implicit
price deflator for nonfarm business rose 0.7 percent.

Manufacturing

     Manufacturing productivity grew 4.3 percent in 1998 as output rose 4.2
percent and hours of all persons fell slightly, 0.1 percent (table B).  In
durable goods manufacturing, productivity increased 6.8 percent in 1998,
reflecting an output increase of 7.0 percent and an increase in hours of all
persons of 0.2 percent.  The 6.8-percent increase in labor productivity in
durable goods was the largest recorded since 1971, when productivity rose 8.6
percent.  A smaller increase in labor productivity in nondurable goods
manufacturing in 1998, 1.2 percent, was the result of a 0.7 percent rise in
output coupled with a drop, 0.5 percent, in hours of all persons.

     Hourly compensation of manufacturing workers increased 4.5 percent in
1998, the largest increase since the 5.3-percent rise in 1991.  Taking into
account the rise in the CPI-U, real hourly compensation in manufacturing rose
2.9 percent in 1998.  This increase was the largest since 1982, when real
hourly compensation rose 3.3 percent.  Average hourly compensation in
nondurable goods manufacturing rose 5.1 percent in 1998, more than the 4.1
percent rise in durable goods manufacturing.

     Unit labor costs in manufacturing rose 0.2 percent in 1998.  This was
the first annual increase in unit labor costs since 1993, when they rose 0.7
percent.  Unit labor costs in durable goods manufacturing fell 2.5 percent in
1998.  This marks the seventh consecutive drop in unit labor costs in this
sector.  In contrast, unit labor costs in nondurable goods have increased
every year since 1992, when they fell 0.2 percent.  In 1998, these costs rose
3.8 percent.
     
Revised Measures

     Current and previous measures for the third quarter of 1998 for the
business, nonfarm business, and manufacturing sectors are compared in
table C.  Productivity growth is lower, and unit labor costs correspondingly
higher, than the figures published on Dec. 3, based on the information then
available.  For all three sectors, output trends were revised downward and
hours trends were revised upward.


-----------------------------------------------------------------------
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
-----------------------------------------------------------------------                                                               
                             Third quarter 1998
Business:                                                      
  Previous          3.1      4.3      1.1     3.8      2.0      0.7
  Current           2.6      4.0      1.4     3.7      1.8      1.0
Nonfarm business:                                              
  Previous          3.0      4.2      1.2     4.1      2.2      1.1
  Current           2.5      4.0      1.4     3.9      2.1      1.4
Manufacturing:                                                 
  Previous          5.2      0.7     -4.3     3.3      1.4     -1.8
  Current           4.7      0.4     -4.1     3.2      1.3     -1.5
-----------------------------------------------------------------------


     Productivity and cost measures were revised to reflect the results of
the 1997 Hours at Work Survey, which are now available.  This survey is used
to adjust the number of hours for which private nonfarm employees are paid
(as reported in the BLS Current Establishment Survey) to hours at the
workplace.  For 1997, these new results show that hours of all persons
increased more than had originally been reported.  In the nonfarm business
sector, hours of all persons grew 3.2 percent in 1997 rather than 3.0
percent, as previously reported.  All of the increase in the ratio of hours
at work to hours paid occurred outside of the manufacturing sector, where
hours of all persons rose 1.6 percent in the calendar year.  This is down
slightly from the 1.7-percent rise previously reported.

     In manufacturing, rates of growth in productivity for 1994-96 were
revised downward due to revisions in the output measures.  Unit labor costs
have been revised upward by comparable amounts.  (See appendix tables 1-3.)
Measures of productivity, output, and unit labor costs for manufacturing were
revised back to 1988 to incorporate data from the 1992 input-output table
released by the Bureau of Economic Analysis, U.S. Department of Commerce.
There also are small revisions to the manufacturing data for years prior to
1988.  Data for all years now reflect more detailed benchmark input-output
tables developed by the Office of Employment Projections of the BLS.

Revised measures: Nonfinancial Corporations

     Revised productivity and cost measures for the third quarter for
nonfinancial corporations also were announced today.  Productivity growth was
revised down as employee hours grew faster and output grew more slowly than
originally reported on Dec. 3 (table D).


------------------------------------------------------------------------------
Table D.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------                                                                  
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------                                                                     
                            Third quarter 1998
Previous     4.6      6.2     1.5    4.2      2.3    -0.4    3.1      -0.1
Current      4.4      6.1     1.7    4.0      2.2    -0.3    3.6       0.1
-----------------------------------------------------------------------------
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 A.M.
EST, Tuesday, March 9, 1999.  Revised fourth-quarter measures and annual
measures for business, nonfarm business, and manufacturing will be released
at that time.


