USDL 99-210
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EDT,
THURSDAY, AUGUST 5, 1999.
                                      
Internet address:      http://stats.bls.gov/lprhome.htm
Historical, technical  
  information:         (202) 606-5606
Current data:          (202) 606-7828
Media contact:         (202) 606-5902
                                      
                                      
                           PRODUCTIVITY AND COSTS
                             Second Quarter 1999


     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 1999.  The preliminary seasonally adjusted annual
rates of productivity change in the second quarter were:

               1.6 percent in the business sector and
               1.3 percent in the nonfarm business sector.

In both the business and nonfarm business sectors, productivity grew less in
the second quarter than in the first quarter, when output per hour of all
persons (as revised) rose 3.9 percent in the business sector and 3.6 percent
in the nonfarm business sector.

     In manufacturing, productivity changes in the second quarter were:

               4.9 percent in manufacturing,
               9.0 percent in durable goods manufacturing, and
              -0.3 percent in nondurable goods manufacturing.

     Productivity rose 4.9 percent in the manufacturing sector in the second
quarter as output increased 4.2 percent and hours of all persons fell 0.7
percent.  In the first quarter, manufacturing productivity rose 6.3 percent.
Output and hours in manufacturing, which includes about 17 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.

-------------------------------------------------------------------------
Effective  with  the  release of third-quarter data  in  November 1999,
the Productivity and Costs news release will be issued at 8:30 a.m. E.T.
rather than at 10:00 a.m.
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary second-quarter 1999 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           1.6       2.5      0.9     5.4       1.8       3.8
Nonfarm business   1.3       2.4      1.1     5.1       1.5       3.8
Manufacturing      4.9       4.2     -0.7     6.0       2.4       1.1
  Durable          9.0       7.7     -1.2     6.2       2.6      -2.6
  Nondurable      -0.3      -0.2      0.1     5.8       2.2       6.1
-------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business           3.2       4.7      1.4     4.7       2.6       1.4
Nonfarm business   2.9       4.7      1.7     4.3       2.2       1.4
Manufacturing      5.3       2.7     -2.5     4.4       2.3      -0.8
  Durable          8.8       5.8     -2.8     4.1       1.9      -4.3
  Nondurable       1.1      -1.0     -2.0     5.1       3.0       4.0
-------------------------------------------------------------------------


     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  1999,  business  sector
productivity  increased  at a 1.6 percent annual rate,  as  output  rose  2.5
percent and hours of all persons engaged in the sector increased 0.9 percent.
As  revised,  labor  productivity rose 3.9 percent in the  first  quarter  as
output and hours increased 4.9 and 0.9 percent, respectively (table 1).

      Hourly compensation increased 5.4 percent in the second quarter and 5.1
percent  in  the  first  quarter of 1999.  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 3.8-percent annual rate during  the  second
quarter, up from a 1.1-percent rise in the first quarter of 1999.

      Real  hourly  compensation, which takes into  account  changes  in  the
Consumer  Price  Index for All Urban Consumers (CPI-U), increased  at  a  1.8
percent  annual  rate  during the second quarter of  1999  after  rising  3.6
percent in the previous quarter.

      The  implicit  price deflator for the business sector,  which  reflects
changes in unit labor costs and unit nonlabor payments, increased 1.3 percent
in the second quarter and 1.0 percent in the first quarter of 1999.

Nonfarm business

     Productivity increased 1.3 percent in the nonfarm business sector during
the  second  quarter of 1999, after rising 3.6 percent in the  first  quarter
(table  2).   Output rose 2.4 percent in the second quarter, after increasing
5.0  percent during the first quarter of 1999.  Hours of all persons  working
in  the  sector increased 1.1 percent in the second quarter.   This  was  the
smallest  increase in hours since the first quarter of 1996 (when  they  were
unchanged) and followed a 1.3 percent rise in the first quarter of 1999.

      Hourly compensation increased 5.1 percent in the second quarter,  after
posting  a 4.4 percent rise in the first quarter of 1999.  When the  rise  in
the  CPI-U  is  taken into account, real hourly compensation for  the  second
quarter of 1999 rose 1.5 percent.
     
     Unit  labor costs grew 3.8 percent in the second quarter and 0.8 percent
one quarter earlier.  The implicit price deflator for nonfarm business output
grew  1.6 percent in the second quarter and 1.3 percent in the first  quarter
of 1999.

Manufacturing

      Productivity increased 4.9 percent in manufacturing, as output rose 4.2
percent  and hours of all persons decreased 0.7 percent (seasonally  adjusted
annual rates).  Growth in productivity, output, and hours was quite different
in   the   durable  and  nondurable  goods  subsectors.   In  durable  goods,
productivity rose 9.0 percent, reflecting output growth of 7.7 percent and  a
drop  of  1.2  percent  in  hours  of  all  persons.   In  nondurable  goods,
productivity  fell 0.3 percent in the second quarter, as output  declined  by
0.2  percent and hours increased 0.1 percent (tables 4 and 5).  In the  first
quarter,  total  manufacturing  productivity  rose  6.3  percent,  as  output
increased  1.6  percent  and hours declined 4.5  percent  (table  3).   Labor
productivity  in  manufacturing has risen in every quarter  since  the  third
quarter of 1993, when it fell 1.2 percent.

      Hourly  compensation of all manufacturing workers increased 6.0 percent
during  the  second quarter.  The trends in the two subsectors were  similar;
hourly  compensation rose 6.2 percent in durable goods  and  5.8  percent  in
nondurable  goods.   When  the  increase in consumer  prices  is  taken  into
account,  the real hourly compensation of all manufacturing workers rose  2.4
percent in the second quarter.

      Unit labor costs in manufacturing rose at a 1.1-percent annual rate  in
the  second  quarter.  The trends in unit labor costs in the  two  subsectors
were  quite  different,  reflecting  the  very  different  growth  rates   in
productivity.    Unit  labor  costs  fell  2.6  percent  in   durable   goods
manufacturing  and  rose 6.1 percent in nondurable goods manufacturing.   The
increase  in  nondurable goods manufacturing unit labor costs in  the  second
quarter was the largest to occur since a 6.2-percent rise was posted  in  the
second quarter of 1993.

