TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
Appendix table 1.
Appendix table 2.
Appendix table 3.


 
 
 
 
 
Historical, technical                         USDL 94-115
  information:                                (202) 606-5606 TRANSMISSION OF THIS
Current data:                                 (202) 606-7828MATERIAL IS EMBARGOED
Media contact:                                (202) 606-5902 UNTIL 10:00 A.M. EST
                                              TUESDAY, MARCH 8, 1994
 
 
                                PRODUCTIVITY AND COSTS
                       Fourth-Quarter and Annual Averages, 1993
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
revised fourth-quarter seasonally-adjusted annual rates of productivity changejas
measured by output per hour of all personsjand revised annual changes for the full
year 1993.  In the fourth quarter, productivity increased briskly in business,
nonfarm business, and manufacturing with the strongest gains recorded in durable
goods manufacturing (table A).  Unit labor costs declined in all sectors except
nondurable manufacturing in the fourth quarter, partly reflecting the strong gains
in productivity.  Fourth-quarter measures are summarized in table A and appear in
detail in tables 1 through 5.  The changes in business and nonfarm business
productivity were:
 
                                  Fourth  Annual averages
                                 quarter     1992-1993
 
     Business sector............    6.9          1.8
     Nonfarm business sector....    6.1          1.7
 
 
     On an annual basis, productivity in business and nonfarm business rose
moderately in 1993.  The pace of output growth picked up, increasing more rapidly
in 1993 than in 1992 in both sectors, and hours of labor input increased for the
first time since 1990.
 
     Growth in manufacturing productivity in 1993 reflected faster output growth
than during 1992.  A small decline in hours of labor input extended the downward
trend which began in 1990.  The changes in manufacturing were:
 
 
                                               Fourth  Annual averages
                                              quarter  1992-1993
 
     Manufacturing..............                 7.2    5.1
     Durable goods manufacturing                12.3    7.5
     Nondurable goods manufacturing              0.1    1.8
 
 
     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.
 
 
                                          2
 
 Table A.  Productivity and costs:  Revised fourth-quarter 1993 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          6.9     9.3   2.2    2.9   -0.1   -3.8
   Nonfarm business  6.1     8.6   2.3    2.8   -0.1   -3.1
   Manufacturing     7.2     8.6   1.3    3.1    0.1   -3.8
   Durable          12.3    14.4   1.8    3.8    0.8   -7.6
   Nondurable        0.1     0.6   0.5    2.0   -0.9    1.9
 
                      Percent change from same quarter a year ago
 
   Business          2.1     4.1   2.0    3.1    0.4    1.0
   Nonfarm business  1.9     4.3   2.3    2.8    0.1    0.9
   Manufacturing     5.2     5.1  -0.1    2.2   -0.5   -2.8
   Durable           7.8     7.7  -0.1    1.8   -0.9   -5.5
   Nondurable        1.5     1.5   0.0    2.8    0.1    1.3
 
 
 
                       THIRD-TO-FOURTH QUARTER CHANGES, 1993
Business
 
     Productivity increased strongly during the fourth quarter of 1993 in the
business sector.  The 6.9 percent gain reflected output growth at a 9.3 percent
annual rate while hours of all persons engaged in the sector increased 2.2 percent
(seasonally adjusted).  The increase in productivity was the largest since 1983
(when a 7.5 percent increase was recorded in the second quarter), and the gain in
output the largest since 1984 (when it rose 11.5 percent in the first quarter).
During the third quarter of 1993, business productivity had increased 3.3 percent;
output grew 3.2 percent, and hours fell 0.1 percent (table 1).
 
   Hourly compensation increased at a 2.9 percent annual rate during the fourth
quarter of 1993, compared with a 3.9 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, decreased at a 3.8 percent annual rate during
the fourth quarter, compared with a 0.5 percent increase one quarter earlier.  The
decline in unit labor costs partly reflects the faster gains in productivity in the
fourth quarter.  It was the first decrease in this series since the first quarter
of 1988 and the largest since 1955.
 
   Real hourly compensation, which takes into account changes in the Consumer Price
Index for All Urban Consumers (CPI-U), showed a slight 0.1 percent decline in the
fourth quarter of 1993 for persons in the business sector, compared with a 2.0
percent gain in the third quarter.
 
   The implicit price deflator for business output, which reflects changes in unit
labor costs and unit nonlabor payments, increased at a 1.0 percent annual rate in
 
 
                                          3
 
the fourth quarter.  During the third quarter, prices of the goods and services
which comprise business output had increased at a 1.1 percent rate.
 
 
Nonfarm business
 
   In the nonfarm business sector, productivity gained 6.1 percent in the fourth
quarter.  Output jumped 8.6 percent (the largest gain since a 10.3 percent gain in
the first quarter of 1984), and hours of all personsjemployees, proprietors, and
unpaid family workersjrose 2.3 percent.  The change in hours resulted from a 1.5
percent increase in employment and a 0.7 percent increase in the average workweek.
During the third quarter, nonfarm productivity had increased 4.0 percent as output
grew 4.1 percent and hours edged up 0.1 percent (table 2).
 
