USDL 99-126
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EDT,
TUESDAY, MAY 11, 1999.

Internet address:      http://stats.bls.gov/lprhome.htm
Historical, technical  
  information:         (202) 606-5606
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                           PRODUCTIVITY AND COSTS
                             First Quarter 1999


     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 first quarter of 1999.  The seasonally adjusted annual rates
of productivity change in the first quarter were:

               4.7 percent in the business sector and
               4.0 percent in the nonfarm business sector.

     These productivity gains resulted from a combination of strong output
growth and modest increases in hours of all persons.  Output grew 5.1 percent
in the business sector and 5.0 percent in the nonfarm business sector.  Hours
at work increased 0.4 percent in business and 0.9 percent in nonfarm
business. First-quarter measures are summarized in table A and appear in
detail in tables 1 through 5.

     In manufacturing, productivity changes in the first quarter were:

               5.8 percent in manufacturing,
               8.2 percent in durable goods manufacturing, and
               2.4 percent in nondurable goods manufacturing.

     Productivity growth in manufacturing in the first quarter of 1999
reflected a modest rate of increase in output (1.3 percent) and a drop in the
hours of all persons (4.3 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.

     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.


------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary first-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            4.7       5.1      0.4      5.2       3.7      0.4
Nonfarm business    4.0       5.0      0.9      4.3       2.8      0.3
Manufacturing       5.8       1.3     -4.3      4.9       3.3     -0.9
  Durable           8.2       1.4     -6.2      4.7       3.2     -3.2
  Nondurable        2.4       1.1     -1.3      5.4       3.9      2.9
------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            3.0       4.5      1.5      4.4       2.6      1.3
Nonfarm business    2.8       4.5      1.7      4.1       2.4      1.3
Manufacturing       4.9       2.2     -2.6      3.5       1.8     -1.4
  Durable           7.9       4.8     -2.9      2.8       1.1     -4.8
  Nondurable        1.2      -0.9     -2.1      4.7       3.0      3.5
------------------------------------------------------------------------


Business

     Productivity in the business sector increased at a 4.7 percent annual
rate from the fourth quarter of 1998 to the first quarter of 1999, about the
same as one quarter earlier (4.6 percent).  During the first quarter of 1999,
output increased 5.1 percent and hours of all persons engaged in the sector
rose 0.4 percent (seasonally adjusted annual rates).  In the fourth quarter
of 1998, output and hours grew at rates of 7.3 percent and 2.6 percent,
respectively (table 1).

     Hourly compensation increased 5.2 percent during 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 hourly compensation and productivity, increased at a 0.4
percent rate during the first quarter, after declining by 0.1 percent one
quarter earlier.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.7 percent
annual rate in the first quarter.  This was the seventh consecutive quarter
in which real hourly compensation increased at least 2.0 percent (seasonally
adjusted annual rate).

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, rose 0.7 percent
in the first quarter.

Nonfarm business

     Productivity increased 4.0 percent in the nonfarm business sector in the
first quarter, as output increased 5.0 percent and hours of all persons rose
0.9 percent.  During the fourth quarter of 1998, productivity had risen 4.3
percent in this sector, reflecting gains of 7.4 percent in output and 2.9
percent in hours (table 2).

     Hourly compensation increased at a 4.3 percent annual rate in the first
quarter.  When the rise in the CPI-U was taken into account, real hourly
compensation rose 2.8 percent in the first quarter of 1999; it had increased
2.2 percent in the fourth quarter of 1998.

     Unit labor costs rose 0.3 percent in the first quarter, after falling
0.4 percent in the fourth quarter of 1998.  The implicit price deflator for
nonfarm business output rose 1.0 percent in the first quarter, compared with
a 0.2 percent rise one quarter earlier.

Manufacturing

     Productivity increased at a 5.8 percent seasonally adjusted annual rate
in manufacturing in the first quarter of 1999, as output increased 1.3
percent and hours of all persons declined 4.3 percent. This was the fourth
consecutive quarter in which both productivity and output rose and hours fell
(table 3).  Productivity grew in both the durable and nondurable sectors of
manufacturing, 8.2 and 2.4 percent, respectively.  In durable goods
manufacturing, output growth slowed to a 1.4 percent annual rate in the first
quarter; this was accompanied by a substantial decline in hours at work, 6.2
percent.  Nondurable goods manufacturing output rose 1.1 percent in the first
quarter, and hours declined by 1.3 percent (tables 4 and 5).

