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USDL 98-50
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EST
TUESDAY, FEBRUARY 10, 1998.
                                      
                                      
                           PRODUCTIVITY AND COSTS
                     Preliminary Fourth-Quarter Measures
                          and Annual Averages, 1997


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the fourth quarter and for the full year 1997.  In the fourth
quarter, productivity advanced 2.2 percent in the business sector as output
grew 5.5 percent and hours worked rose less--3.2 percent (seasonally adjusted
annual rates).  In the nonfarm business sector, productivity rose 2.0 percent
as output increased 5.5 percent and hours grew 3.5 percent.

                                       Fourth  Annual averages
                                       quarter     1996-1997
     Business sector                     2.2          1.9
     Nonfarm business sector             2.0          1.7
     
     For the year 1997, the increases in productivity were about the same as
those posted in 1996 (as revised) in both the business and nonfarm business
sectors.  Fourth-quarter productivity and related measures are summarized in
table A and annual data in table B.  Detailed information is presented in
tables 1 through 5.

     In the manufacturing sector, increases in productivity were:

                                       Fourth  Annual averages
                                       quarter     1996-1997
     Manufacturing sector                4.2          4.4
       Durable goods manufacturing       6.6          5.7
       Nondurable goods manufacturing    1.2          3.2

     Manufacturing productivity grew at a 4.2 percent annual rate in the
fourth quarter, much more slowly than it had in the previous quarter, when it
grew 8.0 percent (as revised).  On an annual basis, manufacturing
productivity increased 4.4 percent in 1997--the largest increase since 1986,
when it grew 4.5 percent.  (Output and hours in manufacturing, which includes
about 18 percent of U.S. business-sector employment, tend to vary more from
quarter to quarter than data for the more aggregate business and nonfarm
business sectors.)


---------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary fourth-quarter 1997 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                2.2      5.5      3.2       5.4       3.2      3.1
Nonfarm business        2.0      5.5      3.5       5.1       2.9      3.0
Manufacturing           4.2      8.3      4.0       5.7       3.6      1.5
  Durable               6.6     10.5      3.7       7.1       4.9      0.4
  Nondurable            1.2      5.6      4.4       3.6       1.5      2.4
---------------------------------------------------------------------------
                        Percent change from same quarter a year ago
Business                2.4      4.7      2.3       4.2       2.3      1.8
Nonfarm business        2.2      4.7      2.4       4.1       2.1      1.8
Manufacturing           4.8      6.4      1.5       4.0       2.1     -0.7
  Durable               7.0      9.6      2.4       4.1       2.1     -2.7
  Nondurable            2.5      2.7      0.2       3.8       1.9      1.3
---------------------------------------------------------------------------


     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.



                    THIRD-TO-FOURTH QUARTER CHANGES, 1997

Business

     Productivity in the business sector grew 2.2 percent in the fourth
quarter of 1997, reflecting an increase of 5.5 percent in output combined
with a 3.2 percent rise in the hours of all persons engaged in the sector.
The productivity increase was smaller than that posted in the previous
quarter.  In the third quarter of 1997, productivity rose 3.5 percent (as
revised), as output grew 3.6 percent and hours 0.1 percent (seasonally
adjusted annual rates).

     Hourly compensation increased at a 5.4 percent annual rate in the fourth
quarter of 1997, greater than the 4.2 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 both hourly compensation and productivity, increased at a
3.1 percent annual rate during the fourth quarter.  During the third quarter
of 1997, unit labor costs rose 0.7 percent.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.2 percent
annual rate for persons in the business sector.  This measure rose 2.1
percent during the third quarter.  The fourth-quarter increase was the
largest increase in real hourly compensation in the business sector since a
5.0-percent rise in the first quarter of 1992.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased at an annual rate
of 1.1 percent in both the third and fourth quarters of 1997.

Nonfarm business

     In the nonfarm business sector, productivity increased 2.0 percent in
the fourth quarter, as output rose 5.5 percent and hours of all persons--
employees, proprietors, and unpaid family workers--rose 3.5 percent
(seasonally adjusted annual rates).  As in the larger business sector,
productivity growth in the fourth quarter was slower than that recorded in
the previous quarter.  During the third quarter of 1997, nonfarm productivity
rose 3.6 percent as output increased 3.7 percent and hours edged up 0.1
percent (table 2).  The 3.6-percent increase in labor productivity in the
third quarter was the largest since the fourth quarter of 1992, when it rose
5.8 percent.

     Hourly compensation in the nonfarm business sector rose 5.1 percent in
the fourth quarter, and real hourly compensation increased 2.9 percent when
the increase in the CPI-U was taken into account.  During the third quarter,
hourly compensation had increased by 3.8 percent, and real hourly
compensation had risen 1.8 percent.

     Unit labor costs increased 3.0 percent in the fourth quarter, compared
with a 0.2 percent rise in the previous quarter.  The implicit price deflator
for nonfarm business output rose 1.2 percent in both the third and fourth
quarters of 1997.

Manufacturing

     Manufacturing productivity grew at a 4.2 percent seasonally adjusted
annual rate in the fourth quarter of 1997, down from the 8.0 percent increase
posted in the third quarter (table 3).  Output rose 8.3 percent in the fourth
quarter, and hours of all persons rose 4.0 percent. In the third quarter,
output had risen 6.1 percent, and hours had fallen 1.7 percent.  In durable
goods manufacturing, productivity rose 6.6 percent in the fourth quarter as
output rose 10.5 percent and hours of all persons increased 3.7 percent.  In
the previous quarter, durable goods producers experienced an 11.0 percent
advance in productivity.  Among nondurable goods manufacturers, productivity
rose 1.2 percent in the fourth quarter as output and hours both increased,
5.6 and 4.4 percent, respectively.  In the third quarter, productivity in
nondurable goods manufacturing increased 4.8 percent (tables 4 and 5).

     The average hourly compensation of manufacturing workers increased 5.7
percent in the fourth quarter, up from the 3.4 percent increase posted in the
previous quarter.  When the increase in consumer prices was taken into
account, real hourly compensation in the fourth quarter rose 3.6 percent,
compared with the 1.4 percent rise in the third quarter.  In durable goods
manufacturing, hourly compensation rose 7.1 percent in the fourth quarter,
and real hourly compensation increased 4.9 percent.  Fourth-quarter increases
in both hourly compensation and real hourly compensation were smaller in
nondurable goods manufacturing; hourly compensation rose 3.6 percent, and
real hourly compensation increased 1.5 percent.