Revised Measures

      Current  and  previous measures for the first quarter of 1999  for  the
business, nonfarm business, and manufacturing sectors are compared  in  table
B.   In  the business and nonfarm business sectors, both the output and hours
measures  grew  more  than  reported on June 8,  based  on  information  then
available.   The revisions to output and hours were similar and  resulted  in
minor changes to the productivity and unit labor cost measures.  Productivity
and related measures were little changed in the manufacturing sector.

---------------------------------------------------------------------
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 1999
Business:                                                      
  Previous         4.1      4.6      0.4    5.0      3.5       0.9
  Current          3.9      4.9      0.9    5.1      3.6       1.1
Nonfarm business:                                              
  Previous         3.5      4.4      0.9    4.2      2.6       0.7
  Current          3.6      5.0      1.3    4.4      2.9       0.8
Manufacturing:                                                 
  Previous         6.2      1.6     -4.4    5.1      3.5      -1.1
  Current          6.3      1.6     -4.5    5.2      3.7      -1.1
---------------------------------------------------------------------


     All  labor  input  measures  have been revised  to  reflect  the  annual
benchmarking  process of employment levels derived from the  monthly  Current
Employment Statistics (CES) survey that occurred on June 4.  Updated seasonal
adjustment factors also have been incorporated into the labor input measures.
These revisions extend back to the first quarter of 1994. Appendix tables 1-6
present quarterly and annual measures for 1994-96.

Revised measures: Nonfinancial Corporations

       First-quarter   productivity  and  cost  measures   for   nonfinancial
corporations also were revised to incorporate the more recent information  on
output,  compensation,  profits, and labor inputs.  Productivity  growth  was
revised  up,  as  output grew faster than reported on June 8  while  employee
hours remained relatively unchanged.  Unit labor costs were revised down  and
now  show a decline of 0.1 percent.  Unit profits grew at an annual  rate  of
13.4 percent, compared with the preliminary estimate of 7.7 percent(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 1999
Previous  4.2      5.7     1.5    4.7      3.2     0.5    7.7      0.2
Current   5.0      6.7     1.6    4.9      3.4    -0.1   13.4      0.2
-----------------------------------------------------------------------------

                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 a.m.
EDT, Thursday, Sept. 2, 1999.  Revised second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time, along with
measures for nonfinancial corporations.

-----------------------------------------------------------------------------
NOTICE:  The  Nov.  12,  1999,  release  of  "Productivity  and  Costs"  will
incorporate a comprehensive, historical revision of the national  income  and
product accounts produced by the Bureau of Economic Analysis, U.S. Department
of  Commerce.  Beginning with that release, BLS also plans to incorporate the
Consumer  Price  Index research series using current methods (CPI-U-RS)  into
its  measure  of  real hourly compensation. Information  on  this  series  is
available  in  "CPI research series using current methods, 1978-98,"  Monthly
Labor Review, June 1999.
-----------------------------------------------------------------------------

                                      
                               TECHNICAL NOTES
                                      
Labor Hours: Hours data for the labor productivity and costs measures include
hours for all persons working in the sector--wage and salary workers, the
self-employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  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
Commerce 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-
occupied 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

  1997       I    r104.3      117.8     112.9     113.2        99.5      108.5      r112.3      109.9
            II     104.8      119.1    r113.7     113.9        99.8     r108.6       113.2      110.3
           III     105.8      120.6     114.0     115.0       100.3     r108.7      r113.9      110.6
            IV     106.0      121.7    r114.7    r116.6      r101.2      109.9      r112.5      110.8

        ANNUAL     105.2      119.8     113.8     114.7       100.3      109.0       112.9      110.4

  1998       I    r107.0      123.7    r115.7     117.9       102.1      110.2      r112.1      110.9
            II    r107.0      124.3     116.1     119.1      r102.6      111.2       110.5      111.0
           III    r107.9      125.5     116.4    r120.3       103.2      111.5       110.4      111.1
            IV     109.0      127.7     117.2     121.5      r103.8      111.5       110.7      111.2

        ANNUAL     107.7      125.3     116.3     119.7       103.0      111.1       110.9      111.0

  1999       I     110.1     r129.3    r117.5     123.0      r104.7     r111.8      r110.9     r111.5
            II     110.5      130.1     117.7     124.6       105.2      112.8       110.1      111.8
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I      r0.5        4.9      r4.4      r3.6         1.0       r3.1        r1.6        2.5
            II      r1.9        4.7      r2.7      r2.3        r1.1       r0.4        r3.2        1.4
           III      r3.8        4.9      r1.1      r4.1        r2.1       r0.3        r2.4        1.1
            IV      r0.9        3.6      r2.6      r5.4        r3.5        4.4       r-4.9        0.9

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I      r3.6        7.1      r3.3      r4.8        r3.7       r1.1       r-1.2        0.2
            II      r0.2        1.7       1.6      r3.9        r2.1       r3.7       r-5.5        0.3
           III      r3.1        4.0      r0.9      r4.1        r2.4        1.0       r-0.3        0.5
            IV      r4.3        7.3      r2.9      r4.2        r2.4       -0.1         1.1        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I      r3.9       r4.9      r0.9      r5.1        r3.6       r1.1        r0.7       r1.0
            II       1.6        2.5       0.9       5.4         1.8        3.8        -3.0        1.3
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I      r1.3        4.7      r3.4       4.0         1.0        2.6        r0.4        1.8
            II      r0.9        4.3       3.3       3.2         0.9        2.2         0.9        1.8
           III      r1.9        4.9       3.0       3.3         1.0        1.4        r2.1        1.6
            IV      r1.8        4.5      r2.7       3.8         1.9        2.0        r0.5        1.5

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       2.6        5.1       2.4       4.1         2.6        1.5        -0.2        0.9
            II       2.1        4.3       2.1      r4.5         2.9        2.4        -2.4        0.6
           III       1.9        4.1       2.1       4.5         2.9        2.5        -3.0        0.5
            IV      r2.8        5.0      r2.2      r4.2        r2.6        1.4        -1.5        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I       2.9       r4.5      r1.6       4.3         2.6        1.4       r-1.1        0.5
            II       3.2        4.7       1.4       4.7         2.6        1.4        -0.4        0.8
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 5, 1999
  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

