TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,

 
Historical, technical                      USDL 95-158
  information:(202) 606-5606               TRANSMISSION OF THIS
Current data: (202) 606-7828               MATERIAL IS EMBARGOED
Media contact:(202) 606-5902               UNTIL 10:00 A.M. EDT
                                           TUESDAY, MAY 9, 1995
 
 
                            PRODUCTIVITY AND COSTS
                              First Quarter 1995
 
 
     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 1995.  The seasonally-adjusted annual rates
of productivity change in the first quarter were:
 
               0.4 percent in the business sector, and
               0.7 percent in the nonfarm business sector.
 
In both sectors, first-quarter productivity gains were much smaller than gains
recorded in the fourth quarter of 1994 (as revised).
 
     In manufacturing, productivity changes in the first quarter were:
 
               3.6 percent in manufacturing,
               3.8 percent in durable goods manufacturing, and
               3.2 percent in nondurable goods manufacturing.
 
     The productivity increase in manufacturing in the first quarter was
slightly higher than that recorded in the fourth quarter of 1994, and both the
output and hours increases were smaller.  Output and hours in manufacturing,
which includes about 20 percent of U.S. business-sector employment, tend to
change more from quarter to quarter than in the business and nonfarm business
sectors.  First-quarter measures are summarized in table A and appear in detail
in tables 1 through 5.
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis (BEA) of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect independent indexes of industrial production prepared by the Board of
Governors of the Federal Reserve System.  See Technical Notes (page 7) for
further information on data sources.
 
     In nonfinancial corporations, productivity rose 3.0 percent in the fourth
quarter of 1994, as output rose 8.4 percent and hours rose 5.2 percent.  For
1994 as a whole, productivity in nonfinancial corporations increased 2.6
percent (tables B and 6).
 
 
                                        2
Table A.  Productivity and costs:  First-quarter 1995 measures
(Seasonally adjusted annual rates)
 
                                                 Real
                                         Hourly  hourly  Unit
                    Produc-              compen- compen- labor
    Sector          tivity Output Hours  sation  sation  costs
 
                      Percent change from preceding quarter
 
   Business          0.4     3.2   2.8    3.9    0.8    3.5
   Nonfarm business  0.7     3.3   2.6    4.1    1.0    3.4
   Manufacturing     3.6     6.1   2.4    4.9    1.7    1.2
   Durable           3.8     7.2   3.3    5.1    1.9    1.2
   Nondurable        3.2     4.5   1.2    4.4    1.3    1.1
 
                      Percent change from same quarter a year ago
 
   Business          1.5     4.8   3.3    2.7   -0.2    1.2
   Nonfarm business  1.4     4.6   3.2    2.9    0.0    1.4
   Manufacturing     4.0     6.7   2.6    2.4   -0.4   -1.5
   Durable           4.4     8.0   3.4    2.4   -0.5   -1.9
   Nondurable        3.4     5.0   1.5    2.4   -0.5   -1.0
 
 
Business
 
     From the fourth quarter of 1994 to the first quarter of 1995, business
sector productivity increased at a 0.4 percent annual rate.  Output and hours
advanced 3.2 percent and 2.8 percent, respectively.   During the fourth quarter
of 1994, output had increased 7.8 percent and hours of all persons engaged in
the sector increased 3.6 percent (seasonally adjusted annual rates), and
productivity went up 4.1 percent (revised).  See table 1.
 
     Hourly compensation increased 3.9 percent during the first quarter of
1995, compared with a 3.1 percent rise in the fourth quarter of 1994.  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 3.5 percent rate during
the first quarter.  Unit labor costs had declined 0.9 percent in the fourth
quarter of 1994.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), rose at a 0.8 percent annual rate
in the first quarter, about the same as the 0.9 percent rise in the fourth
quarter of 1994.
 
     The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased 1.8 percent
in the first quarter, compared with a 0.7 percent increase during the fourth
quarter of 1994.
 