     Since the fourth-quarter increase in manufacturing hourly compensation
outpaced the increase in labor productivity, unit labor costs for the
manufacturing sector rose--1.5 percent.  Unit labor costs in manufacturing
had fallen 4.2 percent in the third quarter.  In durable goods manufacturing,
unit labor costs rose 0.4 percent in the fourth quarter of 1997.  In the last
17 quarters, unit labor costs in durable goods rose in only one other quarter
(the first quarter of 1997, by 0.6 percent).  In nondurable goods
manufacturing, unit labor costs rose 2.4 percent in the fourth quarter,
compared with a 0.2-percent rise one quarter earlier.
     
     
                      ANNUAL AVERAGE CHANGES, 1996-1997

Business

     Business productivity increased 1.9 percent when the annual average for
1997 is compared with the annual average for 1996 (table B).  The 1997
increase was about the same as the 2.0-percent rise posted in the previous
year.  Business sector output rose 4.5 percent in 1997 and hours of all
persons engaged in the sector rose 2.6 percent.  The output increase was the
largest since 1984, when it rose 8.5 percent.  In 1996, business sector
output increased 3.5 percent and hours increased 1.4 percent.
     

----------------------------------------------------------------------------
 Table B. Annual changes in productivity and related measures, 1988-1997
----------------------------------------------------------------------------
    Measure                1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
----------------------------------------------------------------------------
 Business:                                                             
  Productivity              0.6  0.8  0.7  0.7  3.4  0.2  0.4  0.0  2.0  1.9
  Output                    3.8  3.4  0.8 -1.7  3.2  2.7  4.1  2.3  3.5  4.5
  Hours                     3.2  2.5  0.1 -2.3 -0.2  2.6  3.7  2.4  1.4  2.6
  Hourly compensation       4.6  2.8  5.7  4.8  5.2  2.6  1.6  2.5  3.9  3.9
  Real hourly compensation  0.5 -1.9  0.3  0.6  2.1 -0.4 -0.9 -0.3  0.9  1.6
  Unit labor costs          4.0  1.9  5.0  4.1  1.7  2.4  1.2  2.6  1.8  2.0
----------------------------------------------------------------------------
 Nonfarm Business:                                                       
  Productivity              0.7  0.6  0.5  0.7  3.2  0.1  0.4  0.2  1.9  1.7
  Output                    4.1  3.2  0.7 -1.8  3.0  3.0  3.9  2.6  3.5  4.5
  Hours                     3.3  2.6  0.2 -2.5 -0.2  2.8  3.5  2.4  1.6  2.7
  Hourly compensation       4.4  2.7  5.5  4.9  5.2  2.3  1.7  2.5  3.8  3.8
  Real hourly compensation  0.3 -2.0  0.1  0.7  2.1 -0.7 -0.8 -0.3  0.8  1.5
  Unit labor costs          3.6  2.1  5.0  4.2  1.9  2.2  1.4  2.4  1.9  2.1
----------------------------------------------------------------------------
 Manufacturing:                                                            
  Productivity              1.5  1.3  1.8  2.2  3.8  2.2  2.5  3.2  3.7  4.4
  Output                    4.3  1.7 -0.4 -1.9  3.2  3.6  4.9  3.5  3.2  5.6
  Hours                     2.8  0.3 -2.2 -4.1 -0.6  1.4  2.4  0.3 -0.5  1.1
  Hourly compensation       3.9  3.3  4.8  5.2  4.5  2.9  2.6  2.9  3.2  3.5
  Real hourly compensation -0.2 -1.5 -0.5  1.0  1.4 -0.1  0.0  0.1  0.2  1.2
  Unit labor costs          2.4  2.0  2.9  2.9  0.7  0.7  0.1 -0.3 -0.5 -0.9
----------------------------------------------------------------------------


     Hourly compensation in the business sector rose 3.9 percent in both 1996
and 1997.  Real hourly compensation grew faster in 1997, 1.6 percent, than in
1996, when it grew 0.9 percent.  Unit labor costs rose 2.0 percent in 1997,
slightly more than the 1.8 percent increase in the previous year.  The
implicit price deflator rose 1.7 percent in 1997 and 1.9 percent in 1996.

Nonfarm business

     Productivity increased 1.7 percent in the nonfarm business sector during
1997, as output rose 4.5 percent and hours of all persons increased 2.7 per
cent.  The increase in labor productivity in 1996, 1.9 percent, occurred as
output and hours rose 3.5 and 1.6 percent, respectively.
     
     In both 1996 and 1997, hourly compensation rose 3.8 percent.  Real
hourly compensation, however, increased 1.5 percent in 1997 and 0.8 percent
one year earlier.  Unit labor costs in the nonfarm business sector grew 2.1
percent in 1997, slightly more than the 1.9-percent increase in 1996.  The
implicit price deflator for nonfarm business rose 1.7 percent in both 1997
and 1996.

Manufacturing

     Manufacturing productivity grew 4.4 percent in 1997, as output rose 5.6
percent and hours of all persons increased 1.1 percent (table B) .  During
1996, total manufacturing productivity had risen 3.7 percent as output grew
3.2 percent and hours dropped 0.5 percent.  In durable goods manufacturing,
productivity increased 5.7 percent in 1997 as output rose 8.0 percent and
hours of all persons rose 2.2 percent.  A smaller increase in labor
productivity in nondurable goods manufacturing, 3.2 percent, was the result
of a 2.9 percent rise in output coupled with a small drop, 0.3 percent, in
hours of all persons.

     Hourly compensation of manufacturing workers increased 3.5 percent in
1997, slightly more than the 3.2 percent increase in the previous year.
Taking into account the rise in the CPI-U, real hourly compensation in
manufacturing rose 1.2 percent in 1997 and 0.2 percent one year earlier.
Gains in hourly compensation during 1997 in nondurable goods manufacturing,
3.9 percent, were higher than those posted in durable goods manufacturing,
3.1 percent.

     Unit labor costs in manufacturing fell 0.9 percent in 1997.  This was
the third consecutive year in which manufacturing unit labor costs fell,
dropping 0.5 percent in 1996 and 0.3 percent in 1995.  Unit labor costs in
durable goods manufacturing have declined every year since 1991, when they
rose 3.4 percent.  In 1997, these costs dropped 2.5 percent.  In contrast,
unit labor costs in nondurable goods have increased every year since 1963,
when they fell 0.6 percent.  In 1997, these costs rose 0.7 percent.
     