     Hourly compensation of all manufacturing workers rose 4.9 percent during
the first quarter, and real hourly compensation rose 3.3 percent.  In durable
goods, hourly compensation rose 4.7 percent in the first quarter.  In non-
durable goods, it rose 5.4 percent.

     Unit labor costs in manufacturing fell 0.9 percent in the first quarter
of 1999, as unit labor costs of durable-goods producers declined 3.2 percent,
and those of nondurable-goods producers grew at a 2.9 percent annual rate.
Unit labor costs in total manufacturing have fallen in 23 of the last 31
quarters.

Fourth-quarter and annual measures for nonfinancial corporations

     Fourth-quarter and annual 1998 measures of productivity and costs also
were announced today for the nonfinancial corporate sector (tables B, C,
and 6).  Output per all-employee hour rose 3.3 percent from the third to the
fourth quarter of 1998, as output increased 5.5 percent and employee hours
rose 2.1 percent.  This rate of growth was lower than in the third quarter,
when productivity increased 4.4 percent, as output climbed 6.1 percent and
all-employee hours rose 1.7 percent (seasonally adjusted annual rates).  The
sector includes all corporations doing business in the United States, except
those classified as depository institutions, nondepository institutions,
security and commodity brokers, insurance carriers, regulated investment
offices, small business investment offices, and real estate investment
trusts.


---------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth-quarter 1998 productivity and
cost measures
(Seasonally adjusted annual rates)
---------------------------------------------------------------------------                                                           
                                           Real                    
                                  Hourly   hourly  Unit            Implicit
         Produc-                  compen-  compen- labor  Unit     price
Period   tivity    Output  Hours  sation   sation  costs  profits  deflator
---------------------------------------------------------------------------                                                                   
                 Percent change from preceding quarter
1998 IV    3.3      5.5     2.1    4.2      2.4     0.8    -12.9    -0.4
---------------------------------------------------------------------------
                 Percent change from same quarter a year ago
1998 IV    3.4      5.4     2.0    4.1      2.5     0.7     -5.8    -0.2
---------------------------------------------------------------------------


     Hourly compensation increased 4.2 percent in the fourth quarter, and
real hourly compensation rose 2.4 percent.  Unit labor costs increased 0.8
percent in the fourth quarter, compared with a 0.3 percent decline in the
third quarter. Total unit costs rose 1.6 percent during the fourth quarter,
after having declined 0.4 percent during the third quarter.  In the fourth
quarter, unit profits fell 12.9 percent.  Unit profits had risen 3.6 percent
during the third quarter of 1998.   The implicit price deflator for
nonfinancial corporate output fell 0.4 percent during the fourth quarter of
1998.

     In calendar year 1998, productivity grew 3.0 percent in nonfinancial
corporations (table C).  This was the largest increase since 1984, when it
rose 3.1 percent.  Output grew 5.6 percent in 1998, less than it had one year
earlier, when it grew 6.1 percent.  Hours of employees in nonfinancial
corporations grew 2.6 percent during 1998, compared with 3.6 percent one year
earlier.


----------------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity and
related measures, 1989-1998
----------------------------------------------------------------------------
Measure                    1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
----------------------------------------------------------------------------
Productivity               -1.4  0.6  1.5  2.5  1.1  2.3  1.2  2.8  2.5  3.0
Output                      1.6  1.0 -1.3  3.0  3.4  6.3  4.4  4.5  6.1  5.6
Hours                       3.0  0.3 -2.7  0.5  2.3  3.9  3.2  1.7  3.6  2.6
Hourly compensation         2.5  5.1  4.5  4.5  2.0  2.0  2.1  3.1  3.5  4.1
Real hourly compensation   -2.2 -0.3  0.3  1.5 -0.9 -0.6 -0.8  0.2  1.1  2.5
Unit labor costs            3.9  4.4  3.0  2.0  0.9 -0.3  0.9  0.3  1.0  1.1
Unit nonlabor costs         7.3  3.0  3.9 -2.9 -0.6  0.3 -0.7 -1.1 -1.3 -1.0
Total unit cost             4.8  4.0  3.2  0.7  0.5 -0.2  0.4 -0.1  0.4  0.6
Unit profits               -7.4 -1.5 -0.8  6.5 13.3 18.7  6.8  7.7  2.1 -4.6
Implicit price deflator     3.5  3.5  2.9  1.2  1.7  1.8  1.2  0.9  0.6 -0.1
----------------------------------------------------------------------------