 
                                        3
Nonfarm business
 
     Productivity rose 0.7 percent in the nonfarm business sector in the first
quarter, slightly more than in the business sector as a whole.  Nonfarm output
rose 3.3 percent, and hours of all persons increased 2.6 percent.  During the
fourth quarter of 1994, productivity had risen 4.0 percent in this sector,
reflecting gains of 7.7 percent in output and 3.5 percent in hours (table 2).
 
     Hourly compensation increased at a 4.1 percent annual rate in the first
quarter, compared with a 3.5 percent increase one quarter earlier.  When the
rise in the CPI-U was taken into account, real hourly compensation rose 1.0
percent; it had increased 1.2 percent in the fourth quarter.  Unit labor costs
rose 3.4 percent, compared with a 0.6 percent decline during the fourth quarter
of 1994.
 
     The implicit price deflator for nonfarm business output rose 1.7 percent
in the first quarter, compared with a 0.5 percent rise one quarter earlier.
 
Manufacturing
 
     Productivity increased at a 3.6 percent seasonally adjusted annual rate in
manufacturing in the first quarter of 1995, as output rose 6.1 percent and
hours of all persons increased 2.4 percent (seasonally adjusted annual rates).
In the fourth quarter of 1994, productivity rose 3.4 percent as output and
hours increased 8.0 and 4.5 percent, respectively.
 
     Hourly compensation of all manufacturing workers increased 4.9 percent
during the first quarter.  An adjustment to source data received from BEA
reflecting a large pension plan contribution in the motor vehicles industry
contributed to this increase.  (See Gross Domestic Product: First Quarter 1995
(Advance) release, BEA 95-18, April 28, 1995.)  Real hourly compensation rose
1.7 percent when the increase in consumer prices was taken into account.
 
     Unit labor costs rose at a 1.2 percent annual rate in the first quarter of
1995, the first increase since the third quarter of 1993.
 
 
                                        4
 
Table B.  Nonfinancial corporations:  Fourth-quarter 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
 
1994 IV     3.0     8.4   5.2    2.7     0.5    -0.3   2.5    -0.2
 
 
               Percent change from same quarter of preceding year
 
1994 IV     1.7     5.8   4.0    2.8     0.1    1.0    4.2     1.4
 
 
Fourth-quarter and annual measures for nonfinancial corporations
 
      Fourth-quarter and annual 1994 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 3.0 percent from the third to the fourth
quarter of 1994.  Output rose 8.4 percent, and all-employee hours rose 5.2
percent (seasonally adjusted annual rates).
 
      Hourly compensation increased 2.7 percent in the fourth quarter, and unit
labor costs fell 0.3 percent.  The implicit price deflator for nonfinancial
corporate output fell 0.2 percent during the fourth quarter.
 
 
                                        5
 
Table C.  Nonfinancial corporations: Annual changes in productivity and related
measures, 1985-1994
 
 
   Measure         1985  1986 1987 1988 1989 1990 1991 1992 1993 1994
 
 
 Productivity....   1.0   2.6  1.7  1.9 -1.6  1.1  2.0  3.0  3.0  2.6
 Output..........   3.5   3.2  4.4  5.4  1.3  1.1 -1.1  3.2  5.0  6.1
 Hours...........   2.5   0.5  2.7  3.4  2.9 -0.1 -3.1  0.1  2.0  3.4
 Hourly comp.....   4.1   4.7  3.2  4.1  3.4  5.3  4.8  4.6  3.0  2.4
 Real hourly comp.  0.5   2.8 -0.5  0.0 -1.3 -0.1  0.6  1.6  0.0 -0.1
 
 Unit labor costs   3.1   2.0  1.4  2.2  5.1  4.1  2.7  1.6  0.0 -0.2
 Unit nonlabor cost 1.2   2.4  0.1  3.8  6.1  3.0  3.7 -2.1 -1.9  0.2
 Total unit cost.   2.5   2.1  1.0  2.6  5.4  3.8  3.0  0.5 -0.5 -0.1
 Unit profits....  -0.2 -10.8 14.7  6.6 -8.2 -0.6 -1.7  7.6 14.0 12.2
 Impl. price defl.  2.3   0.8  2.2  3.0  4.1  3.4  2.6  1.1  0.8  1.1
 
 
 
     Productivity was 2.6 percent higher in 1994 than in 1993 in nonfinancial
corporations.  This reflects an output increase of 6.1 percent, the largest
since 1984 (when it rose 8.1 percent), and an increase in employee hours of 3.4
percent.
 
