USDL 05-787
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
THURSDAY, MAY 5, 2005.

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                           PRODUCTIVITY AND COSTS
                       First Quarter 2005, preliminary
                                      
                                      
     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the first quarter of 2005.  The seasonally adjusted annual rates
of productivity change in the first quarter were:

               2.1 percent in the business sector and
               2.6 percent in the nonfarm business sector.

     Productivity in the business sector grew more slowly than in the fourth
quarter of 2004, when it increased 3.7 percent.  In the nonfarm business
sector, however, productivity increased more in the first quarter than it had
in the previous quarter.  Nonfarm business labor productivity increased 2.1
percent in the fourth quarter of 2004.

     In manufacturing, productivity changes in the first quarter were:

               3.9 percent in manufacturing,
               6.3 percent in durable goods manufacturing, and
               1.3 percent in nondurable goods manufacturing.

     Productivity growth in manufacturing in the first quarter of 2005
reflected a 3.3-percent increase in output and a drop of 0.7 percent in hours
worked in the sector.  Output and hours in manufacturing, which includes
about 13 percent of U.S. business sector employment, tend to vary more from
quarter to quarter than data for the aggregate business and nonfarm business
sectors.  First-quarter measures are summarized in table A and appear in
detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary first-quarter 2005 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           2.1      3.6      1.5     4.3     1.9     2.2
Nonfarm business   2.6      3.6      1.0     4.8     2.4     2.2
Manufacturing      3.9      3.3     -0.7     4.9     2.5     0.9
  Durable          6.3      5.8     -0.4     5.3     2.9    -0.9
  Nondurable       1.3      0.3     -1.0     3.9     1.5     2.6
------------------------------------------------------------------------
                      Percent change from same quarter a year ago

Business           2.7      4.0      1.4     5.0     2.0     2.3
Nonfarm business   2.5      3.9      1.4     5.0     2.0     2.5
Manufacturing      5.5      4.5     -1.0     7.0     3.9     1.4
  Durable          6.5      6.0     -0.4     7.5     4.4     1.0
  Nondurable       4.6      2.6     -1.9     5.8     2.7     1.1
-----------------------------------------------------------------------

Business

     Productivity in the business sector rose 2.1 percent in the first
quarter 2005, as output grew 3.6 percent and hours of all persons engaged in
the sector increased 1.5 percent (seasonally adjusted annual rates).  Revised
data for the fourth quarter of 2004 show that output per hour increased 3.7
percent, reflecting a 4.3-percent rise in output and a 0.6-percent increase
in hours at work.  (See table 1.)

     Hourly compensation increased 4.3 percent during the first quarter of
2005.  This measure includes wages and salaries, supplements, employer
contributions to employee benefit plans, and taxes. Hourly compensation had
risen 4.9 percent in the previous quarter.  However, real hourly
compensation, which takes into account changes in consumer prices, increased
faster in the first quarter of 2005, 1.9 percent, than in the fourth quarter
of 2004, when it rose 1.3 percent.

     Unit labor costs rose 2.2 percent in the first quarter of 2005, more
rapidly than the 1.1-percent increase in the fourth quarter.  Growth in unit
labor costs is roughly equivalent to the change in hourly compensation offset
by the change in output per hour.

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, rose 2.8 percent
in the first quarter.  In the previous quarter, the implicit price deflator
for business sector output increased 2.4 percent.

Nonfarm business

     Productivity rose 2.6 percent in the nonfarm business sector in first-
quarter 2005 as output grew 3.6 percent and hours of all persons increased by
1.0 percent (seasonally adjusted annual rates).  In the fourth quarter of
2004, productivity had risen 2.1 percent, reflecting increases in output and
hours of 3.7 and 1.6 percent, respectively.  (See table 2.)

     Hourly compensation increased 4.8 percent in the first quarter of 2005,
more rapidly than in the fourth quarter, when it grew 3.8 percent.  When the
rise in consumer prices was taken into account, real hourly compensation rose
2.4 percent in the first quarter, up from 0.2 percent in the fourth quarter
of 2004.

     Unit labor costs grew 2.2 percent in the first quarter of 2005, more
rapidly than the 1.7-percent rise of the previous quarter.  The implicit
price deflator for nonfarm business output rose 2.9 percent in the first
quarter and 2.5 percent one quarter earlier.

Manufacturing

     Productivity increased 3.9 percent in manufacturing in the first quarter
of 2005, as output increased 3.3 percent and hours of all persons fell 0.7
percent (seasonally adjusted annual rates).  This is the fourth consecutive
quarter in which output has risen and hours have decreased.  (See table 3.)
Productivity rose 6.3 percent in durable goods manufacturing, reflecting 5.8-
percent growth in output and a 0.4 percent decrease in all person hours.  In
nondurable goods manufacturing, productivity grew more slowly, 1.3 percent,
in the first quarter of 2005 as output edged up 0.3 percent and hours of all
persons fell 1.0 percent.  The first quarter increase in labor productivity
was the smallest in nondurable goods manufacturing since a 4.5-percent drop
in the fourth quarter of 2002.  Hours in that sector have declined in every
quarter since the second quarter of 1999, when they increased 1.2 percent.

     The hourly compensation of all manufacturing workers rose 4.9 percent
during the first quarter, and real hourly compensation increased 2.5 percent.
The 4.9-percent hourly compensation rise reflects a change of 5.3 percent in
durable goods and 3.9 percent in nondurable goods.

     Because the hourly compensation of manufacturing workers rose more
rapidly than output per hour, unit labor costs increased in the first
quarter, by 0.9 percent.  This is similar to the 0.8-percent increase
recorded in the fourth quarter of 2004.  In durable goods manufacturing,
however, unit labor costs fell in the first quarter of 2005, dropping 0.9
percent.  All of the increase in manufacturing unit labor costs came from the
nondurable goods subsector, where unit labor costs grew 2.6 percent.

Fourth-quarter and annual measures for nonfinancial corporations

     Fourth-quarter and annual 2004 measures of productivity and costs also
were announced today for the nonfinancial corporate sector (tables B, C, and
6).  Output per all-employee hour grew 5.3 percent from the third to the
fourth quarter of 2004, as output grew 6.7 percent and employee hours
increased 1.3 percent.  The nonfinancial corporate sector includes all
corporations doing business in the United States, except those classified as
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts.

--------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth-quarter 2004 productivity
and cost measures
(Seasonally adjusted annual rates)
--------------------------------------------------------------------------                                                             
                                        Real                    
                               Hourly   hourly   Unit            Implicit
        Produc-                compen-  compen-  labor  Unit     price
Period  tivity  Output  Hours  sation   sation   costs  profits  deflator
--------------------------------------------------------------------------                                                              
                 Percent change from preceding quarter

2004 IV   5.3    6.7     1.3     4.4      0.8     -0.8    38.5     2.2
--------------------------------------------------------------------------
                 Percent change from same quarter a year ago

2004 IV   3.6    5.3     1.7     4.5      1.1      0.9    17.9     1.9
--------------------------------------------------------------------------


     Hourly compensation in this sector increased 4.4 percent in the fourth
quarter, and real hourly compensation rose 0.8 percent.  Unit labor costs
fell 0.8 percent in the fourth quarter of 2004--the first decline in these
costs since the fourth quarter of 2003.  In the fourth quarter of 2004, unit
profits grew 38.5 percent after falling slightly, 0.8 percent, in the
previous quarter.  The implicit price deflator for nonfinancial corporate
output grew 2.2 percent during the fourth quarter of 2004, up from the 0.2-
percent increase in the third quarter.