     Hourly compensation increased 4.1 percent in 1998, the largest increase
since a 4.5 percent rise in 1992.  Real hourly compensation rose 2.5 percent
in 1998, more than in any year since 1986, when it increased 3.1 percent.

     Total unit costs rose 0.6 percent in 1998, reflecting an increase of 1.1
percent in unit labor costs and a 1.0 percent drop in unit nonlabor costs.
Unit profits for the year declined 4.6 percent in 1998, the first decrease
since a 0.8 percent drop in 1991.


REVISED MEASURES

     Current and previous measures for the fourth quarter of 1998 for the
business, nonfarm business, and manufacturing sectors are compared in
table D.  Some of the quarterly movements differ from those reported on
March 9, based on information then available.


--------------------------------------------------------------------------
Table D. 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
--------------------------------------------------------------------------                                                                     
                             Fourth quarter 1998
Business:                                                            
  Previous             4.8       7.4      2.4      4.0       2.2     -0.8
  Current              4.6       7.3      2.6      4.4       2.7     -0.1
Nonfarm business:                                                    
  Previous             4.6       7.5      2.8      3.5       1.7     -1.1
  Current              4.3       7.4      2.9      4.0       2.2     -0.4
Manufacturing:                                                       
  Previous             5.2       4.7     -0.5      3.3       1.5     -1.8
  Current              5.3       4.8     -0.5      3.3       1.5     -1.9
--------------------------------------------------------------------------

                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Tuesday, June 8, 1999.  First-quarter measures for nonfinancial
corporations and revised measures for business, nonfarm business, and
manufacturing will be released at that time.

                                      
                               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     104.4      117.8     112.9     113.2        99.5      108.5       112.4      109.9
            II     104.8      119.1     113.6     113.9        99.8      108.7       113.2      110.3
           III     105.8      120.6     114.0     115.0       100.3      108.8       113.8      110.6
            IV     106.0      121.7     114.8     116.5       101.1      109.9       112.4      110.8

        ANNUAL     105.2      119.8     113.8     114.7       100.3      109.0       112.9      110.4

  1998       I     107.1      123.7     115.6     117.9       102.1      110.2       112.2      110.9
            II     107.1      124.3     116.1     119.1       102.7      111.2       110.5      111.0
           III     107.8      125.5     116.4     120.2       103.2      111.5       110.4      111.1
            IV    r109.0     r127.7    r117.2    r121.5      r103.9     r111.5      r110.7      111.2

        ANNUAL    r107.7      125.3     116.3     119.7       103.0      111.1      r110.9      111.0

  1999       I     110.3      129.3     117.3     123.1       104.8      111.6       111.0      111.4
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.7        4.9       4.2       3.5         1.0        2.8         2.1        2.5
            II       1.8        4.7       2.8       2.4         1.2        0.6         2.8        1.4
           III       3.6        4.9       1.3       4.0         2.0        0.4         2.3        1.1
            IV       0.8        3.6       2.7       5.2         3.3        4.4        -4.8        0.9

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       4.1        7.1       2.8       5.0         3.9        0.8        -0.7        0.2
            II       0.1        1.7       1.6       4.1         2.3        4.0        -6.0        0.3
           III       2.6        4.0       1.4       3.7         2.0        1.0        -0.4        0.5
            IV      r4.6       r7.3      r2.6      r4.4        r2.7      r-0.1        r1.1       r0.3

        ANNUAL       2.4        4.6       2.2      r4.4        r2.8       r2.0       r-1.8        0.6

