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,


 
 
 
 
 
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                                              TUESDAY, FEBRUARY 7, 1995
 
 
                                PRODUCTIVITY AND COSTS
                         Preliminary Fourth-Quarter Measures
                              and Annual Averages, 1994
 
 
     The Bureau of Labor Statistics of the U.S. Department of Labor today reported
preliminary fourth-quarter seasonally-adjusted annual rates of change in
productivityjas measured by output per hour of all personsjand changes for the full
year 1994.  In the fourth quarter, moderate productivity increases in business and
nonfarm business resulted from strong growth in both output and hours worked.
Percent changes in business and nonfarm business productivity were:
                                  Fourth  Annual averages
                                 quarter     1993-1994
 
     Business sector............    1.7          2.3
     Nonfarm business sector....    1.8          2.2
 
     For the year 1994, productivity improved from 1993 as output in both sectors
grew at the highest rates in 10 years.  Unit labor costs increased 0.9 percent in
1994 in both sectors, the smallest annual increase since 1964.  Fourth-quarter
productivity and related measures are summarized in table A and appear in detail in
tables 1 through 5.  Annual data are summarized in table B.
 
     In the manufacturing sector, increases in productivity were:
 
                                  Fourth  Annual averages
                                 quarter     1993-1994
 
     Manufacturing sector.......    2.8          4.9
       Durable goods ...........    3.8          5.9
       Nondurable goods ........    1.2          3.3
 
     Manufacturing productivity grew at a 2.8 percent annual rate in the fourth
quarter as both output and hours increased at the fastest rates since the fourth
quarter of 1987.  The growth rates in productivity, output, and hours in durable
goods manufacturing were more rapid than in nondurables (table A).  On an annual
basis, manufacturing productivity increased 4.9 percent, the largest yearly gain
since 1987.
 
     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:  Preliminary fourth-quarter 1994 measures
(Seasonally adjusted annual rates)
                                                Real
                                         Hourly hourly Unit
                    Produc-              compen-compen-labor
    Sector          tivity Output Hours  sation sation costs
 
                      Percent change from preceding quarter
 
   Business          1.7     5.4   3.7    3.4    1.1    1.7
   Nonfarm business  1.8     5.4   3.6    3.7    1.4    1.9
   Manufacturing     2.8     7.7   4.8    3.7    1.4    0.8
    Durable          3.8    10.4   6.3    4.4    2.1    0.5
    Nondurable       1.2     3.9   2.7    2.3    0.0    1.0
 
                      Percent change from same quarter a year ago
 
   Business          1.5     4.8   3.2    3.3    0.6    1.8
   Nonfarm business  1.4     4.5   3.1    3.4    0.7    2.0
   Manufacturing     4.6     7.0   2.3    2.3   -0.4   -2.2
    Durable          5.3     8.7   3.2    2.3   -0.4   -2.9
    Nondurable       3.4     4.6   1.1    2.1   -0.5   -1.3
 
 
                       THIRD-TO-FOURTH QUARTER CHANGES, 1994
Business
 
     Productivity increased at a 1.7 percent annual rate during the fourth quarter
of 1994 in the business sector, as output growth accelerated to a 5.4 percent
annual rate and hours of all persons engaged in the sector increased 3.7 percent.
In the third quarter, productivity had risen 3.7 percent, as output grew 4.5
percent and hours edged up 0.8 percent (seasonally adjusted annual rates).
 
     Hourly compensation increased at a 3.4 percent annual rate in the fourth
quarter of 1994, following 3.6 percent growth during the third quarter.  This
measure includes wages and salaries, supplements, employer contributions to
employee-benefit plans, and taxes.  Unit labor costs, which reflect changes in
hourly compensation and productivity, increased at a 1.7 percent annual rate during
the fourth quarter, compared with a 0.2 percent decrease one quarter earlier.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), rose at a 1.1 percent annual rate for
persons in the business sector.  This measure had been unchanged during the third
quarter.
 
     The implicit price deflator for business output, which reflects changes in
unit labor costs and unit nonlabor payments, increased at an annual rate of 1.0
percent in the fourth quarter.  In the third quarter, prices of the goods and
services which comprise business output had increased at a 2.0 percent annual rate.
 
 
                                          3
Nonfarm business
 
     In the nonfarm business sector, productivity gained 1.8 percent in the fourth
quarter, as output rose 5.4 percent and hours of all personsjemployees,
proprietors, and unpaid family workersjrose 3.6 percent (seasonally adjusted annual
rates).  The change in hours resulted from a 2.8 percent increase in employment and
a 0.8 percent increase in the average work week.  During the third quarter, nonfarm
productivity had increased at a 3.2 percent annual rate, as output grew 4.3 percent
and hours increased 1.1 percent (table 2).
 
     Hourly compensation rose 3.7 percent in the fourth quarter, and real hourly
compensation increased 1.4 percent when the increase in the CPI-U was taken into
account.  During the third quarter, hourly compensation had increased by 3.1
percent, and real hourly compensation had declined 0.4 percent.  Unit labor costs
increased 1.9 percent in the fourth quarter, compared with a 0.1 percent decrease
during the third quarter.
 
     The implicit price deflator for nonfarm business output rose 0.7 percent in
the fourth quarter, compared with a 2.3 percent increase one quarter earlier.
 