   Hourly compensation rose 2.8 percent in the fourth quarter, but real
compensation was off a slight 0.1 percent when the increase in the CPI-U was taken
into account.  During the third quarter, hourly compensation had increased by 3.7
percent, and real hourly compensation by 1.8 percent.  Unit labor costs fell 3.1
percent in the fourth quarter, compared with a 0.4 percent decrease during the
third quarter.  The was the first 2-quarter decline in these costs since 1962.
 
   The implicit price deflator for nonfarm business output rose 0.5 percent in the
fourth quarter, compared with a 1.1 percent increase one quarter earlier.
 
Manufacturing
 
   Manufacturing productivity rose at a 7.2 percent seasonally adjusted annual rate
in the fourth quarter of 1993, compared with a 3.0 percent increase in the third
quarter.  Output rose a robust 8.6 percent in the fourth quarter, and hours of all
persons increased 1.3 percent.  The increases in productivity and output were the
largest since the second quarter of 1987, when productivity rose 10.7 percent and
output increased 10.6 percent.  The fourth-quarter 1993 increase in hours followed
declines in the second and third quarters (table 3).  The increase in manufacturing
productivity was virtually confined to the durable goods sector; only a small gain
occurred in nondurables (tables 4 and 5).
 
   Hourly compensation of all manufacturing workers increased 3.1 percent during
the fourth quarter, but edged up a scant 0.1 percent when the increase in consumer
prices was taken into account.  Unit labor costs fell at a 3.8 percent annual rate
in the fourth quarter of 1993, compared with a 0.3 percent increase during the
third quarter.
 
 
                         ANNUAL AVERAGE CHANGES, 1992-1993
 
Business
 
   When the annual averages for 1993 and 1992 are compared, business productivity
increased 1.8 percent.  In 1992, productivity had grown 3.3 percent.  Output grew
3.6 percent in 1993, and hours of all persons engaged in the sector increased 1.8
percent (table B).
 
   Hourly compensation increased 3.8 percent in 1993, compared with a 5.0 percent
increase during 1992.  Real hourly compensation increased 0.8 percent in 1993,
compared with a 2.0 percent rise in 1992.
 
 
                                          4
 
   Unit labor costs increased 2.0 percent during 1993, compared with a 1.7 percent
increase a year earlier.  These costs grew more in 1993 than in 1992, despite the
lower increases in hourly compensation, because productivity grew less.
 
 
Nonfarm business
 
   Productivity increased 1.7 percent in the nonfarm business sector during 1993,
as output rose 3.8 percent and hours of all persons increased 2.1 percent.  The
increase in labor input in 1993 was the first annual gain in the series since 1990.
In 1992, productivity had risen 3.1 percent, as output rose 2.7 percent and hours
fell 0.4 percent.  Hourly compensation rose 3.6 percent in 1993, compared with a
5.1 percent increase in 1992.  Real hourly compensation increased 0.6 percent, down
from a 2.0 percent rise in 1992.
 
   Unit labor costs in the nonfarm business sector grew 1.8 percent in 1993 and 2.0
percent in 1992, reflecting a slowing of both productivity growth and hourly
compensation gains from 1992 to 1993.
 
 
Manufacturing
 
   Manufacturing productivity grew 5.1 percent in 1993, as output rose 4.7 percent
and hours of all persons declined 0.3 percent.  During 1992, productivity rose 4.2
percent; output rose 3.1 percent, and hours decreased 1.1 percent.  The increase in
manufacturing productivity in 1993 was the largest since 1987, the output gain the
largest since 1988, and the drop in hours the smallest of four consecutive
declines.
 
   Hourly compensation of manufacturing workers increased 2.8 percent during 1993,
but was down 0.2 percent when the increase in consumer prices was taken into
account.  Unit labor costs fell 2.2 percent in 1993, the first such decline since
1987, reflecting both faster productivity growth and a smaller gain in compensation
per hour than in 1992.
 
   Both durable and nondurable goods industries experienced productivity increases
in 1993.  The very large gain among durable goods producers reflected strong output
growth and a decline in hours; however, in nondurable goods industries, both output
and hours growth were modest in 1993 (tables 4 and 5).
 
 
Revised measures
 
   Productivity and cost measures for the fourth quarter and full year 1993 for
business, nonfarm business, and manufacturing, which were revised to incorporate
the most recent information, were somewhat different from the preliminary results
announced on February 8.  Owing to upward revisions to the underlying output series
prepared by the Bureau of Economic Analysis of the Department of Commerce, business
and nonfarm business productivity grew more rapidly when more complete information
was used.  For example, nonfarm productivity grew at an annual rate of 6.1 percent
in the fourth quarter, compared with the previously-announced growth rate of 4.2
percent (table B).
 