                                      
                               TECHNICAL NOTES
                                      
Labor Hours: Hours data for the labor productivity and costs measures include
hours for all persons working in the sector--wage and salary workers, the
self-employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours
are adjusted to hours at work using the BLS Hours at Work survey, conducted
for this purpose.
     Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of
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; non-
electrical 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

  1996       I    r103.0      112.5    r109.2    r108.9       r98.5      105.7       111.9      107.9
            II     103.8      114.2     110.0    r110.4        98.9      106.3       112.1      108.4
           III     103.8      114.9     110.7     111.4        99.3      107.3       111.5      108.8
            IV     104.2      116.4    r111.7     112.3       r99.2      107.8       111.8      109.2

        ANNUAL     103.7      114.5     110.4     110.7        99.0      106.8       111.8      108.6

  1997       I    r104.4      117.8    r112.9    r113.2       r99.5      108.5       112.4      109.9
            II    r104.8      119.1    r113.6    r113.9       r99.8      108.7      r113.2      110.3
           III    r105.8      120.6    r114.0    r115.0      r100.3      108.8       113.8      110.6
            IV    r106.0      121.7    r114.8    r116.5      r101.0     r109.9       112.4      110.8

        ANNUAL    r105.2      119.8    r113.8    r114.7      r100.3      109.0       112.9      110.4

  1998       I    r107.1      123.7    r115.6    r117.9      r102.2      110.2       112.2      110.9
            II    r107.1      124.3    r116.1    r119.1      r102.7     r111.2       110.5      111.0
           III    r107.8     r125.5    r116.4    r120.2      r103.2      111.5       110.4      111.1
            IV     108.8      127.5     117.2     121.4       103.7      111.5       110.6      111.2

        ANNUAL     107.7      125.3     116.3     119.7       103.0      111.1       110.9      111.0

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I      r4.5        4.5      r0.0      r2.6       r-0.6      r-1.8         8.5        1.9
            II      r3.4        6.4       2.9       5.6         1.8        2.1         0.9        1.7
           III      r0.0        2.5      r2.5      r3.8        r1.4        3.8        -2.2        1.6
            IV      r1.3        5.1      r3.7      r3.1       r-0.2        1.8         1.0        1.5

        ANNUAL       2.7        4.2       1.5       3.6         0.7        0.9         2.8        1.6

  1997       I      r0.7        4.9      r4.2      r3.5        r1.3        2.8        r2.1        2.5
            II      r1.8        4.7      r2.8      r2.4        r1.1        0.6         2.8        1.4
           III      r3.6        4.9      r1.3      r4.0        r2.0        0.4        r2.3        1.1
            IV      r0.8        3.6       2.7      r5.2         3.1        4.4        -4.8        0.9

        ANNUAL      r1.5        4.6      r3.1      r3.6        r1.2        2.1         1.0        1.7

  1998       I       4.1        7.1      r2.8      r5.0         4.4        0.8        -0.7        0.2
            II       0.1        1.7      r1.6       4.1        r2.1        4.0        -6.0        0.3
           III      r2.6       r4.0      r1.4      r3.7        r1.8       r1.0        -0.4       r0.5
            IV       3.9        6.6       2.6       3.9         2.0        0.1         0.8        0.3

        ANNUAL       2.3        4.6       2.2       4.3         2.7        2.0        -1.8        0.6

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       2.5        3.2       0.7      r3.1        r0.3        0.6         3.3        1.6
            II       3.1        4.7       1.6       3.7         0.8        0.6         3.4        1.6
           III       2.8        4.2       1.4       4.0         1.0        1.1         2.4        1.6
            IV      r2.3        4.6      r2.3      r3.8        r0.6       r1.4         2.0        1.7

        ANNUAL       2.7        4.2       1.5       3.6         0.7        0.9         2.8        1.6

  1997       I      r1.4        4.7      r3.3      r4.0        r1.1        2.6        r0.5        1.8
            II      r1.0        4.3      r3.3      r3.2        r0.9       r2.2         0.9        1.8
           III      r1.8        4.9      r3.0      r3.3        r1.0        1.4         2.0        1.6
            IV      r1.7        4.5      r2.8      r3.8        r1.9        2.0        r0.6        1.5

        ANNUAL      r1.5        4.6      r3.1      r3.6        r1.2        2.1         1.0        1.7

  1998       I       2.6        5.1      r2.4      r4.1        r2.6        1.5        -0.2        0.9
            II       2.1        4.3       2.1       4.6         2.9        2.4        -2.4        0.6
           III      r1.9        4.1       2.1       4.5         2.9        2.5        -3.0       r0.5
            IV       2.7        4.8       2.1       4.2         2.6        1.5        -1.6        0.3

        ANNUAL       2.3        4.6       2.2       4.3         2.7        2.0        -1.8        0.6

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 9, 1999
  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

  1996       I    r103.1      112.8     109.4    r108.7        98.3      105.4       112.3      107.9
            II     103.8      114.5     110.3    r110.1       r98.7      106.0       112.3      108.2
           III     103.8      115.2     111.0     111.0        98.9      107.0       111.6      108.6
            IV    r104.0      116.6    r112.1    r111.9        98.9      107.5       112.2      109.2