Manufacturing
 
     Manufacturing productivity grew at a 2.8 percent seasonally adjusted annual
rate in the fourth quarter of 1994, compared with a 3.5 percent increase in the
third quarter (table 3).  Output rose 7.7 percent in the fourth quarter, and hours
of all persons jumped 4.8 percent.  The increases in output and hours were the
largest since the fourth quarter of 1987, when output rose 7.9 percent and hours
increased 5.1 percent.  Both durable and nondurable goods industries experienced
productivity increases in the fourth quarter, but the increases in durable
manufacturing productivity and output were substantially greater (tables 4 and 5).
 
     Hourly compensation of all manufacturing workers increased 3.7 percent during
the fourth quarter, resulting in a gain of 1.4 percent when the increase in
consumer prices was taken into account.  Unit labor costs increased at a 0.8
percent annual rate in the fourth quarter of 1994, following four consecutive
quarters in which they had declined.
 
 
                         ANNUAL AVERAGE CHANGES, 1993-1994
 
Business
 
     Business productivity increased 2.3 percent when the annual average for 1994
is compared with the annual average for 1993 (table B).  In 1993, productivity had
grown 1.5 percent.  Output grew 5.3 percent in 1994, the largest gain since 1984
when output jumped 8.2 percent.  Hours of all persons engaged in the business
sector increased 2.9 percent, the most since 1988.
 
     Hourly compensation increased 3.2 percent in 1994, less than in any year since
1955.  Compensation per hour had increased 3.6 percent in 1993.  Real hourly
compensation increased 0.6 percent in both 1993 and 1994.  The slow growth of
hourly compensation combined with moderate productivity growth to produce an
increase of only 0.9 percent in unit labor costs during 1994.  This was the
smallest annual rise since 1964, when unit labor costs increased by the same
amount.
 
 
                                          4
 
Table B.  Annual changes in productivity and related measures, 1985-1994
 
   Measure         1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Business:
 Productivity....  1.4  2.1  1.0  1.0 -0.7  0.7  1.3  3.0  1.5  2.3
 Output..........  3.6  2.8  4.1  4.3  1.7  0.7 -1.0  2.7  3.8  5.3
 Hours...........  2.1  0.6  3.0  3.3  2.5  0.1 -2.3 -0.3  2.2  2.9
 Hourly comp.....  4.5  5.0  3.6  4.4  3.5  5.7  4.8  5.1  3.6  3.2
 Real hourly comp  0.9  3.1 -0.1  0.2 -1.3  0.3  0.6  2.0  0.6  0.6
 Unit labor costs  3.0  2.8  2.5  3.4  4.3  5.0  3.5  2.1  2.0  0.9
 
Nonfarm Business:
 Productivity....  0.8  2.0  0.8  1.0 -0.9  0.4  1.5  2.7  1.5  2.2
 Output..........  3.4  2.8  4.1  4.4  1.7  0.6 -1.0  2.4  4.1  5.2
 Hours...........  2.5  0.8  3.2  3.4  2.6  0.2 -2.4 -0.3  2.5  2.9
 Hourly comp.....  4.1  5.0  3.5  4.2  3.3  5.5  5.0  5.1  3.3  3.1
 Real hourly comp. 0.6  3.1 -0.2  0.1 -1.4  0.1  0.8  2.0  0.2  0.6
 Unit labor costs  3.3  2.9  2.6  3.3  4.3  5.1  3.5  2.4  1.7  0.9
 
Manufacturing:
 Productivity....  3.2  2.6  6.5  2.3  0.6  1.8  2.3  2.1  3.2  4.9
 Output..........  2.4  1.1  7.2  5.2  0.9 -0.4 -1.9  1.5  4.1  6.2
 Hours........... -0.7 -1.5  0.7  2.9  0.4 -2.2 -4.1 -0.6  0.8  1.2
 Hourly comp.....  5.0  4.1  2.3  3.9  3.9  5.3  5.3  4.2  3.3  2.8
 Real hourly comp. 1.4  2.2 -1.3 -0.2 -0.9 -0.1  1.1  1.2  0.3  0.3
 Unit labor costs  1.8  1.5 -3.9  1.6  3.3  3.5  3.0  2.1  0.1 -1.9
 
 
 
Nonfarm business
 
     Productivity increased 2.2 percent in the nonfarm business sector during 1994,
as output rose 5.2 percent and hours of all persons increased 2.9 percent.  The
increase in output in 1994 was the largest annual gain in the series since 1984
(8.2 percent).  In 1993, productivity had risen 1.5 percent, as output and hours
rose 4.1 percent and 2.5 percent, respectively.  Hourly compensation rose 3.1
percent in 1994;  this was the smallest gain since 1949 (3.0 percent) and followed
a 3.3 percent increase in 1993.  Real hourly compensation increased 0.6 percent in
1994, compared with 0.2 percent in 1993.
 
     Unit labor costs in the nonfarm business sector grew only 0.9 percent in 1994,
reflecting 3.1 percent growth in hourly compensation and 2.2 percent growth in
productivity.  In 1993, unit labor costs had increased 1.7 percent, as similar
hourly compensation gains were accompanied by slower productivity growth.
 
