TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
10
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
12
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
14
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
16
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
18
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
20
21

 
 
 
Historical, technical                    USDL 95-75
  information: (202) 606-5606            TRANSMISSION OF THIS
Current data:  (202) 606-7828            MATERIAL IS EMBARGOED
Media contact: (202) 606-5902            UNTIL 10:00 A.M. EST
                                         WEDNESDAY, MARCH 8, 1995
 
 
                              PRODUCTIVITY AND COSTS
                     Fourth-Quarter and Annual Averages, 1994
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised fourth-quarter seasonally-adjusted annual rates of
productivity change--as measured by output per hour of all persons--and revised
annual changes for the full year 1994.  In the fourth quarter, productivity
increased moderately in both the business and nonfarm business sectors.
Percent changes in business and nonfarm business productivity were:
 
                                  Fourth  Annual averages
                                 quarter     1993-1994
 
     Business sector............    1.7          2.3
     Nonfarm business sector....    1.7          2.2
 
     For the year 1994, productivity increases in both sectors were somewhat
greater than in 1993.  These productivity improvements, combined with modest
increases in hourly compensation, led to the smallest increases in unit labor
costs in three decades.  Fourth-quarter productivity and related measures are
summarized in table A and appear in detail in tables 1 through 5.
 
     In the manufacturing sector, increases in productivity were:
 
                                    Fourth  Annual averages
                                    quarter    1993-1994
 
     Manufacturing..............     3.1         4.9
       Durable goods manufacturing   3.5         5.9
       Nondurable goods manufacturing 2.4        3.4
 
     Manufacturing productivity grew at a 3.1 percent annual rate in the fourth
quarter as both output and hours increased at the fastest rates since the
fourth quarter of 1987.  The growth rates in productivity, output, and hours in
durable goods manufacturing were more rapid than in nondurables (table A).  On
an annual basis, manufacturing productivity increased 4.9 percent, the largest
yearly gain since 1987.
 
                                      - 2 -
 
     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.  Output measures for manufacturing reflect independent
indexes of industrial production prepared by the Board of Governors of the
Federal Reserve System.  See Technical Notes (page 7) for further information
on data sources.
 
 
Table A.  Productivity and costs:  Revised fourth-quarter 1994 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          1.7     5.4   3.6    3.1    0.8    1.3
   Nonfarm business  1.7     5.3   3.5    3.4    1.2    1.7
   Manufacturing     3.1     7.7   4.5    3.4    1.1    0.3
   Durable           3.5     9.6   5.9    4.1    1.8    0.6
   Nondurable        2.4     4.9   2.5    2.0   -0.2   -0.3
 
                      Percent change from same quarter a year ago
 
   Business          1.6     4.8   3.2    3.3    0.6    1.7
   Nonfarm business  1.4     4.5   3.1    3.3    0.7    1.9
   Manufacturing     4.6     7.0   2.2    2.2   -0.4   -2.3
   Durable           5.2     8.5   3.1    2.2   -0.4   -2.9
   Nondurable        3.7     4.8   1.1    2.1   -0.6   -1.6
 
 
                     THIRD-TO-FOURTH QUARTER CHANGES, 1994
 
Business
 
     Business sector productivity increased 1.7 percent in the fourth quarter
of 1994.  This gain reflected output growth of 5.4 percent and growth in the
hours of all persons engaged in the sector of 3.6 percent (seasonally adjusted
annual rates).  During the third quarter of 1994, business productivity had
increased 3.7 percent, output 4.5 percent, and hours 0.8 percent (table 1).
 
     Hourly compensation increased at a 3.1 percent rate during the fourth
quarter of 1994, compared with a 3.6 percent increase 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 hourly compensation and productivity, increased at a 1.3 percent annual rate
during the fourth quarter, compared with a 0.2 percent decrease 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 0.8 percent annual rate
for persons in the business sector.  This measure had been unchanged during the
third quarter.
 
 
                                      - 3 -
 
     The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased at a 0.6 percent annual
rate in the fourth quarter.  During the third quarter, prices of the goods and
services which comprise business output had increased at a 2.0 percent rate.
 
Nonfarm business
 
     In the nonfarm business sector, productivity rose 1.7 percent in the
fourth quarter.  Output rose 5.3 percent, and hours of all persons--employees,
proprietors, and unpaid family workers--rose 3.5 percent.  During the third
quarter, nonfarm productivity had increased 3.2 percent as output grew 4.3
percent and hours 1.1 percent (table 2).
 
     Hourly compensation rose 3.4 percent in the fourth quarter, and real
hourly compensation increased 1.2 percent when the increase in the CPI-U was
taken into account.  During the third quarter, hourly compensation had
increased by 3.1 percent, and real hourly compensation dropped 0.4 percent.
Unit labor costs rose 1.7 percent in the fourth quarter, compared with a 0.1
percent decrease during the third quarter.
 