Revised Measures

     Current and previous measures for the third quarter of 1997 for the
business, nonfarm business, and manufacturing sectors are compared in
table C.  Productivity growth is lower, and unit labor costs correspondingly
higher, than the figures published on Dec. 4, based on the information then
available.  For all three sectors, output trends were revised downward and
hours trends were revised upward.


-----------------------------------------------------------------------
Table C. 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
-----------------------------------------------------------------------                                                                  
                             Third quarter 1997
Business:                                                         
  Previous          4.0      3.8     -0.2       4.3      2.3       0.3
  Current           3.5      3.6      0.1       4.2      2.1       0.7
Nonfarm business:                                                 
  Previous          4.1      4.0     -0.1       3.9      1.9      -0.2
  Current           3.6      3.7      0.1       3.8      1.8       0.2
Manufacturing:                                                    
  Previous          9.3      7.2     -1.9       3.4      1.4      -5.4
  Current           8.0      6.1     -1.7       3.4      1.4      -4.2
-----------------------------------------------------------------------


     Productivity and cost measures were revised to reflect the results of
the 1996 Hours at Work Survey, which are now available
(http://stats.bls.gov/pdf/mprhws96.pdf).  This survey is used to adjust the
number of hours for which private nonfarm employees are paid, as reported in
the BLS Current Establishment Survey, to hours at the workplace.  For 1996,
these new results show that hours of all persons increased less than had
originally been reported.  In the nonfarm business sector, hours of all
persons grew 1.6 percent in 1996 rather than 2.2 percent, as previously
reported.  All of the increase in the ratio of hours at work to hours paid
occurred outside of the manufacturing sector, where the decrease in the hours
of all persons remained 0.5 percent for the calendar year.

     In manufacturing, rates of growth in productivity were revised upward in
1996 due to revisions in the output measures.  Unit labor costs have been
revised downward by comparable amounts.  (See tables 3-5 and appendix tables
1-3.)  The quarterly measures of productivity, output, and unit labor costs
for manufacturing were revised back to 1992, and the 1996 annual measures
were revised due to the incorporation of revised indexes of industrial
production.  These indexes, published by the Board of Governors of the
Federal Reserve System, were changed to incorporate additional and revised
source data and updated information on seasonal trends.  (See Federal Reserve
Statistical Release G.17, "Industrial production and capacity utilization: a
revision," Dec. 9, 1997.)

Revised measures: Nonfinancial Corporations

     Third-quarter gains in productivity for nonfinancial corporations also
were lower than those reported on Dec. 4, based on preliminary data.  Most of
the change in labor productivity is due to an upward revision in the rate of
growth in employee hours (table D).


---------------------------------------------------------------------------
Table D.  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
---------------------------------------------------------------------------                                                                   
                            Third quarter 1997
Previous  6.7      7.9     1.1    4.5      2.4    -2.1    14.1      0.1
Current   6.3      7.8     1.5    4.3      2.2    -1.9    14.3      0.2
---------------------------------------------------------------------------


                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 A.M.
EST, Tuesday, March 10, 1998.  Revised fourth-quarter measures and annual
measures for business, nonfarm business, and manufacturing will be released
at that time.
                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. Weekly paid hours are adjusted to hours at  work  using
 the BLS Hours at Work survey, conducted for this purpose.
       Data  from  the BLS Current Population Survey (CPS) are used  for  farm
 labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
 prepared  by the Bureau of Economic Analysis (BEA) of the Department  of Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes are constructed by deflating current-dollar
 industry  value  of production data from the U.S. Bureau of the  Census  with
 deflators  from  the BEA.  These deflators are based on  data  from  the  BLS
 producer  price  program  and  other sources.   The  industry  shipments  are
 aggregated  using annual weights, and intrasector transactions  are  removed.
 Quarterly  manufacturing output measures are based on the index of industrial
 production prepared monthly by the Board of Governors of the Federal  Reserve
 System  adjusted to be consistent with annual indexes of manufacturing sector
 output  prepared  by  BLS.   Durables  include  the  following  2-digit   SIC
 industries:   Primary  metal  industries;  fabricated  metal  products;  non-
 electrical  machinery;  industrial  and  commercial  machinery  and  computer
 equipment;   electronic   and  other  electrical  equipment;   transportation
 equipment;  instruments; lumber and lumber products; furniture and  fixtures;
 stone, clay, and glass and concrete products; and miscellaneous manufactures.
 Nondurables  include:  Food and kindred products, tobacco  products,  textile
 mill  products,  apparel  products, paper and allied products,  printing  and
 publishing,  chemicals and chemical products, petroleum refining and  related
 industries, rubber and plastic products, and leather and leather products.
      Nonfinancial corporate output is an annual-weighted index constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 52 percent of the value of GDP in 1992.
 
 Productivity:  These productivity measures describe the relationship  between
 real  output  and the labor time involved in its production.  They  show  the
 changes  from  period to period in the amount of goods and services  produced
 per  hour.  Although these measures relate output to hours  at  work  of  all
 persons engaged in a sector, they do not measure the specific contribution of
 labor,  capital, or any other factor of production. Rather, they reflect  the
 joint  effects  of many influences, including changes in technology;  capital
 investment; level of output; utilization of capacity, energy, and  materials;
 the organization of production; managerial skill; and the characteristics and
 effort of the work force.
 
       Information  in this release will be made available to sensory-impaired
 individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 

  Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1995       I    r100.1      108.7    r108.6    r105.7       r98.2     r105.5       108.3      106.5
            II    r100.3      108.7     108.3    r106.5       r98.2      106.1       108.4      107.0
           III     100.6      109.8     109.2     107.3        98.4      106.7       108.8      107.4
            IV    r101.2      110.7    r109.3    r108.3       r98.8      107.0      r109.1      107.8

        ANNUAL     100.5      109.5     108.9     106.9        98.4      106.3       108.7      107.2

  1996       I    r102.0      111.4    r109.2    r109.3       r98.9     r107.2      r110.5      108.4
            II    r102.8      113.2    r110.1    r110.8       r99.4     r107.8      r111.0      108.9
           III    r102.6      113.5    r110.6    r111.8       r99.6     r108.9      r110.7      109.6
            IV    r103.1      115.0    r111.5    r112.7       r99.6     r109.3      r111.3      110.0

        ANNUAL    r102.6      113.3    r110.4    r111.1       r99.3     r108.3      r110.9      109.2