Manufacturing
 
     Manufacturing productivity grew 4.9 percent in 1994, as output rose 6.2
percent and hours of all persons increased 1.2 percent.  The increases in both
productivity and output in 1994 were the largest since 1987, when productivity
increased 6.5 percent and output increased 7.2 percent (table B).  During 1993,
productivity had risen 3.2 percent, output grew 4.1 percent, and hours increased
0.8 percent.
 
 
                                          5
     Hourly compensation of manufacturing workers increased 2.8 percent during
1994, or a gain of 0.3 percent when the increase in consumer prices is taken into
account.  Unit labor costs fell 1.9 percent in 1994, the first such decline since
1987, reflecting both faster productivity growth and a smaller gain in compensation
per hour than in 1993.
 
     Both durable and nondurable goods industries experienced productivity
increases in 1994.  The 5.9 percent gain among durable goods producers was based on
output growth of 8.0 percent, the biggest yearly gain since 1984.  In nondurable
goods industries, the productivity growth rate of 3.3 percent reflected 3.5 percent
output growth and a 0.2 percent increase in hours (tables 4 and 5).
 
 
Revised measures: Nonfinancial Corporations
 
     Productivity and cost measures for the third quarter for nonfinancial
corporations, which were revised to incorporate the most recent information, were
much the same as the preliminary results announced on Dec. 7, 1994.  Productivity
grew at an annual rate of 2.0 percent compared with the preliminary estimate of 1.9
percent (table C).
 
 
Table C.  Nonfinancial corporations: Previous and revised productivity and related
measures
 
Quarterly percent change at seasonally adjusted annual rate
                                        Real
                                Hourly  hourly Unit           Implicit
          Produc-               compen- compen-labor   Unit   price
Period    tivity Output  Hours  sation  sation costs   profits   deflator
 
Third quarter 1994:
 Previous 1.9    4.2     2.3    3.1    -0.4    1.2     1.3    1.6
 Current  2.0    4.2     2.2    3.3    -0.3    1.2     0.3    1.7
 
 
                                 Next release date
 
     The next issue of Productivity and Costs is scheduled for release at 10:00 AM
EST, Wednesday, March 8, 1995, and will contain revised fourth-quarter and annual
measures for business, nonfarm business, and manufacturing.
 
 
                                          6
 
 
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                                          7
 
 
                                 Technical Notes
 
 
 
Labor Input: The primary source of hours  ufactures. Nondurables include: Food and
and employment  data is  the BLS Current  kindred  products,   tobacco   products,
Employment  Statistics   (CES)  program,  textile mill products, apparel products,
which provides  monthly survey  data  on  paper and  allied products, printing and
total  employment   and  average  weekly  publishing,   chemicals   and   chemical
hours of  production and  nonsupervisory  products, petroleum refining and related
workers   in    nonagricultural   estab-  industries, rubber and plastic products,
lishments. Jobs  rather than persons are  leather    and     leather     products.
counted. Weekly  hours are  adjusted  to  Manufacturing  accounted  for  about  19
the hours  at work  definition using the  percent  of  GDP  in  1992.    Quarterly
BLS Hours  at Work survey, conducted for  manufacturing output  measures are based
this purpose.                             on the  index of  industrial  production
     Data   from    the   BLS    Current  prepared  monthly   by  the   Board   of
Population Survey  (CPS)  are  used  for  Governors of  the Federal Reserve System
farm labor;  in the  nonfarm sector, the  adjusted by  BLS to annual manufacturing
National  Income  and  Product  Accounts  output     levels     (gross     product
(NIPA) prepared  by the  Bureau of  Eco-  originating) from  the  National  Income
nomic Analysis of the Department of Com-  and Product  Accounts  prepared  by  the
merce and  the CPS  are used  to measure  Bureau of  Economic Analysis of the U.S.
labor input  for government enterprises,  Department of Commerce.
proprietors and unpaid family workers.         Nonfinancial  corporate  output  is
                                          equal to  GDP in  constant 1987 dollars,
Output: Business  sector output is equal  less    the    output    of    nonprofit
to  gross   domestic  product  (GDP)  in  institutions, output  of paid  employees
constant  1987   dollars,  less  general  of private  households, rental  value of
government,    output    of    nonprofit  owner-occupied dwellings, unincorporated
institutions, output  of paid  employees  business,  the  output  of  corporations
of private  households, rental  value of  engaged in  banking, finance,  stock and
owner-occupied dwellings,  and the  sta-  commodity  trading,   and   credit   and
tistical discrepancy  in  computing  the  insurance agencies,  and the statistical
NIPA. Corresponding  exclusions are also  discrepancy  in   computing  the   NIPA.
made in  labor inputs.  Business  output  Nonfinancial corporations  accounted for
was about  78 percent  of GDP  in  1992.  about 56 percent of GDP in 1992.
Nonfarm business,  which  also  excludes
farming, was  about 77 percent of GDP in  Productivity:  These  productivity  mea-
1992.                                     sures describe  the relationship between
     Total  manufacturing  measures  are  real output  and the labor time involved
computed by  summing series prepared for  in its production. They show the changes
the   durable   and   nondurable   goods  from period  to period  in the amount of
sectors. Durables  include the following  goods and  services produced  per  hour.
2-digit SIC  industries:  Primary  metal  Although these measures relate output to
industries; fabricated  metal  products;  hours at  work of all persons engaged in
nonelectrical machinery;  industrial and  a  sector,   they  do  not  measure  the
commercial   machinery    and   computer  specific contribution of labor, capital,
equipment;    electronic    and    other  or  any   other  factor  of  production.
electrical   equipment;   transportation  Rather, they  reflect the  joint effects
equipment;   instruments;   lumber   and  of many influences, including changes in
lumber products; furniture and fixtures;  technology; capital investment; level of
stone,  clay,  and  glass  and  concrete  output; utilization of capacity, energy,
products;   and    miscellaneous    man-  and  materials;   the  organization   of
 
 
                                          8
production; managerial  skill;  and  the
characteristics and  effort of  the work
force.
 