  1999       I       4.7        5.1       0.4       5.2         3.7        0.4         1.1        0.7
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.4        4.7       3.3       4.0         1.0        2.6         0.5        1.8
            II       1.0        4.3       3.3       3.2         0.9        2.2         0.9        1.8
           III       1.8        4.9       3.0       3.3         1.0        1.4         2.0        1.6
            IV       1.7        4.5       2.8       3.8         1.9        2.0         0.6        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       4.6         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       2.9        5.0       2.1      r4.3        r2.7       r1.4       r-1.5        0.3

        ANNUAL       2.4        4.6       2.2      r4.4        r2.8       r2.0       r-1.8        0.6

  1999       I       3.0        4.5       1.5       4.4         2.6        1.3        -1.1        0.4
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 11, 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       112.9      110.0
            II     104.5      119.2     114.1     113.6        99.5      108.7       113.7      110.4
           III     105.4      120.6     114.5     114.6        99.9      108.8       114.6      110.8
            IV     105.6      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     106.6      123.9     116.3     117.4       101.6      110.1       113.2      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       111.4      111.5
            IV     108.5      127.9     117.9    r120.9      r103.3     r111.4      r111.7      111.5

        ANNUAL    r107.2      125.5     117.0     119.1       102.5     r111.1       112.0      111.4

  1999       I     109.5      129.4     118.2     122.1       104.0      111.5       112.4      111.8
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.1        4.5       4.4       3.7         1.1        3.5         2.3        3.1
            II       1.6        4.5       2.8       2.4         1.2        0.7         2.8        1.5
           III       3.4        4.8       1.3       3.8         1.8        0.3         3.1        1.4
            IV       0.9        4.0       3.0       4.9         3.0        4.0        -4.3        0.9

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       3.6        7.0       3.3       4.7         3.7        1.1        -0.3        0.6
            II       0.3        1.7       1.4       4.1         2.2        3.7        -5.7        0.2
           III       2.5        4.0       1.4       3.9         2.3        1.4        -0.5        0.7
            IV      r4.3       r7.4      r2.9      r4.0        r2.2      r-0.4        r1.2       r0.2

        ANNUAL       2.2        4.6       2.4       4.2         2.6       r2.0        -1.4        0.7

  1999       I       4.0        5.0       0.9       4.3         2.8        0.3         2.2        1.0
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.0        4.6       3.5       3.9         0.9        2.9         0.5        2.0
            II       0.7        4.1       3.4       3.2         0.8        2.5         1.3        2.0
           III       1.5        4.7       3.1       3.2         1.0        1.7         2.6        2.0
            IV       1.5        4.4       2.9       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       4.4         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       2.7        5.0      r2.3      r4.2        r2.6       r1.5       r-1.4        0.4

        ANNUAL       2.2        4.6       2.4       4.2         2.6       r2.0        -1.4        0.7

  1999       I       2.8        4.5       1.7       4.1         2.4        1.3        -0.7        0.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 11, 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          97.0
            II            118.1        124.5        105.4        114.2          100.0          96.7
           III            120.7        126.8        105.1        115.7          100.9          95.9
            IV            121.9        129.1        105.9        118.0          102.4          96.8

        ANNUAL            119.4        125.7        105.3        115.3          100.8          96.6

  1998       I            122.4        129.9        106.1        119.2          103.2          97.3
            II            123.6        130.7        105.7        119.9          103.3          97.0
           III            125.0        130.8        104.6        120.9          103.7          96.7
            IV           r126.7       r132.4        104.5        121.8          104.1          96.2

        ANNUAL            124.4        130.9        105.2        120.4          103.7          96.8

  1999       I            128.5        132.8        103.4        123.3          105.0          96.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.1          7.2          3.0          4.4            1.8           0.4
            II              5.0          6.6          1.5          3.7            2.4          -1.3
           III              9.0          7.7         -1.2          5.7            3.7          -3.1
            IV              4.3          7.5          3.1          8.0            6.1           3.6

        ANNUAL              4.9          6.5          1.6          4.2            1.8          -0.7

  1998       I              1.6          2.4          0.8          4.0            3.0           2.4
            II              3.9          2.5         -1.4          2.6            0.8          -1.3
           III              4.7          0.4         -4.1          3.2            1.5          -1.5
            IV             r5.3         r4.8         -0.5          3.3            1.5         r-1.9

