USDL 98-335
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EDT,
TUESDAY, AUGUST 11, 1998.


Internet address:       http://stats.bls.gov/lprhome.htm
Historical, technical   
  information:          (202) 606-5606
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                           PRODUCTIVITY AND COSTS
                             Second Quarter 1998


     The Bureau of Labor Statistics of the U.S. Department of Labor reported
preliminary productivity data--as measured by output per hour of all persons--
for the second quarter of 1998.  The preliminary seasonally adjusted annual
rates of productivity change in the second quarter were:

              -0.6 percent in the business sector, and
              -0.2 percent in the nonfarm business sector.

In both the business and nonfarm business sectors, the decline in
productivity growth in the second quarter was the first since the first
quarter of 1995.  In the first quarter of 1998, output per hour of all
persons (as revised) rose 4.1 percent in the business sector and 3.5 percent
in the nonfarm business sector.

     In manufacturing, productivity changes in the second quarter were:

               3.3 percent in manufacturing,
               5.7 percent in durable goods manufacturing, and
               0.2 percent in nondurable goods manufacturing.

-----------------------------------------------------------------------------
The  data  in  this  release  reflect the regular  multi-year  GDP  revisions
released  by  the  Bureau  of Economic Analysis of  the  U.S.  Department  of
Commerce on July 31.  They also reflect the annual benchmark revision to  the
BLS  establishment survey data and revisions to hours series released by  BLS
on  June  5.  All employment and hours series incorporate new information  on
seasonal  patterns.  See Revised Measures.  Appendix tables 1-6 show  revised
historical series.
-----------------------------------------------------------------------------


-------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary second-quarter 1998 measures
(Seasonally adjusted annual rates)
-------------------------------------------------------------------------                                                                   
                                                        Real      
                                              Hourly    hourly    Unit
                   Produc-                    compen-   compen-   labor
Sector             tivity    Output   Hours   sation    sation    costs
-------------------------------------------------------------------------                   
                      Percent change from preceding quarter

Business           -0.6       1.2      1.8     3.9       1.9       4.5
Nonfarm business   -0.2       1.3      1.6     3.8       1.8       4.1
Manufacturing       3.3       1.7     -1.5     2.5       0.5      -0.7
  Durable           5.7       3.6     -1.9     1.5      -0.5      -4.0
  Nondurable        0.2      -0.7     -0.9     4.4       2.3       4.2
-------------------------------------------------------------------------
                      Percent change from same quarter a year ago

Business            2.0       4.2      2.1     4.5       2.9       2.5
Nonfarm business    1.9       4.2      2.3     4.3       2.7       2.4
Manufacturing       4.2       4.5      0.3     5.0       3.3       0.8
  Durable           6.1       6.6      0.5     4.9       3.2      -1.2
  Nondurable        2.0       2.0      0.0     5.2       3.5       3.2
-------------------------------------------------------------------------


     The second-quarter increase in manufacturing productivity was the result
of a small increase in output, 1.7 percent, combined with a drop in hours
worked in the sector of 1.5 percent.  Output and hours in manufacturing,
which includes about 18 percent of U.S. business-sector employment, tend to
vary more from quarter to quarter than data for the more aggregate business
and nonfarm business sectors.  Second-quarter measures are summarized in
table A and appear in detail in tables 1 through 5.

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

Business

     From the first to the second quarter of 1998, business sector
productivity fell at a 0.6 percent annual rate, as output rose 1.2 percent
and hours of all persons engaged in the sector rose faster, 1.8 percent.  The
second-quarter increase in output was the smallest recorded since a 0.3-
percent rise in the second quarter of 1995.  The revised measure of labor
productivity for the first quarter shows that productivity rose 4.1 percent
as output and hours increased 7.1 and 2.9 percent, respectively (table 1).

     Hourly compensation increased 3.9 percent in the second quarter and 4.9
percent in the first quarter of 1998.  This measure includes wages and
salaries, supplements, employer contributions to employee benefit plans, and
taxes.  Unit labor costs, which reflect changes in both hourly compensation
and productivity, increased at a 4.5-percent annual rate during the second
quarter.  This was only the fourth time since 1990 that these costs increased
more than 4 percent in a single quarter.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), increased at a 1.9
percent annual rate during the second quarter of 1998 after rising 4.4
percent in the first quarter of 1998.

     The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased 0.3 percent
in the second quarter and 0.2 percent in the first quarter of 1998.

Nonfarm business

     Productivity decreased slightly--0.2 percent--in the nonfarm business
sector during the second quarter of 1998, after rising 3.5 percent in the
first quarter (table 2).  Output rose 1.3 percent during the second quarter,
but hours of all persons working in the sector increased more rapidly, 1.6
percent.  In the first quarter of the year, output had risen 7.0 percent, the
largest increase since an 8.4-percent increase occurred in the fourth quarter
of 1992.  Hours of all persons in the nonfarm business sector rose 3.4
percent in the first quarter of 1998.

     Hourly compensation increased 3.8 percent in the second quarter, down
from the 4.6 percent rise posted one quarter earlier.  When the rise in the
CPI-U is taken into account, increases in real hourly compensation for the
second quarter of the year rose 1.8 percent.
     
     Unit labor costs grew 4.1 percent in the second quarter and 1.1 percent
in the previous quarter.  The implicit price deflator for nonfarm business
output grew 0.1 percent in the second quarter and 0.6 percent in the first
quarter of 1998.

Manufacturing

     Productivity increased 3.3 percent in manufacturing, as output rose 1.7
percent and hours of all persons dropped 1.5 percent (seasonally adjusted
annual rates).  In the first quarter, productivity rose 1.4 percent as output
increased 2.2 percent and hours increased 0.8 percent (table 3).  Labor
productivity in manufacturing has risen in every quarter since the third
quarter of 1993, when it fell 0.2 percent.  In durable goods, productivity
increased 5.7 in the second quarter of 1998 as output rose 3.6 percent while
hours of all persons fell 1.9 percent.  In nondurable goods manufacturing,
productivity rose 0.2 percent in the second quarter as both output and hours
dropped, 0.7 and 0.9 percent, respectively (tables 4 and 5).

     Hourly compensation of all manufacturing workers increased 2.5 percent
during the second quarter, less than the 4.1 percent increase in the first
quarter.  When the increase in consumer prices is taken into account, real
hourly compensation rose 0.5 percent in the second quarter.

     Unit labor costs in manufacturing fell at a 0.7 percent annual rate in
the second quarter.  Trends in unit labor costs in the two subsectors were
quite different; unit labor costs fell 4.0 percent in durable goods
manufacturing and rose 4.2 percent in nondurable goods manufacturing.

Revised Measures

     Current and previous measures for the first quarter of 1998 for the
business, nonfarm business, and manufacturing sectors are compared in table B.
Increases in productivity and output are larger--and increases in hours of all
persons are smaller--than those reported on June 4, based on information then
available.  Increases in unit labor costs are correspondingly smaller than
originally reported.