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individuals upon  request. Voice  phone:
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Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
         and prices, seasonally adjusted
                                                                    Real
            Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
            and        hour of                of all    tion per    tion per    labor    labor pay-  price
            quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
         ---------------------------------------------------------------------------------------------------------
                                                  Indexes 1982=100
 
         1992       I     114.5      133.7     116.8     152.2       105.9     133.0       148.4       138.0
                   II     114.8      134.4     117.1     153.7       106.1     133.9       148.8       138.8
                  III     115.9      136.1     117.4     156.0       106.8     134.7       145.8       138.3
                   IV     116.8      137.9     118.1     157.7       107.1     135.1       150.2       140.1
 
               ANNUAL     115.5      135.5     117.4     154.9       106.6     134.2       148.3       138.8
 
         1993       I     116.2      138.1     118.9     158.8       107.0     136.6       149.5       140.8
                   II     116.4      139.6     119.9     160.0       107.0     137.5       149.6       141.4
                  III     117.3      140.9     120.1     161.2       107.3     137.4       150.4       141.6
                   IV     119.0      143.9     121.0     162.1       107.2     136.3       153.8       142.1
 
               ANNUAL     117.2      140.6     120.0     160.5       107.2     136.9       150.9       141.5
 
         1994       I     119.8      145.8     121.7     164.6       108.3     137.4       153.2       142.6
                   II     119.2      147.2     123.5     164.7       107.6     138.2       155.3       143.8
                  III    r120.3     r148.8     123.7    r166.2      r107.6    r138.1      r157.6       144.5
                   IV     120.8      150.8     124.8     167.5       107.9     138.7       157.5       144.9
 
               ANNUAL     119.9      148.1     123.5     165.6       107.8     138.1       155.9       144.0
         ---------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
         1992       I       5.5        3.4      -1.9       5.8         3.1       0.3         9.1         3.3
                   II       1.1        2.2       1.1       4.0         0.7       2.8         1.0         2.2
                  III       3.7        4.9       1.2       6.1         3.0       2.4        -7.7        -1.3
                   IV       3.2        5.6       2.3       4.4         1.2       1.2        12.7         5.1
 
               ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
         1993       I      -1.9        0.6       2.5       2.6        -0.4       4.6        -2.0         2.3
                   II       0.6        4.2       3.6       3.1         0.0       2.5         0.3         1.7
                  III       3.3        4.0       0.7       3.0         1.1      -0.3         2.1         0.6
                   IV       5.7        8.6       2.8       2.4        -0.6      -3.1         9.4         1.2
 
               ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
         1994       I       2.9        5.5       2.5       6.3         4.1       3.3        -1.7         1.5
                   II      -2.0        3.7       5.9       0.2        -2.5       2.3         5.8         3.5
                  III      r3.7       r4.5      r0.8      r3.6        r0.0     r-0.2        r5.9        r2.0
                   IV       1.7        5.4       3.7       3.4         1.1       1.7        -0.3         1.0
 
               ANNUAL       2.3        5.3       2.9       3.2         0.6       0.9         3.3         1.7
         ---------------------------------------------------------------------------------------------------------
 
 
 
 
 
                             Percent change from corresponding quarter of previous year
 
         1992       I       2.8        1.7      -1.1       4.9         2.0       2.1         3.2         2.5
                   II       2.5        2.0      -0.6       4.9         1.7       2.3         2.5         2.4
                  III       3.1        3.0      -0.2       5.3         2.2       2.1         0.3         1.5
                   IV       3.4        4.0       0.6       5.1         2.0       1.7         3.5         2.3
 
               ANNUAL       3.0        2.7      -0.3       5.1         2.0       2.1         2.3         2.2
 
         1993       I       1.5        3.3       1.8       4.3         1.1       2.8         0.7         2.0
                   II       1.4        3.8       2.4       4.1         0.9       2.7         0.6         1.9
                  III       1.3        3.6       2.3       3.3         0.5       2.0         3.1         2.4
                   IV       1.9        4.3       2.4       2.8         0.0       0.9         2.4         1.4
 
               ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
         1994       I       3.1        5.6       2.4       3.7         1.1       0.6         2.5         1.2
                   II       2.4        5.4       3.0       3.0         0.5       0.5         3.8         1.7
                  III       2.5       r5.6       3.0       3.1         0.2       0.6        r4.8         2.0
                   IV       1.5        4.8       3.2       3.3         0.6       1.8         2.4         2.0
 
