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                           PRODUCTIVITY AND COSTS
                     Preliminary Fourth-Quarter Measures
                          and Annual Averages, 1996


     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 1996.  In the fourth
quarter, productivity advanced 2.4 percent in the business sector as output
grew 5.8 percent and hours worked rose less--3.4 percent (seasonally adjusted
annual rates).  In the nonfarm business sector, productivity rose 2.2 percent
as output increased 5.9 percent and hours grew 3.7 percent.

                                  Fourth  Annual averages
                                  quarter     1995-1996
     Business sector                2.4          1.0
     Nonfarm business sector        2.2          0.8
     
     For the year 1996, the increase in productivity was larger than in the
prior three years 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; both appear in detail in tables 1 through 5.

     In the manufacturing sector, increases in productivity were:

                                     Fourth   Annual averages
                                     quarter    1995-1996
     Manufacturing sector              3.8          3.8
       Durable goods manufacturing     2.6          4.8
       Nondurable goods manufacturing  5.0          2.9
     Manufacturing productivity grew at a 3.8 percent annual rate in the
fourth quarter as output increased 3.7 percent and hours of all persons were
unchanged. Productivity grew faster in nondurable goods manufacturing than in
durable goods manufacturing (table A).  On an annual basis, manufacturing
productivity also increased 3.8 percent, as output rose 2.7 percent while
hours of all persons in the sector fell 1.1 percent.  For the year 1996,
productivity grew more among durable goods manufacturers than among
nondurable goods manufacturers.  (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.)

     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: Preliminary fourth-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            2.4      5.8      3.4    3.7      0.6       1.3
Nonfarm business    2.2      5.9      3.7    3.6      0.4       1.4
Manufacturing       3.8      3.7      0.0    2.9     -0.3      -0.9
  Durable           2.6      2.3     -0.3    2.1     -1.1      -0.6
  Nondurable        5.0      5.4      0.4    4.2      1.0      -0.7
-------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            1.5      4.0      2.5    3.7      0.6       2.2
Nonfarm business    1.2      3.8      2.6    3.6      0.4       2.4
Manufacturing       4.0      4.0      0.0    3.4      0.3      -0.6
  Durable           4.7      5.6      0.8    2.7     -0.4      -1.9
  Nondurable        3.4      2.2     -1.2    4.3      1.2       0.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------


                    THIRD-TO-FOURTH QUARTER CHANGES, 1996
Business

     Productivity in the business sector grew 2.4 percent in the fourth
quarter of 1996, reflecting an increase of 5.8 percent in output combined
with a 3.4 percent rise in the hours of all persons engaged in the sector.
The productivity increase was the largest quarterly rise since a 3.8 percent
gain was posted in the fourth quarter of 1993.  In the third quarter of 1996,
productivity had risen 0.3 percent (as revised), as output grew 2.2 percent
and hours 1.9 percent (seasonally adjusted annual rates).

     Hourly compensation increased at a 3.7 percent annual rate in the fourth
quarter of 1996, compared with 3.8 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 a 1.3
percent annual rate during the fourth quarter, down from the 3.4 percent
increase one quarter earlier.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 0.6 percent
annual rate for persons in the business sector.  This measure rose 1.4
percent during the third quarter.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased at an annual rate
of 1.1 percent in the fourth quarter, slightly less than the 1.3 percent rise
in the third quarter.

Nonfarm business

     In the nonfarm business sector, productivity increased 2.2 percent in
the fourth quarter, as output rose 5.9 percent and hours of all persons--
employees, proprietors, and unpaid family workers--rose 3.7 percent
(seasonally adjusted annual rates).  As in the larger business sector,
productivity growth in the fourth quarter showed the largest increase since
the fourth quarter of 1993, when it grew 2.8 percent.  During the third
quarter of 1996, nonfarm productivity was unchanged as output and hours both
grew 1.9 percent (table 2).

     Hourly compensation in the nonfarm business sector rose 3.6 percent in
the fourth quarter, and real hourly compensation increased 0.4 percent when
the increase in the CPI-U was taken into account.  During the third quarter,
hourly compensation had increased by 3.3 percent, and real hourly
compensation had risen 1.0 percent.  Unit labor costs increased 1.4 percent
in the fourth quarter, compared with a 3.3 percent rise in the previous
quarter.

     The implicit price deflator for nonfarm business output rose 1.3 percent
in the fourth quarter and 1.2 percent in the third quarter of 1996.

Manufacturing

     Manufacturing productivity grew at a 3.8 percent seasonally adjusted
annual rate in the fourth quarter of 1996, down from the 5.9 percent increase
posted in the third quarter (table 3).  Output rose 3.7 percent in the fourth
quarter, and hours of all persons were unchanged. In the third quarter,
output had risen 5.0 percent, and hours fell 0.9 percent.  In durable goods
manufacturing, productivity rose 2.6 percent in the fourth quarter as output
rose 2.3 percent and hours of all persons dropped 0.3 percent.  In the
previous quarter, durable goods producers experienced a 7.0 percent advance
in productivity.  Among nondurable goods manufacturers, productivity rose 5.0
percent in the fourth quarter as output and hours both increased, 5.4 and 0.4
percent, respectively.  In the third quarter, productivity increased 4.6
percent (tables 4 and 5).

     The average hourly compensation of manufacturing workers increased 2.9
percent in the fourth quarter, down from the 4.6 percent increase posted in
the previous quarter.  When the increase in consumer prices was taken into
account, real hourly compensation in the fourth quarter dropped 0.3 percent
after having increased 2.3 percent in the third quarter.  In durable goods
manufacturing, hourly compensation rose 2.1 percent in the fourth quarter,
and real hourly compensation fell 1.1 percent.  Real hourly compensation in
nondurable goods manufacturing rose 1.0 percent as hourly compensation rose
4.2 percent.