---------------------------------------------------------------------
Table B. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
---------------------------------------------------------------------                                                               
                                                     Real      
                                            Hourly   hourly    Unit
                   Produc-                  compen-  compen-   labor
Sector             tivity   Output   Hours  sation   sation    costs
---------------------------------------------------------------------                                                               
                             First quarter 1998
Business:                                                      
  Previous          1.7      6.0      4.2    4.4      3.9       2.7
  Current           4.1      7.1      2.9    4.9      4.4       0.8
Nonfarm business:                                              
  Previous          1.1      6.0      4.8    4.2      3.7       3.1
  Current           3.5      7.0      3.4    4.6      4.1       1.1
Manufacturing:                                                 
  Previous          0.7      2.0      1.3    2.8      2.3       2.1
  Current           1.4      2.2      0.8    4.1      3.6       2.7
---------------------------------------------------------------------


     Output data for the business, nonfarm business, and nonfinancial
corporate sectors and compensation series for all sectors incorporate the
revisions of the national income and product accounts produced by the Bureau
of Economic Analysis, U.S. Department of Commerce.  Labor input measures have
been revised to reflect the annual benchmarking process of employment levels
derived from the monthly Current Employment Statistics (CES) survey and the
updating of seasonal adjustment factors.  In addition, the seasonal
adjustment process for hours series reported by CES was refined to correct
for distortions associated with the varying length of pay periods across
months.  (See USDL 98-231.)  These revisions extend back to the first quarter
of 1988.
     
     As a result of these revisions, annual increases in labor productivity
in the business and nonfarm business sectors are higher than previously
reported for 1994-96 and slightly lower for 1997.  In the manufacturing
sector, increases in output per hour since 1994 are slightly less than
reported earlier.  Appendix tables 1-6 present quarterly and annual measures
for 1993-95.

Revised measures: Nonfinancial Corporations

     Productivity and cost measures for the first quarter for nonfinancial
corporations also were revised to incorporate the most recent information on
output, compensation, profits, and labor inputs.  Productivity growth was
unchanged from that reported on June 4 as downward revisions in output were
matched by similar revisions to employee hours.  Unit labor costs grew less
than originally reported, reflecting a downward revision to hourly
compensation.  The decrease in unit profits was less than reported on June 4
(table C).


-----------------------------------------------------------------------------
Table C.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------                                                                     
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------                                                                     
                            First quarter 1998
Previous     2.6      7.2     4.5    4.2      3.7     1.6    -6.3     -0.2
Current      2.6      5.9     3.2    3.6      3.1     0.9    -5.6     -0.4
-----------------------------------------------------------------------------
                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 a.m.
EDT, Thursday, September 3, 1998.  Revised second-quarter measures for
business, nonfarm business, and manufacturing will be released at that time,
along with measures for nonfinancial corporations.
                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. Weekly paid hours are adjusted to hours at  work  using
 the BLS Hours at Work survey, conducted for this purpose.
       Data  from  the BLS Current Population Survey (CPS) are used  for  farm
 labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
 prepared  by the Bureau of Economic Analysis (BEA) of the Department  of Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes are constructed by deflating current-dollar
 industry  value  of production data from the U.S. Bureau of the  Census  with
 deflators  from  the BEA.  These deflators are based on  data  from  the  BLS
 producer  price  program  and  other sources.   The  industry  shipments  are
 aggregated  using annual weights, and intrasector transactions  are  removed.
 Quarterly  manufacturing output measures are based on the index of industrial
 production prepared monthly by the Board of Governors of the Federal  Reserve
 System  adjusted to be consistent with annual indexes of manufacturing sector
 output  prepared  by  BLS.   Durables  include  the  following  2-digit   SIC
 industries:   Primary  metal  industries;  fabricated  metal  products;  non-
 electrical  machinery;  industrial  and  commercial  machinery  and  computer
 equipment;   electronic   and  other  electrical  equipment;   transportation
 equipment;  instruments; lumber and lumber products; furniture and  fixtures;
 stone, clay, and glass and concrete products; and miscellaneous manufactures.
 Nondurables  include:  Food and kindred products, tobacco  products,  textile
 mill  products,  apparel  products, paper and allied products,  printing  and
 publishing,  chemicals and chemical products, petroleum refining and  related
 industries, rubber and plastic products, and leather and leather products.
      Nonfinancial corporate output is an annual-weighted index constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 52 percent of the value of GDP in 1992.
 
 Productivity:  These productivity measures describe the relationship  between
 real  output  and the labor time involved in its production.  They  show  the
 changes  from  period to period in the amount of goods and services  produced
 per  hour.  Although these measures relate output to hours  at  work  of  all
 persons engaged in a sector, they do not measure the specific contribution of
 labor,  capital, or any other factor of production. Rather, they reflect  the
 joint  effects  of many influences, including changes in technology;  capital
 investment; level of output; utilization of capacity, energy, and  materials;
 the organization of production; managerial skill; and the characteristics and
 effort of the work force.
 
       Information  in this release will be made available to sensory-impaired
 individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1996       I    r102.9     r112.5    r109.3    r108.8       r98.4     r105.7      r111.9     r107.9
            II    r103.8     r114.2    r110.0    r110.3       r98.9     r106.3      r112.1     r108.4
           III    r103.8     r114.9    r110.7    r111.4       r99.3     r107.3      r111.5     r108.8
            IV    r104.2     r116.4    r111.6    r112.3       r99.3     r107.8      r111.8     r109.2

        ANNUAL    r103.7     r114.5     110.4    r110.7       r99.0     r106.8      r111.8     r108.6

  1997       I    r104.5     r117.8     112.7    r113.4       r99.7     r108.5      r112.4     r109.9
            II    r105.0     r119.1    r113.4    r114.1      r100.0     r108.7      r113.1     r110.3
           III    r106.0     r120.6    r113.8    r115.3      r100.5     r108.8      r113.8     r110.6
            IV    r106.2     r121.7    r114.5    r116.8      r101.3     r110.0      r112.4     r110.8

        ANNUAL    r105.4     r119.8    r113.6    r114.9      r100.5     r109.0      r112.9     r110.4

  1998       I    r107.3     r123.7    r115.4    r118.2      r102.4     r110.2      r112.2     r110.9
            II     107.1      124.1     115.9     119.3       102.9      111.4       110.2      111.0
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I      r4.4       r4.5      r0.1      r2.5       r-0.7      r-1.9        r8.5       r1.9
            II      r3.5       r6.4      r2.9      r5.6        r1.8       r2.1        r0.9       r1.7
           III      r0.1       r2.5      r2.4      r4.0        r1.5       r3.8       r-2.2       r1.6
            IV      r1.5       r5.1      r3.5       3.4         0.0       r1.8        r1.0       r1.5

        ANNUAL      r2.7       r4.2      r1.5      r3.6        r0.7       r0.9        r2.8       r1.6

  1997       I      r1.0       r4.9      r3.9      r3.9        r1.7       r2.8        r2.0       r2.5
            II      r2.0       r4.7      r2.6      r2.6        r1.3       r0.6        r2.8       r1.4
           III      r3.7       r4.9      r1.2      r4.1        r2.1       r0.4        r2.2        1.1
            IV      r0.9       r3.6      r2.7      r5.3        r3.1       r4.4       r-4.8        0.9

        ANNUAL      r1.7       r4.6      r2.9      r3.8        r1.5       r2.1        r1.0        1.7