        ANNUAL     103.7      114.8     110.7     110.4        98.7      106.5       112.1      108.5

  1997       I    r104.1      117.9    r113.3    r112.9       r99.2      108.5      r112.9      110.0
            II    r104.5      119.2    r114.1    r113.6       r99.5      108.7      r113.7      110.4
           III    r105.4      120.6    r114.5    r114.6       r99.9      108.8      r114.6      110.8
            IV    r105.6      121.8    r115.3    r116.0      r100.6     r109.8       113.3      111.1

        ANNUAL    r104.9      119.9    r114.3    r114.3       r99.9     r108.9       113.6      110.6

  1998       I    r106.6      123.9    r116.3    r117.4      r101.7     r110.1       113.2      111.2
            II    r106.6      124.4    r116.7    r118.5      r102.2     r111.1      r111.6      111.3
           III    r107.3     r125.6    r117.1    r119.7      r102.7      111.5       111.4     r111.5
            IV     108.3      127.7     117.9     120.7       103.1      111.5       111.7      111.6

        ANNUAL     107.2      125.4     117.0     119.1       102.5      111.1       112.0      111.4

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I      r4.2        4.2       0.0      r2.7        -0.5       -1.5         7.4        1.7
            II       3.0        6.4       3.3       5.2         1.4        2.2        -0.1        1.3
           III     r-0.1        2.5      r2.6      r3.6        r1.2        3.7        -2.3        1.4
            IV      r1.0        5.0      r4.0      r3.1       r-0.3        2.1         2.3        2.2

        ANNUAL       2.4        4.1       1.6       3.5         0.6        1.1         2.0        1.4

  1997       I      r0.1        4.5      r4.4      r3.7        r1.4       r3.5        r2.3        3.1
            II      r1.6        4.5      r2.8      r2.4        r1.0        0.7         2.8        1.5
           III      r3.4        4.8      r1.3      r3.8        r1.8        0.3         3.1        1.4
            IV       0.9        4.0       3.0       4.9         2.8        4.0        -4.3        0.9

        ANNUAL      r1.2        4.5      r3.2      r3.5        r1.2        2.3         1.3        1.9

  1998       I      r3.6        7.0      r3.3      r4.7        r4.2        1.1        -0.3        0.6
            II       0.3        1.7      r1.4      r4.1         2.0        3.7        -5.7        0.2
           III      r2.5       r4.0      r1.4      r3.9        r2.1       r1.4       r-0.5       r0.7
            IV       3.7        6.8       3.0       3.5         1.5       -0.2         1.1        0.3

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       2.4        3.2       0.8       3.0         0.2        0.6         2.7        1.4
            II       2.9        4.7      r1.7       3.6         0.7        0.7        r2.3        1.3
           III       2.4        4.1       1.6       3.8         0.8        1.3         1.4        1.3
            IV      r2.0        4.5       2.4      r3.6         0.5        1.6        r1.8        1.7

        ANNUAL       2.4        4.1       1.6       3.5         0.6        1.1         2.0        1.4

  1997       I      r1.0        4.6      r3.5      r3.9        r0.9        2.9         0.5        2.0
            II      r0.7        4.1      r3.4      r3.2        r0.8        2.5        r1.3        2.0
           III      r1.5        4.7      r3.1      r3.2        r1.0        1.7         2.6        2.0
            IV      r1.5        4.4      r2.9      r3.7        r1.8        2.1         0.9        1.7

        ANNUAL      r1.2        4.5      r3.2      r3.5        r1.2        2.3         1.3        1.9

  1998       I       2.4        5.1       2.6      r3.9        r2.4        1.5         0.3        1.1
            II       2.0        4.4       2.3       4.4         2.7        2.3        -1.9        0.8
           III      r1.8       r4.1       2.3       4.4         2.8       r2.6        -2.7        0.6
            IV       2.5        4.8       2.3       4.0         2.5        1.5        -1.4        0.5

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 9, 1999
  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

  1996       I           r111.9       r114.8        102.6        109.2           98.8         r97.6
            II           r113.2       r117.5        103.8        110.3           98.9         r97.5
           III           r114.7       r119.3        104.1        111.2           99.1         r97.0
            IV           r115.5       r120.4       r104.2        111.9           98.9         r96.9

        ANNUAL           r113.8       r118.0        103.7        110.7           99.0         r97.2

  1997       I           r116.7       r122.5       r105.0       r113.1          r99.4         r97.0
            II           r118.1       r124.5       r105.4       r114.2         r100.0         r96.7
           III           r120.7       r126.8       r105.1       r115.7         r100.9         r95.9
            IV           r121.9       r129.1       r105.9       r118.0         r102.3         r96.8

        ANNUAL           r119.4       r125.7       r105.3       r115.3         r100.8         r96.6

  1998       I           r122.4       r129.9       r106.1       r119.2         r103.2         r97.3
            II           r123.6       r130.7       r105.7       r119.9         r103.4         r97.0
           III           r125.0       r130.8       r104.6       r120.9         r103.7         r96.7
            IV            126.8        132.5        104.5        121.8          104.0          96.1