     The implicit price deflator for nonfarm business, reflecting the modest
increase in unit labor costs and a 1.7 percent fall in unit nonlabor payments,
rose only 0.5 percent in the fourth quarter, compared with a 2.3 percent
increase one quarter earlier.
 
Manufacturing
 
     Manufacturing productivity rose at a 3.1 percent seasonally adjusted
annual rate in the fourth quarter of 1994, following an increase of 3.5 percent
in the third quarter.  Output rose 7.7 percent in the fourth quarter, the fifth
consecutive quarter of increases exceeding 5 percent, and hours of all persons
increased 4.5 percent.  Both durable and nondurable goods industries
experienced productivity increases in the fourth quarter, but the increases in
durable manufacturing productivity and output were greater (tables 4 and 5).
 
     Hourly compensation of all manufacturing workers increased 3.4 percent
during the fourth quarter, 1.1 percent when the increase in consumer prices was
taken into account.  Unit labor costs rose at a 0.3 percent annual rate in the
fourth quarter of 1994, after falling in the four previous quarters.
 
 
                       ANNUAL AVERAGE CHANGES, 1993-1994
 
Business
 
     In the calendar year 1994, business productivity increased 2.3 percent, up
from a 1.5 percent increase in 1993.  Output grew 5.3 percent in 1994, and
hours of all persons engaged in the sector increased 2.9 percent (table 1).
 
   Hourly compensation increased 3.2 percent in 1994 (the smallest annual
increase since 2.6 percent in 1955) and 3.6 percent in 1993.  Real hourly
compensation increased 0.6 percent in both 1994 and 1993.
 
                                       - 4 -
 
     Unit labor costs increased 0.8 percent during 1994, compared with a 2.0
percent increase a year earlier.  These costs grew less in 1994 than in 1993
because of the smaller increase in hourly compensation and higher productivity
growth.
 
Nonfarm business
 
     Productivity increased 2.2 percent in the nonfarm business sector during
1994, as output rose 5.2 percent and hours of all persons increased 2.9 per-
cent.  In 1993, productivity had risen 1.5 percent, reflecting output and hours
increases of 4.1 and 2.5 percent, respectively.  Hourly compensation rose 3.1
percent in 1994.  Although this was the smallest increase in hourly
compensation since 1949 (when it rose 3.0 percent), it was just slightly less
than the 3.3 percent rise in 1993.  Real hourly compensation increased 0.5
percent, up from a 0.2 percent rise in 1993.
 
     Unit labor costs in the nonfarm business sector grew only 0.9 percent in
1994 and 1.7 percent in 1993.
 
Manufacturing
 
     Manufacturing productivity grew 4.9 percent in 1994, as output rose 6.1
percent and hours of all persons 1.2 percent.  During 1993, productivity rose
3.2 percent, output rose 4.1 percent, and hours increased 0.8 percent.  The
increases in manufacturing productivity and output in 1994 were the largest
since 1987.  The increase in hours occurred because of increases in both
employment and average weekly hours.  Although employment growth was modest, it
was the first annual increase since 1989.  Manufacturing workers' average
weekly hours in 1994 were at historically high levels.
 
     Hourly compensation of manufacturing workers increased 2.8 percent during
1994, but only 0.2 percent after the increase in consumer prices is taken into
account.  Unit labor costs fell 2.0 percent in 1994, the first such decline
since 1987, reflecting both faster productivity growth and a smaller gain in
compensation per hour than in 1993.
 
     Both durable and nondurable goods industries experienced productivity
increases in 1994.  The large gain among durable goods producers, 5.9 percent,
reflected strong output growth and a slight increase in hours. In nondurable
goods industries, productivity, output, and hours all grew modestly in 1994
(tables 4 and 5).
 
 
Revised measures
 
     Productivity and cost measures for the fourth quarter and full year 1994
for business, nonfarm business, and manufacturing were revised to incorporate
the most recent information, and were somewhat different from the preliminary
results announced on February 7.  Hourly compensation and the related real
hourly compensation and unit labor cost measures were revised down in the
business, nonfarm business and manufacturing sectors (table B).
 
 
                                      - 5 -
     Measures of real hourly compensation were revised for all sectors to
reflect revisions to the Consumer Price Index for All Urban Consumers.  These
revisions to the CPI, which reflect  updated seasonal adjustment factors, were
released February 15 (USDL 95-52).  Measures for 1990 forward were affected.
 