     In calendar year 2004, productivity in the nonfinancial corporate sector
grew 3.9 percent, following an increase of 4.2 percent in the previous year.
(See table C.)  When combined with the 3.9-percent increase in 2002, this
marks the fastest three-year increase in productivity--an average of 4.0
percent a year--in the history of the series, which begins in 1958.
Nonfinancial corporate output grew 5.4 percent in 2004, and employee hours
increased 1.4 percent.  This was the first increase in employee hours since
2000, when they grew 1.5 percent.

------------------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity and
related measures, 1995-2004
------------------------------------------------------------------------------
Measure                   1995 1996 1997  1998 1999  2000  2001 2002 2003 2004
------------------------------------------------------------------------------
Productivity               1.1  3.7  2.6   3.2  3.4   3.6   1.7  3.9  4.2  3.9  
Output                     4.7  5.5  6.5   5.7  6.0   5.2  -0.9  1.0  2.8  5.4  
Hours                      3.6  1.8  3.8   2.4  2.6   1.5  -2.5 -2.8 -1.3  1.4  
Hourly compensation        1.7  3.0  3.0   5.7  4.6   6.8   4.1  3.0  4.0  4.4  
Real hourly compensation  -0.7  0.3  0.8   4.2  2.4   3.4   1.2  1.4  1.7  1.7

Unit labor costs           0.6 -0.6  0.4   2.4  1.2   3.1   2.4 -0.8 -0.1  0.5  
Unit nonlabor costs        0.4 -1.3 -0.2  -0.2  0.9   3.8   8.1  0.3 -0.1 -1.6  
Total unit costs           0.6 -0.8  0.2   1.7  1.1   3.3   3.9 -0.5 -0.1 -0.1  
Unit profits               3.9  9.6  2.9 -11.2 -5.8 -15.8 -24.3 16.0 20.1 20.0  
Implicit price deflator    1.0  0.4  0.6   0.0  0.3   1.2   1.3  0.6  1.4  1.8  
------------------------------------------------------------------------------     
     
     Hourly compensation grew 4.4 percent in 2004, and real hourly
compensation increased 1.7 percent.  Total unit costs declined 0.1 percent,
reflecting a 0.5-percent rise in unit labor costs and a 1.6-percent drop in
unit nonlabor costs.  Unit profits rose 20.0 percent in 2004.  The implicit
price deflator, which reflects both the unit costs and unit profits measures,
rose 1.8 percent in 2004.

Revised measures

     Current and previous measures for the fourth quarter and annual average
of 2004 in the business, nonfarm business, and manufacturing sectors are
compared in table D.  Some of the quarterly movements differ from those
reported on March 3.  In the business and nonfarm business sectors,
productivity, output and hours are little changed from what was reported
previously.  However, hourly compensation and unit labor costs increased
faster in the fourth quarter than reported on March 3.  Productivity in the
manufacturing sector grew more rapidly in the fourth quarter 2004, 6.3
percent, than previously reported due to both an upward revision to output
and a downward revision to hours.  Hourly compensation was revised up more
than productivity.  As a result, unit labor costs grew faster, 0.8 percent,
than reported on March 3.

-----------------------------------------------------------------
Table D. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
-----------------------------------------------------------------                                                          
                                                 Real    
                                         Hourly  hourly  Unit
                   Produc-               compen- compen- labor
Sector             tivity  Output Hours  sation  sation  costs
-----------------------------------------------------------------                                                                             
                             Fourth quarter 2004
Business:                                                 
  Previous         3.7     4.2     0.5     4.5     0.9     0.8
  Revised          3.7     4.3     0.6     4.9     1.3     1.1
Nonfarm business:                                         
  Previous         2.1     3.7     1.6     3.4    -0.2     1.3
  Revised          2.1     3.7     1.6     3.8     0.2     1.7
Manufacturing:                                            
  Previous         5.8     4.6    -1.1     6.2     2.5     0.4
  Revised          6.3     4.9    -1.3     7.1     3.4     0.8
  
                             Annual average 2004
Business:                                                 
  Previous         4.0     5.1     1.1     4.5     1.8     0.5
  Revised          4.0     5.1     1.1     4.5     1.8     0.6
Nonfarm business:                                         
  Previous         4.0     5.3     1.2     4.4     1.7     0.4
  Revised          4.1     5.3     1.2     4.5     1.7     0.4
Manufacturing:                                            
  Previous         5.2     4.8    -0.4     4.5     1.8    -0.7
  Revised          5.3     4.8    -0.4     4.5     1.8    -0.7
-----------------------------------------------------------------     
     
     All of the 2004 annual average annual productivity and cost measures
reported for the business and nonfarm business sectors and for manufacturing
are similar to those reported in March.

     The Consumer Price Index Research Series has been updated and new
seasonal factors applied to it.  Real hourly compensation measures are
revised beginning with 2000.  See appendix tables 1-6.
                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 AM EDT,
Thursday, June 2, 2005.  First-quarter measures for nonfinancial corporations
and revised first and fourth quarter measures for business, nonfarm business,
and manufacturing will be released at that time.

Current and upcoming changes to productivity and cost data

     The Bureau of Labor Statistics uses Current Population Survey (CPS) data
to measure the hours of nonfarm proprietors and unpaid family workers, all
persons working in the farm sector, and all employees of government
enterprises using the hours worked by people whose main job falls into these
categories.  Effective with the next release of productivity and costs, hours
for primary and secondary jobs held by persons working more than one job will
be processed separately and assigned to the appropriate class of worker for
each job rather than assigning all hours to the primary job.  This multiple-
jobholder adjustment will result in an improved measure of hours at work by
sector and industry and the employment series will more nearly approximate a
count of jobs rather than persons.  At the aggregate level, trends in the new
hours series are expected to be similar to those in the currently-published
productivity measures.


                                      
                               TECHNICAL NOTES
                                      
Labor  Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector-wage and salary workers, the self-
employed,  and  unpaid family workers.  The primary source of  hours  and  em-
ployment  data is the BLS Current Employment Statistics (CES) program,  which
provides  monthly survey data on the number of jobs held by wage  and  salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours  of  production  and  nonsupervisory workers in  these  establishments.
Weekly  paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for  this
purpose,  was  used for years prior to 2001.  The Office of Productivity  and
Technology  estimates  average weekly hours at  work  for  nonproduction  and
supervisory  workers  using  information from the Current  Population  Survey
(CPS), the CES, and the NCS.
     Data  from  the  CPS are used for farm labor, nonfarm  proprietors,  and
nonfarm unpaid family workers.  Estimates of labor input for government enter-
prises are derived from the CPS, the CES, and the National Income and Product
Accounts  (NIPA)  prepared by the Bureau of Economic Analysis  (BEA)  of  the
Department of Commerce.