  1997       I     104.1      117.9     113.3     112.9        99.2      108.5      r112.8      110.0
            II     104.5      119.2     114.1     113.6        99.5      108.7       113.7      110.4
           III     105.4      120.6    r114.4     114.6        99.9     r108.7       114.6      110.8
            IV    r105.7      121.8     115.3     116.0       100.7      109.8       113.3      111.1

        ANNUAL     104.9      119.9     114.3     114.3        99.9      108.9       113.6      110.6

  1998       I    r106.5      123.9     116.3     117.4       101.6     r110.2      r113.1      111.2
            II     106.6      124.4     116.7     118.5       102.1      111.1       111.6      111.3
           III     107.3      125.6     117.1     119.7       102.7      111.5      r111.5      111.5
            IV    r108.4      127.9    r118.0    r120.8      r103.2      111.4      r111.8      111.5

        ANNUAL     107.2      125.5     117.0     119.1       102.5      111.1       112.0      111.4

  1999       I     109.4     r129.4    r118.3     122.1       104.0      111.6      r112.5      111.9
            II     109.7      130.2     118.7     123.6       104.4      112.7       111.8      112.4
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I      r0.0        4.5      r4.5      r3.8        r1.2       r3.8        r1.8        3.1
            II      r1.7        4.5       2.8      r2.3        r1.1       r0.5        r3.2        1.5
           III      r3.5        4.8      r1.2      r3.7        r1.7       r0.2        r3.4        1.4
            IV      r1.0        4.0      r2.9      r5.2        r3.3       r4.1       r-4.4        0.9

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I      r3.2        7.0      r3.7      r4.6        r3.6       r1.4       r-0.8        0.6
            II      r0.4        1.7       1.4      r3.9        r2.0       r3.5       r-5.4        0.2
           III      r2.7        4.0      r1.2      r4.1        r2.4       r1.3       r-0.3        0.7
            IV      r4.1        7.4      r3.1      r3.8        r2.0       -0.4         1.2        0.2

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I      r3.6       r5.0      r1.3      r4.4        r2.9       r0.8        r2.4       r1.3
            II       1.3        2.4       1.1       5.1         1.5        3.8        -2.3        1.6
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.0        4.6      r3.6       3.9         0.9        2.9         0.5        2.0
            II      r0.6        4.1       3.4       3.2         0.8        2.5         1.3        2.0
           III      r1.6        4.7       3.1       3.2         1.0       r1.6        r2.7        2.0
            IV      r1.6        4.4      r2.8       3.7         1.8        2.1         0.9        1.7

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       2.4        5.1       2.6       3.9         2.4        1.5         0.3        1.1
            II       2.0        4.4       2.3      r4.3         2.7        2.3        -1.9        0.8
           III       1.8        4.1       2.3       4.4         2.8        2.6        -2.7        0.6
            IV      r2.6        5.0       2.3      r4.1        r2.5        1.5        -1.4        0.4

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I      r2.7       r4.5       1.7       4.0         2.3       r1.3       r-0.6        0.6
            II       2.9        4.7       1.7       4.3         2.2        1.4         0.2        1.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 5, 1999
  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

  1997       I            116.7        122.5        105.0        113.1           99.4         r96.9
            II           r118.0        124.5       r105.5       r114.1          r99.9          96.7
           III           r120.4        126.8       r105.3       r115.5         r100.7          95.9
            IV           r121.6        129.1       r106.2       r117.7         r102.1          96.8

        ANNUAL           r119.2        125.7       r105.5       r115.1         r100.6          96.6

  1998       I           r122.1        129.9       r106.4       r118.8         r102.8          97.3
            II           r123.2        130.7       r106.1       r119.5         r103.0          97.0
           III           r124.6        130.8       r105.0       r120.4         r103.3         r96.6
            IV           r126.2        132.4       r104.9       r121.4         r103.8          96.2

        ANNUAL           r124.0        130.9       r105.6       r120.0         r103.3          96.8

  1999       I           r128.2        132.9       r103.7       r123.0         r104.7          95.9
            II            129.7        134.2        103.5        124.8          105.3          96.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.1          7.2          3.0         r4.3           r1.7          r0.2
            II             r4.7          6.6         r1.8         r3.4           r2.2         r-1.2
           III             r8.4          7.7        r-0.6         r5.0           r3.0          -3.1
            IV             r4.1          7.5         r3.3         r7.9           r5.9          r3.7

        ANNUAL             r4.7          6.5         r1.8         r4.0           r1.7          -0.7

  1998       I             r1.5          2.4         r0.9         r3.8           r2.7          r2.3
            II             r3.7          2.5        r-1.2         r2.4           r0.6         r-1.2
           III             r4.8          0.4         -4.1         r3.1            1.5          -1.5
            IV              5.3          4.8         -0.5         r3.5           r1.7         r-1.8

        ANNUAL             r4.0          4.2         r0.1         r4.3           r2.7           0.2

  1999       I             r6.3          1.6        r-4.5         r5.2           r3.7          -1.1
            II              4.9          4.2         -0.7          6.0            2.4           1.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.2          6.7         r2.4          3.6            0.6          -0.6
            II             r4.2          5.9         r1.6         r3.4           r1.0          -0.8
           III             r5.0          6.3         r1.2         r3.9           r1.6          -1.1
            IV             r5.3          7.3         r1.9         r5.2           r3.2          -0.1

        ANNUAL             r4.7          6.5         r1.8         r4.0           r1.7          -0.7

  1998       I             r4.6          6.0         r1.4         r5.0           r3.5           0.4
            II             r4.4          5.0         r0.6         r4.8           r3.1           0.4
           III             r3.5          3.2        r-0.3         r4.3           r2.7           0.8
            IV             r3.8          2.5        r-1.2         r3.2           r1.6          -0.6

        ANNUAL             r4.0          4.2         r0.1         r4.3           r2.7           0.2

  1999       I              5.0          2.3         -2.6          3.5            1.8          -1.4
            II              5.3          2.7         -2.5          4.4            2.3          -0.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
  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