 
Table B.  Previous and revised productivity and related measures:
Fourth-quarter and annual averages, 1994
(Seasonally adjusted annual rates)
                                                 Real
                                         Hourly  hourly  Unit
                    Produc-              compen- compen- labor
    Sector          tivity Output Hours  sation  sation  costs
 
                 Percent change, third to fourth quarter 1994
   Business:
     Previous        1.7     5.4   3.7    3.4    1.1    1.7
     Current         1.7     5.4   3.6    3.1    0.8    1.3
   Nonfarm business:
     Previous        1.8     5.4   3.6    3.7    1.4    1.9
     Current         1.7     5.3   3.5    3.4    1.2    1.7
   Manufacturing:
     Previous        2.8     7.7   4.8    3.7    1.4    0.8
     Current         3.1     7.7   4.5    3.4    1.1    0.3
 
                      Percent change, 1993 - 1994
   Business:
     Previous        2.3     5.3   2.9    3.2    0.6    0.9
     Current         2.3     5.3   2.9    3.2    0.6    0.8
   Nonfarm business:
     Previous        2.2     5.2   2.9    3.1    0.6    0.9
     Current         2.2     5.2   2.9    3.1    0.5    0.9
   Manufacturing:
     Previous        4.9     6.2   1.2    2.8    0.3   -1.9
     Current         4.9     6.1   1.2    2.8    0.2   -2.0
 
 
                                      - 6 -
 
 
                               Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 AM EDT,
Tuesday, May 9, 1995, and will contain preliminary first-quarter measures for
business, nonfarm business, and manufacturing.  Fourth-quarter and 1994 annual
measures for nonfinancial corporations will be included at that time.
 
 
 
 
 
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                                      - 7 -
 
                                TECHNICAL NOTES
 
 
Labor Input:  The  primary  source  of  durables  include:  Food  and  kindred
hours and  employment data  is the BLS  products,  tobacco  products,  textile
Current  Employment  Statistics  (CES)  mill products, apparel products, paper
program, which provides monthly survey  and  allied   products,  printing  and
data on  total employment  and average  publishing,  chemicals   and  chemical
weekly hours  of production  and  non-  products,   petroleum   refining   and
supervisory workers in nonagricultural  related industries, rubber and plastic
establishments.   Jobs   rather   than  products,  and   leather  and  leather
persons are  counted. Weekly hours are  products. Manufacturing  accounted for
adjusted  to   the   hours   at   work  about  19  percent  of  GDP  in  1992.
definition using the BLS Hours at Work  Quarterly     manufacturing     output
survey, conducted for this purpose.     measures are  based on  the  index  of
     Data   from   the   BLS   Current  industrial production prepared monthly
Population Survey  (CPS) are  used for  by  the  Board  of  Governors  of  the
farm labor; in the nonfarm sector, the  Federal Reserve System adjusted by BLS
National Income  and Product  Accounts  to annual  manufacturing output levels
(NIPA) prepared  by the Bureau of Eco-  (gross product  originating) from  the
nomic Analysis  of the  Department  of  National Income  and Product  Accounts
Commerce  and  the  CPS  are  used  to  prepared by  the  Bureau  of  Economic
measure  labor  input  for  government  Analysis of  the  U.S.  Department  of
enterprises, proprietors,  and  unpaid  Commerce.
family workers.                              Nonfinancial corporate  output is
                                        equal to GDP in constant 1987 dollars,
Output: Business  output is  equal  to  less   the    output   of    nonprofit
gross  domestic   product   (GDP)   in  institutions, output of paid employees
constant 1987  dollars,  less  general  of private households, rental value of
government,   output    of   nonprofit  owner-occupied dwellings,  the  output
institutions, output of paid employees  of      unincorporated       business,
of private households, rental value of  corporations engaged  in banking,  fi-
owner-occupied dwellings, and the sta-  nance, stock  and  commodity  trading,
tistical discrepancy  in computing the  and credit and insurance agencies, and
NIPA.  Corresponding   exclusions  are  the   statistical    discrepancy    in
also made  in labor  inputs.  Business  computing   the   NIPA.   Nonfinancial
output was  about 78 percent of GDP in  corporations accounted  for  about  56
1992. Nonfarm business, which also ex-  percent of GDP in 1992.
cludes farming,  was about  77 percent
of GDP in 1992.                         Productivity: These  productivity mea-
     Total manufacturing  measures are  sures   describe    the   relationship
computed by  summing  series  prepared  between real output and the labor time
for the  durable and  nondurable goods  involved in  its production. They show
sectors.    Durables    include    the  the changes  from period  to period in
following  2-digit   SIC   industries:  the amount  of goods and services pro-
Primary metal  industries;  fabricated  duced   per   hour.   Although   these
metal     products;      nonelectrical  measures relate  output  to  hours  at
machinery; industrial  and  commercial  work  of  all  persons  engaged  in  a
machinery  and   computer   equipment;  sector,  they   do  not   measure  the
electronic   and    other   electrical  specific   contribution    of   labor,
equipment;  transportation  equipment;  capital,  or   any  other   factor  of
instruments; lumber  and lumber  prod-  production. Rather,  they reflect  the
ucts; furniture  and fixtures;  stone,  joint  effects   of  many  influences,
clay, glass,  and  concrete  products;  including   changes   in   technology;
and miscellaneous  manufactures.  Non-  capital investment;  level of  output;
 