     The 1994 increase in hourly compensation (2.4 percent) was the smallest
increase in the history of the series, which goes back to 1958.  Total unit
costs in 1994 fell 0.1 percent, reflecting decreases in unit labor costs of 0.2
percent and increases in unit nonlabor costs of 0.2 percent.  Unit profits rose
at a 12.2 percent annual rate.
 
 
                                        6
 
Table D. Previous and revised productivity and related measures
Quarterly percent changes at seasonally adjusted annual rates
 
 
                                                 Real
                                         Hourly  hourly  Unit
                 Produc-                 compen- compen- labor
      Sector     tivity  Output  Hours   sation  sation  costs
 
 
                                Fourth quarter 1994
Business:
  Previous....    1.7     5.4     3.6     3.1     0.8     1.3
  Current.....    4.1     7.8     3.6     3.1     0.9    -0.9
 
Nonfarm business:
  Previous....    1.7     5.3     3.5     3.4     1.2     1.7
  Current.....    4.0     7.7     3.5     3.5     1.2    -0.6
 
Manufacturing:
  Previous....    3.1     7.7     4.5     3.4     1.1     0.3
  Current.....    3.4     8.0     4.5     3.4     1.1     0.0
 
 
 
Revised measures
 
     Current and previous measures for the fourth quarter of 1994 for the
business, nonfarm business, and manufacturing sectors are compared in table D.
The quarterly movements in productivity and output differ from the figures
reported on March 8, based on information then available.  There were
significant upward revisions to output data for the business and nonfarm
business sectors.
 
 
                               Next release date
 
     The next release of Productivity and Costs is scheduled for 10:00 AM EDT,
Wednesday, June 14, 1995.  First-quarter measures for nonfinancial corporations
and revised measures for business, nonfarm business, and manufacturing will be
released at that time.
 
 
                                        7
 
                                TECHNICAL NOTES
 
 
Labor Input:  The  primary  source  of  and miscellaneous  manufactures.  Non-
hours and  employment data  is the BLS  durables  include:  Food  and  kindred
Current  Employment  Statistics  (CES)  products,  tobacco  products,  textile
program, which provides monthly survey  mill products  apparel products, paper
data on  total employment  and average  and  allied   products,  printing  and
weekly hours  of production  and  non-  publishing,  chemicals   and  chemical
supervisory workers in nonagricultural  products,   petroleum   refining   and
establishments.   Jobs   rather   than  related industries, rubber and plastic
persons are  counted. Weekly hours are  products,    leather    and    leather
adjusted  to   the   hours   at   work  products. Manufacturing  accounted for
definition using the BLS Hours at Work  about  19  percent  of  GDP  in  1992.
survey, conducted for this purpose.     Quarterly     manufacturing     output
     Data   from   the   BLS   Current  measures are  based on  the  index  of
Population Survey  (CPS) are  used for  industrial production prepared monthly
farm labor; in the nonfarm sector, the  by  the  Board  of  Governors  of  the
National Income  and Product  Accounts  Federal Reserve System adjusted by BLS
(NIPA) prepared  by the Bureau of Eco-  to annual  manufacturing output levels
nomic Analysis  of the  Department  of  (gross product  originating) from  the
Commerce  and  the  CPS  are  used  to  National Income  and Product  Accounts
measure  labor  input  for  government  prepared by  the  Bureau  of  Economic
enterprises,  proprietors  and  unpaid  Analysis of  the  U.S.  Department  of
family workers.                         Commerce.
                                             Nonfinancial corporate  output is
Output: Business  output is  equal  to  equal to GDP in constant 1987 dollars,
gross  domestic   product   (GDP)   in  less   the    output   of    nonprofit
constant 1987  dollars,  less  general  institutions, output of paid employees
government,   output    of   nonprofit  of private households, rental value of
institutions, output of paid employees  owner-occupied              dwellings,
of private households, rental value of  unincorporated business, the output of
owner-occupied dwellings, and the sta-  corporations engaged  in banking,  fi-
tistical discrepancy  in computing the  nance, stock  and  commodity  trading,
NIPA.  Corresponding   exclusions  are  and credit and insurance agencies, and
also made  in labor  inputs.  Business  the   statistical    discrepancy    in
output was  about 78 percent of GDP in  computing   the   NIPA.   Nonfinancial
1992. Nonfarm business, which also ex-  corporations accounted  for  about  56
cludes farming,  was about  77 percent  percent of GDP in 1992.
of GDP in 1992.
     Total manufacturing  measures are  Productivity: These  productivity mea-
computed by  summing  series  prepared  sures   describe    the   relationship
for the  durable and  nondurable goods  between real output and the labor time
sectors.    Durables    include    the  involved in  its production. They show
following  2-digit   SIC   industries:  the changes  from period  to period in
Primary metal  industries;  fabricated  the amount  of goods and services pro-
metal     products;      nonelectrical  duced   per   hour.   Although   these
machinery; industrial  and  commercial  measures relate  output  to  hours  at
machinery  and   computer   equipment;  work  of  all  persons  engaged  in  a
electronic   and    other   electrical  sector,  they   do  not   measure  the
equipment;  transportation  equipment;  specific   contribution    of   labor,
instruments; lumber  and lumber  prod-  capital,  or   any  other   factor  of
ucts; furniture  and fixtures;  stone,  production. Rather,  they reflect  the
clay, and glass and concrete products;  joint  effects   of  many  influences,
 