  1998       I      r4.1       r7.1      r2.9      r4.9        r4.4       r0.8       r-0.7       r0.2
            II      -0.6        1.2       1.8       3.9         1.9        4.5        -6.8        0.3
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I      r2.5       r3.2      r0.7      r3.0        r0.2       r0.6        r3.3       r1.6
            II      r3.1       r4.7      r1.6      r3.7        r0.8       r0.6        r3.4       r1.6
           III      r2.8       r4.2      r1.4      r4.0        r1.0       r1.1        r2.4       r1.6
            IV      r2.4       r4.6      r2.2      r3.9        r0.7       r1.5         2.0       r1.7

        ANNUAL      r2.7       r4.2      r1.5      r3.6        r0.7       r0.9        r2.8       r1.6

  1997       I       1.5        4.7      r3.2      r4.2         1.2        2.6        r0.4       r1.8
            II      r1.2       r4.3      r3.1      r3.5        r1.1        2.3        r0.9       r1.8
           III      r2.1       r4.9      r2.8      r3.5        r1.3       r1.4         2.0        1.6
            IV      r1.9        4.5      r2.6      r4.0        r2.0        2.0        r0.5       r1.5

        ANNUAL      r1.7       r4.6      r2.9      r3.8        r1.5       r2.1        r1.0        1.7

  1998       I      r2.6       r5.1       2.3      r4.2        r2.7       r1.5       r-0.2       r0.9
            II       2.0        4.2       2.1       4.5         2.9        2.5        -2.6        0.6
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 11, 1998 
  r=revised                                                              Source: Bureau of Labor Statistics

Table 2. Nonfarm business sector:  Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1996       I    r103.0     r112.8     109.4    r108.6       r98.3     r105.4      r112.3     r107.9
            II    r103.8     r114.5    r110.3    r110.0       r98.6     r106.0      r112.3     r108.2
           III    r103.8     r115.2    r111.0    r111.0       r98.9     r107.0      r111.6     r108.6
            IV    r104.1     r116.6    r112.0    r112.0       r98.9     r107.5      r112.2     r109.2

        ANNUAL    r103.7     r114.8     110.7    r110.4       r98.7     r106.5      r112.1     r108.5

  1997       I    r104.2     r117.9     113.1    r113.1       r99.4     r108.5      r112.8     r110.0
            II    r104.7     r119.2    r113.9    r113.8       r99.7     r108.7      r113.6     r110.4
           III    r105.6     r120.6    r114.2    r114.9      r100.2     r108.8      r114.5     r110.8
            IV    r105.9     r121.8    r115.1    r116.3      r100.9     r109.9      r113.3     r111.1

        ANNUAL    r105.1     r119.9    r114.1    r114.5      r100.1     r109.0      r113.6     r110.6

  1998       I    r106.8     r123.9    r116.0    r117.6      r101.9     r110.2      r113.2     r111.2
            II     106.7      124.3     116.5     118.7       102.3      111.3       111.3      111.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I      r4.1       r4.2      r0.0      r2.6       r-0.5      r-1.5        r7.4       r1.7
            II      r3.0       r6.4      r3.3      r5.2        r1.4        2.2       r-0.1       r1.3
           III      r0.0       r2.5      r2.4      r3.7        r1.3       r3.7       r-2.3       r1.4
            IV      r1.2       r5.0      r3.7      r3.3         0.0       r2.1        r2.3       r2.2

        ANNUAL      r2.4       r4.1       1.6      r3.5        r0.6       r1.1        r2.0       r1.4

  1997       I      r0.5       r4.5      r4.1      r4.0        r1.8       r3.6        r2.2       r3.1
            II      r1.8       r4.5      r2.6      r2.6        r1.2       r0.7        r2.8       r1.5
           III       3.6       r4.8      r1.2      r3.9        r2.0       r0.3        r3.1       r1.4
            IV      r0.9       r4.0      r3.0      r4.9        r2.8       r4.0       r-4.3       r0.9

        ANNUAL      r1.4        4.5      r3.0      r3.7        r1.4       r2.3        r1.3       r1.9

  1998       I      r3.5       r7.0      r3.4      r4.6        r4.1       r1.1       r-0.3       r0.6
            II      -0.2        1.3       1.6       3.8         1.8        4.1        -6.6        0.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I      r2.4       r3.2      r0.8      r3.0        r0.2       r0.6        r2.7       r1.4
            II      r2.9       r4.7       1.8      r3.6        r0.7       r0.7        r2.4       r1.3
           III      r2.4       r4.1      r1.6      r3.8        r0.8       r1.3        r1.4       r1.3
            IV      r2.1       r4.5      r2.4      r3.7        r0.5       r1.6        r1.7       r1.7

        ANNUAL      r2.4       r4.1       1.6      r3.5        r0.6       r1.1        r2.0       r1.4

  1997       I      r1.2       r4.6       3.4      r4.1         1.1       r2.9        r0.5       r2.0
            II      r0.9       r4.1      r3.2      r3.4        r1.1       r2.5        r1.2       r2.0
           III      r1.8        4.7      r2.9      r3.5        r1.2       r1.7        r2.6       r2.0
            IV      r1.7       r4.4      r2.7      r3.9        r1.9       r2.1        r0.9       r1.7

        ANNUAL      r1.4        4.5      r3.0      r3.7        r1.4       r2.3        r1.3       r1.9

  1998       I      r2.4       r5.1      r2.6      r4.0        r2.5       r1.5        r0.3        1.1
            II       1.9        4.2       2.3       4.3         2.7        2.4        -2.1        0.7
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 11, 1998
  r=revised                                                              Source: Bureau of Labor Statistics

Table 3. Manufacturing sector:  Productivity, hourly compensation, and unit labor costs, seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r112.9        115.8       r102.6       r109.2          r98.8         r96.8
            II           r114.0        118.3       r103.8       r110.3          r98.9         r96.8
           III           r115.2        119.9       r104.1       r111.2          r99.1         r96.5
            IV           r116.3        121.2       r104.3       r111.9          r98.9         r96.2

        ANNUAL           r114.6        118.8       r103.7       r110.7          r99.0         r96.6

  1997       I           r117.1        123.0       r105.1       r113.0          r99.3         r96.5
            II           r118.0        124.5       r105.5       r114.0          r99.9         r96.6
           III           r120.1        126.4       r105.2       r115.5         r100.7         r96.2
            IV           r121.5        128.9       r106.1       r117.8         r102.2         r96.9

        ANNUAL           r119.2        125.7       r105.5       r115.1         r100.6         r96.6

  1998       I           r121.9       r129.6       r106.3        119.0          103.1         r97.6
            II            122.9        130.1        105.9        119.7          103.2          97.4
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r6.2          2.6        r-3.3        r-0.1          r-3.2         r-6.0
            II             r3.9          9.0         r4.9         r4.1           r0.4          r0.2
           III             r4.3          5.4         r1.1          3.1            0.7         r-1.1
            IV             r3.8          4.5         r0.7         r2.5          r-0.9         r-1.3

        ANNUAL             r4.5          4.2        r-0.4         r2.2          r-0.8         r-2.3

  1997       I             r2.8          6.2         r3.3         r4.2           r2.0          r1.3
            II             r3.2          4.9         r1.7         r3.5           r2.1          r0.3
           III             r7.3          6.1        r-1.1         r5.6           r3.6         r-1.6
            IV             r4.9          8.2         r3.1         r8.0           r5.8          r3.0

        ANNUAL             r4.0          5.8         r1.7         r4.0           r1.7          r0.0