  1997       I           r125.0        136.9       r109.5       r110.6           97.2          88.5
            II           r127.3        140.3       r110.2       r111.5          r97.7          87.6
           III           r131.0        144.6       r110.4       r112.8          r98.3          86.1
            IV           r133.4        148.3       r111.2       r115.4         r100.2          86.5

        ANNUAL           r129.2        142.5       r110.3       r112.6          r98.4          87.1

  1998       I           r133.8        149.6       r111.8       r116.0         r100.4          86.7
            II           r135.8        151.3       r111.4       r116.3         r100.2          85.6
           III           r138.7        153.1       r110.4       r116.8         r100.3          84.2
            IV           r141.6        156.3       r110.4       r117.8         r100.7          83.2

        ANNUAL           r137.5        152.6       r111.0       r116.7         r100.5          84.9

  1999       I           r144.6       r157.1       r108.7       r119.2         r101.5          82.5
            II            147.7        160.0        108.3        121.0          102.2          81.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I             r4.4         10.4         r5.8         r3.8           r1.2          -0.6
            II             r7.6         10.4         r2.6         r3.2           r2.0          -4.1
           III            r12.1         12.8         r0.6         r4.6           r2.6         r-6.7
            IV             r7.4         10.7         r3.0         r9.8           r7.8           2.2

        ANNUAL             r6.3          9.4         r2.9         r3.6           r1.3          -2.6

  1998       I             r1.3          3.5         r2.2         r1.9           r0.9           0.6
            II             r6.1          4.6        r-1.4         r1.1          r-0.7          -4.7
           III             r8.8          4.8        r-3.7         r1.8           r0.2          -6.4
            IV             r8.6          8.6         r0.0         r3.3           r1.6          -4.9

        ANNUAL             r6.4          7.0         r0.6         r3.7           r2.1         r-2.6

  1999       I             r8.6         r2.1        r-6.0          5.0           r3.4          -3.4
            II              9.0          7.7         -1.2          6.2            2.6          -2.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I             r5.3          9.3         r3.8         r2.9           r0.0          -2.3
            II             r5.3          8.1         r2.6         r2.7           r0.4          -2.4
           III             r6.8          9.3         r2.3         r3.3           r1.0          -3.3
            IV             r7.8         11.1         r3.0         r5.3           r3.4          -2.3

        ANNUAL             r6.3          9.4         r2.9         r3.6           r1.3          -2.6

  1998       I             r7.0          9.3         r2.1         r4.8           r3.3          -2.0
            II             r6.6          7.8         r1.1         r4.3           r2.6          -2.2
           III             r5.9          5.9         r0.0         r3.6           r2.0          -2.1
            IV             r6.1          5.4        r-0.7         r2.0           r0.5          -3.9

        ANNUAL             r6.4          7.0         r0.6         r3.7           r2.1         r-2.6

  1999       I             r8.0         r5.0        r-2.8          2.8            1.1         r-4.9
            II              8.8          5.8         -2.8          4.1            1.9          -4.3
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
  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

  1997       I            109.8        108.8        r99.0        116.2          102.1        r105.8
            II            110.2        109.3         99.2        117.3          102.7         106.4
           III           r111.3        109.7        r98.6        118.9         r103.6         106.8
            IV            111.3        110.7        r99.5        120.3          104.4        r108.1

        ANNUAL            110.7        109.6         99.1        118.2          103.3         106.8

  1998       I           r111.8        111.0        r99.3       r122.2         r105.8         109.3
            II           r112.0        111.0        r99.1       r123.7         r106.6         110.4
           III           r112.0        109.6         97.9       r125.3         r107.5         111.8
            IV           r112.5        109.7        r97.5       r126.4         r108.0        r112.4

        ANNUAL           r112.1        110.3        r98.4       r124.4         r107.1         111.0

  1999       I           r113.3       r109.9        r97.0       r128.2         r109.1        r113.1
            II            113.2        109.9         97.0        130.0          109.7         114.8
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I             r4.3          3.4        r-0.9         r4.7           r2.1          r0.4
            II             r1.3          1.9         r0.7         r3.7           r2.5          r2.4
           III             r4.2          1.7        r-2.4         r5.5           r3.5          r1.2
            IV             -0.1          3.6          3.7         r4.9           r3.0          r5.0

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I             r2.0          1.1        r-0.9         r6.7           r5.7          r4.6
            II             r0.7         -0.2        r-0.9         r4.7           r2.8          r4.0
           III             r0.1         -4.7        r-4.7         r5.3           r3.6          r5.2
            IV              1.5          0.2         -1.3         r3.6           r1.9          r2.1

        ANNUAL             r1.3          0.6        r-0.6         r5.3           r3.6           3.9

  1999       I             r3.0         r0.8        r-2.1         r5.8           r4.3          r2.7
            II             -0.3         -0.2          0.1          5.8            2.2           6.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.3          3.7          0.4          4.3           r1.4           1.0
            II              3.2          3.4          0.2          4.2            1.9           1.0
           III              3.1          2.6        r-0.5          4.6           r2.3           1.5
            IV              2.4          2.6          0.2          4.7            2.8           2.2

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I             r1.8          2.1         r0.2         r5.2            3.6           3.3
            II             r1.7          1.5        r-0.1         r5.4           r3.7           3.7
           III             r0.6         -0.1        r-0.7         r5.4           r3.7           4.7
            IV             r1.1         -0.9        r-2.0         r5.1           r3.5           4.0

        ANNUAL             r1.3          0.6        r-0.6         r5.3           r3.6           3.9

  1999       I              1.3        r-1.0        r-2.3         r4.8           r3.1          r3.5
            II              1.1         -1.0         -2.0          5.1            3.0           4.0
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
  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

  1997       I    108.9    124.3     114.1    111.8      98.2     102.6     97.3    101.2    156.6    106.2
            II   r109.5    126.2     115.2   r112.4      98.5     102.6     97.1    101.2    157.3    106.3
           III   r111.0    128.7     115.9    113.6      99.0     102.3     96.4    100.7    161.7    106.3
            IV   r111.4    130.2    r116.9   r115.1      99.8     103.3     95.7    101.3    155.7    106.3