 
                                        8
including   changes   in   technology;
capital investment;  level of  output;       Information in  this release will
utilization of  capacity, energy,  and  be made  available to sensory-impaired
materials; the organization of produc-  individuals upon request. Voice phone:
tion;  managerial   skill;   and   the  202-606-STAT; TDD phone: 202-606-5897;
characteristics and effort of the work  TDD message  referral phone number: 1-
force.                                  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 1982=100
 
  1993       I     116.2      138.1     118.9     158.8       107.0     136.6       149.5       140.8
            II     116.4      139.6     119.9     160.0       107.0     137.5       149.6       141.4
           III     117.3      140.9     120.1     161.2       107.4     137.4       150.4       141.6
            IV     119.0      143.9     121.0     162.1       107.2     136.3       153.8       142.1
 
        ANNUAL     117.2      140.6     120.0     160.5       107.2     136.9       150.9       141.5
 
  1994       I     119.8      145.8     121.7     164.6       108.2     137.4       153.2       142.6
            II     119.2      147.2     123.5     164.7       107.6     138.2       155.3       143.8
           III     120.3      148.8     123.7     166.2       107.6     138.1       157.6       144.5
            IV    r121.5     r151.6     124.8     167.4       107.8    r137.8      r158.9       144.8
 
        ANNUAL    r120.1     r148.4     123.5     165.6       107.8    r137.9      r156.3       143.9
 
  1995       I     121.6      152.8     125.7     169.0       108.1     139.0       158.4       145.4
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1993       I      -1.9        0.6       2.5       2.6        -0.4       4.6        -2.0         2.3
            II       0.6        4.2       3.6       3.1         0.1       2.5         0.3         1.7
           III       3.3        4.0       0.7       3.0         1.3      -0.3         2.1         0.6
            IV       5.7        8.6       2.8       2.4        -0.8      -3.1         9.4         1.2
 
        ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
  1994       I       2.9        5.5       2.5       6.3         4.1       3.3        -1.7         1.5
            II      -2.0        3.7       5.9       0.2        -2.3       2.3         5.8         3.5
           III       3.7        4.5       0.8       3.6         0.0      -0.2         5.9         2.0
            IV      r4.1       r7.8       3.6       3.1        r0.9     r-0.9        r3.4        r0.7
 
        ANNUAL      r2.5       r5.5       2.9       3.2         0.6      r0.7        r3.6         1.7
 
  1995       I       0.4        3.2       2.8       3.9         0.8       3.5        -1.2         1.8
  ---------------------------------------------------------------------------------------------------------
 
 
 