  1998       I             r1.4         r2.2         r0.8         r4.1           r3.6          r2.7
            II              3.3          1.7         -1.5          2.5            0.5          -0.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I              4.7          2.2         -2.4         r1.9          r-0.9         r-2.7
            II             r4.4          4.3        r-0.1         r2.1          r-0.7         r-2.2
           III             r4.3          4.7         r0.4         r2.2          r-0.7         r-2.0
            IV             r4.6          5.4         r0.8         r2.4          r-0.8         r-2.1

        ANNUAL             r4.5          4.2        r-0.4         r2.2          r-0.8         r-2.3

  1997       I             r3.7          6.3         r2.5          3.5           r0.5         r-0.2
            II             r3.5          5.3         r1.7         r3.3           r1.0         r-0.2
           III             r4.2          5.4         r1.1         r3.9           r1.7         r-0.3
            IV             r4.5          6.3         r1.7         r5.3           r3.4          r0.7

        ANNUAL             r4.0          5.8         r1.7         r4.0           r1.7          r0.0

  1998       I             r4.2          5.3          1.1         r5.3           r3.8          r1.1
            II              4.2          4.5          0.3          5.0            3.3           0.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11,  1998
  r=revised                                                       Source: Bureau of Labor Statistics

Table 4. Durable manufacturing sector:  Productivity, hourly compensation, and unit labor costs, seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r120.2        126.8       r105.5       r107.5          r97.2         r89.4
            II           r122.0        131.1       r107.4       r108.5          r97.2         r88.9
           III           r123.6        133.2       r107.8       r109.2          r97.3         r88.4
            IV           r124.6        134.6       r108.0       r109.6          r96.8         r87.9

        ANNUAL           r122.6        131.4       r107.2       r108.7          r97.2         r88.6

  1997       I           r125.7        137.7       r109.5       r110.6          r97.2         r88.0
            II           r127.4        140.4       r110.2       r111.5          r97.7         r87.5
           III           r130.6        143.8       r110.1       r113.0          r98.5         r86.5
            IV           r133.0        147.4       r110.9       r115.8         r100.4         r87.1

        ANNUAL           r129.2        142.3       r110.2       r112.8          r98.6         r87.3

  1998       I           r133.4       r148.4       r111.3       r116.6         r101.0         r87.4
            II            135.2        149.7        110.7        117.0          100.8          86.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r8.8          5.9        r-2.7        r-2.8          r-5.8        r-10.7
            II             r6.2         14.2         r7.5         r3.8           r0.1         r-2.2
           III             r5.2          6.8         r1.5          2.6            0.2         r-2.5
            IV             r3.6          4.3          0.7         r1.4          r-1.9         r-2.1

        ANNUAL             r6.2          7.1         r0.9         r0.8          r-2.1         r-5.0

  1997       I             r3.5          9.4         r5.7         r3.9           r1.6          r0.3
            II             r5.6          8.1         r2.4         r3.4           r2.0         r-2.0
           III            r10.4         10.2        r-0.2         r5.5           r3.5         r-4.5
            IV             r7.5         10.3         r2.7        r10.2           r7.9          r2.5

        ANNUAL             r5.4          8.3         r2.8         r3.7           r1.4         r-1.6

  1998       I             r1.2         r2.6         r1.4         r2.6           r2.1          r1.4
            II              5.7          3.6         -1.9          1.5           -0.5          -4.0
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I              6.0          4.8        r-1.2         r0.4          r-2.4         r-5.3
            II             r6.5          8.0         r1.4         r0.7          r-2.1         r-5.4
           III             r6.2          8.0         r1.7         r0.9          r-2.0         r-5.0
            IV             r5.9          7.7         r1.7         r1.2          r-1.9         r-4.4

        ANNUAL             r6.2          7.1         r0.9         r0.8          r-2.1         r-5.0

  1997       I             r4.6          8.6         r3.8         r2.9           r0.0         r-1.6
            II             r4.5          7.1         r2.6         r2.8           r0.5         r-1.6
           III             r5.7          8.0         r2.1         r3.5           r1.3         r-2.1
            IV             r6.7          9.5         r2.6         r5.7           r3.7         r-0.9

        ANNUAL             r5.4          8.3         r2.8         r3.7           r1.4         r-1.6

  1998       I             r6.1         r7.8          1.6         r5.4           r3.9         r-0.7
            II              6.1          6.6          0.5          4.9            3.2          -1.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11, 1998
  r=revised                                                       Source: Bureau of Labor Statistics

Table 5. Nondurable manufacturing sector:  Productivity, hourly compensation, and unit labor costs, seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r105.9        104.5        r98.7       r111.4         r100.8        r105.2
            II           r106.4        105.3        r99.0       r112.6         r100.9        r105.8
           III           r107.2        106.3        r99.1       r113.7         r101.3        r106.0
            IV           r108.3        107.5        r99.3       r114.8         r101.5        r106.0

        ANNUAL           r107.0        105.9        r99.0       r113.1         r101.2        r105.8

  1997       I           r109.0        108.2        r99.2       r116.1         r102.0        r106.5
            II           r109.2        108.5        r99.4       r117.1         r102.6        r107.2
           III           r110.2        108.9        r98.8        118.7         r103.5        r107.6
            IV           r110.7        110.3        r99.7       r120.0         r104.1        r108.4

        ANNUAL           r109.8        109.0        r99.2       r118.0         r103.1        r107.4

  1998       I           r111.3        110.8        r99.6       r121.9         r105.6        r109.5
            II            111.3        110.6         99.4        123.2          106.2         110.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r3.1         -1.2        r-4.2         r4.2           r1.0          r1.0
            II             r1.8          3.1         r1.2          4.1            0.4          r2.3
           III             r3.3          3.8         r0.5          4.0            1.5          r0.7
            IV             r4.0          4.6         r0.6         r4.2           r0.8          r0.2

        ANNUAL             r2.7          0.6        r-2.1          4.1            1.1          r1.4

  1997       I             r2.7          2.5        r-0.2         r4.3           r2.1          r1.6
            II             r0.5          1.2         r0.6         r3.5           r2.2          r3.0
           III             r4.0          1.5        r-2.4         r5.6           r3.6          r1.5
            IV             r1.7          5.5         r3.7         r4.6           r2.5          r2.9

        ANNUAL             r2.6          2.9         r0.2         r4.3           r1.9          r1.6

  1998       I             r2.0         r1.8        r-0.2         r6.4           r5.8          r4.3
            II              0.2         -0.7         -0.9          4.4            2.3           4.2
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r3.3         -1.0         -4.1         r4.1           r1.3          r0.8
            II             r2.3         -0.1        r-2.3         r4.1           r1.2          r1.8
           III             r2.3          0.8        r-1.5         r4.1            1.2          r1.8
            IV             r3.0          2.5        r-0.5          4.1            0.9          r1.0

        ANNUAL             r2.7          0.6        r-2.1          4.1            1.1          r1.4

  1997       I             r2.9          3.5         r0.5         r4.2           r1.2          r1.2
            II             r2.6          3.0         r0.4         r4.0           r1.7          r1.4
           III             r2.8          2.4        r-0.4         r4.4           r2.2          r1.6
            IV             r2.2          2.6         r0.4         r4.5           r2.6          r2.2