Output: Business sector output is an annual-weighted index constructed  after
excluding  from  gross domestic product (GDP) the following outputs:  general
government, nonprofit institutions, and private households (including  owner-
occupied  housing). Corresponding exclusions also are made in  labor  inputs.
Business  output accounted for about 78 percent of the value of GDP in  2000.
Nonfarm business, which also excludes farming, accounted for about 77 percent
of GDP in 2000.
   Annual  indexes  for  manufacturing and its durable and  nondurable  goods
components  are  constructed by deflating current-dollar  industry  value  of
production  data from the U.S. Bureau of the Census with deflators  from  the
BEA.   These deflators are based on data from the BLS producer price  program
and  other  sources.   The  industry shipments are  aggregated  using  annual
weights,  and  intrasector transactions are removed.  Quarterly manufacturing
output  measures  are  based on the index of industrial  production  prepared
monthly by the Board of Governors of the Federal Reserve System, adjusted  to
be  consistent with annual indexes of manufacturing sector output prepared by
BLS.   Durables include the following 3-digit NAICS industries: wood  product
manufacturing;  nonmetallic  mineral  product  manufacturing;  primary  metal
manufacturing;  fabricated  metal  product manufacturing;  machinery  manufac-
turing;  computer and electronic product manufacturing; electrical  equipment
and   appliance   manufacturing;  transportation   equipment   manufacturing;
furniture and related product manufacturing; and miscellaneous manufacturing.
Nondurables include: food manufacturing; beverage and tobacco product manufac-
turing;  textile mills; textile product mills; apparel manufacturing; leather
and  allied product manufacturing; paper manufacturing; printing and  related
support activities; petroleum and coal products manufacturing; chemical  manu-
facturing; and plastics and rubber products manufacturing.
   Nonfinancial  corporate output is an annual-weighted index  calculated  on
the  basis of the costs incurred and the incomes earned from production.  The
output  measure excludes the following outputs from GDP: general  government;
nonprofit  institutions;  private households;  unincorporated  business;  and
those  corporations classified as offices of bank holding companies,  offices
of  other holding companies, or offices in the finance and insurance  sector.
Nonfinancial corporations accounted for about 54 percent of the value of  GDP
in 2000.

Productivity:  These productivity measures describe the relationship  between
real  output  and the labor time involved in its production.  They  show  the
changes  from  period to period in the amount of goods and services  produced
per  hour.  Although these measures relate output to hours  at  work  of  all
persons engaged in a sector, they do not measure the specific contribution of
labor,  capital, or any other factor of production. Rather, they reflect  the
joint  effects  of many influences, including changes in technology;  capital
investment; level of output; utilization of capacity, energy, and  materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
     Information  in  this release will be made available to sensory-impaired
individuals  upon request. Voice phone: 202-691-5606; Federal  Relay  Service
number: 1-800-877-8339.


  Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2003       I     126.3      145.5     115.2     147.4      r115.2      116.8       117.7      117.1
            II     128.6      147.5     114.7     149.6       116.8      116.4       119.0      117.3
           III     131.1      150.8     115.0     151.5      r117.7      115.6       120.8      117.5
            IV     131.8      152.3     115.6     152.9       118.5      116.0       120.7      117.8

        ANNUAL     129.5      149.0     115.1     150.4       117.0      116.2       119.6      117.4

  2004       I     133.1      154.3     115.9     154.0      r118.2      115.7       122.9      118.4
            II     134.1      155.8     116.2     156.0       118.5      116.4       124.4      119.4
           III     134.7      157.5     116.9     158.2      r119.6      117.4       123.5      119.7
            IV     136.0     r159.2     117.0    r160.1       120.0     r117.8      r124.8     r120.4

        ANNUAL     134.6      156.7     116.4     157.2       119.2      116.8       123.9      119.5

  2005       I     136.7      160.6     117.5     161.8       120.6      118.4       126.0      121.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2003       I       4.1        2.2      -1.8       5.8        r1.5        1.6         3.1        2.1
            II       7.6        5.6      -1.9       6.1        r5.7       -1.4         4.5        0.8
           III       8.1        9.3       1.1       5.2        r3.0       -2.7         6.4        0.7
            IV       2.1        4.2       2.0       3.7        r2.8        1.6        -0.3        0.8

        ANNUAL       4.5        3.8      -0.6       4.1         1.8       -0.4         4.1        1.3

  2004       I       4.0        5.3       1.2       2.9       r-0.9       -1.1         7.3        2.1
            II       2.9        3.9       0.9       5.3         0.8        2.3         5.0        3.3
           III       2.0        4.5       2.5       5.8        r4.0        3.7        -2.9        1.1
            IV       3.7       r4.3      r0.6      r4.9        r1.3       r1.1        r4.4       r2.4

        ANNUAL       4.0        5.1       1.1       4.5         1.8       r0.6         3.6        1.7

  2005       I       2.1        3.6       1.5       4.3         1.9        2.2         3.9        2.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2003       I       3.0        2.3      -0.6       3.0         0.1        0.0         3.8        1.4
            II       4.4        3.2      -1.1       3.6         1.4       -0.7         4.7        1.3
           III       5.2        4.5      -0.7       4.5         2.3       -0.6         4.4        1.3
            IV       5.5        5.3      -0.2       5.2         3.2       -0.3         3.4        1.1

        ANNUAL       4.5        3.8      -0.6       4.1         1.8       -0.4         4.1        1.3

  2004       I       5.4        6.1       0.6       4.5         2.6       -0.9         4.4        1.1
            II       4.3        5.6       1.3       4.3         1.4        0.0         4.6        1.7
           III       2.8        4.4       1.6       4.4        r1.7        1.6         2.2        1.8
            IV       3.2        4.5       1.3      r4.7        r1.3       r1.5        r3.4       r2.2

        ANNUAL       4.0        5.1       1.1       4.5         1.8       r0.6         3.6        1.7

  2005       I       2.7        4.0       1.4       5.0         2.0        2.3         2.6        2.4
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 5, 2005
  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

  2003       I     125.8      145.9     116.0     146.7      r114.6      116.6       119.6      117.7
            II     127.9      147.8     115.6     148.7       116.1      116.3       120.4      117.8
           III     130.5      151.1     115.7     150.8      r117.1      115.5       122.3      118.0
            IV     131.5      152.8     116.2     152.3       118.0      115.9       121.9      118.1

        ANNUAL     128.9      149.4     115.9     149.6       116.4      116.1       121.1      117.9

  2004       I     132.7      155.0     116.8     153.1      r117.5      115.4       124.3      118.7
            II     134.0      156.5     116.8     155.3      r117.9      115.9       125.7      119.6
           III     134.4      158.2     117.7     157.4      r119.0      117.1       125.2      120.1
            IV     135.1      159.6     118.1    r158.9      r119.1     r117.6      r126.4     r120.8

        ANNUAL     134.1      157.3     117.3     156.3       118.5      116.5       125.4      119.8

  2005       I     136.0      161.0     118.4     160.8       119.8      118.2       127.6      121.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2003       I       4.0        2.4      -1.5       5.6        r1.3        1.6         2.3        1.9
            II       6.7        5.3      -1.4       5.7        r5.3       -1.0         2.9        0.5
           III       8.7        9.3       0.6       5.7        r3.5       -2.7         6.3        0.6
            IV       2.8        4.6       1.7       4.1        r3.1        1.2        -1.2        0.3

        ANNUAL       4.4        3.8      -0.5       4.0         1.7       -0.4         3.7        1.1

  2004       I       3.8        5.7       1.9       2.1       r-1.7       -1.6         8.0        2.0
            II       3.9        4.2       0.2       5.9        r1.5        1.9         4.6        2.9
           III       1.3        4.2       2.8       5.4         3.7        4.0        -1.6        1.8
            IV       2.1        3.7       1.6      r3.8        r0.2       r1.7        r3.8       r2.5

        ANNUAL      r4.1        5.3       1.2      r4.5         1.7        0.4        r3.6        1.6

  2005       I       2.6        3.6       1.0       4.8         2.4        2.2         4.0        2.9
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2003       I       2.8        2.3      -0.5       2.9         0.0        0.1         3.9        1.5
            II       4.1        3.2      -0.9       3.4         1.2       -0.7         4.4        1.2
           III       5.2        4.6      -0.6       4.5         2.3       -0.6         3.9        1.1
            IV       5.5        5.4      -0.1       5.3         3.3       -0.2         2.6        0.8

        ANNUAL       4.4        3.8      -0.5       4.0         1.7       -0.4         3.7        1.1

  2004       I       5.5        6.2       0.7       4.4         2.5       -1.0         4.0        0.8
            II       4.8        6.0       1.1       4.5         1.6       -0.3         4.4        1.5
           III       3.0        4.7       1.7       4.4        r1.6        1.4         2.4        1.8
            IV       2.8       r4.5       1.6      r4.3         0.9       r1.5         3.6       r2.3