     Unit labor costs for the manufacturing sector fell 0.9 percent in the
fourth quarter and had dropped 1.2 percent one quarter earlier.  The fourth-
quarter decreases in unit labor costs were similar in durable and nondurable
manufacturing, 0.6 and 0.7 percent, respectively.  In the third quarter,
however, unit labor costs had fallen 2.2 percent in durable manufacturing but
had risen 0.1 percent in nondurable manufacturing.
     
     
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Table B. Annual changes in productivity and related measures, 1987-1996
-----------------------------------------------------------------------------
  Measure                   1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
-----------------------------------------------------------------------------
 Business:                                                                   
  Productivity             -0.2   0.5  0.8  0.8  0.6  3.4  0.2  0.5  0.1  1.0
  Output                    2.9   3.8  3.4  0.9 -1.8  3.2  2.7  4.2  2.5  3.0
  Hours                     3.0   3.3  2.5  0.1 -2.3 -0.2  2.5  3.7  2.4  2.0
  Hourly compensation ....  3.8   4.5  2.8  5.7  4.8  5.2  2.5  1.9  3.1  3.8
  Real hourly compensation  0.2   0.3 -2.0  0.3  0.6  2.1 -0.5 -0.6  0.3  0.8
  Unit labor costs          4.0   4.0  1.9  4.9  4.2  1.7  2.3  1.4  3.0  2.7
-----------------------------------------------------------------------------
 Nonfarm Business:                                                           
  Productivity             -0.3   0.6  0.5  0.5  0.7  3.2  0.2  0.5  0.3  0.8
  Output                    3.0   4.1  3.2  0.7 -1.8  3.0  2.9  4.0  2.7  2.9
  Hours                     3.2   3.5  2.6  0.2 -2.5 -0.2  2.8  3.5  2.4  2.1
  Hourly compensation ....  3.7   4.3  2.7  5.5  4.9  5.2  2.3  2.1  3.2  3.6
  Real hourly compensation  0.1   0.1 -2.1  0.1  0.7  2.1 -0.7 -0.5  0.3  0.7
  Unit labor costs          4.0   3.7  2.1  5.0  4.2  1.9  2.1  1.5  2.9  2.9
-----------------------------------------------------------------------------
 Manufacturing:                                                              
  Productivity              2.7   1.3  1.8  1.8  2.5  3.6  2.1  3.1  3.4  3.8
  Output                    3.4   4.2  2.1 -0.4 -1.7  3.0  3.5  5.6  3.5  2.7
  Hours                     0.8   2.8  0.4 -2.2 -4.1 -0.6  1.4  2.4  0.1 -1.1
  Hourly compensation ....  2.8   3.9  3.3  4.8  5.2  4.5  2.4  2.7  3.7  3.5
  Real hourly compensation -0.8  -0.2 -1.5 -0.5  1.0  1.5 -0.6  0.1  0.9  0.5
  Unit labor costs          0.1   2.6  1.5  3.0  2.7  0.9  0.3 -0.4  0.3 -0.3
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
                                                                          

                      ANNUAL AVERAGE CHANGES, 1995-1996

Business

     Business productivity increased 1.0 percent when the annual average for
1996 is compared with the annual average for 1995 (table B).  This increase
was the largest since a 3.4 percent increase was posted in 1992.  Output grew
3.0 percent in 1996, and hours of all persons engaged in the business sector
increased 2.0 percent.  In 1995, business sector productivity had grown 0.1
percent as output increased 2.5 percent and hours increased 2.4 percent.

     Hourly compensation in the business sector increased 3.8 percent in
1996, compared with an increase of 3.1 percent in 1995.  Real hourly
compensation rose slightly more in 1996, 0.8 percent, than it had in 1995,
0.3 percent.
     Unit labor costs rose 2.7 percent in 1996, slightly less than the 3.0
percent increase in the previous year.  The implicit price deflator rose 1.6
percent in 1996; this increase was less than the 2.3 percent increase posted
in calendar year 1995.

Nonfarm business

     Productivity increased 0.8 percent in the nonfarm business sector during
1996, as output rose 2.9 percent and hours of all persons increased 2.1 per
cent.  As in the larger business sector, the 1996 productivity increase was
the largest since 1992 (when it increased 3.2 percent).  In 1995,
productivity had risen 0.3 percent, as output and hours rose 2.7 and 2.4
percent, respectively.
     
     Hourly compensation rose 3.6 percent in 1996, slightly more than the 3.2
percent rise posted in 1995.  Real hourly compensation increased 0.7 percent
in 1996, compared with a 0.3 percent rise one year earlier.  Unit labor costs
in the nonfarm business sector grew 2.9 percent in both 1995 and 1996.  The
implicit price deflator for nonfarm business rose 1.5 percent in 1996, down
from the 2.2 percent growth recorded in 1995.
     
Manufacturing

     Manufacturing productivity grew 3.8 percent in 1996, as output rose 2.7
percent and hours of all persons dropped 1.1 percent (table B) .  During
1995, total manufacturing productivity had risen 3.4 percent as output grew
3.5 percent and hours increased 0.1 percent.  The 1996 increase in output per
hour of all persons was the largest since a 4.5 percent rise occurred in
1986.  In durable goods manufacturing, productivity increased 4.8 percent in
1996 as output rose 5.0 percent and hours of all persons rose 0.2 percent.
Although output grew only 0.1 percent in nondurable goods manufacturing
during 1996, productivity rose 2.9 percent for the year as hours of all
persons fell 2.8 percent.