                                      - 8 -
 
utilization of  capacity, energy,  and       Information in  this release will
materials; the organization of produc-  be made  available to sensory-impaired
tion;  managerial   skill;   and   the  individuals upon request. Voice phone:
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      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 1982=100
 
      1992       I     114.5      133.7     116.8     152.2       105.9     133.0       148.4       138.0
                II     114.8      134.4     117.1     153.7       106.1     133.9       148.8       138.8
               III     115.9      136.1     117.4     156.0      r106.9     134.7       145.8       138.3
                IV     116.8      137.9     118.1     157.7       107.1     135.1       150.2       140.1
 
            ANNUAL     115.5      135.5     117.4     154.9       106.6     134.2       148.3       138.8
 
      1993       I     116.2      138.1     118.9     158.8       107.0     136.6       149.5       140.8
                II     116.4      139.6     119.9     160.0       107.0     137.5       149.6       141.4
               III     117.3      140.9     120.1     161.2      r107.4     137.4       150.4       141.6
                IV     119.0      143.9     121.0     162.1       107.2     136.3       153.8       142.1
 
            ANNUAL     117.2      140.6     120.0     160.5       107.2     136.9       150.9       141.5
 
      1994       I     119.8      145.8     121.7     164.6      r108.2     137.4       153.2       142.6
                II     119.2      147.2     123.5     164.7       107.6     138.2       155.3       143.8
               III     120.3      148.8     123.7     166.2       107.6     138.1       157.6       144.5
                IV     120.8      150.8     124.8    r167.4      r107.8    r138.6      r157.3      r144.8
 
            ANNUAL     119.9      148.1     123.5     165.6       107.8     138.1       155.9      r143.9
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       5.5        3.4      -1.9       5.8        r3.0       0.3         9.1         3.3
                II       1.1        2.2       1.1       4.0        r0.9       2.8         1.0         2.2
               III       3.7        4.9       1.2       6.1         3.0       2.4        -7.7        -1.3
                IV       3.2        5.6       2.3       4.4        r1.0       1.2        12.7         5.1
 
            ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
      1993       I      -1.9        0.6       2.5       2.6        -0.4       4.6        -2.0         2.3
                II       0.6        4.2       3.6       3.1        r0.1       2.5         0.3         1.7
               III       3.3        4.0       0.7       3.0        r1.3      -0.3         2.1         0.6
                IV       5.7        8.6       2.8       2.4       r-0.8      -3.1         9.4         1.2
 
            ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
      1994       I       2.9        5.5       2.5       6.3         4.1       3.3        -1.7         1.5
                II      -2.0        3.7       5.9       0.2       r-2.3       2.3         5.8         3.5
               III       3.7        4.5       0.8       3.6         0.0      -0.2         5.9         2.0
                IV       1.7        5.4      r3.6      r3.1        r0.8      r1.3       r-0.6        r0.6
 
            ANNUAL       2.3        5.3       2.9       3.2         0.6      r0.8         3.3         1.7
      ---------------------------------------------------------------------------------------------------------
 
 
                                                                     10
 
 
 
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.8        1.7      -1.1       4.9        r1.9       2.1         3.2         2.5
                II       2.5        2.0      -0.6       4.9        r1.8       2.3         2.5         2.4
               III       3.1        3.0      -0.2       5.3         2.2       2.1         0.3         1.5
                IV       3.4        4.0       0.6       5.1        r1.9       1.7         3.5         2.3
 
            ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
      1993       I       1.5        3.3       1.8       4.3         1.1       2.8         0.7         2.0
                II       1.4        3.8       2.4       4.1         0.9       2.7         0.6         1.9
               III       1.3        3.6       2.3       3.3         0.5       2.0         3.1         2.4
                IV       1.9        4.3       2.4       2.8         0.0       0.9         2.4         1.4
 
            ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
      1994       I       3.1        5.6       2.4       3.7         1.1       0.6         2.5         1.2
                II       2.4        5.4       3.0       3.0         0.5       0.5         3.8         1.7
               III       2.5        5.6       3.0       3.1         0.2       0.6         4.8         2.0
                IV      r1.6        4.8       3.2       3.3         0.6      r1.7        r2.3        r1.9
 
            ANNUAL       2.3        5.3       2.9       3.2         0.6      r0.8         3.3         1.7
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      March 8, 1995
      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 1982=100
 
      1992       I     112.6      133.6     118.6     150.9      r104.9     134.0       149.5       139.0
                II     113.1      134.4     118.8     152.6       105.3     134.9       150.4       139.9
               III     113.9      135.9     119.3     154.7       106.0     135.9       147.0       139.5
                IV     115.0      137.9     120.0     156.4      r106.2     136.1       152.1       141.2
 
            ANNUAL     113.7      135.5     119.2     153.7       105.7     135.2       149.7       139.9
 
      1993       I     114.4      138.3     120.9     157.2       106.0     137.5       151.5       142.0
                II     114.5      139.9     122.1     158.2       105.8     138.1       151.8       142.5
               III     115.6      141.5     122.4     159.3       106.1     137.7       153.5       142.8
                IV     117.0      144.3     123.3     160.2       105.9     136.9       156.1       143.1
 