        ANNUAL              4.2         r4.2         -0.1          4.5            2.9           0.2

  1999       I              5.8          1.3         -4.3          4.9            3.3          -0.9
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.2          6.7          2.3          3.6            0.6          -0.6
            II              4.4          5.9          1.5          3.5            1.1          -0.8
           III              5.3          6.3          1.0          4.1            1.8          -1.1
            IV              5.6          7.3          1.6          5.4            3.5          -0.1

        ANNUAL              4.9          6.5          1.6          4.2            1.8          -0.7

  1998       I              4.9          6.0          1.1          5.3            3.8           0.4
            II              4.7          5.0          0.3          5.1            3.4           0.4
           III              3.6          3.2         -0.4          4.4            2.8           0.8
            IV             r3.9          2.5         -1.3          3.3            1.7          -0.6

        ANNUAL              4.2         r4.2         -0.1          4.5            2.9           0.2

  1999       I              4.9          2.2         -2.6          3.5            1.8          -1.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 11, 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            125.1        136.9        109.4        110.7           97.2          88.5
            II            127.5        140.3        110.1        111.6           97.8          87.6
           III            131.5        144.6        110.0        113.2           98.7          86.1
            IV            134.0        148.3        110.7        115.9          100.6          86.5

        ANNUAL            129.5        142.5        110.0        112.9           98.7          87.1

  1998       I            134.6        149.6        111.1        116.7          101.0          86.7
            II            136.8        151.3        110.6        117.1          100.9          85.6
           III            139.6        153.1        109.7        117.6          100.9          84.2
            IV            142.5       r156.3        109.7        118.5          101.3          83.2

        ANNUAL            138.3        152.6        110.3        117.5          101.1          84.9

  1999       I            145.3        156.8        107.9        119.9          102.1          82.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.6         10.4          5.5          4.0            1.5          -0.6
            II              7.9         10.4          2.3          3.5            2.3          -4.1
           III             13.0         12.8         -0.2          5.5            3.5          -6.6
            IV              7.8         10.7          2.7         10.2            8.2           2.2

        ANNUAL              6.6          9.4          2.7          3.9            1.5          -2.6

  1998       I              2.0          3.5          1.5          2.6            1.6           0.6
            II              6.6          4.6         -1.8          1.5           -0.3          -4.7
           III              8.5          4.8         -3.5          1.6           -0.1          -6.4
            IV             r8.5         r8.6          0.1          3.2           r1.5         r-4.9

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  1999       I              8.2          1.4         -6.2          4.7            3.2          -3.2
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              5.4          9.3          3.7          3.0            0.1          -2.3
            II              5.5          8.1          2.4          2.9            0.6          -2.4
           III              7.2          9.3          2.0          3.6            1.4          -3.3
            IV              8.3         11.1          2.5          5.8            3.9          -2.3

        ANNUAL              6.6          9.4          2.7          3.9            1.5          -2.6

  1998       I              7.6          9.3          1.5          5.4            3.9          -2.0
            II              7.3          7.8          0.5          4.9            3.2          -2.2
           III              6.2          5.9         -0.3          3.9            2.3          -2.1
            IV             r6.4         r5.4         -0.9          2.2            0.7          -3.9

        ANNUAL              6.8          7.0          0.2          4.1            2.5          -2.5

  1999       I              7.9          4.8         -2.9          2.8            1.1          -4.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 11, 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         99.1        116.2          102.1         105.9
            II            110.2        109.3         99.2        117.3          102.7         106.4
           III            111.4        109.7         98.5        118.9          103.7         106.8
            IV            111.3        110.7         99.4        120.3          104.4         108.0

        ANNUAL            110.7        109.6         99.1        118.2          103.3         106.8

  1998       I            111.7        111.0         99.4        122.1          105.7         109.3
            II            111.9        111.0         99.2        123.5          106.4         110.4
           III            111.9        109.6         97.9        125.2          107.4         111.8
            IV           r112.4        109.7         97.6        126.2          107.8         112.3

        ANNUAL            112.0        110.3         98.5        124.2          106.9         111.0

  1999       I            113.0        110.0         97.3        127.9          108.9         113.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              3.9          3.4         -0.5          4.6            2.0           0.7
            II              1.5          1.9          0.4          3.8            2.6           2.2
           III              4.3          1.7         -2.5          5.7            3.7           1.3
            IV             -0.1          3.6          3.7          4.6            2.7           4.7