        ANNUAL      r4.1        5.3       1.2      r4.5         1.7        0.4        r3.6        1.6

  2005       I       2.5        3.9       1.4       5.0         2.0        2.5         2.6        2.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 5, 2005
  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


  2003       I            151.6        131.8         86.9        155.5         r121.5         102.6
            II            152.9        130.7         85.5        158.4         r123.6         103.6
           III            156.9        132.1         84.2        161.6         r125.5         103.0
            IV            158.1        134.2         84.9        163.6          126.8         103.5

        ANNUAL            154.8        132.2         85.4        159.7          124.3         103.2

  2004       I            159.3        136.0         85.4        162.4         r124.6         101.9
            II            162.2        138.0         85.1        165.1         r125.3         101.8
           III            164.0        139.4         85.0        168.7          127.6         102.9
            IV           r166.5        141.0        r84.7       r171.7         r128.6        r103.1

        ANNUAL            163.0        138.6        r85.0       r167.0          126.5         102.4

  2005       I            168.1        142.2         84.6        173.7          129.4         103.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I              5.7         -0.9         -6.3         17.4          r12.7          11.0
            II              3.3         -3.4         -6.5          7.6           r7.2           4.2
           III             11.0          4.5         -5.9          8.3           r6.0          -2.4
            IV              3.2          6.6          3.3          5.2           r4.3           1.9

        ANNUAL              5.2          0.0         -4.9          8.7            6.2           3.3

  2004       I              3.0          5.4          2.4         -3.1          r-6.7          -5.9
            II              7.6          5.9         -1.6          6.9            2.4          -0.6
           III              4.4          4.0         -0.3          9.1           r7.3           4.6
            IV             r6.3         r4.9        r-1.3         r7.1           r3.4          r0.8

        ANNUAL             r5.3          4.8         -0.4          4.5            1.8          -0.7

  2005       I              3.9          3.3         -0.7          4.9            2.5           0.9
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I              5.0          0.6         -4.2          8.1            5.1           3.0
            II              4.4         -1.3         -5.4          7.9           r5.6           3.4
           III              5.5         -0.8         -6.0          9.0            6.6           3.3
            IV              5.8          1.6         -3.9          9.5            7.5           3.6

        ANNUAL              5.2          0.0         -4.9          8.7            6.2           3.3

  2004       I              5.1          3.2         -1.8          4.4            2.5          -0.6
            II              6.1          5.6         -0.5          4.3            1.4          -1.8
           III              4.5          5.5          0.9          4.4           r1.7          -0.1
            IV             r5.3         r5.1         -0.2         r4.9           r1.5         r-0.4

        ANNUAL             r5.3          4.8         -0.4          4.5            1.8          -0.7

  2005       I              5.5          4.5         -1.0          7.0            3.9           1.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  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

  2003       I            172.7        155.7         90.1        153.5         r120.0          88.9
            II            174.3        154.3         88.6        156.5          122.2          89.8
           III            180.9        157.6         87.1        159.8         r124.1          88.3
            IV            182.8        161.5         88.3        161.7          125.3          88.5

        ANNUAL            177.6        157.3         88.5        157.9          122.9          88.9

  2004       I            184.4        164.6         89.3        159.1         r122.1          86.3
            II            187.8        167.1         88.9        162.1          123.1          86.3
           III            190.0        169.5         89.2        166.0          125.5          87.4
            IV           r193.4       r172.1         89.0       r168.9         r126.6         r87.4

        ANNUAL            188.9        168.3         89.1        164.0          124.3          86.8

  2005       I            196.3        174.6         88.9        171.1          127.5          87.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I              5.1         -1.6         -6.4         21.8          r16.9          15.9
            II              3.7         -3.4         -6.9          8.1           r7.7           4.2
           III             16.0          8.7         -6.3          8.6           r6.3          -6.4
            IV              4.2         10.1          5.7          4.9           r4.0           0.6


        ANNUAL              6.9          1.3         -5.3          9.7            7.2           2.6

  2004       I              3.6          8.1          4.3         -6.2          r-9.7          -9.5
            II              7.7          6.0         -1.5          7.7           r3.2           0.0
           III              4.6          6.0          1.3          9.9            8.1           5.1
            IV             r7.4         r6.3         -1.0         r7.3           r3.6         r-0.1

        ANNUAL             r6.4          7.0         r0.6          3.9            1.2          -2.3

  2005       I              6.3          5.8         -0.4          5.3            2.9          -0.9
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I              6.7          1.7         -4.7          9.0           r5.9           2.2
            II              5.9         -0.6         -6.1          8.8            6.5           2.8
           III              7.9          0.7         -6.7         10.2           r7.8           2.2
            IV              7.2          3.3         -3.6         10.7            8.6           3.3

        ANNUAL              6.9          1.3         -5.3          9.7            7.2           2.6

  2004       I              6.8          5.8         -1.0          3.7            1.8          -2.9
            II              7.8          8.3          0.4          3.6            0.7          -3.9
           III              5.0          7.6          2.4          3.9           r1.1          -1.1
            IV             r5.8         r6.6          0.8         r4.5           r1.1         r-1.3

        ANNUAL             r6.4          7.0         r0.6          3.9            1.2          -2.3

  2005       I              6.5          6.0         -0.4          7.5            4.4           1.0
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  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

  2003       I            130.2        106.9         82.1        157.7         r123.2         121.1
            II            131.1        106.0         80.9        160.3          125.2         122.3
           III            132.6        105.9         79.8        163.4         r126.9         123.2
            IV            133.6        106.5         79.7        165.5          128.2         123.9

        ANNUAL            131.8        106.3         80.6        161.7          125.8         122.6

  2004       I            134.5        107.1         79.6        166.6         r127.8         123.8
            II            137.0        108.6         79.3        168.8          128.2         123.2
           III            138.6        109.0         78.7        171.8          129.9         123.9
            IV           r140.3       r109.8        r78.3       r174.5         r130.8         124.4

        ANNUAL           r137.6        108.6        r78.9       r170.4         r129.2         123.8

  2005       I            140.7        109.9         78.1        176.2          131.3         125.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I              6.5          0.1         -6.0          9.7           r5.2           3.0
            II              2.6         -3.5         -5.9          6.9           r6.5           4.2
           III              4.9         -0.6         -5.2          8.0           r5.7           2.9
            IV              2.8          2.4         -0.4          5.2           r4.3           2.3

        ANNUAL              2.8         -1.5         -4.2          6.8            4.5           3.9

  2004       I              2.9          2.1         -0.8          2.6          r-1.3          -0.3
            II              7.5          5.7         -1.7          5.5           r1.1          -1.9
           III              4.8          1.7         -3.0          7.2            5.5           2.3
            IV             r4.9         r2.9        r-1.9         r6.6           r3.0          r1.7

        ANNUAL             r4.4         r2.2         -2.1         r5.4            2.6           1.0

  2005       I              1.3          0.3         -1.0          3.9            1.5           2.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I              2.6         -0.9         -3.4          6.6            3.6           3.9
            II              2.2         -2.2         -4.3          6.5            4.2           4.2
           III              2.3         -2.6         -4.8          6.9            4.6           4.5
            IV              4.2         -0.4         -4.4          7.4            5.4           3.1

        ANNUAL              2.8         -1.5         -4.2          6.8            4.5           3.9

  2004       I              3.3          0.1         -3.1          5.7            3.7           2.3
            II              4.5          2.4         -2.0          5.3            2.4           0.7
           III              4.5          3.0         -1.5          5.1           r2.3           0.6
            IV             r5.0         r3.1        r-1.8         r5.5           r2.0           0.4