            ANNUAL     115.4      141.0     122.2     158.7       106.0     137.5       153.3       142.6
 
      1994       I     117.9      146.1     124.0     162.6       106.9     137.9       155.3       143.5
                II     117.2      147.3     125.6     162.9       106.4     138.9       158.1       145.1
               III     118.2      148.8     126.0     164.1       106.3     138.9       160.8       145.9
                IV     118.7      150.8     127.1    r165.5       106.6     139.5      r160.1      r146.1
 
            ANNUAL     117.9      148.3    r125.7    r163.6       106.6     138.8       158.6       145.2
      ---------------------------------------------------------------------------------------------------------
                           Percent change from previous quarter at annual rate(5)
 
      1992       I       4.2        2.4      -1.8       5.7        r2.9       1.4         6.5         3.2
                II       1.9        2.5       0.6       4.6        r1.4       2.6         2.3         2.5
               III       2.8        4.4       1.6       5.8         2.6       2.9        -8.6        -1.2
                IV       3.8        6.2       2.3       4.5        r1.0       0.6        14.4         5.1
 
            ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
      1993       I      -2.0        1.0       3.0       2.1        -0.9       4.1        -1.4         2.2
                II       0.4        4.7       4.3       2.4       r-0.6       2.0         0.8         1.6
               III       4.0        4.9       0.9       2.8        r1.1      -1.2         4.4         0.7
                IV       4.9        7.9       2.9       2.4       r-0.9      -2.4         7.1         0.8
 
            ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
      1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
                II      -2.1        3.2       5.5       0.7       r-1.8       2.9         7.5         4.5
               III       3.2        4.3       1.1       3.1        -0.4      -0.1         6.9         2.3
                IV      r1.7       r5.3      r3.5      r3.4        r1.2      r1.7       r-1.7        r0.5
 
            ANNUAL       2.2        5.2       2.9       3.1        r0.5       0.9         3.5         1.8
      ---------------------------------------------------------------------------------------------------------
 
 
                                                                     12
 
 
 
                          Percent change from corresponding quarter of previous year
 
      1992       I       2.4        1.4      -1.0       4.9        r1.9       2.4         2.8         2.5
                II       2.4        1.8      -0.6       5.0        r1.9       2.5         2.8         2.6
               III       2.7        2.6      -0.1       5.3         2.1       2.6         0.0         1.7
                IV       3.2        3.8       0.7       5.1         2.0       1.9         3.3         2.4
 
            ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
      1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
                II       1.2        4.0       2.8       3.7         0.5       2.4         0.9         1.9
               III       1.5        4.2       2.6       2.9         0.1       1.4         4.4         2.4
                IV       1.8        4.6       2.7       2.4        -0.3       0.6         2.7         1.3
 
            ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
      1994       I       3.0        5.7       2.6       3.4         0.9       0.3         2.5         1.1
                II       2.4        5.3       2.8       3.0        r0.6       0.6         4.2         1.8
               III       2.2        5.2       2.9       3.1         0.2       0.9         4.8         2.2
                IV       1.4        4.5       3.1      r3.3         0.7      r1.9        r2.5        r2.1
 
            ANNUAL       2.2        5.2       2.9       3.1        r0.5       0.9         3.5         1.8
      ---------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                      March 8, 1995
      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 1982=100
 
      1992       I            126.4        128.6        101.8        145.2           101.0        114.9
                II            126.8        129.6        102.2        146.8           101.3        115.8
               III            127.6        130.3        102.1        148.4           101.6        116.3
                IV            128.8        132.0        102.5        150.7           102.4        117.0
 
            ANNUAL            127.5        130.1        102.0        147.9           101.7        116.0
 
      1993       I            130.0        134.0        103.1        150.0           101.1        115.4
                II            130.7        134.4        102.8        152.1           101.8        116.4
               III            131.7        135.4        102.8        153.6          r102.4        116.6
                IV            133.6        137.7        103.0        155.1           102.5        116.1
 
            ANNUAL            131.6        135.4        102.9        152.8           102.0        116.1
 
      1994       I            135.7        140.2        103.3        156.6           103.0        115.4
                II            137.6        142.7        103.7        156.1          r102.0        113.4
               III            138.8        144.6        104.2        157.2           101.8        113.3
                IV           r139.9       r147.3        105.4       r158.5          r102.1       r113.4
 
            ANNUAL            138.0        143.7        104.2        157.1           102.3       r113.8
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              0.6         -1.6         -2.1          1.5           r-1.2          0.9
                II              1.3          3.0          1.7          4.5            r1.4          3.2
               III              2.6          2.1         -0.5          4.3             1.2          1.6
                IV              3.8          5.3          1.4          6.5            r3.0          2.6
 