  1997       I    r103.5      116.6    r112.7    r113.8      r100.0     r110.0      r111.6      110.6
            II    r104.1      117.8    r113.1    r114.7      r100.5     r110.2      r112.4      111.0
           III    r105.0     r118.8    r113.1    r115.9      r101.1     r110.4      r112.9      111.3
            IV     105.6      120.4     114.0     117.4       101.9      111.2       112.2      111.6

        ANNUAL     104.5      118.4     113.3     115.4       100.9      110.4       112.3      111.1

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I     r-2.3        0.8      r3.1      r2.4       r-0.4        4.8        -0.2        2.9
            II       0.9        0.2     r-0.8       3.2         0.1        2.3         0.4        1.6
           III      r1.0        4.2      r3.1      r3.0        r0.9       r2.0        r1.3        1.7
            IV      r2.6        3.0      r0.4      r3.9        r1.4        1.2        r1.3        1.3

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I      r3.1        2.8     r-0.3      r3.7        r0.4       r0.7        r5.1        2.3
            II      r3.1        6.6      r3.4      r5.5        r2.0       r2.3        r1.8        2.1
           III     r-0.7        0.9      r1.6      r3.6        r1.0        4.4       r-1.1        2.4
            IV      r2.0        5.4      r3.3      r3.4        r0.0        1.4         2.2        1.7

        ANNUAL      r2.0        3.5      r1.4      r3.9        r0.9        1.8        r2.0        1.9

  1997       I      r1.6        5.9      r4.2      r4.1        r1.7        2.5        r1.2        2.0
            II      r2.2        3.9      r1.6      r3.1        r2.0        0.9         2.7        1.5
           III      r3.5       r3.6      r0.1      r4.2        r2.1       r0.7        r1.8        1.1
            IV       2.2        5.5       3.2       5.4         3.2        3.1        -2.4        1.1

        ANNUAL       1.9        4.5       2.6       3.9         1.6        2.0         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I     r-0.6        3.3      r3.9      r1.5       r-1.3        2.2         3.2        2.6
            II     r-0.4        1.7       2.1      r2.4       r-0.6        2.8        r1.8        2.4
           III       0.0        2.4       2.3       2.7         0.1        2.7         1.3        2.2
            IV      r0.6        2.0      r1.5      r3.1        r0.5       r2.6        r0.7        1.9

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I      r1.9        2.5      r0.6      r3.5        r0.7        1.5        r2.0        1.7
            II      r2.5        4.2      r1.7      r4.0        r1.2        1.5        r2.4        1.8
           III      r2.0        3.3      r1.3      r4.2        r1.2        2.1        r1.8        2.0
            IV      r1.8        3.9      r2.0      r4.0        r0.8       r2.2        r2.0        2.1

        ANNUAL      r2.0        3.5      r1.4      r3.9        r0.9        1.8        r2.0        1.9

  1997       I      r1.5        4.7      r3.1      r4.1        r1.2        2.6        r1.0        2.0
            II       1.3        4.0       2.7      r3.6         1.2        2.3         1.2        1.9
           III      r2.3       r4.7      r2.3      r3.7        r1.5        1.3        r2.0        1.6
            IV       2.4        4.7       2.3       4.2         2.3        1.8         0.8        1.4

        ANNUAL       1.9        4.5       2.6       3.9         1.6        2.0         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 10, 1998 
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1995       I     100.3      108.9    r108.6    r105.5       r98.1     r105.2      r109.6      106.8
            II     100.5      108.9     108.4    r106.3        98.1      105.8       109.6      107.2
           III     100.8      110.2     109.3     107.1        98.3      106.3       109.7      107.5
            IV    r101.4      111.0    r109.5    r108.1       r98.6     r106.7       109.8      107.8

        ANNUAL     100.7      109.8     109.0     106.7        98.3      106.0       109.7      107.3

  1996       I    r102.1      111.7    r109.4    r109.1       r98.7      106.9      r111.0      108.4
            II    r102.8      113.5    r110.4    r110.5       r99.1     r107.5      r111.3      108.8
           III    r102.6      113.8    r110.9    r111.4       r99.3     r108.6      r110.9      109.4
            IV    r103.1      115.3    r111.9    r112.3       r99.3     r109.0      r111.4      109.8

        ANNUAL    r102.6      113.6    r110.7    r110.8       r99.1     r108.0      r111.2      109.1

  1997       I    r103.4      116.9    r113.1    r113.5       r99.7     r109.8      r111.7      110.5
            II    r104.0      118.0    r113.5    r114.4      r100.2      110.0      r112.4      110.9
           III    r104.9     r119.1    r113.5    r115.5      r100.7     r110.1      r113.2      111.2
            IV     105.4      120.7     114.5     116.9       101.4      110.9       112.6      111.5

        ANNUAL     104.4      118.7     113.7     115.0       100.5      110.2       112.5      111.0

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I     r-1.8        1.2      r3.1      r2.3       r-0.5        4.2         1.3        3.1
            II       0.8        0.2     r-0.7       3.1        r0.0        2.3        r0.1        1.5
           III      r1.4        4.6      r3.1      r3.1        r1.0       r1.7         0.5        1.2
            IV      r2.2        3.0      r0.7      r3.7        r1.2       r1.4        r0.1        1.0

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I      r2.8        2.6     r-0.3      r3.9        r0.6       r1.0        r4.6        2.3
            II      r2.9        6.8      r3.8      r5.1        r1.7       r2.2        r0.9        1.7
           III     r-0.7        1.0      r1.7      r3.3        r0.6       r4.0       r-1.4        2.0
            IV      r1.9        5.4      r3.5      r3.4        r0.0        1.5         2.0        1.7

        ANNUAL      r1.9        3.5      r1.6      r3.8        r0.8       r1.9        r1.4        1.7

  1997       I      r1.1        5.6      r4.5      r4.3        r1.9        3.1        r1.1        2.4
            II      r2.3        3.8      r1.5      r3.2        r2.1        0.9         2.3        1.4
           III      r3.6       r3.7      r0.1      r3.8        r1.8       r0.2        r2.9        1.2
            IV       2.0        5.5       3.5       5.1         2.9        3.0        -1.9        1.2

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I     r-0.3        3.5      r3.9      r1.6       r-1.2        2.0         4.3        2.8
            II     r-0.3        1.9      r2.2      r2.3       r-0.7        2.6        r2.5        2.6
           III       0.4        2.7       2.3       2.8        r0.2        2.4         1.5        2.1
            IV      r0.6        2.2      r1.6      r3.1        r0.4        2.4        r0.5        1.7