        ANNUAL            124.4        131.0        105.2        120.4          103.7          96.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r4.2         r0.8         -3.3        r-0.2          r-3.3         r-4.3
            II             r4.5         r9.6          4.9          4.1            0.4         r-0.4
           III             r5.3         r6.4         r1.0         r3.2           r0.8         r-2.0
            IV              3.1         r3.6         r0.5         r2.6          r-0.7         r-0.4

        ANNUAL             r4.1         r3.7         -0.4          2.2           -0.8         r-1.8

  1997       I             r4.1          7.2         r3.0         r4.4           r2.2           0.4
            II             r5.0          6.6         r1.5         r3.7           r2.3          -1.3
           III             r9.0          7.7        r-1.2         r5.7           r3.7          -3.1
            IV              4.3          7.5          3.1          8.0            5.8           3.6

        ANNUAL             r4.9         r6.5         r1.6         r4.2           r1.8         r-0.7

  1998       I              1.6          2.4          0.8         r4.0           r3.5           2.4
            II             r3.9          2.5         -1.4          2.6            0.6          -1.3
           III             r4.7         r0.4        r-4.1         r3.2           r1.3         r-1.5
            IV              5.6          5.1         -0.5          3.2            1.3          -2.2

        ANNUAL              4.3          4.2         -0.1          4.5            2.9           0.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r3.7         r1.3         -2.4         r1.8           -0.9         r-1.8
            II             r3.7         r3.6         -0.1          2.1           -0.7         r-1.6
           III             r4.4         r4.8          0.4          2.2           -0.7         r-2.1
            IV             r4.3         r5.0         r0.7          2.4          r-0.7         r-1.8

        ANNUAL             r4.1         r3.7         -0.4          2.2           -0.8         r-1.8

  1997       I             r4.2         r6.7         r2.3         r3.6           r0.7         r-0.6
            II             r4.4         r5.9         r1.5         r3.5           r1.1         r-0.8
           III             r5.3          6.3         r1.0         r4.1           r1.8         r-1.1
            IV             r5.6          7.3         r1.6         r5.4           r3.5          -0.1

        ANNUAL             r4.9         r6.5         r1.6         r4.2           r1.8         r-0.7

  1998       I              4.9          6.0          1.1          5.3            3.8           0.4
            II              4.7          5.0          0.3         r5.1            3.4           0.4
           III             r3.6          3.2        r-0.4         r4.4            2.8          r0.8
            IV              3.9          2.6         -1.3          3.2            1.7          -0.7

        ANNUAL              4.3          4.2         -0.1          4.5            2.9           0.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
  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

  1996       I           r118.7       r125.3        105.5        107.5           97.2         r90.5
            II           r120.9       r129.9        107.4        108.5           97.2         r89.8
           III           r122.7       r132.3        107.8        109.2           97.3         r89.0
            IV           r123.7       r133.6        108.0        109.6           96.8         r88.6

        ANNUAL           r121.5       r130.2        107.2        108.7           97.2         r89.5

  1997       I           r125.1       r136.9       r109.4       r110.7          r97.3         r88.5
            II           r127.5       r140.3       r110.1       r111.6          r97.8         r87.6
           III           r131.5       r144.6       r110.0       r113.2          r98.7         r86.1
            IV           r134.0       r148.3       r110.7       r115.9         r100.6         r86.5

        ANNUAL           r129.5       r142.5       r110.0       r112.9          r98.7         r87.1

  1998       I           r134.6       r149.6       r111.1       r116.7         r101.1         r86.7
            II           r136.8       r151.3       r110.6       r117.1         r101.0         r85.6
           III           r139.6       r153.1       r109.7       r117.6         r100.9         r84.2
            IV            142.4        156.2        109.7        118.5          101.2          83.2

        ANNUAL            138.3        152.5        110.3        117.5          101.1          84.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r6.9         r4.1         -2.7        r-2.9           -5.8         r-9.2
            II             r7.4        r15.5          7.5          3.8            0.1         r-3.3
           III             r6.2         r7.7         r1.4         r2.7            0.2         r-3.3
            IV              3.3         r3.9         r0.6         r1.5          r-1.8         r-1.8

        ANNUAL             r5.9         r6.8          0.9          0.8           -2.1         r-4.8

  1997       I             r4.6         10.4         r5.5         r4.0           r1.8          -0.6
            II             r7.9         10.4         r2.3         r3.5           r2.2          -4.1
           III             13.0         12.8         -0.2          5.5            3.5          -6.6
            IV              7.8         10.7          2.7         10.2           r8.0           2.2

        ANNUAL              6.6         r9.4         r2.7         r3.9           r1.5          -2.6

  1998       I              2.0          3.5         r1.5          2.6            2.1           0.6
            II              6.6          4.6         -1.8         r1.5           -0.4          -4.7
           III             r8.5         r4.8         -3.5          1.6          r-0.2         r-6.4
            IV              8.4          8.4          0.0          3.2            1.3          -4.8