        ANNUAL    110.3    127.3     115.4    113.3      99.0     102.7     96.6    101.1    157.8    106.3

  1998       I    112.1    132.1    r117.8   r116.1    r100.5     103.5     95.4    101.4    153.5    106.2
            II    112.9    133.4     118.1    117.3     101.1     103.9     95.5    101.7    150.4    106.1
           III   r114.2    135.4     118.6   r118.6    r101.8     103.8     95.2    101.6    151.8    106.1
            IV    115.1    137.2     119.3    119.7     102.3     104.1     96.2    102.0    146.6    106.0

        ANNUAL    113.6    134.5     118.4    118.0     101.6     103.8     95.6    101.7    150.5    106.1

  1999       I   r116.5   r139.5     119.7   r121.2    r103.2    r104.0    r94.7   r101.6   r151.3    106.1
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1997       I     r1.5      5.9      r4.3     r3.5      r0.9       2.0     -0.6      1.4      3.2      1.6
            II     r2.2      6.3      r4.0     r2.4      r1.2       0.2     -0.6      0.0      1.7      0.2
           III     r5.5      8.2       2.5      4.1       2.2      -1.3     -3.1     -1.8     11.8      0.0
            IV     r1.2      4.8      r3.5     r5.3      r3.4       4.0     -2.7      2.3    -14.1     -0.1

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.7      5.9       3.2      3.6       2.6       0.9     -1.1      0.4     -5.6     -0.4
            II     r2.9      4.0      r1.1     r4.4      r2.5       1.5      0.1      1.1     -7.7     -0.1
           III     r4.6      6.1      r1.5     r4.3      r2.6      -0.3     -0.9     -0.4      3.6      0.1
            IV     r3.1      5.5      r2.3     r4.0      r2.2       0.8      4.0      1.6    -12.9     -0.4

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I     r5.0     r6.7      r1.6     r4.9      r3.4     r-0.1    r-6.2    r-1.6    r13.4      0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1997       I      2.4      5.9       3.5      3.7       0.8       1.3     -1.4      0.6      1.9      0.8
            II      2.1      5.8       3.6      3.1       0.8       1.0     -0.8      0.5      2.0      0.7
           III      2.8      6.4       3.5      3.2       1.0       0.4     -1.2      0.0      4.2      0.5
            IV     r2.6      6.3       3.6      3.8       1.9       1.2     -1.8      0.5      0.2      0.4

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.9      6.3       3.3     r3.9       2.3       0.9     -1.9      0.2     -2.0     -0.1
            II      3.1      5.7       2.6     r4.4       2.7       1.2     -1.7      0.5     -4.3     -0.1
           III      2.8      5.2      r2.3     r4.4      r2.8       1.5     -1.1      0.8     -6.2     -0.1
            IV     r3.3      5.4       2.0      4.1       2.5       0.7      0.5      0.7     -5.8     -0.2

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I     r3.9     r5.6       1.6      4.4       2.7      r0.5    r-0.8     r0.1    r-1.4     -0.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        August 5, 1999
  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

  1994       I    100.9      105.2     104.3     104.2        99.6      103.3       104.9      103.9
            II    100.8      106.9     106.0     104.0        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        98.4      104.3       108.3      105.8

        ANNUAL    100.7      107.0     106.2     104.4        98.9      103.7       106.8      104.8

  1995       I    100.6      109.0     108.4     105.7        98.3      105.1       108.2      106.3
            II    100.7      109.1     108.3     106.4        98.1      105.7       108.5      106.7
           III    101.1      110.3     109.1     107.2        98.3      106.1       108.9      107.1
            IV    101.9      111.2     109.2     108.2        98.7      106.2       109.6      107.4

        ANNUAL    101.0      109.9     108.8     106.9        98.4      105.8       108.8      106.9

  1996       I    103.0      112.5     109.2     108.9        98.5      105.8       111.8      107.9
            II    103.8      114.2     110.0     110.4        98.9      106.3       112.1      108.4
           III    103.9      114.9     110.7     111.4        99.3      107.3       111.6      108.8
            IV    104.2      116.4     111.7     112.3        99.2      107.7       111.8      109.2

        ANNUAL    103.7      114.5     110.4     110.7        99.0      106.8       111.8      108.6

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      0.3        2.6       2.2       4.4         2.2        4.0        -1.5        2.0
            II     -0.5        6.4       6.9      -0.7        -2.9       -0.2         6.4        2.1
           III     -1.3        1.5       2.9       1.0        -2.7        2.3         3.3        2.7
            IV      1.2        4.6       3.3       3.1         0.7        1.9         3.5        2.5

        ANNUAL      0.6        4.1       3.5       1.8        -0.7        1.2         4.0        2.2

  1995       I     -0.8        2.0       2.7       2.4        -0.5        3.2        -0.4        1.9
            II      0.6        0.3      -0.3       2.6        -0.6        2.0         0.8        1.6
           III      1.5        4.4       2.9       3.1         0.9        1.5         1.8        1.6
            IV      3.1        3.6       0.4       3.8         1.4        0.6         2.5        1.3

        ANNUAL      0.3        2.7       2.4       2.4        -0.5        2.0         1.9        2.0

  1996       I      4.4        4.5       0.1       2.6        -0.7       -1.7         8.3        1.9
            II      3.4        6.4       2.9       5.5         1.7        2.0         1.2        1.7
           III      0.0        2.5       2.4       3.8         1.4        3.7        -2.0        1.6
            IV      1.3        5.1       3.7       3.2        -0.1        1.8         1.0        1.5

        ANNUAL      2.6        4.2       1.5       3.6         0.6        0.9         2.8        1.6

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I      1.0        3.8       2.7       2.5         0.0        1.5         3.1        2.1
            II      1.0        4.7       3.6       1.5        -0.8        0.5         5.0        2.1
           III      0.6        4.4       3.8       1.4        -1.4        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        2.1         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       2.4        -0.5        2.0         1.9        2.0