            ANNUAL              2.1          1.5         -0.6          4.2             1.2          2.1
 
      1993       I              3.7          6.3          2.6         -2.0            -4.9         -5.5
                II              2.4          1.3         -1.1          6.0            r2.9          3.5
               III              3.0          3.0          0.0          3.9            r2.2          0.9
                IV              6.0          6.9          0.9          3.9            r0.6         -2.0
 
            ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
      1994       I              6.4          7.4          1.0          4.0             1.8         -2.3
                II              5.6          7.2          1.5         -1.4           r-3.9         -6.7
               III              3.5          5.6          2.0          3.0            -0.5         -0.5
                IV             r3.1          7.7         r4.5         r3.4            r1.1         r0.3
 
            ANNUAL              4.9         r6.1          1.2          2.8            r0.2        r-2.0
      --------------------------------------------------------------------------------------------------
 
 
                                                                     14
 
 
 
                         Percent change from corresponding quarter of previous year
 
      1992       I              2.6          1.3         -1.2          4.0            r1.0          1.4
                II              1.9          1.7         -0.1          4.0             0.9          2.1
               III              1.4          0.8         -0.6          4.2             1.1          2.8
                IV              2.1          2.2          0.1          4.2             1.1          2.1
 
            ANNUAL              2.1          1.5         -0.6          4.2             1.2          2.1
 
      1993       I              2.9          4.2          1.3          3.3             0.1          0.4
                II              3.1          3.7          0.6          3.6             0.5          0.5
               III              3.2          4.0          0.7          3.5             0.7          0.3
                IV              3.8          4.4          0.6          2.9             0.2         -0.8
 
            ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
      1994       I              4.4          4.6          0.2          4.4             1.9          0.0
                II              5.3          6.1          0.8          2.6            r0.2         -2.5
               III              5.4          6.8          1.3          2.4            -0.5         -2.9
                IV              4.6          7.0         r2.2         r2.2            -0.4        r-2.3
 
            ANNUAL              4.9         r6.1          1.2          2.8            r0.2        r-2.0
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                March 8, 1995
      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 1982=100
 
      1992       I            135.3        134.5         99.4        143.1            99.5        105.7
                II            136.4        135.7         99.5        144.9           100.0        106.2
               III            137.5        136.5         99.3        146.4           100.2        106.5
                IV            139.2        138.7         99.7        149.2          r101.3        107.2
 
            ANNUAL            137.3        136.3         99.3        146.1           100.5        106.4
 
      1993       I            141.0        141.6        100.4        147.4           r99.3        104.5
                II            142.3        142.2         99.9        149.4           100.0        105.0
               III            143.4        143.5        100.1        150.7          r100.4        105.1
                IV            146.6        147.4        100.5        152.3           100.7        103.9
 
            ANNUAL            143.5        143.7        100.1        150.1           100.2        104.6
 
      1994       I            149.3        150.8        101.0        154.0           101.2        103.1
                II            151.2        153.4        101.4        153.1           100.0        101.2
               III            153.0        156.3        102.2        154.1            99.8        100.7
                IV           r154.3       r159.9       r103.7       r155.7           100.3        100.9
 
            ANNUAL            151.9       r155.1        102.1       r154.1           100.4        101.5
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I             -1.0         -3.2         -2.2          0.9           r-1.8          1.9
                II              3.3          3.7          0.4          5.2            r2.0          1.8
               III              3.1          2.2         -0.8          4.1             1.0          1.1
                IV              5.1          6.8          1.6          8.1            r4.5          2.8
 
            ANNUAL              3.0          1.5         -1.5          4.5             1.5          1.4
 
      1993       I              5.5          8.5          2.8         -4.8           r-7.7         -9.8
                II              3.7          1.8         -1.9          5.6            r2.6          1.9
               III              3.0          3.9          0.8          3.4            r1.7          0.3
                IV              9.4         11.2          1.7          4.4            r1.1         -4.6
 
            ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
      1994       I              7.3          9.5          2.0          4.4             2.3         -2.7
                II              5.3          7.1          1.7         -2.3           r-4.7         -7.2
               III              4.8          7.8          2.9          2.7            -0.8         -1.9
                IV             r3.5         r9.6         r5.9         r4.1            r1.8         r0.6
 
            ANNUAL              5.9          8.0          2.0          2.7            r0.1         -3.0
      --------------------------------------------------------------------------------------------------
 
 
                                                                     16
 
 
 
                         Percent change from corresponding quarter of previous year
 
      1992       I              3.5          1.3         -2.1          4.0            r1.0          0.5
                II              3.3          1.8         -1.4          4.4             1.3          1.1
               III              2.2          0.7         -1.5          4.6             1.5          2.3
                IV              2.6          2.3         -0.2          4.5             1.4          1.9
 