        ANNUAL             r4.4         r2.2         -2.1         r5.4            2.6           1.0

  2005       I              4.6          2.6         -1.9          5.8            2.7           1.1
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  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

  2002       I    126.7    150.2     118.5    139.9     112.5     110.4    113.6    111.3     88.8    109.3
            II    128.2    151.7     118.4    141.3    r112.8     110.3    112.7    111.0     94.5    109.5
           III    129.0    152.2     118.0    142.1     112.7     110.1    112.8    110.9     95.8    109.5
            IV    129.6    152.4     117.6    142.8    r112.8     110.2    112.8    110.9    102.3    110.1

        ANNUAL    128.4    151.6     118.1    141.5     112.7     110.3    113.0    111.0     95.4    109.6

  2003       I    130.3    152.2     116.8    144.2     112.7     110.7    114.0    111.6    100.0    110.5
            II    132.7    154.4     116.4    146.4     114.3     110.3    112.6    110.9    112.2    111.0
           III    135.2    157.3     116.3    148.4    r115.3     109.8    112.6    110.5    120.3    111.4
            IV    136.6    159.6     116.8    149.8     116.1     109.7    112.2    110.4    125.1    111.7

        ANNUAL    133.7    155.9     116.6    147.2     114.6     110.1    112.9    110.8    114.6    111.2

  2004       I    136.9    160.9     117.6    150.8     115.7     110.2    111.1    110.4    129.9    112.2
            II    138.0    162.6     117.9    152.8     116.0     110.7    111.4    110.9    136.3    113.2
           III    139.6    165.3     118.4    154.9     117.1     110.9    111.3    111.0    136.0    113.2
            IV    141.4    168.0     118.8    156.5     117.3     110.7    110.2    110.6    147.5    113.9

        ANNUAL    139.0    164.2     118.2    153.7     116.5     110.6    111.0    110.7    137.5    113.1

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2002       I      7.5      5.4      -2.0      1.7      r0.2      -5.4     -7.0     -5.9     91.5     -1.3
            II      4.6      4.2      -0.3      4.2      r0.9      -0.3     -3.1     -1.1     28.2      0.8
           III      2.6      1.1      -1.4      2.0     r-0.1      -0.6      0.3     -0.3      5.8      0.1
            IV      1.9      0.7      -1.2      2.1      r0.1       0.3      0.0      0.2     29.9      2.3

        ANNUAL      3.9      1.0      -2.8      3.0       1.4      -0.8      0.3     -0.5     16.0      0.6

  2003       I      2.2     -0.7      -2.8      3.8     r-0.3       1.6      4.4      2.4     -8.8      1.4
            II      7.7      6.0      -1.5      6.2      r5.8      -1.4     -4.9     -2.4     58.5      1.8
           III      7.9      7.6      -0.3      5.8      r3.6      -1.9      0.1     -1.4     32.3      1.4
            IV      3.9      6.0       2.0      3.8      r2.9      -0.1     -1.5     -0.5     16.8      1.1

        ANNUAL      4.2      2.8      -1.3      4.0       1.7      -0.1     -0.1     -0.1     20.1      1.4

  2004       I      0.9      3.4       2.5      2.5     r-1.4       1.6     -4.0      0.1     16.3      1.6
            II      3.3      4.3       1.0      5.5       1.0       2.1      1.3      1.9     21.0      3.8
           III      4.9      6.9       1.9      5.6      r3.8       0.6     -0.5      0.3     -0.8      0.2
            IV      5.3      6.7       1.3      4.4       0.8      -0.8     -3.7     -1.6     38.5      2.2

        ANNUAL      3.9      5.4       1.4      4.4       1.7       0.5     -1.6     -0.1     20.0      1.8

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2002       I      3.4     -1.1      -4.4      3.2       2.0      -0.1      4.0      1.0      1.6      1.0
            II      3.8      0.4      -3.2      3.3      r2.1      -0.4      1.0      0.0      8.8      0.6
           III      4.3      1.9      -2.3      3.0      r1.5      -1.2     -1.1     -1.2     21.4      0.3
            IV      4.1      2.8      -1.2      2.5       0.3      -1.5     -2.5     -1.8     35.5      0.5

        ANNUAL      3.9      1.0      -2.8      3.0       1.4      -0.8      0.3     -0.5     16.0      0.6

  2003       I      2.8      1.3      -1.4      3.1      r0.1       0.3      0.4      0.3     12.6      1.2
            II      3.6      1.8      -1.7      3.5      r1.3       0.0     -0.1      0.0     18.7      1.4
           III      4.9      3.3      -1.4      4.5      r2.2      -0.4     -0.2     -0.3     25.5      1.7
            IV      5.4      4.7      -0.7      4.9      r2.9      -0.5     -0.5     -0.5     22.3      1.4

        ANNUAL      4.2      2.8      -1.3      4.0       1.7      -0.1     -0.1     -0.1     20.1      1.4

  2004       I      5.0      5.7       0.7      4.6       2.7      -0.5     -2.6     -1.0     29.9      1.5
            II      4.0      5.3       1.3      4.4       1.5       0.4     -1.0      0.0     21.5      2.0
           III      3.2      5.1       1.8      4.3      r1.6       1.1     -1.2      0.4     13.0      1.7
            IV      3.6      5.3       1.7      4.5       1.1       0.9     -1.8      0.2     17.9      1.9

        ANNUAL      3.9      5.4       1.4      4.4       1.7       0.5     -1.6     -0.1     20.0      1.8

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 5, 2005
  r=revised                                                               Source: Bureau of Labor Statistics





                                      1
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 fourth quarter of 2004.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  The change for recent quarters is based on the Consumer Price Index for
     all urban consumers (CPI-U).  The trend from 1978-2004 is based on the
     Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital,
     taxes on production and imports less subsidies, net interest and
     miscellaneous payments, business current transfer payments, rental
     income of persons, and the current surplus of government enterprises.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on
     production and imports less subsidies, net interest and miscellaneous
     payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory
     valuation and capital consumption adjustments.

Appendix table 1.
  Business sector: Revised 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

  2000       I    114.0      138.6     121.6     132.4       111.5      116.2       105.2      112.1
            II    116.2      141.1     121.4     133.0       111.1      114.5       109.4      112.6
           III    115.9      140.8     121.5     135.6       112.2      117.0       106.2      112.9
            IV    117.1      141.5     120.9     136.5       112.1      116.6       107.9      113.3

        ANNUAL    115.9      140.5     121.2     134.5       111.8      116.1       107.2      112.7

  2001       I    116.9      141.1     120.7     138.8      r112.9      118.7       106.4      114.1
            II    118.5      141.4     119.4     139.7       112.9      117.9       109.8      114.9
           III    118.8      140.3     118.1     140.4       113.2      118.2       110.2      115.2
            IV    120.9      141.0     116.6     141.5       114.2      117.0       113.1      115.6

        ANNUAL    118.8      141.0     118.7     140.1       113.3      118.0       109.9      114.9

  2002       I    122.6      142.2     115.9     143.2      r115.1      116.7       113.4      115.5
            II    123.2      142.9     116.0     144.5       115.2      117.2       113.6      115.9
           III    124.6      144.3     115.8     145.0       115.0      116.3       115.7      116.1
            IV    125.0      144.7     115.8     145.4       114.8      116.3       116.8      116.5