     Hourly compensation of manufacturing workers increased 3.5 percent, just
slightly less than the 3.7 percent increase in the previous year.  Real
hourly compensation rose 0.5 percent during 1996 and 0.9 percent one year
earlier.  Gains in hourly compensation during 1996 in nondurable goods
manufacturing, 4.3 percent, were higher than those posted in durable goods
manufacturing, 2.9 percent.  As a result, real hourly compensation fell
slightly, 0.1 percent, in durable goods industries, while rising 1.3 percent
in nondurable goods industries.

     Unit labor costs in manufacturing fell 0.3 percent in 1996.  In 1995,
unit labor costs had risen 0.3 percent.  In 1996, these costs dropped 1.9
percent in durable manufacturing and have declined every year since 1991,
when they rose 2.9 percent.  By contrast, unit labor costs in nondurable
goods have increased every year since 1963, when they fell 0.6 percent.  In
1996, these costs rose 1.3 percent, about the same as the 1.1 percent
increase in 1995.


--------------------------------------------------------------------
--------------------------------------------------------------------
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 1996
Business:                                                     
  Previous          0.0      2.1     2.0     3.8      1.5       3.8
  Current           0.3      2.2     1.9     3.8      1.4       3.4
Nonfarm business:                                             
  Previous         -0.3      1.8     2.1     3.4      1.1       3.7
  Current           0.0      1.9     1.9     3.3      1.0       3.3
Manufacturing:                                                
  Previous          6.3      5.6    -0.7     4.6      2.3      -1.6
  Current           5.9      5.0    -0.9     4.6      2.3      -1.2
--------------------------------------------------------------------
--------------------------------------------------------------------


Revised Measures

     Current and previous measures for the third quarter of 1996 for the
business, nonfarm business, and manufacturing sectors are compared in table
C.  Productivity growth in the business and nonfarm business sectors is
higher, and unit labor costs correspondingly lower, than the figures
published on December 5, based on the information then available.

     In manufacturing, rates of growth in productivity and output in recent
quarters are lower than those originally published.  Unit labor costs have
been revised upward by comparable amounts.    (See tables 3-5 and appendix
tables 1-3.)  The quarterly measures of productivity, output, and unit labor
costs for manufacturing were revised back to 1977, and annual measures were
revised back to 1994 due to the incorporation of revised indexes of
industrial production.  These indexes, published by the Board of Governors of
the Federal Reserve System, were reformulated back to 1977 to incorporate the
use of annual weights for aggregating the data.  In addition, indexes from
1992 forward were changed to improve the coverage and reliability of the
indexes and to incorporate additional or updated statistics.  Indexes for all
years were rebased to a 1992 base.  (See Federal Reserve Statistical Release
G.17, "Industrial production and capacity utilization: historical revision,"
January 27, 1997.)  Due to rounding differences, some quarterly measures of
productivity and costs in manufacturing for the years 1949-1976 also differ
from those previously available.


-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
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 1996
Previous     3.6      5.8     2.2    4.1      1.7     0.5   -1.3      0.0
Current      4.1      6.2     2.0    4.1      1.7     0.0    2.2      0.0
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------


Revised measures: Nonfinancial Corporations

     Third-quarter gains in productivity and output for nonfinancial
corporations were higher than those reported on December 5, based on
preliminary data.  Unit profits grew at an annual rate of 2.2 percent in the
third quarter rather than falling 1.3 percent as reported in December, based
on data then available (table D).
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 A.M.
EST, Tuesday, March 11, 1997.  Revised fourth-quarter measures and annual
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 non-
 supervisory  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 Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 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-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 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     100.5      104.9     104.4     104.0        99.5      103.6       104.5      103.9
            II     100.6      106.7     106.0     104.2        99.0      103.6       105.7      104.4
           III     101.1      107.7     106.6     104.7        98.6      103.6       107.6      105.1
            IV     101.1      108.7     107.6     105.5        98.8      104.4       107.8      105.6

        ANNUAL     100.7      107.0     106.2     104.5        99.0      103.8       106.5      104.7

  1995       I     100.4      108.8     108.4     106.2        98.8      105.8       107.4      106.4
            II     100.8      109.0     108.2     107.3        98.9      106.5       107.8      106.9
           III     101.2      110.3     109.0     108.3        99.3      107.0       108.3      107.5
            IV     101.0      110.4     109.3     109.4        99.8      108.3       106.7      107.8

        ANNUAL     100.8      109.6     108.8     107.8        99.2      106.9       107.6      107.1

  1996       I     101.5      111.2     109.6     110.3        99.8      108.6       107.4      108.2
            II     101.8      112.6     110.6     111.4        99.9      109.4       107.7      108.8
           III    r101.9      113.2     111.1     112.5       100.2     r110.4      r107.0     r109.2
            IV     102.5      114.8     112.0     113.5       100.3      110.7       107.2      109.5

        ANNUAL     101.9      113.0     110.9     111.8       100.0      109.8       107.3      108.9

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      -1.7        1.7       3.5       2.8         0.8        4.6        -1.3        2.4
            II       0.5        6.9       6.4       0.7        -1.8        0.2         4.6        1.8
           III       1.9        4.1       2.1       2.0        -1.7        0.1         7.3        2.7
            IV       0.2        3.8       3.6       2.9         0.7        2.8         0.8        2.0