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I      r1.8        2.6      r0.7      r3.5        r0.7       r1.6        r1.3        1.5
            II      r2.3        4.2      r1.8      r3.9        r1.1       r1.6        r1.5        1.6
           III      r1.8        3.3      r1.5      r4.0        r1.0        2.1        r1.0        1.7
            IV      r1.7        3.9      r2.2      r3.9        r0.7       r2.2        r1.5        1.9

        ANNUAL      r1.9        3.5      r1.6      r3.8        r0.8       r1.9        r1.4        1.7

  1997       I      r1.3        4.7      r3.4      r4.0        r1.0        2.7        r0.6        1.9
            II       1.1        4.0       2.8       3.5         1.1        2.4         1.0        1.9
           III      r2.2        4.7      r2.4      r3.7        r1.4       r1.4        r2.1        1.7
            IV       2.2        4.7       2.4       4.1         2.1        1.8         1.1        1.5

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 10, 1998
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I           r106.6       r112.2        105.2        107.2           99.6        r100.6
            II           r107.7       r112.0        104.0        108.2           99.8         100.5
           III            108.8       r112.8        103.6        109.2          100.2         100.4
            IV            109.2        113.0        103.4        110.1          100.4         100.8

        ANNUAL            108.1        112.5        104.1        108.7          100.1         100.6

  1996       I           r110.4       r113.4        102.7        110.8          100.2        r100.3
            II           r111.6       r115.7        103.7       r112.0          100.5        r100.4
           III           r113.0       r117.0        103.6        112.9          100.6         r99.9
            IV           r114.0       r118.3        103.7        113.5          100.3         r99.5

        ANNUAL           r112.1       r116.1       r103.6       r112.1          100.3        r100.0

  1997       I           r114.9       r120.0        104.4        114.7          100.8         r99.8
            II           r116.0       r121.5        104.7        115.4          101.1         r99.5
           III           r118.3       r123.3       r104.3        116.4          101.5         r98.4
            IV            119.5        125.8        105.3        118.0          102.4          98.8

        ANNUAL            117.1        122.6        104.7        116.0          101.4          99.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r3.3         r3.9         r0.5         r2.2           -0.6         r-1.1
            II             r4.3        r-0.4         -4.5          3.8           r0.6         r-0.5
           III             r4.2         r2.6         -1.5          3.9            1.7         r-0.3
            IV             r1.6         r0.8         -0.7          3.2            0.7          r1.6

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I             r4.4         r1.5         -2.7         r2.4          r-0.9         r-1.9
            II             r4.2         r8.1          3.8          4.7           r1.2          r0.5
           III             r5.3         r4.9        r-0.4         r3.1            0.5         r-2.1
            IV             r3.6         r4.2          0.6          1.9           -1.4         r-1.6

        ANNUAL             r3.7         r3.2         -0.5          3.2            0.2         r-0.5

  1997       I             r3.3         r6.2          2.8          4.4            2.0          r1.0
            II             r3.8         r4.9          1.1          2.6            1.5         r-1.1
           III             r8.0         r6.1        r-1.7          3.4            1.4         r-4.2
            IV              4.2          8.3          4.0          5.7            3.6           1.5

        ANNUAL              4.4          5.6          1.1          3.5            1.2          -0.9

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I             r2.7         r5.6          2.8          2.0           -0.9         r-0.7
            II              2.7         r3.6          0.9          2.8           -0.2           0.1
           III             r3.5         r3.2         -0.3          3.1            0.5         r-0.4
            IV              3.3          1.7         -1.6         r3.2            0.6          -0.1

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I             r3.6         r1.1         -2.4          3.3           r0.5         r-0.3
            II             r3.6         r3.2         -0.3         r3.5            0.7          r0.0
           III             r3.8         r3.8         r0.0          3.4            0.4         r-0.5
            IV             r4.4         r4.7          0.3         r3.0           -0.1         r-1.3

        ANNUAL             r3.7         r3.2         -0.5          3.2            0.2         r-0.5

  1997       I             r4.1         r5.8          1.7          3.5            0.6         r-0.5
            II             r4.0         r5.0          1.0          3.0            0.6         r-0.9
           III             r4.7         r5.3         r0.7          3.1            0.9         r-1.5
            IV              4.8          6.4          1.5          4.0            2.1          -0.7

        ANNUAL              4.4          5.6          1.1          3.5            1.2          -0.9

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I           r110.6       r118.2        106.9        107.1           99.5         r96.8
            II           r111.4       r118.1        106.0        107.9           99.5         r96.8
           III            112.8       r119.6        106.0        108.8           99.8          96.4
            IV            113.5       r120.6       r106.3        109.3           99.7         r96.3

        ANNUAL            112.1        119.1        106.3        108.2           99.7          96.6

  1996       I           r115.2       r121.8       r105.7       r109.7          r99.2         r95.2
            II           r116.9       r125.4       r107.3       r111.0          r99.5         r94.9
           III           r118.6       r127.2       r107.3       r111.7          r99.5         r94.2
            IV           r119.5       r128.4       r107.5       r111.8          r98.8         r93.6

        ANNUAL           r117.4       r125.7       r107.1       r110.9          r99.1         r94.5

  1997       I           r120.7       r131.3       r108.8       r113.1          r99.4         r93.7
            II           r122.5       r133.9       r109.3       r113.7          r99.6         r92.8
           III           r125.8       r137.2       r109.1       r114.4          r99.7         r90.9
            IV            127.8        140.7        110.1        116.3          100.9          91.0

        ANNUAL            124.1        135.8        109.4        114.3           99.9          92.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r4.9         r5.7         r0.8         r2.4           -0.4         r-2.4
            II             r3.1        r-0.4         -3.4          3.0           -0.1         r-0.1
           III             r5.0         r5.0         r0.0         r3.3            1.2         r-1.6
            IV             r2.5         r3.5         r1.0         r2.0          r-0.4         r-0.5

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I             r6.2         r4.0        r-2.1         r1.4          r-1.8         r-4.4
            II             r6.0        r12.6         r6.2         r4.7           r1.3         r-1.2
           III             r5.9         r5.8        r-0.1         r2.6          r-0.1         r-3.1
            IV             r3.1         r3.8          0.7          0.5          r-2.8         r-2.5

        ANNUAL             r4.7         r5.5         r0.8         r2.4          r-0.5         r-2.2

  1997       I             r4.1         r9.4         r5.1         r4.8            2.3          r0.6
            II             r6.2         r8.1          1.8         r2.1           r1.0         r-3.9
           III            r11.0        r10.2        r-0.8          2.4           r0.3         r-7.8
            IV              6.6         10.5          3.7          7.1            4.9           0.4