        ANNUAL    123.9      143.5     115.9     144.5       115.0      116.6       114.9      116.0

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I     -1.3        0.3       1.6      14.6       r10.3       16.0       -15.7        3.4
            II      8.1        7.5      -0.5       1.7       r-1.4       -5.9        17.1        1.8
           III     -1.1       -0.8       0.3       7.9         4.0        9.1       -11.1        1.3
            IV      4.1        2.0      -2.0       2.8        -0.1       -1.3         6.3        1.4

        ANNUAL      2.9        3.9       1.0       7.1         3.6        4.0        -1.8        1.8

  2001       I     -0.5       -1.1      -0.6       6.8        r2.9        7.4        -5.4        2.7
            II      5.5        0.8      -4.4       2.9       r-0.3       -2.5        13.7        3.0
           III      1.2       -3.1      -4.2       2.0        r1.1        0.8         1.4        1.0
            IV      7.1        1.8      -5.0       3.1         3.6       -3.8        10.9        1.3

        ANNUAL      2.5        0.3      -2.1       4.2         1.3        1.6         2.5        2.0

  2002       I      5.9        3.5      -2.3       4.9        r3.4       -1.0         1.0       -0.3
            II      1.9        2.1       0.2       3.7        r0.4        1.7         1.0        1.4
           III      4.6        3.8      -0.8       1.4       r-0.7       -3.1         7.3        0.7
            IV      1.2        1.2       0.0       1.2       r-0.8        0.0         3.8        1.4

        ANNUAL      4.3        1.8      -2.4       3.1         1.5       -1.1         4.5        0.9

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I      2.2        4.5       2.2       6.7        r3.3        4.4        -3.0        1.6
            II      4.0        5.4       1.3       6.8         3.4        2.7         0.5        1.9
           III      3.0        3.8       0.8       7.9         4.3        4.8        -3.0        1.9
            IV      2.4        2.2      -0.2       6.6         3.1        4.1        -1.7        2.0

        ANNUAL      2.9        3.9       1.0       7.1         3.6        4.0        -1.8        1.8

  2001       I      2.6        1.8      -0.7       4.8         1.3        2.1         1.1        1.8
            II      2.0        0.2      -1.7       5.1         1.6        3.0         0.4        2.1
           III      2.5       -0.4      -2.8       3.6         0.9        1.0         3.7        2.0
            IV      3.3       -0.4      -3.6       3.7         1.8        0.4         4.8        2.0

        ANNUAL      2.5        0.3      -2.1       4.2         1.3        1.6         2.5        2.0

  2002       I      4.9        0.8      -4.0       3.2         1.9       -1.6         6.6        1.2
            II      4.0        1.1      -2.8       3.4         2.1       -0.6         3.5        0.9
           III      4.9        2.8      -2.0       3.2         1.6       -1.6         5.0        0.8
            IV      3.4        2.7      -0.7       2.8         0.5       -0.6         3.3        0.8

        ANNUAL      4.3        1.8      -2.4       3.1         1.5       -1.1         4.5        0.9

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 5, 2005
  r=revised                                                              Source: Bureau of Labor Statistics



Appendix table 2.
  Nonfarm business sector: Revised 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

  2000       I    113.7      138.8     122.1     132.1       111.2      116.2       106.6      112.6
            II    115.8      141.4     122.1     132.5       110.7      114.4       111.0      113.1
           III    115.5      141.1     122.1     135.1       111.8      116.9       107.8      113.5
            IV    116.6      141.8     121.7     135.8       111.6      116.5       109.4      113.9

        ANNUAL    115.5      140.8     121.9     134.0       111.4      116.0       108.7      113.3

  2001       I    116.4      141.4     121.5     138.1       112.4      118.6       107.9      114.6
            II    118.1      141.9     120.1     139.0      r112.2      117.6       111.6      115.4
           III    118.5      140.8     118.9     139.6       112.5      117.8       111.9      115.6
            IV    120.4      141.2     117.3     140.7       113.5      116.8       114.7      116.0

        ANNUAL    118.3      141.3     119.4     139.3       112.7      117.7       111.5      115.4

  2002       I    122.4      142.6     116.5     142.5      r114.6      116.4       115.1      116.0
            II    122.8      143.2     116.6     143.8       114.7      117.1       115.4      116.5
           III    124.1      144.5     116.4     144.3      r114.5      116.2       117.7      116.8
            IV    124.6      145.0     116.4     144.7       114.2      116.1       118.9      117.2

        ANNUAL    123.5      143.9     116.5     143.8       114.5      116.5       116.8      116.6

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I     -1.6       -0.1       1.5      14.8       r10.5       16.7       -16.8        3.3
            II      7.5        7.5       0.0       1.1       r-2.0       -6.0        17.4        1.8
           III     -1.0       -0.8       0.1       8.0         4.1        9.1       -11.0        1.4
            IV      3.6        2.2      -1.4       2.3        -0.6       -1.3         6.3        1.3

        ANNUAL      2.8        3.8       1.0       7.1         3.6        4.2        -1.8        1.9

  2001       I     -0.4       -1.1      -0.7       6.7        r2.8        7.2        -5.4        2.6
            II      5.9        1.2      -4.4       2.6       r-0.5       -3.1        14.3        2.7
           III      1.2       -2.9      -4.1       1.8        r1.0        0.6         0.9        0.7
            IV      6.6        1.2      -5.1       3.1         3.7       -3.3        10.5        1.5

        ANNUAL      2.5        0.4      -2.0       4.0         1.1        1.5         2.6        1.9

  2002       I      6.9        4.0      -2.7       5.4        r3.9       -1.4         1.6       -0.3
            II      1.3        1.7       0.4       3.7        r0.4        2.3         1.0        1.8
           III      4.3        3.6      -0.6       1.2       r-0.9       -2.9         8.1        1.0
            IV      1.5        1.4      -0.1       1.2       r-0.8       -0.3         4.2        1.3

        ANNUAL      4.3        1.8      -2.5       3.2         1.6       -1.1         4.7        1.0

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I      2.2        4.4       2.1       6.9         3.6        4.6        -2.7        1.9
            II      3.9        5.3       1.4       6.8         3.4        2.9         0.4        2.0
           III      2.9        3.6       0.8       8.0         4.4        5.0        -3.1        2.0
            IV      2.1        2.1       0.1       6.4         2.9        4.3        -1.9        2.0

        ANNUAL      2.8        3.8       1.0       7.1         3.6        4.2        -1.8        1.9

  2001       I      2.4        1.9      -0.5       4.5        r1.0        2.1         1.2        1.8
            II      2.0        0.4      -1.6       4.9         1.4        2.8         0.6        2.0
           III      2.6       -0.2      -2.7       3.3         0.7        0.8         3.8        1.8
            IV      3.3       -0.4      -3.6       3.6         1.7        0.3         4.8        1.9

        ANNUAL      2.5        0.4      -2.0       4.0         1.1        1.5         2.6        1.9

  2002       I      5.1        0.9      -4.1       3.2         2.0       -1.8         6.7        1.2
            II      4.0        1.0      -2.9       3.5         2.2       -0.5         3.4        0.9
           III      4.7        2.6      -2.0       3.3        r1.8       -1.3         5.2        1.0
            IV      3.5        2.7      -0.8       2.9         0.6       -0.6         3.7        1.0

        ANNUAL      4.3        1.8      -2.5       3.2         1.6       -1.1         4.7        1.0

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 5, 2005
  r=revised                                                              Source: Bureau of Labor Statistics



Appendix table 3.
  Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I          132.6         138.1        104.1        133.2          112.1         100.5
            II          134.4         140.0        104.1        132.5          110.7          98.6
           III          134.0         139.0        103.8        135.9          112.4         101.4
            IV          134.9         137.5        102.0        136.7          112.3         101.4