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I      -2.6        0.3       3.0       2.8         0.0        5.6        -1.4        3.0
            II       1.4        0.7      -0.7       4.1         0.7        2.6         1.3        2.2
           III       1.4        4.8       3.3       3.6         1.5        2.1         1.8        2.0
            IV      -0.6        0.5       1.1       4.3         1.9        5.0        -5.6        1.0

        ANNUAL       0.1        2.5       2.4       3.1         0.3        3.0         1.0        2.3

  1996       I       2.1        3.0       0.8       3.2         0.0        1.1         2.4        1.5
            II       1.2        5.0       3.8       4.3         0.4        3.1         1.1        2.4
           III      r0.3       r2.2      r1.9       3.8        r1.4       r3.4       r-2.3       r1.3
            IV       2.4        5.8       3.4       3.7         0.6        1.3         0.6        1.1

        ANNUAL       1.0        3.0       2.0       3.8         0.8        2.7        -0.2        1.6

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I       0.3        3.4       3.1       2.3        -0.2        2.0         2.4        2.2
            II       0.8        4.5       3.6       1.9        -0.5        1.0         3.7        2.0
           III       1.1        4.8       3.6       1.9        -1.0        0.8         5.1        2.3
            IV       0.2        4.1       3.9       2.1        -0.5        1.9         2.8        2.2

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I       0.0        3.8       3.8       2.1        -0.7        2.1         2.8        2.4
            II       0.2        2.2       2.0       3.0        -0.1        2.8         2.0        2.5
           III       0.1        2.4       2.3       3.4         0.7        3.3         0.6        2.3
            IV      -0.1        1.6       1.7       3.7         1.0        3.8        -1.0        2.0

        ANNUAL       0.1        2.5       2.4       3.1         0.3        3.0         1.0        2.3

  1996       I       1.1        2.2       1.1       3.8         1.0        2.7        -0.1        1.7
            II       1.0        3.3       2.2       3.8         1.0        2.8        -0.1        1.7
           III       0.7       r2.7       1.9       3.9         0.9       r3.1       r-1.1       r1.6
            IV       1.5        4.0       2.5       3.7         0.6        2.2         0.5        1.6

        ANNUAL       1.0        3.0       2.0       3.8         0.8        2.7        -0.2        1.6

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       Feb. 11, 1997
  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     100.3      104.9     104.6     103.8        99.2      103.4       104.8      103.9
            II     100.6      106.7     106.1     104.1        98.9      103.5       106.3      104.5
           III     101.0      107.8     106.7     104.5        98.4      103.5       108.4      105.3
            IV     101.1      108.8     107.6     105.4        98.7      104.2       108.4      105.7

        ANNUAL     100.7      107.0     106.3     104.3        98.8      103.7       107.0      104.9

  1995       I     100.5      109.0     108.4     106.2        98.7      105.6       108.2      106.5
            II     100.9      109.2     108.3     107.2        98.8      106.3       108.5      107.1
           III     101.3      110.6     109.1     108.2        99.2      106.8       108.9      107.5
            IV     101.1      110.7     109.5     109.3        99.6      108.1       107.1      107.8

        ANNUAL     100.9      109.9     108.9     107.7        99.1      106.7       108.2      107.2

  1996       I     101.5      111.4     109.8     110.2        99.7      108.5       107.4      108.1
            II     101.7      112.8     110.9     111.3        99.7      109.4       107.3      108.7
           III    r101.7      113.3    r111.4     112.2       r99.9     r110.3      r106.7      109.0
            IV     102.2      114.9     112.4     113.2       100.0      110.7       106.9      109.4

        ANNUAL     101.7      113.1     111.2     111.6        99.8      109.7       107.1      108.8

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      -1.8        0.8       2.7       2.9         0.9        4.9        -1.7        2.5
            II       1.0        7.0       6.0       1.3        -1.2        0.3         5.6        2.2
           III       1.7        4.2       2.4       1.8        -1.9        0.1         8.2        2.9
            IV       0.4        4.0       3.6       3.3         1.0        2.9         0.1        1.9

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I      -2.3        0.6       2.9       2.9         0.1        5.3        -0.9        3.0
            II       1.5        0.9      -0.6       4.0         0.6        2.5         1.1        2.0
           III       1.8        5.0       3.2       3.7         1.6        1.9         1.4        1.7
            IV      -1.2        0.3       1.5       4.0         1.6        5.2        -6.4        0.9

        ANNUAL       0.3        2.7       2.4       3.2         0.3        2.9         1.1        2.2

  1996       I       1.9        2.7       0.8       3.4         0.2        1.5         1.1        1.4
            II       0.6        4.8       4.1       3.9         0.1        3.3        -0.1        2.1
           III      r0.0       r1.9      r1.9      r3.3        r1.0       r3.3       r-2.5       r1.2
            IV       2.2        5.9       3.7       3.6         0.4        1.4         1.0        1.3

        ANNUAL       0.8        2.9       2.1       3.6         0.7        2.9        -1.0        1.5

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I       0.2        3.3       3.1       2.2        -0.3        2.0         2.1        2.1
            II       0.9        4.3       3.4       2.0        -0.4        1.1         3.9        2.1
           III       0.9        4.3       3.4       2.0        -0.8        1.1         5.1        2.5
            IV       0.3        4.0       3.7       2.3        -0.3        2.0         3.0        2.4

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I       0.2        3.9       3.7       2.3        -0.5        2.1         3.2        2.5
            II       0.3        2.4       2.1       3.0        -0.1        2.7         2.1        2.5
           III       0.3        2.6       2.3       3.5         0.8        3.1         0.4        2.1
            IV      -0.1        1.7       1.8       3.7         1.0        3.7        -1.2        1.9