 
                      Percent change from corresponding quarter of previous year
 
  1993       I       1.5        3.3       1.8       4.3         1.1       2.8         0.7         2.0
            II       1.4        3.8       2.4       4.1         0.9       2.7         0.6         1.9
           III       1.3        3.6       2.3       3.3         0.5       2.0         3.1         2.4
            IV       1.9        4.3       2.4       2.8         0.0       0.9         2.4         1.4
 
        ANNUAL       1.5        3.8       2.2       3.6         0.6       2.0         1.7         1.9
 
  1994       I       3.1        5.6       2.4       3.7         1.1       0.6         2.5         1.2
            II       2.4        5.4       3.0       3.0         0.5       0.5         3.8         1.7
           III       2.5        5.6       3.0       3.1         0.2       0.6         4.8         2.0
            IV      r2.1       r5.4       3.2       3.3         0.6      r1.1        r3.3         1.9
 
        ANNUAL      r2.5       r5.5       2.9       3.2         0.6      r0.7        r3.6         1.7
 
  1995       I       1.5        4.8       3.3       2.7        -0.2       1.2         3.4         2.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      May 9, 1995
  r=revised                                                             Source: Bureau of Labor Statistics
 
 
                                                                   11
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator(4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1982=100
 
  1993       I     114.4      138.3     120.9     157.2       106.0     137.5       151.5       142.0
            II     114.5      139.9     122.1     158.2       105.8     138.1       151.8       142.5
           III     115.6      141.5     122.4     159.3       106.1     137.7       153.5       142.8
            IV     117.0      144.3     123.3     160.2       105.9     136.9       156.1       143.1
 
        ANNUAL     115.4      141.0     122.2     158.7       106.0     137.5       153.3       142.6
 
  1994       I     117.9      146.1     124.0     162.6       106.9     137.9       155.3       143.5
            II     117.2      147.3     125.6     162.9       106.4     138.9       158.1       145.1
           III     118.2      148.8     126.0     164.1       106.3     138.9       160.8       145.9
            IV    r119.3     r151.6     127.1     165.5       106.6    r138.7      r161.7       146.1
 
        ANNUAL    r118.1     r148.5     125.7     163.6       106.6    r138.6      r159.0       145.2
 
  1995       I     119.5      152.9     127.9     167.2       106.9     139.9       161.2       146.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1993       I      -2.0        1.0       3.0       2.1        -0.9       4.1        -1.4         2.2
            II       0.4        4.7       4.3       2.4        -0.6       2.0         0.8         1.6
           III       4.0        4.9       0.9       2.8         1.1      -1.2         4.4         0.7
            IV       4.9        7.9       2.9       2.4        -0.9      -2.4         7.1         0.8
 
        ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
  1994       I       2.9        5.2       2.3       6.1         3.9       3.1        -2.1         1.2
            II      -2.1        3.2       5.5       0.7        -1.8       2.9         7.5         4.5
           III       3.2        4.3       1.1       3.1        -0.4      -0.1         6.9         2.3
            IV      r4.0       r7.7       3.5      r3.5         1.2     r-0.6        r2.5         0.5
 
        ANNUAL      r2.3       r5.3       2.9       3.1        r0.6      r0.8        r3.7         1.8
 
  1995       I       0.7        3.3       2.6       4.1         1.0       3.4        -1.4         1.7
  ---------------------------------------------------------------------------------------------------------
 
 
 
 
                      Percent change from corresponding quarter of previous year
 
  1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
            II       1.2        4.0       2.8       3.7         0.5       2.4         0.9         1.9
           III       1.5        4.2       2.6       2.9         0.1       1.4         4.4         2.4
            IV       1.8        4.6       2.7       2.4        -0.3       0.6         2.7         1.3
 
        ANNUAL       1.5        4.1       2.5       3.3         0.2       1.7         2.4         1.9
 
  1994       I       3.0        5.7       2.6       3.4         0.9       0.3         2.5         1.1
            II       2.4        5.3       2.8       3.0         0.6       0.6         4.2         1.8
           III       2.2        5.2       2.9       3.1         0.2       0.9         4.8         2.2
            IV      r2.0       r5.1       3.1       3.3         0.7      r1.3        r3.6         2.1
 