        ANNUAL             r2.6          2.9         r0.2         r4.3           r1.9          r1.6

  1998       I              2.1         r2.5          0.4         r5.0           r3.5          r2.9
            II              2.0          2.0          0.0          5.2            3.5           3.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11, 1998
  r=revised                                                       Source: Bureau of Labor Statistics

Table 6. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I   r106.4   r117.3    r110.3   r107.7     r97.4    r101.2    r98.7   r100.6   r153.7   r105.4
            II   r107.2   r119.3    r111.2   r109.0     r97.7    r101.7    r97.9   r100.7   r154.1   r105.5
           III   r108.0   r120.9    r111.9   r110.1     r98.1    r101.9    r97.5   r100.8   r155.3   r105.7
            IV   r108.6   r122.5    r112.8   r110.9     r98.0    r102.1     97.4   r100.9   r155.4   r105.8

        ANNUAL   r107.6   r120.0    r111.5   r109.5     r97.9    r101.7    r97.9   r100.7   r154.6   r105.6

  1997       I   r109.0   r124.3    r114.0   r111.8     r98.3    r102.6    r97.3   r101.2   r156.6   r106.2
            II   r109.7   r126.2    r115.1   r112.6     r98.6    r102.6     97.1   r101.2   r157.3   r106.3
           III   r111.2   r128.7    r115.7   r113.7     r99.2    r102.3    r96.4   r100.7   r161.7   r106.3
            IV   r111.4   r130.2    r116.8   r115.1     r99.9    r103.3    r95.7   r101.3   r155.7   r106.3

        ANNUAL   r110.4   r127.3    r115.3   r113.4     r99.1    r102.7     96.6   r101.1   r157.8   r106.3

  1998       I   r112.2   r132.1    r117.7   r116.2    r100.6    r103.5    r95.4   r101.4   r153.5   r106.2
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1996       I     r1.2     r1.4      r0.2     r1.7     r-1.5      r0.4    r-0.7     r0.1    r13.1     r1.7
            II     r3.3     r6.9      r3.5     r5.0      r1.2      r1.7    r-2.9     r0.5     r1.1     r0.6
           III     r2.9     r5.6      r2.6     r3.9       1.4      r0.9    r-1.7     r0.3     r3.0     r0.6
            IV      2.1     r5.5      r3.3     r2.9     r-0.4      r0.7    r-0.5     r0.4     r0.3     r0.4

        ANNUAL     r2.8      4.5      r1.7     r3.1      r0.2      r0.3    r-1.1    r-0.1     r7.7     r0.9

  1997       I     r1.5     r5.9       4.3     r3.6      r1.3      r2.0    r-0.6     r1.4     r3.2      1.6
            II     r2.5     r6.3      r3.8     r2.6      r1.3      r0.2    r-0.6     r0.0     r1.7     r0.2
           III     r5.6     r8.2      r2.4     r4.2      r2.2     r-1.3    r-3.1    r-1.8    r11.8     r0.0
            IV     r1.0     r4.8      r3.8     r5.0      r2.9      r4.0    r-2.7     r2.3   r-14.1    r-0.1

        ANNUAL      2.6     r6.1      r3.5     r3.6      r1.2      r1.0    r-1.3      0.4     r2.1     r0.6

  1998       I      2.6     r5.9      r3.2     r3.6      r3.1      r0.9    r-1.1     r0.4    r-5.6    r-0.4
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1996       I     r2.9     r3.9      r1.0     r2.5     r-0.3     r-0.4     -0.6    r-0.5    r11.5     r0.9
            II     r3.2     r4.9      r1.7     r3.1      r0.2     r-0.1     -1.6    r-0.5    r11.1     r0.9
           III     r2.6      4.4      r1.8     r3.4      r0.5       0.8     -0.9     r0.3     r4.5     r0.9
            IV     r2.4      4.8      r2.4     r3.4      r0.2      r0.9    r-1.4      0.3     r4.3     r0.8

        ANNUAL     r2.8      4.5      r1.7     r3.1      r0.2      r0.3    r-1.1    r-0.1     r7.7     r0.9

  1997       I     r2.5     r5.9      r3.4     r3.8      r0.9       1.3    r-1.4     r0.6     r1.9      0.8
            II     r2.3     r5.8      r3.5     r3.2      r0.9      r1.0    r-0.8     r0.5     r2.0     r0.7
           III     r2.9     r6.4      r3.4     r3.3      r1.1      r0.4    r-1.2      0.0     r4.2     r0.5
            IV     r2.6     r6.3      r3.5     r3.9      r1.9      r1.2    r-1.8     r0.5     r0.2     r0.4

        ANNUAL      2.6     r6.1      r3.5     r3.6      r1.2      r1.0    r-1.3      0.4     r2.1     r0.6

  1998       I      2.9     r6.3      r3.3     r3.9      r2.4      r0.9    r-1.9     r0.2    r-2.0    r-0.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        August 11, 1998
  r=revised                                                               Source: Bureau of Labor Statistics

Appendix table 1.  Business sector: Productivity, hourly compensation, unit labor costs, and prices,   seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1993       I     99.9      101.4     101.5     101.6        99.6      101.7       101.8      101.7
            II     99.8      102.1     102.3     102.5        99.7      102.7       101.5      102.3
           III     99.9      102.8     102.9     102.9        99.6      103.0       102.2      102.7
            IV    100.8      104.6     103.7     103.1        99.1      102.3       105.3      103.4

        ANNUAL    100.1      102.7     102.6     102.5        99.5      102.4       102.7      102.5

  1994       I    100.8      105.2     104.4     104.1        99.6      103.3       104.9      103.9
            II    100.8      106.9     106.0     104.1        98.9      103.2       106.5      104.4
           III    100.4      107.3     106.8     104.3        98.2      103.8       107.4      105.1
            IV    100.7      108.5     107.7     105.1        98.3      104.3       108.3      105.8

        ANNUAL    100.7      107.0     106.2     104.4        98.8      103.7       106.8      104.8

  1995       I    100.5      109.0     108.5     105.6        98.2      105.1       108.3      106.3
            II    100.7      109.1     108.3     106.4        98.1      105.7       108.5      106.7
           III    101.0      110.3     109.1     107.2        98.3      106.1       108.9      107.1
            IV    101.8      111.2     109.2     108.2        98.6      106.2       109.6      107.4

        ANNUAL    101.0      109.9     108.8     106.8        98.4      105.8       108.8      106.9

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1993       I     -4.4       -1.2       3.4       1.8        -1.0        6.5        -1.5        3.5
            II     -0.6        2.7       3.3       3.3         0.3        4.0        -1.2        2.1
           III      0.5        2.8       2.2       1.5        -0.4        1.0         2.8        1.6
            IV      3.8        7.1       3.2       1.0        -2.2       -2.7        12.9        2.7

        ANNUAL      0.1        2.7       2.6       2.5        -0.5        2.4         2.7        2.5

  1994       I      0.0        2.6       2.6       4.0         2.0        4.0        -1.5        2.0
            II     -0.1        6.4       6.5      -0.3        -2.8       -0.2         6.3        2.1
           III     -1.4        1.5       3.0       0.8        -2.8        2.3         3.4        2.7
            IV      1.2        4.6       3.3       3.2         0.7        1.9         3.4        2.5