        ANNUAL              5.7          8.0          2.2          3.1            0.8          -2.5

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              4.1         r7.9          3.7          1.7           -1.1         r-2.2
            II             r3.5          5.4          1.9          2.5          r-0.5          -0.9
           III              3.9          4.7          0.7          2.8            0.2          -1.1
            IV              3.9          3.4         -0.4          2.7            0.1          -1.1

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I             r4.2         r3.0        r-1.1         r2.4          r-0.3         r-1.7
            II             r4.9         r6.2         r1.3         r2.9           r0.0         r-1.9
           III             r5.1         r6.4         r1.2         r2.7          r-0.3         r-2.3
            IV             r5.3         r6.5          1.1         r2.3          r-0.9         r-2.8

        ANNUAL             r4.7         r5.5         r0.8         r2.4          r-0.5         r-2.2

  1997       I             r4.8         r7.8          2.9         r3.1            0.2         r-1.6
            II             r4.8         r6.8          1.9          2.5            0.1         r-2.2
           III             r6.1         r7.9          1.7          2.4            0.2         r-3.4
            IV              7.0          9.6          2.4          4.1            2.1          -2.7

        ANNUAL              5.7          8.0          2.2          3.1            0.8          -2.5

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics


  Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I           r102.8       r105.8        103.0        107.0           99.5         104.1
            II           r104.2        105.6        101.4        108.3           99.9        r103.9
           III           r105.1       r105.6        100.5        109.5          100.4        r104.2
            IV            105.3        105.0         99.7        110.7         r101.0        r105.2

        ANNUAL            104.4        105.5        101.1        108.9          100.3         104.4

  1996       I           r105.9       r104.6         98.8       r111.8          101.1        r105.5
            II           r106.6       r105.4        r98.9       r112.9         r101.3        r105.9
           III           r107.9       r106.4        r98.6       r114.1         r101.6        r105.7
            IV           r109.0       r107.6        r98.7       r115.3         r101.9        r105.7

        ANNUAL           r107.2       r106.0        r98.9       r113.4         r101.4        r105.7

  1997       I           r109.8       r108.3        r98.6       r116.2         r102.1        r105.8
            II           r110.1       r108.6        r98.6       r117.2         r102.7        r106.4
           III           r111.4       r109.0        r97.8       r118.7         r103.4        r106.5
            IV            111.8        110.5         98.9        119.7          103.8         107.1

        ANNUAL            110.7        109.1         98.5        117.9          103.0         106.5

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I             r1.1         r1.3          0.1          1.7          r-1.1          r0.6
            II             r5.6        r-0.8        r-6.1         r4.8            1.6         r-0.8
           III             r3.4        r-0.3        r-3.6         r4.5            2.3          r1.0
            IV             r0.8        r-2.3        r-3.1         r4.7           r2.2          r3.8

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I             r2.5        r-1.2        r-3.6         r4.0           r0.6          r1.4
            II             r2.6         r3.1         r0.4         r4.1           r0.7          r1.5
           III             r4.8         r3.8         -0.9         r4.0           r1.3         r-0.7
            IV             r4.3         r4.6         r0.3          4.3           r1.0          r0.1

        ANNUAL             r2.8         r0.5        r-2.2         r4.1           r1.1          r1.3

  1997       I             r3.0         r2.5        r-0.5         r3.3            1.0          r0.3
            II             r1.1         r1.2         r0.1          3.4            2.3          r2.3
           III             r4.8         r1.5        r-3.1          5.0            2.9          r0.2
            IV              1.2          5.6          4.4          3.6            1.5           2.4

        ANNUAL              3.2          2.9         -0.3          3.9            1.6           0.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I             r1.3         r3.0          1.6          2.1           -0.7          r0.8
            II             r1.9          1.3         -0.5          3.0            0.0           1.2
           III             r3.0         r1.1         -1.8          3.4            0.7          r0.4
            IV              2.7         -0.5        r-3.2          3.9            1.2           1.1

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I             r3.1        r-1.1        r-4.1         r4.5           r1.7          r1.4
            II             r2.3        r-0.2        r-2.5         r4.3           r1.4          r1.9
           III             r2.7         r0.8        r-1.8         r4.2           r1.2          r1.5
            IV             r3.5         r2.5        r-1.0         r4.1           r0.9          r0.5

        ANNUAL             r2.8         r0.5        r-2.2         r4.1           r1.1          r1.3

  1997       I             r3.7         r3.5        r-0.2          3.9           r1.0          r0.3
            II             r3.3         r3.0         -0.3          3.8            1.4          r0.5
           III              3.3          2.4        r-0.8          4.0            1.8           0.7
            IV              2.5          2.7          0.2          3.8            1.9           1.3

        ANNUAL              3.2          2.9         -0.3          3.9            1.6           0.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I   r102.9    112.3    r109.2   r105.1     r97.7     102.2     99.8    101.6    135.2    104.6
            II   r103.4    112.9    r109.2   r105.9     r97.6     102.4    100.1    101.8    134.9    104.8
           III    104.7    114.9     109.7    106.6      97.8     101.9     99.0    101.1    145.5    105.1
            IV   r105.4    115.9    r110.0   r107.5     r98.0     102.0     99.1    101.2    147.3    105.4

        ANNUAL    104.1    114.0     109.5    106.3      97.9     102.1     99.5    101.4    140.8    105.0

  1996       I   r106.0    116.5    r109.9   r108.3     r98.0     102.1     99.2    101.4    152.5    106.0
            II   r107.1    118.7    r110.8   r109.7     r98.4     102.4     98.4    101.4    154.7    106.2
           III   r107.8    120.0    r111.3   r110.7     r98.6     102.7     98.1    101.5    156.0    106.4
            IV   r108.3    121.5    r112.1   r111.5     r98.6     102.9     97.4    101.5    156.4    106.5

        ANNUAL   r107.3    119.2    r111.0   r110.1     r98.4     102.6     98.3    101.4    154.9    106.3

  1997       I   r108.8    123.3    r113.3   r112.6     r98.9     103.5     97.0    101.8    157.9    106.9
            II   r109.4    124.7    r114.0   r113.5     r99.5     103.7     97.1    102.0    159.1    107.2
           III   r111.1    127.1    r114.4   r114.7    r100.0     103.2    r96.6    101.5   r164.5    107.2
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1995       I    r-3.3      0.0      r3.4     r2.1     r-0.6       5.6      2.8      4.9    -18.1      1.8
            II     r2.0      2.0      r0.0      3.0      -0.1       1.0      1.0      1.0     -0.8      0.8
           III     r5.2      7.2      r1.9     r2.9      r0.7      -2.2     -4.2     -2.7     35.4      1.3
            IV     r2.8      3.8      r1.0     r3.3      r0.8       0.4      0.4      0.4      4.9      1.0