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I              1.3          1.1         -0.2          6.3            5.3           5.0
            II              0.6         -0.2         -0.8          4.4            2.5           3.8
           III              0.3         -4.7         -5.0          5.7            4.0           5.4
            IV             r1.5         r0.2         -1.3          3.3            1.6          r1.8

        ANNUAL              1.2          0.6         -0.5          5.1            3.5           3.9

  1999       I              2.4          1.1         -1.3          5.4            3.9           2.9
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.3          3.7          0.4          4.3            1.3           1.0
            II              3.2          3.4          0.2          4.2            1.9           1.0
           III              3.1          2.6         -0.6          4.6            2.4           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              1.7          2.1          0.3          5.1            3.6           3.3
            II              1.5          1.5          0.0          5.3            3.6           3.7
           III              0.5         -0.1         -0.6          5.2            3.6           4.7
            IV              0.9        r-0.9         -1.8          4.9            3.3           4.0

        ANNUAL              1.2          0.6         -0.5          5.1            3.5           3.9

  1999       I              1.2         -0.9         -2.1          4.7            3.0           3.5
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 11, 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

  1996       I    106.4    117.3     110.2    107.7      97.4     101.2     98.7    100.6    153.7    105.4
            II    107.3    119.3     111.2    109.0      97.7     101.7     97.9    100.7    154.1    105.5
           III    108.0    120.9     111.9    110.1      98.1     101.9     97.5    100.8    155.3    105.7
            IV    108.6    122.5     112.8    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

  1997       I    108.9    124.3     114.1    111.8      98.2     102.6     97.3    101.2    156.6    106.2
            II    109.6    126.2     115.2    112.5      98.5     102.6     97.1    101.2    157.3    106.3
           III    111.1    128.7     115.9    113.6      99.0     102.3     96.4    100.7    161.7    106.3
            IV    111.3    130.2     117.0    115.0      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     117.9    116.0     100.4     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    114.1    135.4     118.6    118.5     101.7     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

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1996       I      1.3      1.4       0.1      1.7      -1.6       0.4     -0.7      0.1     13.1      1.7
            II      3.3      6.9       3.5      5.0       1.3       1.7     -2.9      0.5      1.1      0.6
           III      2.9      5.6       2.6      3.8       1.5       0.9     -1.7      0.3      3.0      0.6
            IV      2.0      5.5       3.4      2.8      -0.5       0.7     -0.5      0.4      0.3      0.4

        ANNUAL      2.8      4.5       1.7      3.1       0.2       0.3     -1.1     -0.1      7.7      0.9

  1997       I      1.3      5.9       4.5      3.4       0.8       2.0     -0.6      1.4      3.2      1.6
            II      2.3      6.3       3.9      2.5       1.3       0.2     -0.6      0.0      1.7      0.2
           III      5.6      8.2       2.5      4.1       2.2      -1.3     -3.1     -1.8     11.8      0.0
            IV      1.0      4.8       3.8      5.0       3.1       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      3.1      4.0       0.9      4.6       2.7       1.5      0.1      1.1     -7.7     -0.1
           III      4.4      6.1       1.7      4.0       2.4      -0.3     -0.9     -0.4      3.6      0.1
            IV      3.3      5.5       2.1      4.2       2.4       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

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1996       I      3.0      3.9       0.9      2.5      -0.2      -0.4     -0.6     -0.5     11.5      0.9
            II      3.2      4.9       1.6      3.1       0.2      -0.1     -1.6     -0.5     11.1      0.9
           III      2.6      4.4       1.8      3.4       0.5       0.8     -0.9      0.3      4.5      0.9
            IV      2.4      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       0.2       0.3     -1.1     -0.1      7.7      0.9

  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      2.5      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      3.8       2.3       0.9     -1.9      0.2     -2.0     -0.1
            II      3.1      5.7       2.6      4.3       2.7       1.2     -1.7      0.5     -4.3     -0.1
           III      2.8      5.2       2.4      4.3       2.7       1.5     -1.1      0.8     -6.2     -0.1
            IV      3.4      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

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 11, 1999
  r=revised                                                               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
-1.2 and +1.4 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 fourth quarter of 1998.



                            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.