        ANNUAL      r2.3       r5.3       2.9       3.1        r0.6      r0.8        r3.7         1.8
 
  1995       I       1.4        4.6       3.2       2.9         0.0       1.4         3.8         2.2
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      May 9, 1995
  r=revised                                                             Source: Bureau of Labor Statistics
 
 
 
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1993       I            130.0        134.0        103.1        150.0           101.1        115.4
            II            130.7        134.4        102.8        152.1           101.8        116.4
           III            131.7        135.4        102.8        153.6           102.4        116.6
            IV            133.6        137.7        103.0        155.1           102.5        116.1
 
        ANNUAL            131.6        135.4        102.9        152.8           102.0        116.1
 
  1994       I            135.7        140.2        103.3        156.6           103.0        115.4
            II            137.6        142.7        103.7        156.1           102.0        113.4
           III            138.8        144.6        104.2        157.2           101.8        113.3
            IV           r140.0       r147.5        105.4       r158.6           102.1       r113.3
 
        ANNUAL            138.0        143.7        104.2        157.1           102.3        113.8
 
  1995       I            141.2        149.7        106.0        160.4           102.6        113.6
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              3.7          6.3          2.6         -2.0            -4.9         -5.5
            II              2.4          1.3         -1.1          6.0             2.9          3.5
           III              3.0          3.0          0.0          3.9             2.2          0.9
            IV              6.0          6.9          0.9          3.9             0.6         -2.0
 
        ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
  1994       I              6.4          7.4          1.0          4.0             1.8         -2.3
            II              5.6          7.2          1.5         -1.4            -3.9         -6.7
           III              3.5          5.6          2.0          3.0            -0.5         -0.5
            IV             r3.4         r8.0          4.5          3.4             1.1         r0.0
 
        ANNUAL              4.9         r6.2          1.2          2.8             0.2         -2.0
 
  1995       I              3.6          6.1          2.4          4.9             1.7          1.2
  --------------------------------------------------------------------------------------------------
 
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              2.9          4.2          1.3          3.3             0.1          0.4
            II              3.1          3.7          0.6          3.6             0.5          0.5
           III              3.2          4.0          0.7          3.5             0.7          0.3
            IV              3.8          4.4          0.6          2.9             0.2         -0.8
 
        ANNUAL              3.2          4.1          0.8          3.3             0.3          0.1
 
  1994       I              4.4          4.6          0.2          4.4             1.9          0.0
            II              5.3          6.1          0.8          2.6             0.2         -2.5
           III              5.4          6.8          1.3          2.4            -0.5         -2.9
            IV             r4.7         r7.1          2.2          2.2            -0.4        r-2.4
 
        ANNUAL              4.9         r6.2          1.2          2.8             0.2         -2.0
 
  1995       I              4.0          6.7          2.6          2.4            -0.4         -1.5
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                May 9, 1995
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1993       I            141.0        141.6        100.4        147.4            99.3        104.5
            II            142.3        142.2         99.9        149.4           100.0        105.0
           III            143.4        143.5        100.1        150.7           100.4        105.1
            IV            146.6        147.4        100.5        152.3           100.7        103.9
 
        ANNUAL            143.5        143.7        100.1        150.1           100.2        104.6
 
  1994       I            149.3        150.8        101.0        154.0           101.2        103.1
            II            151.2        153.4        101.4        153.1           100.0        101.2
           III            153.0        156.3        102.2        154.1            99.8        100.7
            IV            154.3       r160.0        103.7        155.7           100.3        100.9
 
        ANNUAL            151.9        155.1        102.1        154.1           100.4        101.5
 
  1995       I            155.8        162.8        104.5        157.6           100.7        101.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              5.5          8.5          2.8         -4.8            -7.7         -9.8
            II              3.7          1.8         -1.9          5.6             2.6          1.9
           III              3.0          3.9          0.8          3.4             1.7          0.3
            IV              9.4         11.2          1.7          4.4             1.1         -4.6
 
        ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
  1994       I              7.3          9.5          2.0          4.4             2.3         -2.7
            II              5.3          7.1          1.7         -2.3            -4.7         -7.2
           III              4.8          7.8          2.9          2.7            -0.8         -1.9
            IV             r3.6         r9.7          5.9          4.1             1.8         r0.5
 