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r4.9         r3.7        r-1.1         r0.3           -2.4         r-4.4
            II             r6.0         r7.5         r1.5          0.7           -2.1         r-5.0
           III             r6.5         r8.3          1.7          0.9           -2.0         r-5.3
            IV             r6.0         r7.7          1.7         r1.3           -1.9         r-4.4

        ANNUAL             r5.9         r6.8          0.9          0.8           -2.1         r-4.8

  1997       I              5.4         r9.3         r3.7         r3.0           r0.1         r-2.3
            II              5.5          8.1         r2.4         r2.9           r0.6         r-2.4
           III             r7.2          9.3         r2.0         r3.6           r1.4          -3.3
            IV             r8.3         11.1         r2.5         r5.8           r3.8          -2.3

        ANNUAL              6.6         r9.4         r2.7         r3.9           r1.5          -2.6

  1998       I              7.6          9.3         r1.5          5.4            3.9          -2.0
            II              7.3          7.8          0.5          4.9            3.2          -2.2
           III             r6.2         r5.9         -0.3          3.9            2.3          -2.1
            IV              6.3          5.3         -1.0          2.2            0.7          -3.8

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
  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

  1996       I           r106.3       r104.9         98.7        111.4          100.8        r104.8
            II           r106.8       r105.7         99.0       r112.5          100.9        r105.4
           III           r108.0       r107.0         99.1        113.7          101.3        r105.3
            IV           r108.7       r107.9        r99.2       r114.9          101.5        r105.7

        ANNUAL           r107.5       r106.4         99.0        113.1          101.2        r105.3

  1997       I           r109.8       r108.8        r99.1       r116.2         r102.1        r105.9
            II           r110.2       r109.3        r99.2       r117.3         r102.7        r106.4
           III           r111.4       r109.7        r98.5       r118.9         r103.7        r106.8
            IV           r111.3       r110.7        r99.4       r120.3         r104.3        r108.0

        ANNUAL           r110.7       r109.6        r99.1       r118.2         r103.3        r106.8

  1998       I           r111.7       r111.0        r99.4       r122.1         r105.8        r109.3
            II           r111.9       r111.0        r99.2       r123.5         r106.4        r110.4
           III           r111.9       r109.6        r97.9       r125.2         r107.4        r111.8
            IV            112.5        109.9         97.6        126.1          107.7         112.1

        ANNUAL            112.0        110.4         98.5        124.2          106.9         110.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r1.7        r-2.5        r-4.1         r4.1           r0.9          r2.3
            II             r1.9         r3.1          1.2          4.1            0.4          r2.3
           III             r4.5         r5.0         r0.4         r4.1           r1.6         r-0.4
            IV             r2.9         r3.2         r0.4         r4.5           r1.1          r1.5

        ANNUAL             r2.5         r0.3         -2.1          4.1            1.1          r1.6

  1997       I             r3.9          3.4        r-0.5         r4.6           r2.4           0.7
            II             r1.5          1.9         r0.4         r3.8           r2.4           2.2
           III             r4.3          1.7        r-2.5         r5.7           r3.7           1.3
            IV             -0.1          3.6          3.7          4.6            2.5           4.7

        ANNUAL             r3.0          3.1         r0.1         r4.5           r2.1           1.4

  1998       I              1.3          1.1         -0.2         r6.3            5.8           5.0
            II             r0.6         -0.2        r-0.8         r4.4            2.4           3.8
           III             r0.3        r-4.7        r-5.0         r5.7           r3.8          r5.4
            IV              2.2          0.9         -1.2          3.1            1.2           0.9

        ANNUAL              1.2          0.7         -0.5          5.1            3.5           3.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r2.8        r-1.4         -4.1         r4.0           r1.2          r1.2
            II             r1.8        r-0.6         -2.3          4.1            1.2          r2.3
           III             r2.5         r1.0         -1.5          4.1            1.2          r1.6
            IV             r2.7         r2.2        r-0.6         r4.2           r1.0          r1.4

        ANNUAL             r2.5         r0.3         -2.1          4.1            1.1          r1.6

  1997       I              3.3         r3.7         r0.4         r4.3           r1.4          r1.0
            II             r3.2         r3.4         r0.2         r4.2           r1.9          r1.0
           III             r3.1          2.6        r-0.6         r4.6           r2.4          r1.5
            IV             r2.4          2.6         r0.2         r4.7           r2.7           2.2

        ANNUAL             r3.0          3.1         r0.1         r4.5           r2.1           1.4

  1998       I              1.7          2.1         r0.3         r5.1           r3.6           3.3
            II              1.5          1.5          0.0         r5.3            3.6           3.7
           III             r0.5        r-0.1        r-0.6         r5.2           r3.6          r4.7
            IV              1.1         -0.7         -1.8          4.9            3.3           3.7

        ANNUAL              1.2          0.7         -0.5          5.1            3.5           3.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
  r=revised                                                       Source: Bureau of Labor Statistics

  Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I    106.4    117.3    r110.2    107.7      97.4     101.2     98.7    100.6    153.7    105.4
            II   r107.3    119.3     111.2    109.0      97.7     101.7     97.9    100.7    154.1    105.5
           III    108.0    120.9     111.9    110.1      98.1     101.9     97.5    100.8    155.3    105.7
            IV    108.6    122.5     112.8   r110.8     r97.9     102.1     97.4    100.9    155.4    105.8

        ANNUAL    107.6    120.0     111.5    109.5      97.9     101.7     97.9    100.7    154.6    105.6

  1997       I   r108.9    124.3    r114.1    111.8     r98.2     102.6     97.3    101.2    156.6    106.2
            II   r109.6    126.2    r115.2   r112.5     r98.5     102.6     97.1    101.2    157.3    106.3
           III   r111.1    128.7    r115.9   r113.6     r99.0     102.3     96.4    100.7    161.7    106.3
            IV   r111.3    130.2    r117.0   r115.0     r99.7     103.3     95.7    101.3    155.7    106.3

        ANNUAL   r110.3    127.3    r115.4   r113.3     r99.0     102.7     96.6    101.1    157.8    106.3

  1998       I   r112.1    132.1    r117.9   r116.0    r100.5     103.5     95.4    101.4    153.5    106.2
            II   r112.9    133.4    r118.1   r117.3    r101.1     103.9     95.5    101.7    150.4    106.1
           III   r114.1    135.4    r118.6   r118.5    r101.7     103.8     95.2    101.6   r151.8    106.1
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1996       I     r1.3      1.4      r0.1      1.7     r-1.4       0.4     -0.7      0.1     13.1      1.7
            II      3.3      6.9       3.5      5.0       1.2       1.7     -2.9      0.5      1.1      0.6
           III      2.9      5.6       2.6     r3.8       1.4       0.9     -1.7      0.3      3.0      0.6
            IV     r2.0      5.5      r3.4     r2.8     r-0.5       0.7     -0.5      0.4      0.3      0.4

        ANNUAL      2.8      4.5       1.7      3.1       0.2       0.3     -1.1     -0.1      7.7      0.9

  1997       I     r1.3      5.9      r4.5     r3.4      r1.2       2.0     -0.6      1.4      3.2      1.6
            II     r2.3      6.3      r3.9     r2.5      r1.2       0.2     -0.6      0.0      1.7      0.2
           III      5.6      8.2      r2.5     r4.1       2.2      -1.3     -3.1     -1.8     11.8      0.0
            IV      1.0      4.8       3.8      5.0       2.9       4.0     -2.7      2.3    -14.1     -0.1

        ANNUAL     r2.5      6.1      r3.6     r3.5      r1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I     r2.7      5.9       3.2      3.6       3.1       0.9     -1.1      0.4     -5.6     -0.4
            II      3.1      4.0       0.9      4.6      r2.6       1.5      0.1      1.1     -7.7     -0.1
           III     r4.4     r6.1      r1.7     r4.0      r2.2     r-0.3    r-0.9    r-0.4     r3.6     r0.1
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1996       I     r3.0      3.9      r0.9      2.5      -0.3      -0.4     -0.6     -0.5     11.5      0.9
            II      3.2      4.9      r1.6      3.1       0.2      -0.1     -1.6     -0.5     11.1      0.9
           III      2.6      4.4       1.8      3.4      r0.4       0.8     -0.9      0.3      4.5      0.9
            IV      2.4      4.8       2.4     r3.3       0.2       0.9     -1.4      0.3      4.3      0.8

        ANNUAL      2.8      4.5       1.7      3.1       0.2       0.3     -1.1     -0.1      7.7      0.9

  1997       I     r2.4      5.9      r3.5     r3.7      r0.8       1.3     -1.4      0.6      1.9      0.8
            II     r2.1      5.8      r3.6     r3.1      r0.8       1.0     -0.8      0.5      2.0      0.7
           III     r2.8      6.4      r3.5     r3.2      r1.0       0.4     -1.2      0.0      4.2      0.5
            IV     r2.5      6.3      r3.6     r3.8      r1.8       1.2     -1.8      0.5      0.2      0.4

        ANNUAL     r2.5      6.1      r3.6     r3.5      r1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.9      6.3       3.3     r3.8      r2.3       0.9     -1.9      0.2     -2.0     -0.1
            II      3.1      5.7       2.6      4.3       2.7       1.2     -1.7      0.5     -4.3     -0.1
           III      2.8      5.2      r2.4      4.3       2.7       1.5    r-1.1      0.8    r-6.2    r-0.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        February 9, 1999
  r=revised                                                               Source: Bureau of Labor Statistics

SOURCES:  Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and
hours data are from the Bureau of Labor Statistics and the Bureau of Economic
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published
within 40 days of the close of the reference period; revisions appear 30 days
later, and second revisions after an additional 60 days.  In the business
sector, the third publication (second revision) of a quarterly index of
output per hour of all persons has differed from the initial value by between
-1.3 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 third quarter of 1998.



                            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 costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.