        ANNUAL      0.6        4.1       3.5       1.8        -0.7        1.2         4.0        2.2

  1995       I     -1.0        2.0       3.0       2.1        -0.5        3.1        -0.3        1.9
            II      0.9        0.3      -0.6       3.0        -0.4        2.0         0.7        1.6
           III      1.3        4.4       3.1       2.9         0.8        1.5         1.8        1.6
            IV      3.2        3.6       0.4       3.8         1.3        0.6         2.5        1.3

        ANNUAL      0.3        2.7       2.4       2.3        -0.5        2.0         1.9        2.0

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1993       I      0.3        2.6       2.3       2.8        -0.4        2.4         2.6        2.5
            II      0.1        2.5       2.4       3.2         0.1        3.1         1.5        2.5
           III      0.2        3.0       2.7       2.3        -0.5        2.0         3.6        2.6
            IV     -0.2        2.8       3.0       1.9        -0.8        2.1         3.1        2.5

        ANNUAL      0.1        2.7       2.6       2.5        -0.5        2.4         2.7        2.5

  1994       I      0.9        3.8       2.8       2.5        -0.1        1.5         3.1        2.1
            II      1.0        4.7       3.6       1.5        -0.8        0.5         5.0        2.1
           III      0.5        4.4       3.8       1.4        -1.5        0.8         5.1        2.4
            IV     -0.1        3.7       3.8       1.9        -0.7        2.0         2.9        2.3

        ANNUAL      0.6        4.1       3.5       1.8        -0.7        1.2         4.0        2.2

  1995       I     -0.3        3.6       3.9       1.4        -1.4        1.8         3.2        2.3
            II     -0.1        2.1       2.2       2.3        -0.8        2.3         1.8        2.1
           III      0.6        2.8       2.2       2.8         0.1        2.2         1.4        1.9
            IV      1.1        2.6       1.4       2.9         0.3        1.8         1.2        1.6

        ANNUAL      0.3        2.7       2.4       2.3        -0.5        2.0         1.9        2.0

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 11, 1998 
                                                                         Source: Bureau of Labor Statistics

Appendix table 2.  Nonfarm business sector:   Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1993       I     99.9      101.6     101.7     101.5        99.5      101.6       102.3      101.8
            II     99.7      102.3     102.6     102.2        99.4      102.5       101.8      102.3
           III    100.0      103.2     103.2     102.5        99.3      102.5       102.9      102.6
            IV    100.7      104.8     104.1     102.8        98.8      102.1       105.5      103.3

        ANNUAL    100.1      103.0     102.9     102.2        99.3      102.2       103.1      102.5

  1994       I    100.7      105.2     104.5     103.9        99.3      103.2       105.0      103.8
            II    100.8      106.9     106.1     103.9        98.7      103.1       107.0      104.5
           III    100.3      107.3     106.9     104.1        98.0      103.7       108.2      105.3
            IV    100.8      108.6     107.8     105.0        98.2      104.2       109.2      106.0

        ANNUAL    100.6      107.0     106.3     104.2        98.7      103.6       107.3      104.9

  1995       I    100.6      109.2     108.5     105.5        98.1      104.8       109.4      106.4
            II    100.9      109.4     108.4     106.2        97.9      105.3       109.7      106.9
           III    101.3      110.7     109.2     107.0        98.2      105.6       110.0      107.2
            IV    102.0      111.6     109.4     107.9        98.4      105.8       110.3      107.4

        ANNUAL    101.2      110.2     108.9     106.7        98.2      105.4       109.9      107.0

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1993       I     -4.6       -0.8       3.9       1.1        -1.6        6.0         0.0        3.8
            II     -1.1        2.6       3.7       2.9        -0.1        4.0        -2.2        1.7
           III      1.5        3.9       2.4       1.3        -0.6       -0.2         4.5        1.5
            IV      2.7        6.1       3.2       1.1        -2.1       -1.6        10.6        2.6

        ANNUAL      0.1        3.0       2.9       2.2        -0.7        2.2         3.1        2.5

  1994       I     -0.2        1.6       1.8       4.3         2.3        4.5        -1.9        2.1
            II      0.5        6.6       6.1       0.2        -2.3       -0.3         7.7        2.5
           III     -1.8        1.5       3.4       0.5        -3.1        2.4         4.6        3.2
            IV      1.8        5.0       3.1       3.5         1.0        1.7         3.8        2.4

        ANNUAL      0.5        3.9       3.3       1.9        -0.6        1.4         4.1        2.3

  1995       I     -0.4        2.5       2.9       2.0        -0.6        2.5         0.8        1.9
            II      0.9        0.5      -0.5       2.8        -0.6        1.8         1.1        1.6
           III      1.8        4.9       3.1       3.1         0.9        1.2         1.3        1.2
            IV      2.6        3.3       0.7       3.5         1.0        0.9         1.0        0.9

        ANNUAL      0.6        3.0       2.4       2.4        -0.5        1.8         2.3        2.0

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1993       I      0.4        2.8       2.4       2.7        -0.5        2.3         3.2        2.6
            II     -0.1        2.7       2.8       2.8        -0.3        2.9         1.8        2.5
           III      0.4        3.5       3.0       1.9        -0.9        1.5         4.5        2.5
            IV     -0.4        2.9       3.3       1.6        -1.1        2.0         3.1        2.4

        ANNUAL      0.1        3.0       2.9       2.2        -0.7        2.2         3.1        2.5

  1994       I      0.7        3.6       2.8       2.4        -0.1        1.6         2.6        2.0
            II      1.1        4.5       3.4       1.7        -0.7        0.6         5.1        2.2
           III      0.3        3.9       3.6       1.5        -1.3        1.2         5.1        2.6
            IV      0.1        3.6       3.6       2.1        -0.6        2.0         3.5        2.6

        ANNUAL      0.5        3.9       3.3       1.9        -0.6        1.4         4.1        2.3

  1995       I      0.0        3.8       3.9       1.5        -1.3        1.6         4.2        2.5
            II      0.1        2.3       2.2       2.2        -0.8        2.1         2.5        2.2
           III      1.0        3.2       2.1       2.8         0.2        1.8         1.7        1.8
            IV      1.2        2.8       1.5       2.8         0.2        1.6         1.0        1.4

        ANNUAL      0.6        3.0       2.4       2.4        -0.5        1.8         2.3        2.0

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 11, 1998
                                                                         Source: Bureau of Labor Statistics

Appendix table 3.  Manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1993       I          101.9         102.7        100.8        101.5           99.5          99.6
            II          101.8         103.0        101.2        102.5           99.7         100.7
           III          101.7         103.3        101.5        103.4          100.1         101.6
            IV          102.6         104.7        102.0        104.3          100.2         101.6

        ANNUAL          102.0         103.4        101.4        102.9           99.9         100.9

  1994       I          104.0         106.3        102.2        105.3          100.7         101.3
            II          105.2         108.4        103.1        105.3          100.0         100.1
           III          105.6         109.9        104.0        105.9           99.7         100.3
            IV          106.5         111.9        105.1        106.7           99.8         100.1

        ANNUAL          105.3         109.1        103.6        105.8          100.1         100.4

  1995       I          107.8         113.3        105.1        107.2           99.7          99.5
            II          109.1         113.4        103.9        108.0           99.6          99.0
           III          110.4         114.5        103.7        108.8           99.8          98.5
            IV          111.2         115.0        103.4        109.3           99.6          98.3