               ANNUAL       2.3        5.3       2.9       3.2         0.6       0.9         3.3         1.7
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                      February 7, 1995
         r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
         and prices, seasonally adjusted
                                                                    Real
            Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
            and        hour of                of all    tion per    tion per    labor    labor pay-  price
            quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
         ---------------------------------------------------------------------------------------------------------
                                                  Indexes 1982=100
 
         1992       I     112.6      133.6     118.6     150.9       105.0     134.0       149.5       139.0
                   II     113.1      134.4     118.8     152.6       105.3     134.9       150.4       139.9
                  III     113.9      135.9     119.3     154.7       106.0     135.9       147.0       139.5
                   IV     115.0      137.9     120.0     156.4       106.3     136.1       152.1       141.2
 
               ANNUAL     113.7      135.5     119.2     153.7       105.7     135.2       149.7       139.9
 
         1993       I     114.4      138.3     120.9     157.2       106.0     137.5       151.5       142.0
                   II     114.5      139.9     122.1     158.2       105.8     138.1       151.8       142.5
                  III     115.6      141.5     122.4     159.3       106.1     137.7       153.5       142.8
                   IV     117.0      144.3     123.3     160.2       105.9     136.9       156.1       143.1
 
               ANNUAL     115.4      141.0     122.2     158.7       106.0     137.5       153.3       142.6
 
         1994       I     117.9      146.1     124.0     162.6       106.9     137.9       155.3       143.5
                   II     117.2      147.3     125.6     162.9       106.4     138.9       158.1       145.1
                  III    r118.2      148.8     126.0     164.1      r106.3     138.9      r160.8       145.9
                   IV     118.7      150.8     127.1     165.6       106.6     139.5       160.2       146.2
 
               ANNUAL     117.9      148.3     125.8     163.7       106.6     138.8       158.6       145.2
         ---------------------------------------------------------------------------------------------------------
                              Percent change from previous quarter at annual rate(5)
 
         1992       I       4.2        2.4      -1.8       5.7         3.0       1.4         6.5         3.2
                   II       1.9        2.5       0.6       4.6         1.2       2.6         2.3         2.5
                  III       2.8        4.4       1.6       5.8         2.6       2.9        -8.6        -1.2
                   IV       3.8        6.2       2.3       4.5         1.2       0.6        14.4         5.1
 
               ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
         1993       I      -2.0        1.0       3.0       2.1        -0.9       4.1        -1.4         2.2
                   II       0.4        4.7       4.3       2.4        -0.7       2.0         0.8         1.6
                  III       4.0        4.9       0.9       2.8         0.9      -1.2         4.4         0.7
                   IV       4.9        7.9       2.9       2.4        -0.6      -2.4         7.1         0.8
 
               ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
         1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
                   II      -2.1        3.2       5.5       0.7        -2.0       2.9         7.5         4.5
                  III      r3.2       r4.3      r1.1      r3.1       r-0.4     r-0.1        r6.9        r2.3
                   IV       1.8        5.4       3.6       3.7         1.4       1.9        -1.3         0.7
 
               ANNUAL       2.2        5.2       2.9       3.1         0.6       0.9         3.5         1.8
         ---------------------------------------------------------------------------------------------------------
 
 
 
 
 
                             Percent change from corresponding quarter of previous year
 
         1992       I       2.4        1.4      -1.0       4.9         2.0       2.4         2.8         2.5
                   II       2.4        1.8      -0.6       5.0         1.8       2.5         2.8         2.6
                  III       2.7        2.6      -0.1       5.3         2.1       2.6         0.0         1.7
                   IV       3.2        3.8       0.7       5.1         2.0       1.9         3.3         2.4
 
               ANNUAL       2.7        2.4      -0.3       5.1         2.0       2.4         2.2         2.3
 
         1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
                   II       1.2        4.0       2.8       3.7         0.5       2.4         0.9         1.9
                  III       1.5        4.2       2.6       2.9         0.1       1.4         4.4         2.4
                   IV       1.8        4.6       2.7       2.4        -0.3       0.6         2.7         1.3
 
               ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
         1994       I       3.0        5.7       2.6       3.4         0.9       0.3         2.5         1.1
                   II       2.4        5.3       2.8       3.0         0.5       0.6         4.2         1.8
                  III      r2.2       r5.2       2.9      r3.1         0.2       0.9        r4.8         2.2
                   IV       1.4        4.5       3.1       3.4         0.7       2.0         2.6         2.2
 
               ANNUAL       2.2        5.2       2.9       3.1         0.6       0.9         3.5         1.8
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                      February 7, 1995
         r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
 
 
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
         seasonally adjusted
                                                                                     Real
              Year           Output per                  Hours       Compensa-       compensa-      Unit
              and            hour of                     of all      tion per        tion per       labor
              quarter        all persons     Output      persons     hour(1)         hour(2)        costs
         --------------------------------------------------------------------------------------------------
                                                    Indexes 1982=100
 
         1992       I            126.4        128.6        101.8        145.2           101.0        114.9
                   II            126.8        129.6        102.2        146.8           101.3        115.8
                  III            127.6        130.3        102.1        148.4           101.6        116.3
                   IV            128.8        132.0        102.5        150.7           102.4        117.0
 