  1996       I      2.4        3.2       0.8       3.0         0.2        0.6         3.3        1.6
            II      3.1        4.7       1.6       3.7         0.8        0.6         3.4        1.6
           III      2.8        4.2       1.4       3.9         1.0        1.1         2.4        1.6
            IV      2.3        4.6       2.3       3.8         0.6        1.4         2.0        1.7

        ANNUAL      2.6        4.2       1.5       3.6         0.6        0.9         2.8        1.6

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 5, 1999
                                                                         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

  1994       I    100.7      105.2     104.4     104.0        99.4      103.2       105.0      103.8
            II    100.8      106.9     106.1     103.9        98.8      103.1       107.0      104.5
           III    100.3      107.3     106.9     104.1        98.0      103.8       108.2      105.3
            IV    100.8      108.6     107.8     105.0        98.3      104.2       109.2      106.0

        ANNUAL    100.6      107.0     106.3     104.2        98.7      103.6       107.4      104.9

  1995       I    100.7      109.2     108.4     105.6        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    101.4      110.7     109.2     107.0        98.2      105.6       110.0      107.2
            IV    102.0      111.6     109.4     108.0        98.5      105.8       110.3      107.4

        ANNUAL    101.2      110.2     108.9     106.7        98.2      105.4       109.9      107.0

  1996       I    103.1      112.8     109.4     108.7        98.3      105.5       112.2      107.9
            II    103.8      114.5     110.3     110.1        98.7      106.0       112.3      108.2
           III    103.8      115.2     111.0     111.0        98.9      107.0       111.7      108.6
            IV    104.1      116.6     112.1     111.9        98.9      107.5       112.3      109.2

        ANNUAL    103.7      114.8     110.7     110.4        98.7      106.5       112.1      108.5

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I      0.2        1.6       1.4       4.7         2.5        4.5        -1.9        2.1
            II      0.1        6.6       6.5      -0.2        -2.4       -0.3         7.8        2.5
           III     -1.8        1.5       3.3       0.6        -3.0        2.4         4.4        3.2
            IV      1.8        5.0       3.1       3.4         1.1        1.6         3.9        2.4

        ANNUAL      0.6        3.9       3.3       2.0        -0.6        1.4         4.1        2.3

  1995       I     -0.1        2.5       2.6       2.4        -0.6        2.5         0.7        1.9
            II      0.6        0.5      -0.1       2.4        -0.8        1.8         1.1        1.6
           III      1.9        4.9       3.0       3.1         1.0        1.2         1.3        1.2
            IV      2.6        3.3       0.7       3.5         1.1        0.9         1.0        0.9

        ANNUAL      0.6        3.0       2.4       2.4        -0.5        1.8         2.3        2.0

  1996       I      4.2        4.2       0.0       2.8        -0.5       -1.4         7.2        1.7
            II      3.0        6.4       3.3       5.1         1.4        2.1         0.0        1.3
           III     -0.2        2.5       2.6       3.4         1.0        3.6        -2.1        1.4
            IV      1.0        5.0       3.9       3.2        -0.1        2.1         2.3        2.2

        ANNUAL      2.4        4.1       1.7       3.5         0.5        1.1         2.1        1.4

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I      0.8        3.6       2.7       2.5        -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        -0.5        2.0         3.5        2.6

        ANNUAL      0.6        3.9       3.3       2.0        -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       2.9         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

  1996       I      2.3        3.2       0.9       3.0         0.2        0.6         2.6        1.4
            II      2.9        4.7       1.7       3.6         0.8        0.7         2.3        1.3
           III      2.4        4.1       1.6       3.7         0.8        1.3         1.5        1.3
            IV      2.0        4.5       2.4       3.6         0.5        1.6         1.8        1.7

        ANNUAL      2.4        4.1       1.7       3.5         0.5        1.1         2.1        1.4

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 5, 1999
                                                                         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

  1994       I          104.0         106.3        102.2        105.3          100.6         101.2
            II          105.2         108.4        103.0        105.3          100.1         100.1
           III          105.5         109.7        104.0        105.9           99.7         100.4
            IV          106.5         111.9        105.1        106.7           99.9         100.2

        ANNUAL          105.3         109.1        103.6        105.8          100.2         100.5

  1995       I          108.0         113.4        105.0        107.3           99.7          99.3
            II          109.0         113.4        104.0        108.0           99.6          99.0
           III          109.8         113.9        103.7        108.8           99.8          99.1
            IV          110.8         114.6        103.4        109.3           99.6          98.6

        ANNUAL          109.4         113.8        104.0        108.3           99.7          99.0

  1996       I          112.0         114.8        102.6        109.2           98.8          97.5
            II          113.2         117.5        103.8        110.3           98.9          97.5
           III          114.6         119.3        104.1        111.2           99.1          97.0
            IV          115.5         120.4        104.2        111.9           98.9          96.9

        ANNUAL          113.8         118.0        103.7        110.7           99.0          97.2

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I            4.7           5.6          0.8          3.7            1.6          -1.0
            II            4.6           8.0          3.2          0.3           -2.0          -4.2
           III            1.2           4.9          3.7          2.3           -1.4           1.1
            IV            3.8           8.2          4.2          3.0            0.6          -0.8

        ANNUAL            3.1           5.3          2.2          2.8            0.2          -0.3

  1995       I            5.6           5.6          0.0          2.1           -0.9          -3.4
            II            4.0          -0.1         -4.0          2.8           -0.4          -1.2
           III            3.0           1.7         -1.3          3.1            1.0           0.1
            IV            3.5           2.6         -0.8          1.7           -0.6          -1.7

        ANNUAL            3.9           4.3          0.4          2.4           -0.4          -1.4

  1996       I            4.4           0.8         -3.4         -0.2           -3.4          -4.4
            II            4.5           9.6          4.9          4.2            0.5          -0.3
           III            5.2           6.4          1.1          3.1            0.7          -2.0
            IV            3.1           3.6          0.5          2.7           -0.6          -0.4

        ANNUAL            4.1           3.7         -0.4          2.2           -0.8          -1.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I            1.9           3.4          1.4          3.7            1.1           1.7
            II            3.1           4.9          1.8          2.8            0.4          -0.3
           III            3.7           6.2          2.4          2.5           -0.3          -1.1
            IV            3.6           6.6          3.0          2.3           -0.3          -1.2