        ANNUAL       0.3        2.7       2.4       3.2         0.3        2.9         1.1        2.2

  1996       I       1.0        2.2       1.2       3.8         1.0        2.8        -0.8        1.5
            II       0.8        3.2       2.4       3.8         0.9        3.0        -1.1        1.5
           III       0.3        2.4       2.1       3.7         0.7       r3.3       r-2.0        1.4
            IV       1.2        3.8       2.6       3.6         0.4        2.4        -0.1        1.5

        ANNUAL       0.8        2.9       2.1       3.6         0.7        2.9        -1.0        1.5

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       Feb. 11, 1997
  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           r104.0       r106.6        102.4        104.4           99.9        r100.4
            II           r105.3       r108.7        103.2        104.7           99.5         r99.4
           III           r105.7       r110.0        104.0        105.5           99.4         r99.8
            IV           r106.5       r111.8        104.9        106.4           99.6         r99.9

        ANNUAL           r105.2       r109.3        103.8        105.1           99.5         r99.9

  1995       I           r107.2       r112.9        105.3        107.2           99.7        r100.0
            II           r108.2       r112.6        104.0        108.4           99.9        r100.2
           III           r109.6       r113.3        103.4        109.7          100.6        r100.1
            IV           r110.5       r113.6        102.8        110.9          101.1        r100.4

        ANNUAL           r108.9       r113.1        103.9        109.0          100.4        r100.2

  1996       I           r111.6       r113.9        102.0        111.0          100.4         r99.4
            II           r112.2       r115.6        103.0        112.5          100.8        r100.3
           III           r113.8       r117.0        102.8        113.8          101.4        r100.0
            IV            114.9        118.1        102.8        114.6          101.3          99.8

        ANNUAL            113.0        116.2        102.8        112.9          100.9          99.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I             r4.2         r6.3          2.0          3.3            1.3         r-0.8
            II             r5.1         r8.1          2.9          1.1           -1.4         r-3.8
           III             r1.6         r5.0          3.4          3.2           -0.6          r1.6
            IV             r3.0         r6.7          3.6          3.2            0.9          r0.2

        ANNUAL             r3.1         r5.6          2.4          2.7            0.1         r-0.4

  1995       I             r2.8         r4.2          1.4          3.3            0.4          r0.5
            II             r3.6        r-1.4         -4.7          4.3            0.9          r0.7
           III              5.3          2.6         -2.5          5.1            3.0          -0.2
            IV             r3.2         r1.0         -2.2          4.2            1.7          r0.9

        ANNUAL             r3.4          3.5          0.1          3.7            0.9          r0.3

  1996       I             r4.3         r1.1         -3.0          0.4           -2.8         r-3.7
            II             r2.1         r6.3          4.1          5.8            1.9          r3.6
           III             r5.9         r5.0        r-0.9          4.6            2.3         r-1.2
            IV              3.8          3.7          0.0          2.9           -0.3          -0.9

        ANNUAL              3.8          2.7         -1.1          3.5            0.5          -0.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I             r2.2         r3.8          1.5          3.1            0.6          r0.9
            II             r3.5         r5.5          1.9          2.8            0.4         r-0.7
           III             r3.9         r6.4          2.4          2.9            0.0         r-1.0
            IV             r3.5         r6.5          3.0          2.7            0.0         r-0.7

        ANNUAL             r3.1         r5.6          2.4          2.7            0.1         r-0.4

  1995       I             r3.1         r6.0          2.8          2.7           -0.2         r-0.4
            II              2.7          3.6          0.8          3.5            0.4          r0.8
           III              3.6          3.0         -0.6          4.0            1.3           0.3
            IV             r3.7         r1.6         -2.0          4.2            1.5          r0.5

        ANNUAL             r3.4          3.5          0.1          3.7            0.9          r0.3

  1996       I             r4.1         r0.8         -3.1          3.5            0.7         r-0.6
            II             r3.7         r2.7         -1.0          3.8            0.9          r0.1
           III             r3.9         r3.3         -0.5          3.7            0.8         r-0.1
            IV              4.0          4.0          0.0          3.4            0.3          -0.6

        ANNUAL              3.8          2.7         -1.1          3.5            0.5          -0.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
  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           r106.0       r109.4        103.2        104.2           99.7         r98.4
            II           r107.1       r111.5        104.1        104.5           99.3         r97.6
           III           r108.1       r113.7        105.3        105.3           99.1         r97.5
            IV           r109.0       r116.1        106.5        106.1           99.3         r97.3

        ANNUAL           r107.3       r112.7        105.0        104.8           99.2         r97.7

  1995       I           r110.4       r118.1        107.0        106.9           99.4         r96.9
            II           r111.0       r117.8        106.1        108.0           99.5         r97.3
           III           r112.9       r119.4        105.8        109.4          100.3         r96.9
            IV           r114.1       r120.4        105.6        110.4          100.7         r96.8

        ANNUAL           r112.1       r118.9        106.1        108.6          100.0         r96.9

  1996       I           r115.7       r121.5        105.0        109.7           99.3         r94.8
            II           r116.7       r124.6        106.8        111.6          100.0         r95.6
           III           r118.6       r126.4       r106.5        112.8          100.5         r95.1
            IV            119.4        127.1        106.4        113.4          100.2          95.0