               ANNUAL            127.5        130.1        102.0        147.9           101.7        116.0
 
         1993       I            130.0        134.0        103.1        150.0           101.1        115.4
                   II            130.7        134.4        102.8        152.1           101.8        116.4
                  III            131.7        135.4        102.8        153.6           102.3        116.6
                   IV            133.6        137.7        103.0        155.1           102.5        116.1
 
               ANNUAL            131.6        135.4        102.9        152.8           102.0        116.1
 
         1994       I            135.7        140.2        103.3        156.6           103.0        115.4
                   II            137.6        142.7        103.7        156.1           101.9        113.4
                  III            138.8       r144.6        104.2        157.2           101.8        113.3
                   IV            139.8        147.4        105.4        158.6           102.2        113.5
 
               ANNUAL            138.0        143.7        104.2        157.1           102.3        113.9
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I              0.6         -1.6         -2.1          1.5            -1.1          0.9
                   II              1.3          3.0          1.7          4.5             1.2          3.2
                  III              2.6          2.1         -0.5          4.3             1.2          1.6
                   IV              3.8          5.3          1.4          6.5             3.2          2.6
 
               ANNUAL              2.1          1.5         -0.6          4.2             1.2          2.1
 
         1993       I              3.7          6.3          2.6         -2.0            -4.9         -5.5
                   II              2.4          1.3         -1.1          6.0             2.8          3.5
                  III              3.0          3.0          0.0          3.9             2.0          0.9
                   IV              6.0          6.9          0.9          3.9             0.9         -2.0
 
               ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
         1994       I              6.4          7.4          1.0          4.0             1.8         -2.3
                   II              5.6          7.2          1.5         -1.4            -4.1         -6.7
                  III             r3.5         r5.6          2.0          3.0            -0.5        r-0.5
                   IV              2.8          7.7          4.8          3.7             1.4          0.8
 
               ANNUAL              4.9          6.2          1.2          2.8             0.3         -1.9
         --------------------------------------------------------------------------------------------------
 
 
 
 
 
                            Percent change from corresponding quarter of previous year
 
         1992       I              2.6          1.3         -1.2          4.0             1.1          1.4
                   II              1.9          1.7         -0.1          4.0             0.9          2.1
                  III              1.4          0.8         -0.6          4.2             1.1          2.8
                   IV              2.1          2.2          0.1          4.2             1.1          2.1
 
               ANNUAL              2.1          1.5         -0.6          4.2             1.2          2.1
 
         1993       I              2.9          4.2          1.3          3.3             0.1          0.4
                   II              3.1          3.7          0.6          3.6             0.5          0.5
                  III              3.2          4.0          0.7          3.5             0.7          0.3
                   IV              3.8          4.4          0.6          2.9             0.2         -0.8
 
               ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
         1994       I              4.4          4.6          0.2          4.4             1.9          0.0
                   II              5.3          6.1          0.8          2.6             0.1         -2.5
                  III              5.4          6.8          1.3         r2.4            -0.5         -2.9
                   IV              4.6          7.0          2.3          2.3            -0.4         -2.2
 
               ANNUAL              4.9          6.2          1.2          2.8             0.3         -1.9
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                February 7, 1995
         r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
         seasonally adjusted
                                                                                     Real
              Year           Output per                  Hours       Compensa-       compensa-      Unit
              and            hour of                     of all      tion per        tion per       labor
              quarter        all persons     Output      persons     hour(1)         hour(2)        costs
         --------------------------------------------------------------------------------------------------
                                                    Indexes 1982=100
 
         1992       I            135.3        134.5         99.4        143.1            99.5        105.7
                   II            136.4        135.7         99.5        144.9           100.0        106.2
                  III            137.5        136.5         99.3        146.4           100.2        106.5
                   IV            139.2        138.7         99.7        149.2           101.4        107.2
 
               ANNUAL            137.3        136.3         99.3        146.1           100.5        106.4
 
         1993       I            141.0        141.6        100.4        147.4            99.4        104.5
                   II            142.3        142.2         99.9        149.4           100.0        105.0
                  III            143.4        143.5        100.1        150.7           100.3        105.1
                   IV            146.6        147.4        100.5        152.3           100.7        103.9
 
               ANNUAL            143.5        143.7        100.1        150.1           100.2        104.6
 
         1994       I            149.3        150.8        101.0        154.0           101.2        103.1
                   II            151.2        153.4        101.4        153.1           100.0        101.2
                  III           r153.0       r156.3        102.2        154.1            99.8        100.7
                   IV            154.4        160.2        103.8        155.8           100.3        100.9
 
               ANNUAL            151.9        155.2        102.1        154.2           100.4        101.5
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I             -1.0         -3.2         -2.2          0.9            -1.7          1.9
                   II              3.3          3.7          0.4          5.2             1.8          1.8
                  III              3.1          2.2         -0.8          4.1             1.0          1.1
                   IV              5.1          6.8          1.6          8.1             4.7          2.8
 
               ANNUAL              3.0          1.5         -1.5          4.5             1.5          1.4
 
         1993       I              5.5          8.5          2.8         -4.8            -7.6         -9.8
                   II              3.7          1.8         -1.9          5.6             2.5          1.9
                  III              3.0          3.9          0.8          3.4             1.5          0.3
                   IV              9.4         11.2          1.7          4.4             1.3         -4.6
 
               ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
         1994       I              7.3          9.5          2.0          4.4             2.3         -2.7
                   II              5.3          7.1          1.7         -2.3            -4.9         -7.2
                  III             r4.8         r7.8          2.9         r2.7            -0.8        r-1.9
                   IV              3.8         10.4          6.3          4.4             2.1          0.5
 
               ANNUAL              5.9          8.0          2.0          2.7             0.2         -3.0
         --------------------------------------------------------------------------------------------------
 
 
 
 
 
                            Percent change from corresponding quarter of previous year
 
         1992       I              3.5          1.3         -2.1          4.0             1.1          0.5
                   II              3.3          1.8         -1.4          4.4             1.3          1.1
                  III              2.2          0.7         -1.5          4.6             1.5          2.3
                   IV              2.6          2.3         -0.2          4.5             1.4          1.9
 
               ANNUAL              3.0          1.5         -1.5          4.5             1.5          1.4
 
         1993       I              4.2          5.3          1.0          3.0            -0.1         -1.2
                   II              4.3          4.8          0.4          3.1             0.0         -1.1
                  III              4.3          5.2          0.8          2.9             0.1         -1.3
                   IV              5.4          6.3          0.8          2.1            -0.7         -3.2
 
               ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
         1994       I              5.8          6.5          0.7          4.4             1.9         -1.3
                   II              6.2          7.9          1.6          2.4             0.0         -3.6
                  III              6.7         r8.9          2.1          2.3            -0.6        r-4.1
                   IV              5.3          8.7          3.2          2.3            -0.4         -2.9
 
               ANNUAL              5.9          8.0          2.0          2.7             0.2         -3.0
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                February 7, 1995
         r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
         seasonally adjusted
                                                                                     Real
              Year           Output per                  Hours       Compensa-       compensa-      Unit
              and            hour of                     of all      tion per        tion per       labor
              quarter        all persons     Output      persons     hour(1)         hour(2)        costs
         --------------------------------------------------------------------------------------------------
                                                    Indexes 1982=100
 
         1992       I            115.4        121.5        105.3        149.5           104.0        129.6
                   II            115.0        122.1        106.2        151.0           104.2        131.3
                  III            115.6        122.7        106.1        152.7           104.6        132.1
                   IV            116.2        123.7        106.4        154.2           104.8        132.7
 
               ANNUAL            115.6        122.5        105.9        152.0           104.5        131.4
 
         1993       I            116.5        124.7        107.0        155.2           104.6        133.1
                   II            116.7        124.9        107.0        157.7           105.5        135.1
                  III            117.6        125.5        106.7        159.5           106.2        135.6
                   IV            118.0        125.8        106.6        160.7           106.2        136.2
 
               ANNUAL            117.2        125.2        106.8        158.3           105.7        135.0
 
         1994       I            119.4        127.2        106.5        161.9           106.5        135.6
                   II            121.2        129.5        106.9        161.9           105.7        133.5
                  III           r121.7        130.3        107.1        163.2           105.7        134.1
                   IV            122.1        131.6        107.8        164.1           105.7        134.5
 
               ANNUAL            121.1        129.7        107.1        162.8           106.0        134.4
         --------------------------------------------------------------------------------------------------
                                Percent change from previous quarter at annual rate(5)
 
         1992       I              2.7          0.6         -2.0          2.4            -0.3         -0.3
                   II             -1.4          2.0          3.4          3.9             0.5          5.3
                  III              2.1          1.9         -0.2          4.6             1.5          2.5
                   IV              2.2          3.3          1.1          4.1             0.8          1.9
 
               ANNUAL              0.9          1.5          0.6          4.0             0.9          3.1
 
         1993       I              1.2          3.5          2.3          2.4            -0.6          1.2
                   II              0.7          0.6         -0.1          6.6             3.4          5.9
                  III              3.0          1.8         -1.1          4.6             2.7          1.6
                   IV              1.4          1.1         -0.3          3.1             0.1          1.7
 
               ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
         1994       I              5.0          4.6         -0.4          3.1             0.9         -1.9
                   II              6.1          7.4          1.3         -0.1            -2.8         -5.8
                  III             r1.6         r2.5         r0.9          3.3            -0.3         r1.7
                   IV              1.2          3.9          2.7          2.3             0.0          1.0
 
               ANNUAL              3.3          3.5          0.2          2.8             0.3         -0.5
         --------------------------------------------------------------------------------------------------
 
 
 
 
 
                            Percent change from corresponding quarter of previous year
 
         1992       I              1.3          1.3          0.0          4.1             1.2          2.8
                   II              0.0          1.6          1.6          3.7             0.6          3.7
                  III              0.3          1.0          0.7          3.8             0.7          3.5
                   IV              1.4          2.0          0.6          3.8             0.7          2.3
 
               ANNUAL              0.9          1.5          0.6          4.0             0.9          3.1
 
         1993       I              1.0          2.7          1.7          3.8             0.6          2.7
                   II              1.5          2.3          0.8          4.4             1.3          2.9
                  III              1.7          2.3          0.6          4.4             1.6          2.7
                   IV              1.5          1.8          0.2          4.2             1.4          2.6
 
               ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
         1994       I              2.5          2.0         -0.4          4.3             1.8          1.8
                   II              3.8          3.7         -0.1          2.7             0.2         -1.1
                  III             r3.5         r3.9          0.4          2.3            -0.5         -1.1
                   IV              3.4          4.6          1.1          2.1            -0.5         -1.3
 
               ANNUAL              3.3          3.5          0.2          2.8             0.3         -0.5
         --------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                February 7, 1995
         r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
 
 
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
         and prices, seasonally adjusted
 
                       Output                      Hourly    Real                Unit     Total    Unit   Implicit
             Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
             and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
             quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
         ---------------------------------------------------------------------------------------------------------
                                                    Indexes 1982=100
 
         1992       I    116.8     137.3    117.6    147.7     102.7     126.5    119.3    124.5    170.4    127.3
                   II    117.6     138.8    118.1    149.4     103.1     127.1    118.0    124.5    175.6    127.6
                  III    119.1     140.7    118.1    151.5     103.7     127.2    119.0    124.9    171.0    127.7
                   IV    120.6     143.4    118.9    153.1     104.0     127.0    115.7    123.8    191.2    127.9
 
               ANNUAL    118.5     140.0    118.2    150.4     103.5     126.9    118.0    124.4    177.2    127.7
 
         1993       I    120.0     143.3    119.4    154.0     103.8     128.3    116.8    125.0    183.7    128.7
                   II    121.3     145.9    120.3    154.5     103.4     127.3    115.8    124.1    199.4    128.7
                  III    122.7     148.1    120.7    155.4     103.5     126.7    115.8    123.6    202.5    128.5
                   IV    124.1     150.9    121.6    155.9     103.1     125.7    114.8    122.6    220.9    128.7
 
               ANNUAL    122.0     147.0    120.5    154.9     103.5     127.0    115.8    123.8    201.9    128.6
 
         1994       I    125.1     153.0    122.3    157.9     103.8     126.2    116.6    123.5    218.2    129.4
                   II    124.6     154.8    124.2    157.9     103.1     126.7    115.2    123.4    228.7    129.9
                  III    125.2     156.5    124.9    159.1     103.0    r127.1   r116.2   r124.0   r228.8   r130.5
         ---------------------------------------------------------------------------------------------------------
                                      Percent change from previous quarter at annual rate(5)
 
         1992       I      1.3       0.9     -0.4      3.9       1.2       2.6     -2.6      1.2     14.8      2.2
                   II      2.9       4.7      1.7      4.7       1.3       1.7     -4.4      0.0     12.8      1.0
                  III      5.2       5.5      0.3      5.7       2.5       0.4      3.5      1.2    -10.0      0.2
                   IV      5.1       8.0      2.7      4.3       1.0      -0.8    -10.4     -3.5     56.4      0.7
 
               ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
         1993       I     -1.9      -0.3      1.7      2.3      -0.7       4.4      3.6      4.2    -14.9      2.3
                   II      4.5       7.5      2.8      1.4      -1.7      -3.0     -3.3     -3.1     38.9      0.2
                  III      4.5       6.0      1.5      2.2       0.4      -2.1      0.0     -1.6      6.5     -0.8
                   IV      4.7       7.8      3.0      1.4      -1.5      -3.1     -3.4     -3.2     41.5      0.6
 
               ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
         1994       I      3.3       5.8      2.5      5.1       3.0       1.8      6.6      3.1     -4.9      2.2
                   II     -1.4       4.8      6.4     -0.1      -2.7       1.4     -4.8     -0.3     20.7      1.8
                  III     r2.0       4.2     r2.2     r3.3     r-0.3       1.2     r3.5     r1.8     r0.3     r1.7
         ---------------------------------------------------------------------------------------------------------
 
 
 
 
 
                                   Percent change from corresponding quarter of previous year
 
         1992       I      2.4       1.7     -0.7      4.3       1.4       1.8     -1.2      1.0      5.2      1.3
                   II      2.6       2.7      0.2      4.5       1.3       1.9     -2.1      0.8      5.0      1.1
                  III      3.3       3.5      0.3      4.9       1.7       1.6     -1.5      0.7      3.7      0.9
                   IV      3.6       4.7      1.1      4.6       1.5       1.0     -3.6     -0.3     16.2      1.1
 
               ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
         1993       I      2.8       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
                   II      3.2       5.1      1.9      3.4       0.3       0.2     -1.8     -0.3     13.6      0.8
                  III      3.0       5.2      2.2      2.6      -0.3      -0.4     -2.7     -1.0     18.5      0.6
                   IV      2.9       5.2      2.2      1.8      -0.9      -1.0     -0.8     -1.0     15.5      0.6
 
               ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
         1994       I      4.2       6.8      2.4      2.5       0.0      -1.6     -0.1     -1.2     18.8      0.5
                   II      2.7       6.1      3.3      2.2      -0.3      -0.5     -0.5     -0.5     14.7      0.9
                  III      2.1       5.7      3.5      2.4     r-0.4       0.3     r0.4      0.3    r13.0     r1.6
         ---------------------------------------------------------------------------------------------------------
         See footnotes following table 6.                                       February 7, 1995
         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)  Unit nonlabor cost includes capital consumption allowances, interest, rental
     income of persons, and indirect taxes.  For nonfinancial corporations, rental
     income of persons is zero by definition.
 
(7)  Total unit cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital
     consumption adjustments.