        ANNUAL            3.1           5.3          2.2          2.8            0.2          -0.3

  1995       I            3.8           6.7          2.7          1.9           -0.9          -1.8
            II            3.7           4.6          0.9          2.5           -0.5          -1.1
           III            4.1           3.8         -0.3          2.7            0.1          -1.3
            IV            4.0           2.4         -1.5          2.4           -0.2          -1.5

        ANNUAL            3.9           4.3          0.4          2.4           -0.4          -1.4

  1996       I            3.7           1.3         -2.4          1.8           -0.9          -1.8
            II            3.8           3.6         -0.2          2.2           -0.7          -1.6
           III            4.4           4.8          0.4          2.2           -0.7          -2.1
            IV            4.3           5.0          0.8          2.4           -0.7          -1.8

        ANNUAL            4.1           3.7         -0.4          2.2           -0.8          -1.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
                                                                  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

  1994       I          107.4         110.6        103.0        105.4          100.7          98.1
            II          108.8         113.1        103.9        105.3          100.1          96.8
           III          109.8         115.5        105.2        105.8           99.6          96.4
            IV          111.0         118.3        106.6        106.6           99.7          96.0

        ANNUAL          109.3         114.4        104.7        105.8          100.1          96.8

  1995       I          113.2         120.7        106.7        107.1           99.6          94.7
            II          114.0         120.8        106.0        107.6           99.2          94.4
           III          115.2         122.1        106.0        108.3           99.3          94.0
            IV          116.8         124.0        106.2        108.3           98.7          92.7

        ANNUAL          114.8         121.9        106.2        107.8           99.3          93.9

  1996       I          118.7         125.3        105.5        107.5           97.2          90.5
            II          120.9         129.9        107.4        108.5           97.3          89.8
           III          122.7         132.3        107.8        109.2           97.3          89.0
            IV          123.7         133.6        108.0        109.6           96.9          88.6

        ANNUAL          121.5         130.2        107.2        108.7           97.2          89.5

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I            6.4           8.5          2.0          2.9            0.7          -3.3
            II            5.3           9.4          3.8         -0.3           -2.5          -5.3
           III            3.6           8.6          4.9          1.9           -1.8          -1.6
            IV            4.3          10.0          5.4          2.8            0.5          -1.4

        ANNUAL            4.9           8.2          3.2          2.5            0.0          -2.2

  1995       I            8.2           8.6          0.4          2.2           -0.8          -5.6
            II            2.8           0.1         -2.6          1.9           -1.3          -1.0
           III            4.6           4.6          0.0          2.5            0.4          -2.0
            IV            5.5           6.3          0.8         -0.1           -2.4          -5.2

        ANNUAL            5.1           6.6          1.5          1.9           -0.9          -3.0

  1996       I            6.8           4.1         -2.6         -2.9           -6.0          -9.1
            II            7.5          15.5          7.4          4.0            0.3          -3.3
           III            5.9           7.7          1.7          2.4            0.1          -3.3
            IV            3.4           3.9          0.5          1.6           -1.6          -1.8

        ANNUAL            5.9           6.8          0.9          0.8           -2.1          -4.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I            3.9           6.2          2.2          3.7            1.1          -0.2
            II            4.5           7.6          2.9          2.5            0.1          -1.9
           III            6.1           9.7          3.4          2.2           -0.7          -3.7
            IV            4.9           9.1          4.0          1.8           -0.8          -2.9

        ANNUAL            4.9           8.2          3.2          2.5            0.0          -2.2

  1995       I            5.3           9.1          3.6          1.6           -1.2          -3.5
            II            4.7           6.8          2.0          2.2           -0.9          -2.4
           III            5.0           5.8          0.7          2.3           -0.3          -2.5
            IV            5.3           4.9         -0.4          1.6           -1.0          -3.5

        ANNUAL            5.1           6.6          1.5          1.9           -0.9          -3.0

  1996       I            4.9           3.7         -1.1          0.3           -2.4          -4.4
            II            6.1           7.5          1.3          0.8           -2.0          -5.0
           III            6.4           8.3          1.8          0.8           -2.0          -5.3
            IV            5.9           7.7          1.7          1.2           -1.9          -4.4

        ANNUAL            5.9           6.8          0.9          0.8           -2.1          -4.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
                                                                  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

  1994       I          101.1         102.4        101.3        104.9          100.2         103.7
            II          102.2         104.1        101.8        105.1           99.9         102.8
           III          102.0         104.4        102.3        105.8           99.7         103.8
            IV          102.8         105.9        103.0        106.6           99.8         103.7

        ANNUAL          102.0         104.2        102.1        105.6          100.0         103.5

  1995       I          103.5         106.4        102.8        107.1           99.5         103.5
            II          104.9         106.3        101.3        108.1           99.7         103.0
           III          105.3         105.9        100.6        109.1          100.1         103.6
            IV          105.8         105.6         99.8        110.3          100.6         104.2

        ANNUAL          104.9         106.1        101.1        108.6          100.0         103.6

  1996       I          106.4         104.9         98.7        111.4          100.8         104.7
            II          106.8         105.7         99.0        112.5          100.9         105.4
           III          108.0         107.0         99.1        113.6          101.3         105.2
            IV          108.7         107.9         99.2        114.9          101.6         105.7

        ANNUAL          107.5         106.4         99.0        113.1          101.2         105.3

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I            3.8           3.0         -0.8          4.7            2.5           0.9
            II            4.4           6.9          2.4          1.0           -1.2          -3.2
           III           -1.0           1.0          2.0          2.8           -1.0           3.7
            IV            3.4           6.1          2.6          2.9            0.5          -0.5

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.3

  1995       I            2.5           1.9         -0.6          1.8           -1.1          -0.7
            II            5.7          -0.4         -5.8          3.9            0.7          -1.7
           III            1.6          -1.5         -3.0          3.8            1.7           2.2
            IV            1.9          -1.3         -3.1          4.4            1.9           2.5