        ANNUAL            117.5        124.9        106.3        111.7           99.9          95.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I             r4.1         r7.7          3.4          3.0            0.9         r-1.1
            II             r4.5         r8.2          3.6          1.0           -1.5         r-3.3
           III             r3.5         r8.2          4.5          3.1           -0.7         r-0.4
            IV             r3.7         r8.6          4.7          3.1            0.8         r-0.6

        ANNUAL             r3.8         r7.4          3.5          2.5            0.0         r-1.2

  1995       I             r5.0         r7.1          2.0          3.2            0.3         r-1.7
            II             r2.3        r-1.1         -3.3          3.9            0.5          r1.6
           III             r7.0         r5.5         -1.4          5.4            3.3         r-1.5
            IV             r4.2         r3.5         -0.7          3.6            1.2         r-0.6

        ANNUAL              4.4          5.5          1.1          3.6            0.8          -0.7

  1996       I             r5.8         r3.7         -2.0         -2.3           -5.4         r-7.7
            II             r3.3        r10.3          6.8          6.8            2.8          r3.3
           III             r7.0         r6.0        r-0.9          4.6           r2.2         r-2.2
            IV              2.6          2.3         -0.3          2.1           -1.1          -0.6

        ANNUAL              4.8          5.0          0.2          2.9           -0.1          -1.9

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I             r3.2         r5.6          2.3          3.1            0.6         r-0.1
            II             r3.9         r6.9          3.0          2.8            0.3         r-1.1
           III             r5.3         r8.9          3.5          2.9            0.0         r-2.3
            IV             r4.0         r8.2          4.0          2.5           -0.1         r-1.4

        ANNUAL             r3.8         r7.4          3.5          2.5            0.0         r-1.2

  1995       I             r4.2         r8.0          3.7          2.6           -0.3         r-1.5
            II              3.6          5.6          1.9          3.3            0.2          -0.3
           III             r4.5         r5.0          0.5          3.9            1.2         r-0.6
            IV             r4.6         r3.7         -0.9          4.0            1.3         r-0.6

        ANNUAL              4.4          5.5          1.1          3.6            0.8          -0.7

  1996       I             r4.8         r2.9         -1.9          2.6           -0.1         r-2.1
            II             r5.1         r5.7          0.6          3.3            0.4         r-1.7
           III             r5.1         r5.8         r0.7          3.1            0.2         r-1.9
            IV              4.7          5.6          0.8          2.7           -0.4          -1.9

        ANNUAL              4.8          5.0          0.2          2.9           -0.1          -1.9

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
  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           r102.3       r103.8        101.4        104.6          100.0        r102.2
            II           r103.8       r105.8        101.9        104.9           99.6        r101.0
           III           r103.7       r106.2        102.4        105.6           99.5        r101.8
            IV           r104.3       r107.3        102.9        106.4           99.7        r102.0

        ANNUAL           r103.5       r105.8        102.2        105.3           99.7        r101.8

  1995       I           r104.4       r107.6        103.0        107.3           99.8        r102.8
            II           r105.8       r107.1        101.3        108.6          100.1        r102.6
           III           r106.7       r106.9        100.2        109.7          100.6        r102.8
            IV           r107.4       r106.4         99.1        110.9          101.2        r103.3

        ANNUAL           r106.1       r107.0        100.9        109.2          100.5        r102.9

  1996       I           r108.1       r105.9         98.0        112.2          101.5        r103.8
            II           r108.4       r106.3         98.1        113.2          101.5        r104.5
           III           r109.6       r107.3         97.9       r114.6         r102.1        r104.5
            IV            111.0        108.7         98.0        115.8          102.3         104.3

        ANNUAL            109.2        107.1         98.1        113.8          101.8         104.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I             r4.6         r4.6          0.1          3.6            1.6         r-0.9
            II              6.0          8.1          1.9          1.1           -1.4         r-4.6
           III            r-0.5         r1.5          1.9          3.1           -0.7          r3.5
            IV             r2.3         r4.4          2.1          3.1            0.8          r0.7

        ANNUAL             r2.5         r3.5          1.0          2.6            0.1          r0.2

  1995       I             r0.3         r0.8          0.5          3.4            0.5          r3.1
            II             r5.3        r-1.7         -6.7          4.6            1.2         r-0.7
           III             r3.6        r-0.7         -4.1          4.2            2.1          r0.6
            IV             r2.5        r-1.9         -4.3          4.7            2.2          r2.2

        ANNUAL             r2.5         r1.2         -1.3          3.7            0.8          r1.1

  1996       I             r2.7        r-1.9         -4.4          4.7            1.4          r2.0
            II             r1.3         r1.6          0.3          3.7           -0.2          r2.4
           III             r4.6         r3.7         -0.9          4.7           r2.4          r0.1
            IV              5.0          5.4          0.4          4.2            1.0          -0.7

        ANNUAL              2.9          0.1         -2.8          4.3            1.3           1.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I             r1.4         r1.9          0.5          3.0            0.5          r1.6
            II             r3.3         r3.8          0.5          2.7            0.2         r-0.7
           III             r2.5         r3.6          1.0          2.6           -0.2          r0.1
            IV             r3.1         r4.6          1.5          2.7            0.1         r-0.4

        ANNUAL             r2.5         r3.5          1.0          2.6            0.1          r0.2

  1995       I             r2.0         r3.6          1.6          2.7           -0.2          r0.6
            II             r1.8         r1.2         -0.6          3.5            0.4          r1.7
           III              2.9          0.7         -2.1          3.8            1.1           0.9
            IV             r2.9         -0.9         -3.7          4.2            1.5           1.3

        ANNUAL             r2.5         r1.2         -1.3          3.7            0.8          r1.1