   In manufacturing, revised indexes of industrial production prepared by the Board
of Governors of the Federal Reserve Bank underlie BLS manufacturing output
measures.  (For details on the revision, see Federal Reserve Statistical Release
G.17 (419) Supplement, February 4.)  These changes are reflected in revised
manufacturing productivity and related measures.  Appendix tables 1-3 show the
                                          5
 
effects of the revisions for 1991.  Prior to 1991, the productivity effects are
negligible.
 
   Measures of real hourly compensation for all sectors reflect the Consumer Price
Index for All Urban Consumers used in their computation.  Revisions in the CPI, due
to updated and modified seasonal adjustment factors and procedures, were announced
February 17 (USDL 94-86).  Measures for 1989 forward were affected.
 
 Table B.  Previous and revised productivity and related measures:
 Fourth-quarter and annual averages, 1993
 (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 1993
   Business:
     Previous        4.8     7.1   2.2    2.9    0.0   -1.8
     Current         6.9     9.3   2.2    2.9   -0.1   -3.8
   Nonfarm business:
     Previous        4.2     6.6   2.3    2.9    0.0   -1.2
     Current         6.1     8.6   2.3    2.8   -0.1   -3.1
   Manufacturing:
     Previous        7.8     9.2   1.2    3.0    0.1   -4.5
     Current         7.2     8.6   1.3    3.1    0.1   -3.8
 
                      Percent change, 1992 - 1993
   Business:
     Previous        1.7     3.5   1.8    3.8    0.8    2.1
     Current         1.8     3.6   1.8    3.8    0.8    2.0
   Nonfarm business:
     Previous        1.6     3.7   2.1    3.6    0.6    1.9
     Current         1.7     3.8   2.1    3.6    0.6    1.8
   Manufacturing:
     Previous        5.3     4.9  -0.3    2.8   -0.2   -2.4
     Current         5.1     4.7  -0.3    2.8   -0.2   -2.2
 
 
 
                                 Next release date
 
   The next release of Productivity and Costs is scheduled for 10:00 AM EDT,
Thursday, May 5, 1994, and will contain preliminary first-quarter measures for
business, nonfarm business, and manufacturing.  Fourth-quarter and 1993 annual
measures for nonfinancial corporations also will be included.
 
 
                                          6
 
 
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                                          7
 
                                  TECHNICAL NOTES
 
 
Labor Input: The primary source of hours  paper and  allied products, printing and
and employment  data is  the BLS Current  publishing,   chemicals   and   chemical
Employment  Statistics   (CES)  program,  products, petroleum refining and related
which provides  monthly survey  data  on  industries, rubber and plastic products,
total  employment   and  average  weekly  and  leather   and   leather   products.
hours of  production and  nonsupervisory  Manufacturing  accounted  for  about  19
workers   in    nonagricultural   estab-  percent  of  GDP  in  1992.    Quarterly
lishments. Jobs  rather than persons are  manufacturing output  measures are based
counted. Weekly  hours are  adjusted  to  on the  index of  industrial  production
the hours  at work  definition using the  prepared  monthly   by  the   Board   of
BLS Hours  at Work survey, conducted for  Governors of  the Federal Reserve System
this purpose.                             adjusted by  BLS to annual manufacturing
     Data   from    the   BLS    Current  output     levels     (gross     product
Population Survey  (CPS)  are  used  for  originating) from  the  National  Income
farm labor;  in the  nonfarm sector, the  and Product  Accounts  prepared  by  the
National  Income  and  Product  Accounts  Bureau of  Economic Analysis of the U.S.
(NIPA) prepared  by the  Bureau of  Eco-  Department of Commerce.
nomic Analysis of the Department of Com-       Nonfinancial  corporate  output  is
merce and  the CPS  are used  to measure  equal to  GDP in  constant 1987 dollars,
labor input  for government enterprises,  less    the    output    of    nonprofit
proprietors, and unpaid family workers.   institutions, output  of paid  employees
                                          of private  households, rental  value of
Output:  Business  output  is  equal  to  owner-occupied dwellings,  the output of
gross domestic product (GDP) in constant  unincorporated  business,   corporations
1987 dollars,  less general  government,  engaged in  banking, finance,  stock and
output of nonprofit institutions, output  commodity  trading,   and   credit   and
of paid employees of private households,  insurance agencies,  and the statistical
rental    value     of    owner-occupied  discrepancy  in   computing  the   NIPA.
dwellings,    and     the    statistical  Nonfinancial corporations  accounted for
discrepancy in  computing the NIPA. Cor-  about 56 percent of GDP in 1992.
responding exclusions  are also  made in
labor inputs.  Business output was about  Productivity:  These  productivity  mea-
78  percent  of  GDP  in  1992.  Nonfarm  sures describe  the relationship between
business, which  also excludes  farming,  real output  and the labor time involved
was about 77 percent of GDP in 1992.      in its production. They show the changes
     Total  manufacturing  measures  are  from period  to period  in the amount of
computed by  summing series prepared for  goods and  services produced  per  hour.
the   durable   and   nondurable   goods  Although these measures relate output to
sectors. Durables  include the following  hours at  work of all persons engaged in
2-digit SIC  industries:  Primary  metal  a  sector,   they  do  not  measure  the
industries; fabricated  metal  products;  specific contribution of labor, capital,
nonelectrical machinery;  industrial and  or  any   other  factor  of  production.
commercial   machinery    and   computer  Rather, they  reflect the  joint effects
equipment;    electronic    and    other  of many influences, including changes in
electrical   equipment;   transportation  technology; capital investment; level of
equipment;   instruments;   lumber   and  output; utilization of capacity, energy,
lumber products; furniture and fixtures;  and  materials;   the  organization   of
stone,   clay,   glass,   and   concrete  production; managerial  skill;  and  the
products;   and    miscellaneous    man-  characteristics and  effort of  the work
ufactures. Nondurables include: Food and  force.
kindred  products,   tobacco   products,
textile mill products, apparel products,
 