  Appendix table 1.  Manufacturing sector:   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

  1993       I          102.1         102.9        100.8        101.5           99.5          99.5
            II          102.1         103.3        101.2        102.5           99.7         100.4
           III          101.8         103.3        101.5        103.4          100.1         101.6
            IV          102.8         104.9        102.0        104.3          100.2         101.4

        ANNUAL          102.2         103.6        101.4        102.9           99.9         100.7

  1994       I          104.0         106.3        102.2        105.3          100.7         101.2
            II          105.2         108.4        103.1        105.3          100.0         100.1
           III          105.5         109.7        104.0        105.9           99.7         100.4
            IV          106.5         111.9        105.1        106.7           99.8         100.2

        ANNUAL          105.3         109.1        103.6        105.8          100.1         100.5

  1995       I          107.9         113.4        105.1        107.2           99.7          99.4
            II          109.1         113.4        103.9        108.0           99.6          99.0
           III          109.8         113.9        103.7        108.8           99.8          99.1
            IV          110.8         114.6        103.5        109.3           99.6          98.6

        ANNUAL          109.4         113.8        104.0        108.3           99.7          99.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I            3.1           4.7          1.5          1.8           -1.0          -1.2
            II            0.1           1.7          1.6          3.9            0.9           3.8
           III           -1.2           0.1          1.3          3.4            1.5           4.6
            IV            4.2           6.3          2.1          3.7            0.4          -0.4

        ANNUAL            2.2           3.6          1.4          2.9           -0.1           0.7

  1994       I            4.8           5.6          0.8          3.8            1.8          -0.9
            II            4.5           8.0          3.3          0.1           -2.4          -4.2
           III            1.1           4.9          3.7          2.2           -1.5           1.1
            IV            4.0           8.2          4.1          3.0            0.5          -0.9

        ANNUAL            3.0           5.3          2.2          2.8            0.2          -0.3

  1995       I            5.5           5.6          0.1          2.1           -0.5          -3.2
            II            4.4          -0.1         -4.3          3.0           -0.3          -1.3
           III            2.6           1.7         -0.9          2.8            0.6           0.2
            IV            3.6           2.6         -1.0          1.8           -0.7          -1.8

        ANNUAL            3.9           4.3          0.4          2.4           -0.4          -1.4

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            3.7           5.0          1.3          2.9           -0.2          -0.8
            II            2.5           3.6          1.0          2.8           -0.3           0.3
           III            1.0           2.6          1.6          2.7           -0.1           1.6
            IV            1.5           3.2          1.6          3.2            0.5           1.7

        ANNUAL            2.2           3.6          1.4          2.9           -0.1           0.7

  1994       I            1.9           3.4          1.4          3.7            1.2           1.8
            II            3.0           4.9          1.9          2.7            0.3          -0.3
           III            3.6           6.2          2.5          2.4           -0.4          -1.1
            IV            3.6           6.6          3.0          2.3           -0.4          -1.3

        ANNUAL            3.0           5.3          2.2          2.8            0.2          -0.3

  1995       I            3.8           6.7          2.8          1.9           -1.0          -1.8
            II            3.7           4.6          0.8          2.6           -0.4          -1.1
           III            4.1           3.8         -0.3          2.7            0.1          -1.3
            IV            4.0           2.4         -1.5          2.4           -0.2          -1.5

        ANNUAL            3.9           4.3          0.4          2.4           -0.4          -1.4

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
                                                                  Source: Bureau of Labor Statistics

  Appendix table 2. 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

  1993       I          103.4         104.1        100.7        101.6           99.6          98.3
            II          104.2         105.2        101.0        102.8          100.0          98.7
           III          103.5         105.2        101.7        103.6          100.3         100.1
            IV          105.8         108.4        102.5        104.6          100.5          98.9

        ANNUAL          104.2         105.7        101.5        103.2          100.2          99.0

  1994       I          107.4         110.6        103.0        105.4          100.8          98.1
            II          108.8         113.1        104.0        105.3          100.0          96.8
           III          109.7         115.5        105.3        105.7           99.5          96.4
            IV          110.9         118.3        106.7        106.5           99.7          96.0

        ANNUAL          109.2         114.4        104.7        105.7          100.1          96.8

  1995       I          113.1         120.7        106.7        107.1           99.6          94.7
            II          114.1         120.8        105.9        107.7           99.3          94.4
           III          115.2         122.1        106.1        108.2           99.2          94.0
            IV          116.7         124.0        106.2        108.2           98.7          92.7

        ANNUAL          114.8         121.9        106.2        107.8           99.3          93.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I            6.0           7.8          1.7          2.6           -0.3          -3.2
            II            3.0           4.0          1.0          4.5            1.5           1.5
           III           -2.6           0.3          3.0          3.2            1.3           5.9
            IV            9.2          12.5          3.0          4.2            0.9          -4.6

        ANNUAL            4.2           5.7          1.5          3.2            0.2          -1.0

  1994       I            6.5           8.5          1.9          3.0            1.1          -3.3
            II            5.1           9.4          4.0         -0.5           -3.0          -5.4
           III            3.4           8.6          5.1          1.7           -2.0          -1.6
            IV            4.4          10.0          5.4          2.9            0.5          -1.4