  1996       I             r3.5        r-1.5         -4.9          4.5            1.7          r1.0
            II             r2.5        r-0.7         -3.1          4.3            1.4          r1.8
           III             r2.7         r0.3         -2.3          4.4           r1.5          r1.7
            IV              3.4          2.2         -1.2          4.3            1.2           0.9

        ANNUAL              2.9          0.1         -2.8          4.3            1.3           1.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
  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

  1994       I    102.7    107.4     104.5    103.8      99.2     101.0    102.1    101.3    120.5    102.8
            II    102.6    108.9     106.1    103.8      98.6     101.2     98.7    100.5    134.5    103.1
           III    102.4    109.7     107.0    104.1      98.0     101.6     99.3    101.0    136.5    103.7
            IV    102.7    111.5     108.5    104.7      98.0     101.9     98.3    100.9    141.5    104.0

        ANNUAL    102.6    109.3     106.6    104.1      98.5     101.4     99.6    100.9    133.4    103.4

  1995       I    101.8    111.4     109.4    105.3      97.9     103.4    100.0    102.5    130.9    104.7
            II    102.4    112.1     109.4    106.3      98.0     103.8    100.9    103.0    130.1    105.1
           III    103.7    114.0     110.0    107.3      98.4     103.5     99.7    102.5    142.1    105.5
            IV    104.3    115.2     110.5    108.3      98.8     103.9    100.0    102.8    140.4    105.7

        ANNUAL    103.1    113.2     109.8    106.8      98.3     103.6    100.1    102.7    136.0    105.2

  1996       I    104.6    115.8     110.7    109.0      98.6     104.3     99.3    102.9    145.1    106.1
            II    105.0    117.4     111.9    110.1      98.7     104.9     98.4    103.1    147.8    106.5
           III   r106.0   r119.2    r112.4    111.2      99.1    r104.9     98.1   r103.0   r148.6    106.5
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1994       I      1.0      5.0       4.0      3.6       1.6       2.6     12.0      5.1    -22.4      2.2
            II     -0.5      5.7       6.3      0.0      -2.5       0.5    -12.8     -3.3     55.2      1.2
           III     -0.6      2.8       3.5      1.1      -2.6       1.7      2.4      1.9      5.9      2.3
            IV      1.1      6.7       5.5      2.4       0.1       1.2     -3.7     -0.1     15.6      1.4

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I     -3.4     -0.2       3.3      2.4      -0.5       6.0      7.0      6.3    -26.8      2.4
            II      2.3      2.4       0.2      3.8       0.4       1.5      3.7      2.1     -2.4      1.6
           III      4.9      7.2       2.2      3.7       1.7      -1.1     -4.7     -2.1     42.2      1.6
            IV      2.4      4.3       1.8      3.9       1.5       1.5      1.0      1.4     -4.8      0.7

        ANNUAL      0.4      3.5       3.0      2.6      -0.2       2.2      0.6      1.8      1.9      1.8

  1996       I      1.3      2.2       0.9      2.7      -0.5       1.5     -2.6      0.4     14.3      1.7
            II      1.5      5.6       4.1      3.9       0.0       2.4     -3.6      0.8      7.5      1.5
           III     r4.1     r6.2      r2.0      4.1       1.7      r0.0     -1.1    r-0.3     r2.2      0.0
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1994       I      2.6      6.1       3.4      2.3      -0.2      -0.3      1.5      0.2     17.1      1.5
            II      1.7      5.8       4.1      1.9      -0.5       0.2     -1.3     -0.2     20.6      1.6
           III      1.0      5.2       4.2      1.6      -1.2       0.7     -0.6      0.3     18.1      1.9
            IV      0.2      5.1       4.8      1.8      -0.9       1.5     -0.9      0.9     10.2      1.8

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I     -0.9      3.7       4.6      1.5      -1.4       2.4     -2.1      1.1      8.6      1.8
            II     -0.2      2.9       3.1      2.4      -0.6       2.6      2.3      2.5     -3.3      1.9
           III      1.2      4.0       2.8      3.1       0.4       1.9      0.5      1.5      4.1      1.8
            IV      1.5      3.4       1.9      3.5       0.8       1.9      1.7      1.9     -0.8      1.6

        ANNUAL      0.4      3.5       3.0      2.6      -0.2       2.2      0.6      1.8      1.9      1.8

  1996       I      2.7      4.0       1.3      3.5       0.8       0.8     -0.7      0.4     10.9      1.4
            II      2.5      4.8       2.2      3.6       0.7       1.1     -2.5      0.1     13.6      1.4
           III     r2.3      4.5       2.2      3.7       0.7      r1.3     -1.6     r0.6     r4.6      1.0
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        Feb. 11, 1997
  r=revised                                                               Source: Bureau of Labor Statistics

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

  1992       I           98.8          98.4         99.6         98.6           99.7          99.9
            II           99.6          99.8        100.2         99.7          100.0         100.0
           III          100.3         100.3        100.0        100.6          100.1         100.3
            IV          101.1         101.5        100.3        101.0           99.7          99.8

        ANNUAL          100.0         100.0        100.0        100.0          100.0         100.0

  1993       I          101.7         102.6        100.9        101.3           99.3          99.5
            II          101.8         103.0        101.2        101.9           99.1         100.1
           III          101.8         103.4        101.6        102.6           99.4         100.8
            IV          103.0         105.0        101.9        103.6           99.5         100.6

        ANNUAL          102.1         103.5        101.4        102.4           99.4         100.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            2.8           0.6         -2.2          4.6            1.9           1.8
            II            3.7           6.0          2.2          4.4            1.1           0.7
           III            2.6           2.0         -0.6          3.6            0.6           1.0
            IV            3.4           4.7          1.3          1.6           -1.8          -1.7