            ANNUAL              3.0          1.5         -1.5          4.5             1.5          1.4
 
      1993       I              4.2          5.3          1.0          3.0            -0.1         -1.2
                II              4.3          4.8          0.4          3.1             0.0         -1.1
               III              4.3          5.2          0.8          2.9             0.1         -1.3
                IV              5.4          6.3          0.8          2.1            -0.7         -3.2
 
            ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
      1994       I              5.8          6.5          0.7          4.4             1.9         -1.3
                II              6.2          7.9          1.6          2.4             0.0         -3.6
               III              6.7          8.9          2.1          2.3            -0.6         -4.1
                IV             r5.2         r8.5         r3.1         r2.2            -0.4         -2.9
 
            ANNUAL              5.9          8.0          2.0          2.7            r0.1         -3.0
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                March 8, 1995
      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 1982=100
 
      1992       I            115.4        121.5        105.3        149.5           104.0        129.6
                II            115.0        122.1        106.2        151.0           104.2        131.3
               III            115.6        122.7        106.1        152.7           104.6        132.1
                IV            116.2        123.7        106.4        154.2          r104.7        132.7
 
            ANNUAL            115.6        122.5        105.9        152.0           104.5        131.4
 
      1993       I            116.5        124.7        107.0        155.2           104.6        133.1
                II            116.7        124.9        107.0        157.7           105.5        135.1
               III            117.6        125.5        106.7        159.5          r106.3        135.6
                IV            118.0        125.8        106.6        160.7           106.2        136.2
 
            ANNUAL            117.2        125.2        106.8        158.3           105.7        135.0
 
      1994       I            119.4        127.2        106.5        161.9           106.5        135.6
                II            121.2        129.5        106.9        161.9          r105.8        133.5
               III            121.7        130.3        107.1        163.2           105.7        134.1
                IV           r122.4       r131.9        107.8       r164.0          r105.6       r134.0
 
            ANNUAL           r121.2       r129.8        107.1        162.8           106.0       r134.3
      --------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)
 
      1992       I              2.7          0.6         -2.0          2.4            -0.3         -0.3
                II             -1.4          2.0          3.4          3.9            r0.7          5.3
               III              2.1          1.9         -0.2          4.6             1.5          2.5
                IV              2.2          3.3          1.1          4.1            r0.7          1.9
 
            ANNUAL              0.9          1.5          0.6          4.0             0.9          3.1
 
      1993       I              1.2          3.5          2.3          2.4            -0.6          1.2
                II              0.7          0.6         -0.1          6.6            r3.5          5.9
               III              3.0          1.8         -1.1          4.6            r2.9          1.6
                IV              1.4          1.1         -0.3          3.1           r-0.2          1.7
 
            ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
      1994       I              5.0          4.6         -0.4          3.1             0.9         -1.9
                II              6.1          7.4          1.3         -0.1           r-2.6         -5.8
               III              1.6          2.5          0.9          3.3            -0.3          1.7
                IV             r2.4         r4.9         r2.5         r2.0           r-0.2        r-0.3
 
            ANNUAL             r3.4         r3.6          0.2          2.8             0.3         -0.5
      --------------------------------------------------------------------------------------------------
 
 
                                                                     18
 
 
 
                         Percent change from corresponding quarter of previous year
 
      1992       I              1.3          1.3          0.0          4.1             1.2          2.8
                II              0.0          1.6          1.6          3.7             0.6          3.7
               III              0.3          1.0          0.7          3.8             0.7          3.5
                IV              1.4          2.0          0.6          3.8            r0.6          2.3
 
            ANNUAL              0.9          1.5          0.6          4.0             0.9          3.1
 
      1993       I              1.0          2.7          1.7          3.8             0.6          2.7
                II              1.5          2.3          0.8          4.4             1.3          2.9
               III              1.7          2.3          0.6          4.4             1.6          2.7
                IV              1.5          1.8          0.2          4.2             1.4          2.6
 
            ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
      1994       I              2.5          2.0         -0.4          4.3             1.8          1.8
                II              3.8          3.7         -0.1          2.7             0.2         -1.1
               III              3.5          3.9          0.4          2.3            -0.5         -1.1
                IV             r3.7         r4.8          1.1          2.1           r-0.6        r-1.6
 
            ANNUAL             r3.4         r3.6          0.2          2.8             0.3         -0.5
      --------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                March 8, 1995
      r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
      Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
      and prices, seasonally adjusted
 
                    Output                      Hourly    Real                Unit     Total    Unit   Implicit
          Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
          and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
          quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
      ----------------------------------------------------------------------------------------------------------
                                                 Indexes 1982=100
 
      1992       I    116.8     137.3    117.6    147.7     102.7     126.5    119.3    124.5    170.4    127.3
                II    117.6     138.8    118.1    149.4     103.1     127.1    118.0    124.5    175.6    127.6
               III    119.1     140.7    118.1    151.5    r103.8     127.2    119.0    124.9    171.0    127.7
                IV    120.6     143.4    118.9    153.1     104.0     127.0    115.7    123.8    191.2    127.9
 