        ANNUAL            4.8           8.2          3.2          2.5           -0.1          -2.2

  1995       I            8.3           8.6          0.3          2.3           -0.3          -5.6
            II            3.3           0.1         -3.1          2.3           -1.1          -1.0
           III            3.9           4.6          0.6          1.9           -0.2          -2.0
            IV            5.6           6.3          0.6          0.1           -2.3          -5.2

        ANNUAL            5.1           6.6          1.4          2.0           -0.8          -3.0

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            5.7           6.8          1.0          3.0           -0.1          -2.5
            II            4.5           5.4          0.9          3.0           -0.1          -1.4
           III            2.9           4.8          1.8          2.9            0.1           0.0
            IV            3.8           6.0          2.2          3.6            0.9          -0.2

        ANNUAL            4.2           5.7          1.5          3.2            0.2          -1.0

  1994       I            3.9           6.2          2.2          3.7            1.2          -0.2
            II            4.5           7.6          3.0          2.5            0.1          -1.9
           III            6.0           9.7          3.5          2.1           -0.8          -3.7
            IV            4.8           9.1          4.1          1.8           -0.9          -2.9

        ANNUAL            4.8           8.2          3.2          2.5           -0.1          -2.2

  1995       I            5.3           9.1          3.7          1.6           -1.2          -3.5
            II            4.8           6.8          1.9          2.3           -0.7          -2.4
           III            5.0           5.8          0.8          2.3           -0.3          -2.5
            IV            5.3           4.9         -0.4          1.6           -1.0          -3.5

        ANNUAL            5.1           6.6          1.4          2.0           -0.8          -3.0

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
                                                                  Source: Bureau of Labor Statistics

  Appendix table 3. 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

  1993       I          100.8         101.6        100.8        101.3           99.3         100.5
            II          100.1         101.5        101.5        102.1           99.4         102.1
           III          100.4         101.6        101.2        103.0           99.7         102.6
            IV          100.2         101.7        101.5        103.7           99.6         103.5

        ANNUAL          100.4         101.6        101.2        102.5           99.6         102.2

  1994       I          101.1         102.4        101.3        104.9          100.3         103.7
            II          102.2         104.1        101.9        105.1           99.9         102.9
           III          102.0         104.4        102.4        105.8           99.6         103.8
            IV          102.9         105.9        103.0        106.6           99.7         103.6

        ANNUAL          102.0         104.2        102.1        105.6          100.0         103.5

  1995       I          103.4         106.4        102.9        107.1           99.5         103.5
            II          104.9         106.3        101.3        108.1           99.7         103.1
           III          105.3         105.9        100.6        109.1          100.1         103.6
            IV          105.8         105.6         99.8        110.3          100.5         104.2

        ANNUAL          104.9         106.1        101.1        108.6          100.0         103.6

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I            0.2           1.6          1.3          0.7           -2.1           0.5
            II           -2.9          -0.5          2.5          3.2            0.2           6.2
           III            1.2           0.2         -0.9          3.3            1.4           2.1
            IV           -0.6           0.3          0.9          2.7           -0.6           3.3

        ANNUAL            0.4           1.6          1.2          2.5           -0.4           2.2

  1994       I            3.7           3.0         -0.7          4.8            2.8           1.1
            II            4.3           6.9          2.4          0.8           -1.7          -3.3
           III           -0.9           1.0          2.0          2.8           -0.9           3.7
            IV            3.7           6.1          2.3          2.9            0.4          -0.8

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.3

  1995       I            2.1           1.9         -0.2          1.8           -0.7          -0.2
            II            5.9          -0.4         -6.0          4.0            0.5          -1.8
           III            1.6          -1.5         -3.0          3.8            1.7           2.2
            IV            2.0          -1.3         -3.2          4.2            1.7           2.2

        ANNUAL            2.8           1.8         -1.0          2.9            0.0           0.1

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            1.9           3.6          1.6          2.8           -0.3           0.9
            II            0.6           1.9          1.3          2.5           -0.6           1.9
           III           -0.6           0.6          1.2          2.4           -0.4           2.9
            IV           -0.5           0.4          0.9          2.5           -0.3           3.0

        ANNUAL            0.4           1.6          1.2          2.5           -0.4           2.2

  1994       I            0.3           0.7          0.4          3.5            1.0           3.2
            II            2.1           2.5          0.4          2.9            0.5           0.8
           III            1.6           2.7          1.1          2.8           -0.1           1.2
            IV            2.7           4.2          1.5          2.8            0.1           0.1

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.3

  1995       I            2.3           3.9          1.6          2.1           -0.7          -0.2
            II            2.7           2.1         -0.5          2.9           -0.2           0.2
           III            3.3           1.5         -1.8          3.1            0.5          -0.2
            IV            2.9          -0.3         -3.1          3.5            0.8           0.6

        ANNUAL            2.8           1.8         -1.0          2.9            0.0           0.1

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 9, 1999
                                                                  Source: Bureau of Labor Statistics

^3