        ANNUAL            3.6           3.0         -0.6          4.5            1.5           0.9

  1993       I            2.4           4.7          2.3          1.2           -1.7          -1.2
            II            0.1           1.5          1.4          2.4           -0.5           2.2
           III            0.0           1.3          1.3          2.9            1.0           2.9
            IV            4.7           6.2          1.5          3.9            0.7          -0.8

        ANNUAL            2.1           3.5          1.4          2.4           -0.6           0.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            3.9           2.7         -1.2          4.9            2.0           1.0
            II            4.0           3.7         -0.3          4.7            1.6           0.8
           III            2.8           2.3         -0.5          4.2            1.1           1.4
            IV            3.1           3.3          0.2          3.6            0.4           0.4

        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          -0.3
            II            2.1           3.2          1.1          2.2           -0.9           0.1
           III            1.5           3.1          1.5          2.0           -0.8           0.5
            IV            1.8           3.4          1.6          2.6           -0.1           0.8

        ANNUAL            2.1           3.5          1.4          2.4           -0.6           0.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
                                                                  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

  1992       I           98.1          98.0         99.9         98.6           99.7         100.5
            II           99.8         100.0        100.2         99.7          100.0          99.9
           III          100.3         100.3         99.9        100.6          100.2         100.3
            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          102.7         103.6        100.9        101.2           99.1          98.5
            II          103.1         104.3        101.1        101.7           99.0          98.6
           III          102.6         104.4        101.8        102.4           99.1          99.8
            IV          104.9         107.4        102.4        103.5           99.5          98.7

        ANNUAL          103.4         104.9        101.5        102.2           99.2          98.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            3.8           1.3         -2.4          4.9            2.2           1.0
            II            7.1           8.6          1.4          4.5            1.1          -2.5
           III            2.2           1.1         -1.1          3.7            0.7           1.5
            IV            4.8           6.3          1.4          1.1           -2.4          -3.6

        ANNUAL            5.5           4.0         -1.5          4.8            1.7          -0.7

  1993       I            4.6           7.1          2.4          1.1           -1.8          -3.4
            II            1.9           2.9          1.0          2.2           -0.7           0.4
           III           -2.1           0.4          2.5          2.6            0.7           4.7
            IV            9.2          11.8          2.4          4.5            1.3          -4.3

        ANNUAL            3.4           4.9          1.5          2.2           -0.8          -1.1

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            5.7           3.6         -2.0          5.2            2.3          -0.4
            II            6.7           5.0         -1.5          5.2            2.1          -1.4
           III            4.6           3.1         -1.5          4.5            1.4          -0.1
            IV            4.5           4.3         -0.2          3.5            0.4          -0.9

        ANNUAL            5.5           4.0         -1.5          4.8            1.7          -0.7

  1993       I            4.7           5.7          1.0          2.6           -0.6          -2.0
            II            3.4           4.3          0.9          2.0           -1.0          -1.3
           III            2.3           4.1          1.8          1.7           -1.0          -0.5
            IV            3.3           5.5          2.1          2.6           -0.1          -0.7

        ANNUAL            3.4           4.9          1.5          2.2           -0.8          -1.1

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
                                                                  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

  1992       I           99.4          98.7         99.3         98.6           99.7          99.2
            II           99.4          99.6        100.1         99.7          100.0         100.2
           III          100.3         100.4        100.2        100.5          100.1         100.3
            IV          100.9         101.3        100.4        101.2           99.9         100.3

        ANNUAL          100.0         100.0        100.0        100.0          100.0         100.0

  1993       I          100.9         101.9        100.9        101.5           99.5         100.6
            II          100.5         101.9        101.4        102.1           99.4         101.6
           III          101.2         102.5        101.3        103.0           99.7         101.7
            IV          101.2         102.6        101.4        103.6           99.6         102.4

        ANNUAL          101.0         102.2        101.2        102.6           99.6         101.6

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            2.3           0.4         -1.8          4.3            1.7           2.0
            II            0.3           3.7          3.4          4.5            1.1           4.1
           III            3.4           3.4          0.0          3.6            0.6           0.2
            IV            2.3           3.4          1.1          2.5           -1.0           0.2

        ANNUAL            1.7           2.3          0.6          4.3            1.2           2.5

  1993       I            0.3           2.3          2.0          1.3           -1.6           1.0
            II           -1.7           0.1          1.9          2.6           -0.3           4.4
           III            2.8           2.5         -0.3          3.2            1.3           0.4
            IV            0.0           0.3          0.3          2.7           -0.4           2.7

        ANNUAL            1.0           2.2          1.2          2.6           -0.4           1.6

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            2.0           1.9         -0.1          4.6            1.7           2.6
            II            1.2           2.6          1.5          4.3            1.2           3.1
           III            1.2           1.9          0.8          4.1            1.0           2.9
            IV            2.1           2.7          0.7          3.7            0.6           1.6

        ANNUAL            1.7           2.3          0.6          4.3            1.2           2.5

  1993       I            1.6           3.2          1.6          3.0           -0.2           1.4
            II            1.0           2.3          1.2          2.5           -0.6           1.4
           III            0.9           2.1          1.2          2.4           -0.4           1.5
            IV            0.3           1.3          1.0          2.5           -0.3           2.1

        ANNUAL            1.0           2.2          1.2          2.6           -0.4           1.6

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                Feb. 11, 1997
                                                                  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 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.