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I     r2.4      2.0     r-0.3     r3.1     r-0.2       0.7      0.6      0.7     15.0      2.4
            II     r4.1      7.6      r3.4     r5.1      r1.7       1.1     -3.1      0.0      5.8      0.7
           III     r2.7      4.3      r1.6     r3.8      r1.1       1.1     -1.4      0.5      3.5      0.9
            IV     r2.1      5.2      r3.1     r3.0     r-0.3       0.9     -2.8      0.0      1.0      0.1

        ANNUAL     r3.1      4.5      r1.4     r3.5      r0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I     r1.7      6.1      r4.3     r4.0      r1.6       2.3     -1.8      1.3      3.8      1.6
            II     r2.4      4.7      r2.3     r3.2      r2.1       0.8      0.5      0.7      3.2      1.1
           III     r6.3     r7.8      r1.5     r4.3      r2.2     r-1.9    r-1.9    r-1.9    r14.3     r0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1995       I    r-0.7      3.9      r4.7     r1.4     r-1.4       2.2     -1.7      1.2      6.6      1.8
            II     r0.3      3.5      r3.1     r2.1     r-0.9       1.8      1.3      1.7      1.9      1.7
           III      1.5      4.3       2.7      2.5      -0.1       1.0     -0.5      0.6      6.7      1.3
            IV     r1.6      3.2      r1.6     r2.8      r0.2       1.2      0.0      0.9      3.6      1.2

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I     r3.1      3.7      r0.6     r3.1      r0.3       0.0     -0.6     -0.2     12.8      1.4
            II     r3.6      5.1      r1.5     r3.6      r0.7       0.0     -1.6     -0.4     14.6      1.3
           III     r3.0      4.4      r1.4     r3.8      r0.8       0.8     -0.9      0.4      7.2      1.2
            IV     r2.8      4.8      r1.9     r3.8      r0.6       1.0     -1.7      0.3      6.2      1.0

        ANNUAL     r3.1      4.5      r1.4     r3.5      r0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I     r2.6      5.8      r3.1     r4.0      r1.0       1.3     -2.3      0.4      3.5      0.8
            II      2.2      5.1       2.8      3.5       1.1       1.3     -1.4      0.6      2.9      0.9
           III     r3.1     r5.9      r2.8     r3.6      r1.4       0.5    r-1.5      0.0     r5.5      0.7
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        February 10, 1998
  r=revised                                                               Source: Bureau of Labor Statistics


Appendix table 1.  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

  1992       I           98.9          98.4         99.5         98.6           99.7          99.7
            II           99.7          99.8        100.2         99.7          100.0         100.0
           III          100.3         100.3        100.0        100.6          100.2         100.3
            IV          101.0         101.5        100.4        101.0           99.7         100.0

        ANNUAL          100.0         100.0        100.0        100.0          100.0         100.0

  1993       I          101.9         102.8        100.8        101.4           99.4          99.5
            II          101.9         103.2        101.2        102.5           99.7         100.5
           III          101.9         103.5        101.5        103.3          100.1         101.4
            IV          102.8         104.9        102.1        104.3          100.2         101.5

        ANNUAL          102.2         103.6        101.4        102.9           99.9         100.7

  1994       I          103.8         106.2        102.4        105.1          100.5         101.3
            II          104.9         108.1        103.1        105.3          100.0         100.4
           III          105.1         109.3        104.0        105.9           99.8         100.8
            IV          105.7         111.1        105.1        106.6           99.8         100.9

        ANNUAL          104.7         108.7        103.8        105.6          100.0         100.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            4.0           1.4         -2.5          4.5            1.8           0.6
            II            3.4           5.9          2.5          4.5            1.3           1.1
           III            2.5           1.8         -0.7          3.6            0.5           1.1
            IV            2.9           4.8          1.8          1.7           -1.8          -1.2

        ANNUAL            3.8           3.2         -0.6          4.5            1.4           0.7

  1993       I            3.6           5.3          1.6          1.8           -1.2          -1.8
            II            0.1           1.6          1.5          4.1            1.1           4.0
           III            0.0           1.2          1.2          3.5            1.6           3.5
            IV            3.3           5.5          2.2          3.6            0.4           0.4

        ANNUAL            2.2           3.6          1.4          2.9           -0.1           0.7

  1994       I            4.0           5.2          1.2          3.4            1.3          -0.6
            II            4.3           7.4          3.0          0.5           -1.9          -3.7
           III            1.0           4.4          3.3          2.6           -1.1           1.5
            IV            2.3           6.7          4.4          2.7            0.1           0.4

        ANNUAL            2.5           4.9          2.4          2.6            0.0           0.1

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            4.1           2.8         -1.2          4.9            1.9           0.7
            II            4.1           3.9         -0.2          4.7            1.5           0.5
           III            3.0           2.5         -0.5          4.2            1.1           1.2
            IV            3.2           3.5          0.3          3.6            0.4           0.4

        ANNUAL            3.8           3.2         -0.6          4.5            1.4           0.7

  1993       I            3.1           4.4          1.3          2.9           -0.3          -0.2
            II            2.3           3.3          1.1          2.8           -0.3           0.5
           III            1.6           3.2          1.5          2.7           -0.1           1.1
            IV            1.7           3.4          1.6          3.2            0.5           1.5

        ANNUAL            2.2           3.6          1.4          2.9           -0.1           0.7

  1994       I            1.8           3.4          1.5          3.6            1.1           1.8
            II            2.9           4.8          1.9          2.7            0.3          -0.1
           III            3.1           5.6          2.4          2.5           -0.3          -0.6
            IV            2.9           5.9          3.0          2.3           -0.4          -0.6

        ANNUAL            2.5           4.9          2.4          2.6            0.0           0.1

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
                                                                  Source: Bureau of Labor Statistics


  Appendix table 2.  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

  1992       I           98.1          97.8         99.7         98.6           99.7         100.5
            II           99.9         100.0        100.1         99.7          100.0          99.9
           III          100.4         100.3         99.9        100.6          100.2         100.2
            IV          101.5         101.9        100.4        100.9           99.6          99.4