 
                                          8
 
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made   available   to   sensory-impaired  TDD message  referral phone  number:  1-
individuals upon  request. Voice  phone:  800-326-2577.
 
 
 
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
         and prices, seasonally adjusted
                                                                    Real
            Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
            and        hour of                of all    tion per    tion per    labor    labor pay-  price
            quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
         ---------------------------------------------------------------------------------------------------------
                                                  Indexes 1982=100
 
         1992       I     114.1      133.3     116.8     152.2      r105.9     133.4       148.5       138.3
                   II     114.8      134.5     117.1     153.7      r106.1     133.9       149.9       139.1
                  III     116.0      136.0     117.2     156.1       106.9     134.5       147.3       138.7
                   IV     117.1      137.9     117.7     157.8      r107.2     134.8       152.6       140.6
 
               ANNUAL     115.5      135.4     117.3     154.9       106.5     134.1       149.6       139.2
 
         1993       I     116.6      138.0     118.3     159.1      r107.3     136.4       152.1       141.6
                   II     116.6      139.3     119.5     160.1      r107.1     137.3       153.1       142.5
                  III     117.6      140.4     119.4     161.6      r107.6     137.4       153.9       142.8
                   IV    r119.6     r143.5     120.1    r162.7      r107.6    r136.1      r157.6      r143.2
 
               ANNUAL    r117.6     r140.3     119.4     160.8       107.4    r136.8      r154.2       142.5
         ---------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
         1992       I       4.7        2.9      -1.8       5.7        r2.9       0.9         7.8         3.3
                   II       2.5        3.4       1.0       4.1        r0.7       1.6         3.9         2.4
                  III       4.2        4.6       0.4       6.2        r3.0       1.9        -6.7        -1.2
                   IV       3.8        5.6       1.8       4.6        r1.3       0.7        15.2         5.6
 
               ANNUAL       3.3        2.9      -0.4       5.0         2.0       1.7         3.4         2.3
 
         1993       I      -1.6        0.5       2.1       3.3        r0.2       5.0        -1.4         2.7
                   II       0.0        3.8       3.8       2.5       r-0.6       2.5         2.6         2.6
                  III       3.3        3.2      -0.1       3.9        r2.0       0.5         2.1         1.1
                   IV      r6.9       r9.3       2.2       2.9       r-0.1     r-3.8       r10.2        r1.0
 
               ANNUAL      r1.8       r3.6       1.8       3.8         0.8      r2.0        r3.1         2.4
         ---------------------------------------------------------------------------------------------------------
                             Percent change from corresponding quarter of previous year
 
         1992       I       2.9        1.8      -1.1       5.0         2.1       2.1         3.6         2.6
                   II       2.9        2.3      -0.6       4.8         1.7       1.9         3.4         2.4
                  III       3.8        3.4      -0.4       5.3         2.1       1.4         1.7         1.5
                   IV       3.8        4.1       0.3       5.1         2.0       1.3         4.7         2.5
 
               ANNUAL       3.3        2.9      -0.4       5.0         2.0       1.7         3.4         2.3
 
         1993       I       2.2        3.5       1.3       4.5         1.3       2.3         2.4         2.3
                   II       1.6        3.6       2.0       4.1         1.0       2.5         2.1         2.4
                  III       1.3        3.2       1.9       3.6        r0.7       2.2         4.5         3.0
                   IV      r2.1       r4.1       2.0       3.1         0.4      r1.0        r3.3        r1.8
 
               ANNUAL      r1.8       r3.6       1.8       3.8         0.8      r2.0        r3.1         2.4
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                      March 8, 1994
         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     112.4      133.3     118.7     150.9      r104.9     134.3       149.8       139.3
                   II     113.1      134.4     118.8     152.6      r105.3     134.9       151.5       140.2
                  III     114.1      135.9     119.0     154.8       106.0     135.6       148.7       139.8
                   IV     115.3      137.9     119.6     156.6      r106.3     135.8       154.4       141.8
 