        ANNUAL          109.6         114.1        104.0        108.3           99.7          98.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I            2.6           4.2          1.5          1.8           -1.0          -0.7
            II           -0.6           1.0          1.6          3.9            0.9           4.6
           III           -0.2           1.1          1.3          3.4            1.5           3.6
            IV            3.7           5.9          2.1          3.7            0.4           0.0

        ANNUAL            2.0           3.4          1.4          2.9           -0.1           0.9

  1994       I            5.3           6.1          0.8          3.8            1.8          -1.4
            II            4.8           8.3          3.3          0.1           -2.4          -4.5
           III            1.5           5.3          3.7          2.2           -1.5           0.7
            IV            3.5           7.8          4.1          3.0            0.5          -0.5

        ANNUAL            3.3           5.5          2.2          2.8            0.2          -0.5

  1995       I            4.8           4.9          0.1          2.1           -0.5          -2.5
            II            5.1           0.6         -4.3          3.1           -0.3          -2.0
           III            4.7           3.7         -0.9          2.8            0.6          -1.8
            IV            3.0           1.9         -1.0          1.8           -0.6          -1.1

        ANNUAL            4.1           4.5          0.4          2.4           -0.4          -1.6

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            3.5           4.8          1.3          2.9           -0.2          -0.6
            II            2.1           3.1          1.0          2.8           -0.3           0.7
           III            1.1           2.7          1.6          2.7           -0.1           1.5
            IV            1.4           3.0          1.6          3.2            0.5           1.8

        ANNUAL            2.0           3.4          1.4          2.9           -0.1           0.9

  1994       I            2.0           3.5          1.4          3.7            1.2           1.7
            II            3.4           5.3          1.9          2.7            0.3          -0.6
           III            3.8           6.4          2.5          2.4           -0.4          -1.3
            IV            3.8           6.9          3.0          2.3           -0.4          -1.5

        ANNUAL            3.3           5.5          2.2          2.8            0.2          -0.5

  1995       I            3.7           6.6          2.8          1.8           -1.0          -1.7
            II            3.7           4.6          0.8          2.6           -0.4          -1.1
           III            4.5           4.2         -0.3          2.7            0.1          -1.7
            IV            4.4           2.8         -1.5          2.4           -0.2          -1.9

        ANNUAL            4.1           4.5          0.4          2.4           -0.4          -1.6

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11,  1998
                                                                  Source: Bureau of Labor Statistics

Appendix table 4. Durable manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
 seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1993       I          103.7         104.4        100.7        101.6           99.6          98.0
            II          104.4         105.4        101.0        102.8          100.0          98.4
           III          104.0         105.8        101.7        103.6          100.3          99.6
            IV          106.3         108.9        102.5        104.6          100.5          98.5

        ANNUAL          104.6         106.1        101.5        103.2          100.2          98.6

  1994       I          107.9         111.1        103.0        105.4          100.8          97.7
            II          109.3         113.7        104.0        105.3          100.0          96.3
           III          110.3         116.1        105.3        105.7           99.5          95.9
            IV          111.5         118.9        106.7        106.5           99.7          95.5

        ANNUAL          109.7         114.9        104.7        105.7          100.1          96.3

  1995       I          113.4         121.0        106.7        107.1           99.6          94.5
            II          114.6         121.3        105.9        107.7           99.3          94.0
           III          116.3         123.4        106.1        108.2           99.2          93.0
            IV          117.7         125.0        106.2        108.2           98.7          92.0

        ANNUAL          115.5         122.7        106.2        107.8           99.3          93.4

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I            6.5           8.2          1.7          2.6           -0.3          -3.7
            II            2.9           3.9          1.0          4.5            1.5           1.6
           III           -1.8           1.2          3.0          3.2            1.3           5.0
            IV            9.1          12.4          3.0          4.3            1.0          -4.5

        ANNUAL            4.6           6.1          1.5          3.2            0.2          -1.4

  1994       I            6.2           8.2          1.9          3.0            1.0          -3.0
            II            5.5           9.7          4.0         -0.5           -3.0          -5.6
           III            3.6           8.9          5.1          1.7           -2.0          -1.9
            IV            4.3           9.9          5.4          2.9            0.5          -1.3

        ANNUAL            4.9           8.3          3.2          2.5           -0.1          -2.3

  1995       I            7.0           7.3          0.3          2.3           -0.3          -4.4
            II            4.4           1.2         -3.1          2.3           -1.1          -2.0
           III            6.2           6.8          0.6          1.9           -0.2          -4.0
            IV            4.8           5.4          0.6          0.1           -2.3          -4.4

        ANNUAL            5.2           6.7          1.4          2.0           -0.8          -3.1

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            6.2           7.3          1.0          3.0           -0.1          -3.0
            II            4.7           5.7          0.9          3.0           -0.1          -1.6
           III            3.4           5.3          1.8          2.9            0.1          -0.5
            IV            4.1           6.3          2.2          3.6            0.9          -0.5

        ANNUAL            4.6           6.1          1.5          3.2            0.2          -1.4

  1994       I            4.0           6.3          2.2          3.7            1.2          -0.3
            II            4.7           7.8          3.0          2.5            0.1          -2.1
           III            6.1           9.8          3.5          2.1           -0.8          -3.8
            IV            4.9           9.2          4.1          1.8           -0.9          -3.0

        ANNUAL            4.9           8.3          3.2          2.5           -0.1          -2.3

  1995       I            5.1           8.9          3.7          1.6           -1.2          -3.3
            II            4.8           6.8          1.9          2.3           -0.7          -2.4
           III            5.5           6.3          0.8          2.3           -0.3          -3.0
            IV            5.6           5.2         -0.4          1.6           -1.0          -3.7

        ANNUAL            5.2           6.7          1.4          2.0           -0.8          -3.1

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11, 1998
                                                                  Source: Bureau of Labor Statistics

Appendix table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1993       I          100.3         101.1        100.8        101.3           99.3         101.1
            II           99.2         100.7        101.5        102.1           99.4         103.0
           III           99.8         101.0        101.2        103.0           99.7         103.2
            IV           99.3         100.8        101.5        103.7           99.6         104.4

        ANNUAL           99.6         100.9        101.2        102.5           99.6         102.9

  1994       I          100.5         101.8        101.3        104.9          100.3         104.4
            II          101.5         103.5        101.9        105.1           99.9         103.5
           III          101.4         103.8        102.4        105.8           99.6         104.4
            IV          102.1         105.1        103.0        106.6           99.7         104.4

        ANNUAL          101.4         103.5        102.1        105.6          100.0         104.2

  1995       I          102.5         105.5        102.9        107.1           99.5         104.4
            II          104.0         105.4        101.3        108.1           99.7         103.9
           III          104.8         105.4        100.6        109.1          100.1         104.1
            IV          105.1         104.8         99.7        110.3          100.5         104.9

        ANNUAL          104.1         105.3        101.1        108.6          100.0         104.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1993       I           -1.2           0.1          1.3          0.7           -2.1           2.0
            II           -4.2          -1.9          2.5          3.2            0.2           7.8
           III            2.3           1.3         -0.9          3.3            1.4           1.0
            IV           -1.7          -0.8          0.9          2.7           -0.6           4.5