        ANNUAL          134.1         138.6        103.4        134.7          112.0         100.5

  2001       I          134.6         134.9        100.2        138.1         r112.4         102.7
            II          135.8         133.1         98.0        137.3          110.9         101.1
           III          137.0         131.3         95.8        137.0          110.4         100.0
            IV          140.6         130.0         92.5        139.0          112.2          98.8

        ANNUAL          136.9         132.3         96.6        137.8          111.5         100.7

  2002       I          144.4         131.1         90.8        143.8         r115.6          99.6
            II          146.5         132.4         90.4        146.7          117.0         100.2
           III          148.7         133.2         89.6        148.3         r117.7          99.7
            IV          149.5         132.1         88.4        149.4          117.9          99.9

        ANNUAL          147.3         132.2         89.8        147.0          117.0          99.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I            5.6           3.7         -1.9         21.8          r17.3          15.3
            II            5.6           5.6          0.0         -2.1          r-5.1          -7.3
           III           -1.4          -2.8         -1.4         10.6            6.6          12.1
            IV            2.8          -4.1         -6.7          2.4           -0.4          -0.3

        ANNUAL            4.7           3.0         -1.6          9.2            5.6           4.2

  2001       I           -0.9          -7.6         -6.7          4.3           r0.4           5.2
            II            3.8          -5.0         -8.5         -2.4          r-5.4          -5.9
           III            3.5          -5.5         -8.6         -0.9          r-1.7          -4.2
            IV           11.1          -3.7        -13.3          5.9            6.5          -4.6

        ANNUAL            2.1          -4.6         -6.5          2.3           -0.5           0.2

  2002       I           11.2           3.2         -7.2         14.6          r12.9           3.0
            II            5.8           4.1         -1.6          8.5           r5.0           2.6
           III            6.3           2.4         -3.7          4.3           r2.1          -1.9
            IV            2.2          -3.2         -5.3          3.0           r0.9           0.8

        ANNUAL            7.5          -0.1         -7.1          6.6            5.0          -0.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I            4.7           3.8         -0.8          9.8            6.4           4.9
            II            5.6           4.6         -0.9          8.5            5.1           2.8
           III            5.1           3.3         -1.7         10.0            6.4           4.7
            IV            3.1           0.5         -2.5          7.8            4.2           4.6

        ANNUAL            4.7           3.0         -1.6          9.2            5.6           4.2

  2001       I            1.5          -2.3         -3.7          3.7            0.3           2.2
            II            1.0          -4.9         -5.9          3.6            0.2           2.5
           III            2.3          -5.5         -7.6          0.8           -1.8          -1.4
            IV            4.3          -5.5         -9.3          1.7           -0.1          -2.5

        ANNUAL            2.1          -4.6         -6.5          2.3           -0.5           0.2

  2002       I            7.3          -2.8         -9.4          4.1            2.8          -3.0
            II            7.8          -0.5         -7.8          6.9            5.5          -0.9
           III            8.6           1.5         -6.6          8.2           r6.6          -0.3
            IV            6.3           1.6         -4.5          7.5            5.1           1.1

        ANNUAL            7.5          -0.1         -7.1          6.6            5.0          -0.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  r=revised                                                       Source: Bureau of Labor Statistics



Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and
   unit labor costs seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I          149.6         164.9        110.2        133.4          112.3          89.2

            II          151.4         167.5        110.7        131.9          110.1          87.1
           III          151.0         166.4        110.2        135.7          112.3          89.9
            IV          151.0         164.1        108.6        135.4          111.3          89.7

        ANNUAL          150.9         165.7        109.8        134.2          111.6          89.0

  2001       I          150.3         160.1        106.5        136.4          111.0          90.7
            II          151.7         157.6        103.9        135.8         r109.6          89.5
           III          153.4         154.4        100.7        135.6          109.3          88.4
            IV          156.8         151.5         96.6        137.9          111.3          87.9

        ANNUAL          153.0         155.9        101.9        136.4          110.3          89.2

  2002       I          161.8         153.1         94.6        140.8         r113.2          87.0
            II          164.6         155.3         94.3        143.9         r114.8          87.4
           III          167.7         156.6         93.4        145.0         r115.1          86.5
            IV          170.6         156.3         91.6        146.1         r115.4          85.7

        ANNUAL          166.1         155.3         93.5        143.9          114.6          86.6

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I            9.8           7.9         -1.7         25.0          r20.3          13.9
            II            4.9           6.6          1.6         -4.5          r-7.5          -9.0
           III           -1.1          -2.6         -1.6         12.1            8.1          13.3
            IV            0.2          -5.4         -5.6         -0.7           -3.5          -0.9

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I           -2.0          -9.5         -7.6          2.7          r-1.1           4.8
            II            3.7          -6.1         -9.4         -1.7          r-4.7          -5.2
           III            4.6          -7.7        -11.8         -0.6          r-1.4          -5.0
            IV            9.2          -7.3        -15.2          7.1            7.7          -2.0

        ANNUAL            1.4          -5.9         -7.2          1.6           -1.2           0.2

  2002       I           13.3           4.1         -8.1          8.7           r7.1          -4.1
            II            7.1           6.0         -1.0          9.0           r5.5           1.8
           III            7.7           3.3         -4.0          3.2           r1.1          -4.2
            IV            7.1          -0.7         -7.2          3.2           r1.1          -3.6

        ANNUAL            8.6          -0.4         -8.3          5.5            3.9          -2.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I            5.9           6.0          0.2         11.2           r7.7           5.0
            II            5.9           6.5          0.6          8.9            5.5           2.8
           III            5.6           4.4         -1.2         10.9            7.2           4.9
            IV            3.4           1.5         -1.8          7.4            3.8           3.9

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I            0.5          -2.9         -3.4          2.2           -1.1           1.7
            II            0.2          -5.9         -6.1          3.0           -0.4           2.8
           III            1.6          -7.2         -8.7         -0.1           -2.7          -1.7
            IV            3.8          -7.7        -11.1          1.8            0.0          -1.9

        ANNUAL            1.4          -5.9         -7.2          1.6           -1.2           0.2

  2002       I            7.7          -4.4        -11.2          3.3            2.0          -4.1
            II            8.5          -1.5         -9.2          6.0           r4.7          -2.4
           III            9.3           1.4         -7.2          6.9           r5.3          -2.2
            IV            8.8           3.2         -5.1          6.0           r3.7          -2.6

        ANNUAL            8.6          -0.4         -8.3          5.5            3.9          -2.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  r=revised                                                       Source: Bureau of Labor Statistics



Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and
   unit labor costs seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2000       I          116.7         110.9         95.0        130.5         r109.8         111.8
            II          118.7         112.0         94.4        131.4          109.7         110.7
           III          118.0         111.1         94.1        133.7          110.7         113.3
            IV          119.9         110.4         92.0        136.6          112.2         113.9

        ANNUAL          118.5         111.1         93.7        133.2          110.8         112.4

  2001       I          119.9         108.9         90.8        139.2         r113.3         116.1
            II          120.8         107.8         89.2        138.0          111.5         114.3
           III          120.9         107.1         88.6        137.8          111.1         114.0
            IV          124.4         107.3         86.3        139.3          112.4         111.9

        ANNUAL          121.5         107.8         88.7        138.6          112.1         114.1

  2002       I          126.9         107.9         85.0        147.9         r118.9         116.5
            II          128.3         108.4         84.5        150.5          120.1         117.4
           III          129.7         108.7         83.8        152.9          121.3         117.9
            IV          128.2         106.9         83.4        154.1          121.6         120.2