               ANNUAL     113.7      135.4     119.1     153.7       105.7     135.1       151.1       140.3
 
         1993       I     114.8      138.1     120.3     157.7      r106.3     137.4       153.8       142.7
                   II     114.7      139.5     121.6     158.4      r106.0     138.2       154.8       143.5
                  III     115.8      140.9     121.7     159.8      r106.4     138.0       156.3       143.9
                   IV    r117.5     r143.8     122.3     161.0      r106.4    r136.9      r159.1      r144.1
 
               ANNUAL    r115.7     r140.6     121.5     159.2       106.3    r137.6      r156.0       143.6
         ---------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
         1992       I       3.8        2.1      -1.6       5.6        r2.9       1.7         6.0         3.2
                   II       2.8        3.3       0.5       4.7        r1.3       1.8         4.5         2.7
                  III       3.6        4.4       0.8       5.9        r2.7       2.2        -7.2        -1.1
                   IV       4.2        6.0       1.8       4.6        r1.3       0.4        16.2         5.6
 
               ANNUAL       3.1        2.7      -0.4       5.1         2.0       2.0         3.3         2.4
 
         1993       I      -1.8        0.6       2.5       2.9       r-0.2       4.8        -1.6         2.5
                   II      -0.4        4.0       4.4       1.9       r-1.2       2.3         2.8         2.4
                  III       4.0        4.1       0.1       3.7        r1.8      -0.4         3.8         1.1
                   IV      r6.1       r8.6       2.3      r2.8       r-0.1     r-3.1        r7.5        r0.5
 
               ANNUAL      r1.7       r3.8       2.1       3.6         0.6      r1.8        r3.3         2.3
         ---------------------------------------------------------------------------------------------------------
                             Percent change from corresponding quarter of previous year
 
         1992       I       2.7        1.6      -1.0       5.0         2.1       2.3         3.4         2.7
                   II       2.7        2.1      -0.6       4.9         1.8       2.2         3.7         2.7
                  III       3.4        3.1      -0.3       5.3         2.1       1.8         1.6         1.7
                   IV       3.6        3.9       0.3       5.2         2.1       1.5         4.5         2.6
 
               ANNUAL       3.1        2.7      -0.4       5.1         2.0       2.0         3.3         2.4
 
         1993       I       2.1        3.6       1.4       4.5         1.3       2.3         2.6         2.4
                   II       1.3        3.8       2.4       3.8        r0.7       2.4         2.2         2.3
                  III       1.5        3.7       2.2       3.3        r0.4       1.8         5.1         2.9
                   IV      r1.9       r4.3       2.3       2.8         0.1      r0.9        r3.1        r1.6
 
               ANNUAL      r1.7       r3.8       2.1       3.6         0.6      r1.8        r3.3         2.3
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                      March 8, 1994
         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           r127.2       r129.6        101.8        145.4          r101.1       r114.3
                   II            129.1        131.5        101.9        147.1           101.5        114.0
                  III           r130.1       r131.8        101.3        148.7          r101.8        114.2
                   IV           r132.3       r133.9        101.2        150.8          r102.4       r114.0
 
               ANNUAL           r129.8       r131.7        101.5        148.2           101.9       r114.1
 
         1993       I           r133.8       r136.0        101.6        149.9          r101.1       r112.1
                   II           r135.7       r137.1        101.0        151.7          r101.5       r111.8
                  III           r136.8       r137.9        100.9        153.0          r101.9       r111.9
                   IV           r139.2       r140.8        101.2        154.1          r101.9       r110.8
 
               ANNUAL           r136.4       r138.0        101.1       r152.3           101.7       r111.6
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I             r3.0         r1.1         -1.8          1.2           r-1.4        r-1.7
                   II             r5.9         r6.1          0.2          4.9            r1.5        r-1.0
                  III             r3.4         r1.0         -2.4          4.2            r1.1         r0.8
                   IV             r6.8         r6.6         -0.2          5.8            r2.4        r-1.0
 
               ANNUAL             r4.2         r3.1         -1.1          4.4             1.3         r0.2
 
         1993       I             r4.5         r6.1          1.5         -2.3           r-5.2        r-6.5
                   II             r6.0         r3.5         -2.4          4.9            r1.7         -1.0
                  III             r3.0          2.4         -0.6          3.4            r1.5          0.3
                   IV             r7.2         r8.6         r1.3         r3.1             0.1        r-3.8
 
               ANNUAL             r5.1         r4.7         -0.3          2.8            -0.2        r-2.2
         --------------------------------------------------------------------------------------------------
                            Percent change from corresponding quarter of previous year
 
         1992       I             r3.7         r2.5         -1.2          4.4             1.5         r0.7
                   II              4.2          3.8         -0.4          4.3             1.2          0.1
                  III             r3.6         r2.3         -1.3          4.2             1.1         r0.6
                   IV             r4.8         r3.7         -1.1          4.0             0.9        r-0.7
 