        ANNUAL              5.9          8.0          2.0          2.7             0.1         -3.0
 
  1995       I              3.8          7.2          3.3          5.1             1.9          1.2
  --------------------------------------------------------------------------------------------------
 
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              4.2          5.3          1.0          3.0            -0.1         -1.2
            II              4.3          4.8          0.4          3.1             0.0         -1.1
           III              4.3          5.2          0.8          2.9             0.1         -1.3
            IV              5.4          6.3          0.8          2.1            -0.7         -3.2
 
        ANNUAL              4.5          5.4          0.8          2.8            -0.2         -1.7
 
  1994       I              5.8          6.5          0.7          4.4             1.9         -1.3
            II              6.2          7.9          1.6          2.4             0.0         -3.6
           III              6.7          8.9          2.1          2.3            -0.6         -4.1
            IV              5.2          8.5          3.1          2.2            -0.4         -2.9
 
        ANNUAL              5.9          8.0          2.0          2.7             0.1         -3.0
 
  1995       I              4.4          8.0          3.4          2.4            -0.5         -1.9
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                May 9, 1995
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour(1)         hour(2)        costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1993       I            116.5        124.7        107.0        155.2           104.6        133.1
            II            116.7        124.9        107.0        157.7           105.5        135.1
           III            117.6        125.5        106.7        159.5           106.3        135.6
            IV            118.0        125.8        106.6        160.7           106.2        136.2
 
        ANNUAL            117.2        125.2        106.8        158.3           105.7        135.0
 
  1994       I            119.4        127.2        106.5        161.9           106.5        135.6
            II            121.2        129.5        106.9        161.9           105.8        133.5
           III            121.7        130.3        107.1        163.2           105.7        134.1
            IV           r122.6       r132.1        107.8        164.0           105.6       r133.8
 
        ANNUAL            121.2        129.8        107.1        162.8           106.0       r134.2
 
  1995       I            123.6        133.6        108.1        165.8           106.0        134.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              1.2          3.5          2.3          2.4            -0.6          1.2
            II              0.7          0.6         -0.1          6.6             3.5          5.9
           III              3.0          1.8         -1.1          4.6             2.9          1.6
            IV              1.4          1.1         -0.3          3.1            -0.2          1.7
 
        ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
  1994       I              5.0          4.6         -0.4          3.1             0.9         -1.9
            II              6.1          7.4          1.3         -0.1            -2.6         -5.8
           III              1.6          2.5          0.9          3.3            -0.3          1.7
            IV             r3.0         r5.6         r2.6         r2.1            -0.2        r-0.9
 
        ANNUAL              3.4         r3.7          0.2          2.8             0.3        r-0.6
 
  1995       I              3.2          4.5          1.2          4.4             1.3          1.1
  --------------------------------------------------------------------------------------------------
 
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              1.0          2.7          1.7          3.8             0.6          2.7
            II              1.5          2.3          0.8          4.4             1.3          2.9
           III              1.7          2.3          0.6          4.4             1.6          2.7
            IV              1.5          1.8          0.2          4.2             1.4          2.6
 
        ANNUAL              1.4          2.3          0.9          4.1             1.1          2.7
 
  1994       I              2.5          2.0         -0.4          4.3             1.8          1.8
            II              3.8          3.7         -0.1          2.7             0.2         -1.1
           III              3.5          3.9          0.4          2.3            -0.5         -1.1
            IV             r3.9         r5.0          1.1          2.1           r-0.5        r-1.7
 
        ANNUAL              3.4         r3.7          0.2          2.8             0.3        r-0.6
 
  1995       I              3.4          5.0          1.5          2.4            -0.5         -1.0
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                May 9, 1995
  r=revised                                                       Source: Bureau of Labor Statistics
 
 
 
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    cost     fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1992       I    116.8     137.3    117.6    147.7     102.7     126.5    119.3    124.5    170.4    127.3
            II    117.6     138.8    118.1    149.4     103.1     127.1    118.0    124.5    175.6    127.6
           III    119.1     140.7    118.1    151.5     103.8     127.2    119.0    124.9    171.0    127.7
            IV    120.6     143.4    118.9    153.1     104.0     127.0    115.7    123.8    191.2    127.9
 