        ANNUAL          100.0         100.0        100.0        100.0          100.0         100.0

  1993       I          102.8         103.6        100.8        101.5           99.5          98.8
            II          103.3         104.4        101.0        102.7           99.9          99.4
           III          102.7         104.5        101.7        103.5          100.3         100.8
            IV          104.9         107.5        102.5        104.6          100.5          99.8

        ANNUAL          103.5         105.0        101.5        103.1          100.1          99.7

  1994       I          106.3         109.6        103.1        105.2          100.6          99.0
            II          107.7         112.0        104.0        105.3          100.0          97.7
           III          108.6         114.2        105.2        105.8           99.6          97.5
            IV          109.3         116.6        106.7        106.4           99.6          97.4

        ANNUAL          107.8         113.1        105.0        105.5           99.9          97.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            5.1           2.1         -2.9          4.9            2.1          -0.2
            II            7.4           9.0          1.5          4.5            1.4          -2.6
           III            2.1           1.3         -0.8          3.7            0.6           1.5
            IV            4.6           6.6          1.9          1.2           -2.3          -3.2

        ANNUAL            5.9           4.3         -1.4          4.8            1.7          -1.0

  1993       I            5.1           6.9          1.7          2.5           -0.5          -2.5
            II            2.1           2.9          0.8          4.8            1.8           2.6
           III           -2.3           0.5          2.9          3.3            1.4           5.7
            IV            8.6          11.9          3.1          4.1            0.8          -4.1

        ANNUAL            3.5           5.0          1.5          3.1            0.1          -0.3

  1994       I            5.5           8.1          2.4          2.5            0.4          -2.9
            II            5.5           9.2          3.5          0.0           -2.3          -5.1
           III            3.2           8.0          4.7          2.1           -1.6          -1.1
            IV            2.7           8.6          5.8          2.5            0.0          -0.2

        ANNUAL            4.2           7.7          3.4          2.3           -0.3          -1.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            5.9           3.7         -2.1          5.2            2.3          -0.6
            II            7.0           5.4         -1.5          5.1            2.0          -1.8
           III            5.0           3.6         -1.4          4.4            1.3          -0.6
            IV            4.8           4.7         -0.1          3.6            0.4          -1.2

        ANNUAL            5.9           4.3         -1.4          4.8            1.7          -1.0

  1993       I            4.8           5.9          1.1          3.0           -0.2          -1.7
            II            3.5           4.4          0.9          3.0           -0.1          -0.4
           III            2.3           4.2          1.8          2.9            0.1           0.6
            IV            3.3           5.5          2.1          3.7            0.9           0.3

        ANNUAL            3.5           5.0          1.5          3.1            0.1          -0.3

  1994       I            3.4           5.8          2.3          3.7            1.1           0.2
            II            4.2           7.3          3.0          2.5            0.1          -1.7
           III            5.7           9.3          3.4          2.2           -0.7          -3.3
            IV            4.2           8.5          4.1          1.8           -0.9          -2.4

        ANNUAL            4.2           7.7          3.4          2.3           -0.3          -1.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
                                                                  Source: Bureau of Labor Statistics

  
Appendix table 3.  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

  1992       I           99.6          98.9         99.3         98.5           99.6          98.9
            II           99.5          99.7        100.2         99.7          100.0         100.2
           III          100.3         100.3        100.1        100.5          100.1         100.3
            IV          100.5         101.1        100.5        101.2           99.9         100.6

        ANNUAL          100.0         100.0        100.0        100.0          100.0         100.0

  1993       I          101.0         101.8        100.9        101.3           99.3         100.4
            II          100.4         101.8        101.5        102.1           99.4         101.8
           III          101.1         102.4        101.2        103.0           99.7         101.8
            IV          100.7         102.1        101.5        103.7           99.6         103.0

        ANNUAL          100.8         102.1        101.2        102.6           99.6         101.7

  1994       I          101.4         102.8        101.4        104.8          100.2         103.3
            II          102.3         104.2        101.9        105.1           99.9         102.7
           III          102.0         104.4        102.3        105.9           99.7         103.8
            IV          102.5         105.5        102.9        106.6           99.7         104.0

        ANNUAL          102.0         104.2        102.2        105.5           99.9         103.5

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1992       I            3.4           1.4         -1.9          4.1            1.3           0.6
            II           -0.6           3.2          3.8          4.6            1.5           5.2
           III            3.1           2.6         -0.5          3.6            0.5           0.5
            IV            1.2           2.9          1.7          2.5           -1.0           1.3

        ANNUAL            1.7           2.3          0.6          4.3            1.2           2.5

  1993       I            1.7           3.1          1.5          0.6           -2.3          -1.0
            II           -2.3           0.0          2.4          3.2            0.3           5.7
           III            3.2           2.2         -0.9          3.4            1.5           0.2
            IV           -1.9          -1.1          0.9          2.6           -0.6           4.6

        ANNUAL            0.8           2.1          1.2          2.6           -0.4           1.7

  1994       I            3.1           2.6         -0.4          4.5            2.5           1.4
            II            3.4           5.7          2.2          1.1           -1.3          -2.3
           III           -1.0           0.5          1.6          3.1           -0.6           4.2
            IV            1.9           4.4          2.5          2.6            0.1           0.7

        ANNUAL            1.2           2.1          1.0          2.9            0.3           1.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1992       I            2.2           2.2         -0.1          4.5            1.6           2.2
            II            1.2           2.8          1.6          4.3            1.2           3.0
           III            1.2           1.9          0.7          4.1            1.0           2.9
            IV            1.8           2.5          0.8          3.7            0.6           1.9

        ANNUAL            1.7           2.3          0.6          4.3            1.2           2.5

  1993       I            1.3           3.0          1.6          2.8           -0.3           1.5
            II            0.9           2.2          1.3          2.5           -0.6           1.6
           III            0.9           2.1          1.2          2.4           -0.4           1.5
            IV            0.1           1.1          0.9          2.5           -0.3           2.3

        ANNUAL            0.8           2.1          1.2          2.6           -0.4           1.7

  1994       I            0.5           0.9          0.5          3.4            0.9           3.0
            II            1.9           2.3          0.4          2.9            0.5           1.0
           III            0.9           1.9          1.1          2.8            0.0           2.0
            IV            1.8           3.3          1.5          2.8            0.1           1.0

        ANNUAL            1.2           2.1          1.0          2.9            0.3           1.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 10, 1998
                                                                  Source: Bureau of Labor Statistics

3


SOURCES:  Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and
hours data are from the Bureau of Labor Statistics  and the Bureau of
Economic Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.