        ANNUAL          128.2         108.0         84.2        151.3          120.5         118.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I           -0.1          -2.3         -2.2         15.4          r11.1          15.5
            II            6.8           3.9         -2.8          2.7          r-0.4          -3.8
           III           -2.3          -3.2         -1.0          7.4            3.5           9.8
            IV            6.6          -2.5         -8.5          8.9            5.9           2.2

        ANNUAL            4.0           0.7         -3.2          7.8            4.3           3.6

  2001       I           -0.2          -5.3         -5.1          7.8           r3.8           8.0
            II            3.2          -3.8         -6.8         -3.4          r-6.3          -6.3
           III            0.3          -2.6         -2.9         -0.6          r-1.4          -0.9
            IV           12.2           0.8        -10.1          4.3            4.9          -7.1

        ANNUAL            2.5          -3.0         -5.3          4.0            1.2           1.5

  2002       I            8.2           2.2         -5.5         27.1          r25.3          17.5
            II            4.4           1.8         -2.4          7.4           r4.0           2.9
           III            4.5           1.1         -3.2          6.4           r4.2           1.9
            IV           -4.5          -6.4         -2.0          3.1           r1.0           8.0

        ANNUAL            5.6           0.2         -5.1          9.2            7.5           3.4

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I            3.4           0.8         -2.5          6.7           r3.4           3.2
            II            5.3           1.7         -3.5          7.3            3.9           1.8
           III            4.2           1.5         -2.6          8.2            4.6           3.8
            IV            2.7          -1.1         -3.7          8.5            4.9           5.7

        ANNUAL            4.0           0.7         -3.2          7.8            4.3           3.6

  2001       I            2.7          -1.9         -4.4          6.7            3.2           3.9
            II            1.8          -3.7         -5.4          5.1            1.6           3.2
           III            2.4          -3.6         -5.9          3.1            0.4           0.6

            IV            3.8          -2.7         -6.3          1.9            0.1          -1.8

        ANNUAL            2.5          -3.0         -5.3          4.0            1.2           1.5

  2002       I            5.9          -0.9         -6.4          6.2           r5.0           0.3
            II            6.2           0.6         -5.3          9.1            7.7           2.7
           III            7.3           1.5         -5.4         10.9            9.2           3.4
            IV            3.0          -0.4         -3.3         10.6            8.2           7.4

        ANNUAL            5.6           0.2         -5.1          9.2            7.5           3.4

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 5, 2005
  r=revised                                                       Source: Bureau of Labor Statistics



Appendix table 6. Nonfinancial corporations:  Revised 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

  2000      I    120.5    150.3     124.7    129.7     109.2     107.7    101.9    106.1    114.6    106.9
           II    121.1    151.1     124.8    130.5     108.9     107.7    103.5    106.6    115.9    107.4
          III    121.9    152.4     125.0    132.9     110.0     109.0    104.8    107.9    107.4    107.8
           IV    122.2    152.3     124.7    134.4     110.4     110.0    106.5    109.1     97.0    108.0

       ANNUAL    121.5    151.5     124.7    132.0     109.7     108.6    104.2    107.4    108.7    107.5

  2001      I    122.6    151.9     123.9    135.5     110.3     110.5    109.2    110.2     87.4    108.1
           II    123.5    151.1     122.3    136.8     110.5     110.8    111.6    111.0     86.9    108.9
          III    123.7    149.4     120.8    137.9     111.1     111.5    114.1    112.2     79.0    109.2
           IV    124.5    148.2     119.1    139.3     112.4     111.9    115.7    113.0     75.5    109.6

       ANNUAL    123.5    150.2     121.5    137.3     111.1     111.2    112.6    111.6     82.2    108.9

  2002      I    126.7    150.2     118.5    139.9     112.5     110.4    113.6    111.3     88.8    109.3
           II    128.2    151.7     118.4    141.3    r112.8     110.3    112.7    111.0     94.5    109.5
          III    129.0    152.2     118.0    142.1     112.7     110.1    112.8    110.9     95.8    109.5
           IV    129.6    152.4     117.6    142.8    r112.8     110.2    112.8    110.9    102.3    110.1

       ANNUAL    128.4    151.6     118.1    141.5     112.7     110.3    113.0    111.0     95.4    109.6
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2000      I      7.2      9.5       2.1     15.3     r11.0       7.6      1.4      5.9    -25.5      2.3
           II      2.1      2.3       0.2      2.3     r-0.9       0.1      6.6      1.8      4.7      2.1
          III      2.7      3.4       0.6      7.7       3.8       4.9      5.0      4.9    -26.2      1.5
           IV      0.8     -0.2      -0.9      4.5       1.6       3.7      6.7      4.5    -33.4      0.6

       ANNUAL      3.6      5.2       1.5      6.8       3.4       3.1      3.8      3.3    -15.8      1.2

  2001      I      1.4     -1.1      -2.4      3.4     r-0.5       1.9     10.5      4.1    -34.1      0.6
           II      2.9     -2.2      -4.9      3.8      r0.7       0.9      9.2      3.1     -2.5      2.7

          III      0.6     -4.4      -5.0      3.3      r2.4       2.6      8.9      4.3    -31.8      1.3
           IV      2.6     -3.0      -5.5      4.2       4.8       1.6      5.9      2.8    -16.3      1.4

       ANNUAL      1.7     -0.9      -2.5      4.1       1.2       2.4      8.1      3.9    -24.3      1.3

  2002      I      7.5      5.4      -2.0      1.7      r0.2      -5.4     -7.0     -5.9     91.5     -1.3
           II      4.6      4.2      -0.3      4.2      r0.9      -0.3     -3.1     -1.1     28.2      0.8
          III      2.6      1.1      -1.4      2.0     r-0.1      -0.6      0.3     -0.3      5.8      0.1
           IV      1.9      0.7      -1.2      2.1      r0.1       0.3      0.0      0.2     29.9      2.3

       ANNUAL      3.9      1.0      -2.8      3.0       1.4      -0.8      0.3     -0.5     16.0      0.6
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2000      I      3.4      6.1       2.6      5.8       2.5       2.3      2.8      2.4    -14.1      0.6
           II      3.5      5.5       2.0      6.2       2.9       2.7      3.8      3.0    -13.2      1.1
          III      4.1      5.6       1.4      7.6       4.0       3.3      3.8      3.5    -14.9      1.5
           IV      3.2      3.7       0.5      7.3       3.8       4.0      4.9      4.3    -21.3      1.6

       ANNUAL      3.6      5.2       1.5      6.8       3.4       3.1      3.8      3.3    -15.8      1.2

  2001      I      1.7      1.1      -0.6      4.4       1.0       2.6      7.2      3.8    -23.7      1.2
           II      1.9      0.0      -1.9      4.8       1.4       2.8      7.8      4.1    -25.0      1.3
          III      1.4     -2.0      -3.3      3.7       1.0       2.3      8.8      4.0    -26.5      1.3
           IV      1.9     -2.7      -4.5      3.7       1.8       1.8      8.6      3.6    -22.2      1.5


       ANNUAL      1.7     -0.9      -2.5      4.1       1.2       2.4      8.1      3.9    -24.3      1.3

  2002      I      3.4     -1.1      -4.4      3.2       2.0      -0.1      4.0      1.0      1.6      1.0
           II      3.8      0.4      -3.2      3.3      r2.1      -0.4      1.0      0.0      8.8      0.6
          III      4.3      1.9      -2.3      3.0      r1.5      -1.2     -1.1     -1.2     21.4      0.3
           IV      4.1      2.8      -1.2      2.5       0.3      -1.5     -2.5     -1.8     35.5      0.5

       ANNUAL      3.9      1.0      -2.8      3.0       1.4      -0.8      0.3     -0.5     16.0      0.6
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 5, 2005
  r=revised                                                               Source: Bureau of Labor Statistics