               ANNUAL             r4.2         r3.1         -1.1          4.4             1.3         r0.2
 
         1993       I              5.2          4.9         -0.2          3.1            -0.1         -2.0
                   II             r5.2         r4.3         -0.9          3.1             0.0        r-2.0
                  III             r5.1         r4.6         -0.4          2.9             0.1        r-2.1
                   IV             r5.2         r5.1         -0.1          2.2            -0.5        r-2.8
 
               ANNUAL             r5.1         r4.7         -0.3          2.8            -0.2        r-2.2
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                March 8, 1994
         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           r136.9       r136.1         99.5        143.0           r99.5       r104.5
                   II           r139.8       r138.5         99.1        144.9          r100.0       r103.7
                  III           r141.2       r138.8         98.3        146.4           100.3       r103.7
                   IV           r144.7       r142.1         98.2        149.2           101.4       r103.2
 
               ANNUAL           r140.8       r138.9         98.7        146.0           100.4       r103.8
 
         1993       I           r147.3       r145.2         98.6        147.8           r99.6       r100.4
                   II           r150.2       r146.7         97.7        149.5          r100.0        r99.5
                  III           r151.5       r148.0         97.7        150.6          r100.3        r99.4
                   IV           r156.0       r153.1         98.1       r152.0           100.5        r97.4
 
               ANNUAL           r151.3       r148.3         98.0       r150.1           100.2        r99.2
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I             r1.3        r-0.3         -1.6         -1.0           r-3.5        r-2.3
                   II             r8.8         r7.2         -1.5          5.4            r2.1        r-3.1
                  III             r4.1         r1.0         -3.0          4.2            r1.1         r0.1
                   IV            r10.2         r9.7         -0.5          7.9            r4.5        r-2.1
 
               ANNUAL             r5.6         r3.4         -2.0          4.4             1.4        r-1.1
 
         1993       I             r7.4         r9.0          1.5         -3.8           r-6.6       r-10.4
                   II             r8.1          4.4         -3.5          4.6            r1.4        r-3.3
                  III             r3.5         r3.5         -0.1          3.0            r1.1        r-0.5
                   IV            r12.3        r14.4         r1.8         r3.8            r0.8        r-7.6
 
               ANNUAL             r7.5         r6.7         -0.7         r2.8            -0.2        r-4.4
         --------------------------------------------------------------------------------------------------
                            Percent change from corresponding quarter of previous year
 
         1992       I             r4.9         r2.9         -2.0          4.3            r1.5        r-0.5
                   II             r6.0         r4.2         -1.7          4.5             1.3        r-1.4
                  III             r4.8         r2.4         -2.3          4.3            r1.2        r-0.5
                   IV             r6.0         r4.3         -1.6          4.1             1.0        r-1.9
 
               ANNUAL             r5.6         r3.4         -2.0          4.4             1.4        r-1.1
 
         1993       I             r7.6         r6.7         -0.9          3.3            r0.2        r-4.0
                   II             r7.4         r6.0         -1.4          3.1             0.0        r-4.0
                  III             r7.3         r6.6         -0.6          2.8            r0.0        r-4.2
                   IV             r7.8         r7.7         -0.1         r1.8           r-0.9        r-5.5
 
               ANNUAL             r7.5         r6.7         -0.7         r2.8            -0.2        r-4.4
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                March 8, 1994
         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           r115.5       r121.5        105.2        150.2          r104.5       r130.1
                   II           r116.1       r122.9        105.9        151.9          r104.8       r130.8
                  III           r116.8       r123.2        105.5        153.5           105.1       r131.4
                   IV           r117.5       r124.0        105.5        154.5           105.0       r131.5
 
               ANNUAL           r116.6       r122.9        105.4        152.7           105.0       r131.0
 
         1993       I           r117.6       r124.6        106.0        154.5          r104.2       r131.4
                   II           r118.5       r125.3        105.7        156.6          r104.8       r132.1
                  III           r119.2       r125.6        105.4        158.1          r105.3       r132.6
                   IV           r119.2       r125.8        105.5       r158.9          r105.0       r133.3
 
               ANNUAL           r118.7       r125.3        105.6        157.1           104.9       r132.4
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I             r5.4         r3.1         -2.2          4.7            r2.0        r-0.7
                   II             r2.2         r4.8          2.5          4.4            r1.0         r2.2
                  III             r2.4         r0.9         -1.5          4.4            r1.2         r1.9
                   IV             r2.3         r2.5          0.2          2.7           r-0.5         r0.4
 
               ANNUAL             r2.4         r2.6          0.2          4.5             1.5         r2.1
 
         1993       I             r0.5         r2.1          1.6          0.0           r-2.9        r-0.5
                   II             r3.1         r2.2         -0.8          5.6            r2.4         r2.4
                  III             r2.3         r0.9         -1.4          3.8            r1.9         r1.5
                   IV             r0.1         r0.6         r0.5         r2.0           r-0.9         r1.9
 