        ANNUAL            2.8           1.8         -1.0          2.9            0.0           0.1

  1996       I            2.1          -2.5         -4.5          4.1            0.7           2.0
            II            1.6           3.1          1.5          4.1            0.4           2.4
           III            4.6           5.0          0.4          4.1            1.7          -0.5
            IV            2.7           3.2          0.6          4.5            1.2           1.8

        ANNUAL            2.5           0.3         -2.1          4.1            1.1           1.6

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I            0.3           0.7          0.4          3.5            0.9           3.1
            II            2.2           2.5          0.4          2.9            0.5           0.7
           III            1.6           2.7          1.1          2.8           -0.1           1.1
            IV            2.6           4.2          1.5          2.8            0.2           0.2

        ANNUAL            1.7           2.6          0.9          3.0            0.4           1.3

  1995       I            2.3           3.9          1.6          2.1           -0.7          -0.2
            II            2.6           2.1         -0.5          2.8           -0.2           0.2
           III            3.3           1.5         -1.7          3.1            0.4          -0.2
            IV            2.9          -0.3         -3.1          3.5            0.8           0.6

        ANNUAL            2.8           1.8         -1.0          2.9            0.0           0.1

  1996       I            2.8          -1.4         -4.1          4.0            1.2           1.2
            II            1.8          -0.6         -2.3          4.1            1.2           2.3
           III            2.5           1.0         -1.5          4.1            1.2           1.6
            IV            2.7           2.2         -0.5          4.2            1.0           1.4

        ANNUAL            2.5           0.3         -2.1          4.1            1.1           1.6

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 5, 1999
                                                                  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

  1994      I    103.8    108.1     104.1    103.8      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     106.9    103.9      97.8     100.9     99.5    100.5    136.3    103.7
           IV    103.7    112.3     108.3    104.6      97.9     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    103.4    112.9     109.1    105.2      97.8     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     109.9    106.5      97.7     101.1     98.4    100.4    148.5    104.8
           IV    106.1    116.9     110.2    107.3      97.8     101.1     98.8    100.5    149.0    104.9

       ANNUAL    104.8    114.8     109.6    106.2      97.8     101.4     99.0    100.8    143.6    104.7

  1996      I    106.4    117.3     110.2    107.8      97.5     101.2     98.7    100.6    153.7    105.4
           II    107.3    119.3     111.2    109.1      97.7     101.7     97.9    100.7    154.1    105.5
          III    108.0    120.9     112.0    110.0      98.1     101.9     97.5    100.8    155.3    105.7
           IV    108.6    122.5     112.9    110.8      98.0     102.1     97.4    100.9    155.4    105.8

       ANNUAL    107.6    120.0     111.5    109.5      97.9     101.7     97.9    100.7    154.6    105.6

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1994      I      6.9      9.4       2.3      5.4       3.3      -1.4     10.4      1.6      6.8      2.1
           II     -2.7      3.9       6.8     -0.3      -2.6       2.5    -10.2     -1.0     18.5      1.1
          III     -0.3      4.0       4.3      0.7      -3.0       1.0      2.7      1.4     12.6      2.7
           IV      2.8      8.1       5.1      2.5       0.2      -0.3     -1.4     -0.6     18.1      1.5

       ANNUAL      2.3      6.3       3.9      2.0      -0.5      -0.3      0.3     -0.2     18.7      1.8

  1995      I     -1.2      1.9       3.1      2.4      -0.5       3.7      0.6      2.9    -11.5      1.0
           II      2.0      3.0       1.0      2.2      -1.0       0.2      1.1      0.4      2.4      0.7
          III      5.2      7.3       2.0      2.8       0.6      -2.3     -4.7     -2.9     31.6      0.8
           IV      3.0      4.0       1.0      3.0       0.6       0.0      1.8      0.5      1.4      0.6

       ANNUAL      1.2      4.4       3.2      2.1      -0.7       0.9     -0.7      0.4      6.8      1.2

  1996      I      1.4      1.4       0.0      1.8      -1.4       0.4     -0.7      0.1     13.1      1.7
           II      3.1      6.9       3.6      4.9       1.2       1.7     -2.9      0.5      1.1      0.6
          III      2.7      5.6       2.8      3.7       1.3       0.9     -1.7      0.3      3.0      0.6
           IV      2.1      5.5       3.3      2.9      -0.4       0.7     -0.5      0.4      0.3      0.4

       ANNUAL      2.8      4.5       1.7      3.1       0.1       0.3     -1.1     -0.1      7.7      0.9

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1994      I      3.6      6.5       2.8      2.4      -0.1      -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       4.2      1.7      -1.1      -0.1      0.0     -0.1     21.1      2.0
           IV      1.6      6.3       4.6      2.1      -0.6       0.4      0.1      0.3     13.9      1.8

       ANNUAL      2.3      6.3       3.9      2.0      -0.5      -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      2.0      -1.1       1.1      0.7      1.0      4.8      1.5
          III      2.2      5.1       2.8      2.5      -0.2       0.3     -1.1     -0.1      8.9      1.0
           IV      2.2      4.1       1.8      2.6      -0.1       0.4     -0.3      0.2      4.9      0.8

       ANNUAL      1.2      4.4       3.2      2.1      -0.7       0.9     -0.7      0.4      6.8      1.2

  1996      I      2.9      3.9       1.0      2.5      -0.3      -0.4     -0.6     -0.5     11.5      0.9
           II      3.2      4.9       1.7      3.1       0.2      -0.1     -1.6     -0.5     11.1      0.9
          III      2.6      4.4       1.8      3.3       0.4       0.8     -0.9      0.3      4.5      0.9
           IV      2.3      4.8       2.4      3.3       0.2       0.9     -1.4      0.3      4.3      0.8

       ANNUAL      2.8      4.5       1.7      3.1       0.1       0.3     -1.1     -0.1      7.7      0.9

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        August 5, 1999
                                                                          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 
within 40 days of the close of the reference period; revisions appear 30 
days later and second revisions after an additional 60 days.  In the 
business sector, the third publication (second revision) of a quarterly 
index of output per hour of all persons has differed from the initial 
value by between -1.1 and +1.3 index points approximately 95 percent of 
the time.  This interval is based on the performance of this measure 
between the fourth quarter of 1995 and the first quarter of 1999.  



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.