        ANNUAL           -0.4           0.9          1.2          2.5           -0.4           2.9

  1994       I            4.7           3.9         -0.7          4.8            2.8           0.1
            II            4.3           6.9          2.4          0.8           -1.7          -3.4
           III           -0.6           1.4          2.0          2.8           -0.9           3.4
            IV            2.7           5.1          2.3          2.8            0.4           0.1

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.2

  1995       I            1.8           1.7         -0.1          1.8           -0.8           0.0
            II            5.9          -0.5         -6.0          4.0            0.6          -1.8
           III            3.0          -0.1         -3.0          3.9            1.7           0.8
            IV            1.1          -2.2         -3.3          4.3            1.8           3.1

        ANNUAL            2.7           1.7         -1.0          2.9            0.0           0.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1993       I            1.2           2.8          1.6          2.8           -0.3           1.7
            II           -0.5           0.8          1.3          2.5           -0.6           2.9
           III           -0.9           0.3          1.2          2.4           -0.4           3.2
            IV           -1.2          -0.3          0.9          2.5           -0.3           3.8

        ANNUAL           -0.4           0.9          1.2          2.5           -0.4           2.9

  1994       I            0.2           0.6          0.4          3.5            1.0           3.3
            II            2.4           2.8          0.4          2.9            0.5           0.5
           III            1.6           2.8          1.1          2.8           -0.1           1.1
            IV            2.8           4.3          1.5          2.8            0.1           0.0

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.2

  1995       I            2.1           3.7          1.6          2.1           -0.8           0.0
            II            2.4           1.9         -0.5          2.9           -0.2           0.4
           III            3.3           1.5         -1.8          3.1            0.5          -0.2
            IV            2.9          -0.3         -3.1          3.5            0.8           0.5

        ANNUAL            2.7           1.7         -1.0          2.9            0.0           0.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 11, 1998
                                                                  Source: Bureau of Labor Statistics

Appendix table 6. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1993      I    100.2    101.5     101.3    101.4      99.4     101.2     99.9    100.8    105.4    101.3
           II    100.9    102.8     101.9    101.9      99.2     101.1     99.1    100.6    110.1    101.4
          III    101.2    103.8     102.6    102.2      99.0     101.0     99.5    100.6    112.6    101.7
           IV    102.1    105.7     103.5    102.4      98.4     100.3     99.0    100.0    124.8    102.2

       ANNUAL    101.1    103.4     102.3    102.0      99.1     100.9     99.4    100.5    113.3    101.7

  1994      I    103.7    108.1     104.2    103.7      99.2     100.0    101.5    100.4    126.9    102.8
           II    103.1    109.1     105.8    103.7      98.6     100.6     98.8    100.1    132.4    103.1
          III    103.0    110.2     107.0    103.9      97.8     100.9     99.5    100.5    136.3    103.7
           IV    103.7    112.3     108.3    104.5      97.8     100.8     99.1    100.3    142.1    104.1

       ANNUAL    103.5    109.9     106.2    104.1      98.5     100.6     99.7    100.3    134.5    103.4

  1995      I    103.3    112.9     109.2    105.1      97.7     101.7     99.3    101.1    137.9    104.4
           II    104.0    113.7     109.4    105.8      97.5     101.7     99.6    101.2    138.7    104.6
          III    105.3    115.7     110.0    106.4      97.6     101.1     98.4    100.4    148.5    104.8
           IV    106.0    116.9     110.2    107.3      97.8     101.1     98.8    100.5    149.0    104.9

       ANNUAL    104.7    114.8     109.6    106.2      97.8     101.4     99.0    100.8    143.6    104.7

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1993      I     -4.5     -2.1       2.5      0.7      -2.1       5.4      4.7      5.2    -12.2      3.4
           II      2.7      5.2       2.5      2.3      -0.7      -0.4     -3.1     -1.1     19.1      0.7
          III      1.3      4.2       2.8      1.0      -0.9      -0.3      1.6      0.1      9.5      1.0
           IV      3.6      7.3       3.6      1.1      -2.1      -2.5     -2.0     -2.4     51.0      2.2

       ANNUAL      1.1      3.4       2.3      2.0      -0.9       0.9     -0.6      0.5     13.3      1.7

  1994      I      6.5      9.4       2.7      5.1       3.1      -1.4     10.4      1.6      6.8      2.1
           II     -2.3      3.9       6.4      0.1      -2.4       2.5    -10.2     -1.0     18.5      1.1
          III     -0.5      4.0       4.5      0.5      -3.1       1.0      2.7      1.4     12.6      2.7
           IV      2.9      8.1       5.0      2.6       0.2      -0.3     -1.4     -0.6     18.1      1.5

       ANNUAL      2.3      6.3       3.9      2.0      -0.6      -0.3      0.3     -0.2     18.7      1.8

  1995      I     -1.5      1.9       3.5      2.1      -0.5       3.7      0.6      2.9    -11.5      1.0
           II      2.4      3.0       0.6      2.6      -0.8       0.2      1.1      0.4      2.4      0.7
          III      5.1      7.3       2.1      2.6       0.5      -2.3     -4.7     -2.9     31.6      0.8
           IV      3.0      4.0       1.0      3.1       0.6       0.0      1.8      0.5      1.4      0.6

       ANNUAL      1.2      4.4       3.2      2.1      -0.8       0.9     -0.7      0.4      6.8      1.2

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1993      I      0.8      2.9       2.1      2.5      -0.6       1.7     -0.5      1.2      7.6      1.7
           II      1.6      3.5       1.9      2.5      -0.6       0.9     -0.5      0.5     11.4      1.5
          III      1.1      3.7       2.5      1.6      -1.2       0.5     -1.7     -0.1     19.5      1.6
           IV      0.7      3.6       2.8      1.2      -1.5       0.5      0.3      0.4     14.7      1.8

       ANNUAL      1.1      3.4       2.3      2.0      -0.9       0.9     -0.6      0.5     13.3      1.7

  1994      I      3.5      6.5       2.9      2.3      -0.2      -1.2      1.6     -0.5     20.4      1.5
           II      2.2      6.2       3.9      1.8      -0.6      -0.5     -0.3     -0.4     20.3      1.6
          III      1.8      6.1       4.3      1.6      -1.2      -0.1      0.0     -0.1     21.1      2.0
           IV      1.6      6.3       4.6      2.0      -0.6       0.4      0.1      0.3     13.9      1.8

       ANNUAL      2.3      6.3       3.9      2.0      -0.6      -0.3      0.3     -0.2     18.7      1.8

  1995      I     -0.4      4.4       4.8      1.3      -1.5       1.7     -2.2      0.7      8.7      1.6
           II      0.8      4.2       3.4      1.9      -1.1       1.1      0.7      1.0      4.8      1.5
          III      2.2      5.1       2.8      2.5      -0.1       0.3     -1.1     -0.1      8.9      1.0
           IV      2.2      4.1       1.8      2.6       0.0       0.4     -0.3      0.2      4.9      0.8

       ANNUAL      1.2      4.4       3.2      2.1      -0.8       0.9     -0.7      0.4      6.8      1.2

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        August 11, 1998
                                                                          Source: Bureau of Labor Statistics

SOURCES:  Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and
hours data are from the Bureau of Labor Statistics  and the Bureau of
Economic Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.