            ANNUAL    118.5     140.0    118.2    150.4     103.5     126.9    118.0    124.4    177.2    127.7
 
      1993       I    120.0     143.3    119.4    154.0     103.8     128.3    116.8    125.0    183.7    128.7
                II    121.3     145.9    120.3    154.5     103.4     127.3    115.8    124.1    199.4    128.7
               III    122.7     148.1    120.7    155.4     103.5     126.7    115.8    123.6    202.5    128.5
                IV    124.1     150.9    121.6    155.9     103.1     125.7    114.8    122.6    220.9    128.7
 
            ANNUAL    122.0     147.0    120.5    154.9     103.5     127.0    115.8    123.8    201.9    128.6
 
      1994       I    125.1     153.0    122.3    157.9     103.8     126.2    116.6    123.5    218.2    129.4
                II    124.6     154.8    124.2    157.9     103.1     126.7    115.2    123.4    228.7    129.9
               III    125.2     156.5    124.9    159.1    r103.1     127.1    116.2    124.0    228.8    130.5
      ----------------------------------------------------------------------------------------------------------
                                   Percent change from previous quarter at annual rate(5)
 
      1992       I      1.3       0.9     -0.4      3.9      r1.1       2.6     -2.6      1.2     14.8      2.2
                II      2.9       4.7      1.7      4.7      r1.5       1.7     -4.4      0.0     12.8      1.0
               III      5.2       5.5      0.3      5.7       2.5       0.4      3.5      1.2    -10.0      0.2
                IV      5.1       8.0      2.7      4.3      r0.8      -0.8    -10.4     -3.5     56.4      0.7
 
            ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
      1993       I     -1.9      -0.3      1.7      2.3      -0.7       4.4      3.6      4.2    -14.9      2.3
                II      4.5       7.5      2.8      1.4     r-1.6      -3.0     -3.3     -3.1     38.9      0.2
               III      4.5       6.0      1.5      2.2      r0.5      -2.1      0.0     -1.6      6.5     -0.8
                IV      4.7       7.8      3.0      1.4     r-1.8      -3.1     -3.4     -3.2     41.5      0.6
 
            ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
      1994       I      3.3       5.8      2.5      5.1       3.0       1.8      6.6      3.1     -4.9      2.2
                II     -1.4       4.8      6.4     -0.1     r-2.6       1.4     -4.8     -0.3     20.7      1.8
               III      2.0       4.2      2.2      3.3      -0.3       1.2      3.5      1.8      0.3      1.7
      ----------------------------------------------------------------------------------------------------------
 
 
                                                                     20
 
 
 
                                Percent change from corresponding quarter of previous year
 
      1992       I      2.4       1.7     -0.7      4.3      r1.3       1.8     -1.2      1.0      5.2      1.3
                II      2.6       2.7      0.2      4.5      r1.4       1.9     -2.1      0.8      5.0      1.1
               III      3.3       3.5      0.3      4.9       1.7       1.6     -1.5      0.7      3.7      0.9
                IV      3.6       4.7      1.1      4.6       1.5       1.0     -3.6     -0.3     16.2      1.1
 
            ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
      1993       I      2.8       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
                II      3.2       5.1      1.9      3.4       0.3       0.2     -1.8     -0.3     13.6      0.8
               III      3.0       5.2      2.2      2.6     r-0.2      -0.4     -2.7     -1.0     18.5      0.6
                IV      2.9       5.2      2.2      1.8      -0.9      -1.0     -0.8     -1.0     15.5      0.6
 
            ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
      1994       I      4.2       6.8      2.4      2.5       0.0      -1.6     -0.1     -1.2     18.8      0.5
                II      2.7       6.1      3.3      2.2     r-0.2      -0.5     -0.5     -0.5     14.7      0.9
               III      2.1       5.7      3.5      2.4      -0.4       0.3      0.4      0.3     13.0      1.6
      ----------------------------------------------------------------------------------------------------------
      See footnotes following table 6.                                        March 8, 1995
      r=revised                                                               Source: Bureau of Labor Statistics
 
 
                                                                     21
 
 
 
      SOURCE:  Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board.
      Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, 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 third
      revisions after an additional 60 days.  In the business sector, the probability is 0.95 that the third publication (third
      revision) of a quarterly index of output per hour of all persons will differ from the initial value by between -1.8 and +2.1
      index points.  This interval is based on the performance of this measure between the second quarter of 1976 and the third
      quarter of 1992.
 
 
                                                          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 gross product divided by constant dollar gross product.
 
      (5)  Quarterly changes:  Percent change compounded at annual rate from the original data rather than index numbers.  Annual
           changes:  Percent change between annual average levels.
 
      (6)  Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes.  For
           nonfinancial corporations, rental income of persons is zero by definition.
 
      (7)  Total unit cost is the sum of labor and nonlabor costs.
 
      (8)  Unit profits include corporate profits with inventory valuation and capital consumption adjustments.