               ANNUAL             r1.8         r2.0          0.2          2.9            -0.1         r1.0
         --------------------------------------------------------------------------------------------------
                            Percent change from corresponding quarter of previous year
 
         1992       I             r2.1         r2.0         -0.1          4.7             1.8         r2.6
                   II             r1.9         r3.3          1.4          4.4             1.3         r2.4
                  III             r2.1         r2.2          0.1          4.4             1.3         r2.3
                   IV             r3.1         r2.8         -0.3          4.0             0.9         r0.9
 
               ANNUAL             r2.4         r2.6          0.2          4.5             1.5         r2.1
 
         1993       I             r1.9         r2.6          0.7          2.9            -0.3         r1.0
                   II             r2.1         r1.9         -0.2          3.1             0.0         r1.0
                  III             r2.1         r1.9         -0.1          3.0             0.2         r0.9
                   IV             r1.5         r1.5          0.0         r2.8            r0.1         r1.3
 
               ANNUAL             r1.8         r2.0          0.2          2.9            -0.1         r1.0
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                March 8, 1994
         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    117.3     137.9    117.6    147.9    r102.9     126.1    121.1    124.7    164.1    127.1
                   II    118.6     140.0    118.0    149.5    r103.2     126.0    120.0    124.3    175.5    127.5
                  III    120.3     141.9    117.9    151.6     103.8     126.0    121.3    124.7    172.4    127.6
                   IV    121.7     144.3    118.6    153.0     104.0     125.8    118.3    123.7    195.3    128.1
 
               ANNUAL    119.4     141.0    118.1    150.4     103.4     126.0    120.2    124.3    177.0    127.6
 
         1993       I    120.4     143.3    119.0    153.9    r103.7     127.8    119.6    125.4    182.8    129.0
                   II    121.6     145.7    119.9    154.8    r103.6     127.3    119.2    125.0    193.9    129.3
                  III    122.7     147.3    120.1    156.0    r103.9     127.2    119.4    125.0    193.7    129.2
         ---------------------------------------------------------------------------------------------------------
                                      Percent change from previous quarter at annual rate(5)
 
         1992       I      2.5       2.1     -0.3      3.9      r1.3       1.5     -2.2      0.4     18.9      1.8
                   II      4.8       6.4      1.6      4.5      r1.2      -0.2     -3.6     -1.2     30.6      1.1
                  III      5.8       5.4     -0.4      5.6      r2.5      -0.2      4.6      1.1     -6.8      0.4
                   IV      4.5       6.9      2.2      4.0      r0.7      -0.5     -9.7     -3.1     64.6      1.5
 
               ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
         1993       I     -4.0      -2.7      1.3      2.2     r-0.8       6.4      4.3      5.9    -23.1      2.8
                   II      3.9       7.0      3.0      2.4     r-0.7      -1.5     -1.3     -1.4     26.4      0.8
                  III      3.7       4.5      0.7      3.3      r1.4      -0.4      0.7     -0.1     -0.3     -0.1
         ---------------------------------------------------------------------------------------------------------
                                   Percent change from corresponding quarter of previous year
 
         1992       I      3.2       2.4     -0.8      4.5       1.6       1.3     -0.4      0.8      5.8      1.2
                   II      4.0       4.1      0.1      4.5       1.4       0.6     -1.4      0.0     11.8      0.9
                  III      4.8       4.8      0.1      4.8       1.7       0.1     -1.0     -0.2     14.6      0.9
                   IV      4.4       5.2      0.8      4.5       1.4       0.1     -2.8     -0.7     24.2      1.2
 
               ANNUAL      4.1       4.1      0.1      4.6       1.5       0.5     -1.4      0.0     14.2      1.0
 
         1993       I      2.7       3.9      1.2      4.1      r0.9       1.3     -1.3      0.6     11.4      1.5
                   II      2.5       4.1      1.5      3.5       0.4       1.0     -0.7      0.6     10.5      1.4
                  III      2.0       3.8      1.8      3.0      r0.1       1.0     -1.6      0.2     12.4      1.3
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                        March 8, 1994
         r=revised                                                              Source: Bureau of Labor Statistics
 
 
 
 
 
         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)  Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the
              Board of Governors of the Federal Reserve adjusted by BLS to annual manufacturing output levels (gross product
              originating) from the National Income and Product Accounts prepared by the Bureau of Economic Analysis of the U.S.
              Department of Commerce.
 
         (7)  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.
 
         (8)  Total unit cost is the sum of labor and nonlabor costs.
 
         (9)  Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
 
 
 
 
           Appendix table 1.
           Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
           seasonally adjusted
 
                                                                                    Real
                             Output per                 Hours       Compensa-       compensa-      Unit
                Year and     hour of                    of all      tion per        tion per       labor
                quarter      all persons     Output     persons     hour(1)         hour(2)        costs
           -----------------------------------------------------------------------------------------------
                                                      Indexes 1982=100
 
           1991       I        122.7         126.4       103.0       139.3            99.6         113.5
                     II        123.8         126.7       102.3       141.1           100.3         113.9
                    III        125.6         128.8       102.6       142.6           100.7         113.6
                     IV        126.3         129.2       102.3       145.0           101.5         114.8
 
                 ANNUAL        124.5         127.8       102.6       141.9           100.5         114.0
           -----------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1991       I         -1.3          -9.1        -8.0         4.8             1.6           6.1
                     II          3.8           0.9        -2.8         5.2             2.9           1.4
                    III          5.8           7.0         1.1         4.5             1.3          -1.2
                     IV          2.2           1.2        -1.0         6.7             3.4           4.4
 
                 ANNUAL          1.9          -2.2        -4.1         5.4             1.1           3.4
           -----------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1991       I          1.2          -3.4        -4.6         5.7             0.3           4.4
                     II          2.1          -3.3        -5.3         5.4             0.6           3.3
                    III          2.3          -1.9        -4.1         5.5             1.6           3.1
                     IV          2.6          -0.2        -2.7         5.3             2.3           2.6
 
                 ANNUAL          1.9          -2.2        -4.1         5.4             1.1           3.4
           -----------------------------------------------------------------------------------------------
           See footnotes following table 6.                             March 8, 1994
                                                                        Source: Bureau of Labor Statistics
 
 
 
 
           Appendix table 2.
           Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
           seasonally adjusted
 
                                                                                    Real
                             Output per                 Hours       Compensa-       compensa-      Unit
                Year and     hour of                    of all      tion per        tion per       labor
                quarter      all persons     Output     persons     hour(1)         hour(2)        costs
           -----------------------------------------------------------------------------------------------
                                                      Indexes 1982=100
 
           1991       I        130.5         132.3       101.4       137.1            98.1         105.1
                     II        131.9         133.0       100.8       138.7            98.7         105.2
                    III        134.7         135.6       100.6       140.4            99.1         104.2
                     IV        136.4         136.2        99.9       143.4           100.4         105.1
 
                 ANNUAL        133.3         134.3       100.7       139.8            99.1         104.9
           -----------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1991       I          0.4          -9.6        -9.9         4.7             1.5           4.3
                     II          4.6           1.9        -2.6         5.0             2.6           0.4
                    III          8.7           8.1        -0.6         4.9             1.7          -3.5
                     IV          5.1           1.9        -3.1         8.7             5.2           3.4
 
                 ANNUAL          3.6          -2.1        -5.5         5.5             1.3           1.9
           -----------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1991       I          3.0          -3.3        -6.2         5.8             0.4           2.7
                     II          3.4          -3.5        -6.7         5.5             0.6           2.0
                    III          3.7          -2.1        -5.6         5.7             1.7           1.8
                     IV          4.7           0.4        -4.1         5.8             2.7           1.1
 
                 ANNUAL          3.6          -2.1        -5.5         5.5             1.3           1.9
           -----------------------------------------------------------------------------------------------
           See footnotes following table 6.                             March 8, 1994
                                                                        Source: Bureau of Labor Statistics
 
 
 
 
 
           Appendix table 3.
           Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
           seasonally adjusted
 
                                                                                    Real
                             Output per                 Hours       Compensa-       compensa-      Unit
                Year and     hour of                    of all      tion per        tion per       labor
                quarter      all persons     Output     persons     hour(1)         hour(2)        costs
           -----------------------------------------------------------------------------------------------
                                                      Indexes 1982=100
 
           1991       I        113.1         119.1       105.3       143.5           102.6         126.9
                     II        113.9         119.0       104.5       145.5           103.5         127.7
                    III        114.4         120.5       105.3       147.0           103.7         128.5
                     IV        114.0         120.6       105.8       148.5           104.0         130.3
 
                 ANNUAL        113.8         119.8       105.3       146.1           103.5         128.4
           -----------------------------------------------------------------------------------------------
                                  Percent change from previous quarter at annual rate(5)
 
           1991       I         -3.5          -8.5        -5.2         5.4             2.2           9.3
                     II          2.8          -0.5        -3.2         5.7             3.3           2.8
                    III          2.0           5.4         3.4         4.3             1.1           2.3
                     IV         -1.6           0.2         1.8         4.2             0.9           5.9
 
                 ANNUAL         -0.3          -2.3        -2.0         5.4             1.1           5.7
           -----------------------------------------------------------------------------------------------
                              Percent change from corresponding quarter of previous year
 
           1991       I         -1.3          -3.5        -2.2         5.9             0.5           7.3
                     II          0.3          -3.0        -3.3         5.7             0.8           5.4
                    III          0.4          -1.7        -2.1         5.6             1.6           5.2
                     IV         -0.1          -1.0        -0.9         4.9             1.9           5.0
 
                 ANNUAL         -0.3          -2.3        -2.0         5.4             1.1           5.7
           -----------------------------------------------------------------------------------------------
           See footnotes following table 6.                             March 8, 1994
                                                                        Source: Bureau of Labor Statistics