        ANNUAL    118.5     140.0    118.2    150.4     103.5     126.9    118.0    124.4    177.2    127.7
 
  1993       I    120.0     143.3    119.4    154.0     103.8     128.3    116.8    125.0    183.7    128.7
            II    121.3     145.9    120.3    154.5     103.4     127.3    115.8    124.1    199.4    128.7
           III    122.7     148.1    120.7    155.4     103.5     126.7    115.8    123.6    202.5    128.5
            IV    124.1     150.9    121.6    155.9     103.1     125.7    114.8    122.6    220.9    128.7
 
        ANNUAL    122.0     147.0    120.5    154.9     103.5     127.0    115.8    123.8    201.9    128.6
 
  1994       I    125.1     153.0    122.3    157.9     103.8     126.2    116.6    123.5    218.2    129.4
            II    124.6     154.8    124.2    157.9     103.1     126.7    115.2    123.4    228.7    129.9
           III    125.2     156.5    124.9    159.1     103.1     127.1    116.2    124.0    228.8    130.5
            IV    126.2     159.6    126.5    160.2     103.2     127.0    115.9    123.8    230.3    130.4
 
        ANNUAL    125.2     156.0    124.6    158.7     103.3     126.7    116.0    123.7    226.5    130.0
  ----------------------------------------------------------------------------------------------------------
                               Percent change from previous quarter at annual rate(5)
 
  1992       I      1.3       0.9     -0.4      3.9       1.1       2.6     -2.6      1.2     14.8      2.2
            II      2.9       4.7      1.7      4.7       1.5       1.7     -4.4      0.0     12.8      1.0
           III      5.2       5.5      0.3      5.7       2.5       0.4      3.5      1.2    -10.0      0.2
            IV      5.1       8.0      2.7      4.3       0.8      -0.8    -10.4     -3.5     56.4      0.7
 
        ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
  1993       I     -1.9      -0.3      1.7      2.3      -0.7       4.4      3.6      4.2    -14.9      2.3
            II      4.5       7.5      2.8      1.4      -1.6      -3.0     -3.3     -3.1     38.9      0.2
           III      4.5       6.0      1.5      2.2       0.5      -2.1      0.0     -1.6      6.5     -0.8
            IV      4.7       7.8      3.0      1.4      -1.8      -3.1     -3.4     -3.2     41.5      0.6
 
        ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      3.3       5.8      2.5      5.1       3.0       1.8      6.6      3.1     -4.9      2.2
            II     -1.4       4.8      6.4     -0.1      -2.6       1.4     -4.8     -0.3     20.7      1.8
           III      2.0       4.2      2.2      3.3      -0.3       1.2      3.5      1.8      0.3      1.7
            IV      3.0       8.4      5.2      2.7       0.5      -0.3     -1.1     -0.5      2.5     -0.2
 
        ANNUAL      2.6       6.1      3.4      2.4      -0.1      -0.2      0.2     -0.1     12.2      1.1
  ----------------------------------------------------------------------------------------------------------
 
 
 
 
                            Percent change from corresponding quarter of previous year
 
  1992       I      2.4       1.7     -0.7      4.3       1.3       1.8     -1.2      1.0      5.2      1.3
            II      2.6       2.7      0.2      4.5       1.4       1.9     -2.1      0.8      5.0      1.1
           III      3.3       3.5      0.3      4.9       1.7       1.6     -1.5      0.7      3.7      0.9
            IV      3.6       4.7      1.1      4.6       1.5       1.0     -3.6     -0.3     16.2      1.1
 
        ANNUAL      3.0       3.2      0.1      4.6       1.6       1.6     -2.1      0.5      7.6      1.1
 
  1993       I      2.8       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
            II      3.2       5.1      1.9      3.4       0.3       0.2     -1.8     -0.3     13.6      0.8
           III      3.0       5.2      2.2      2.6      -0.2      -0.4     -2.7     -1.0     18.5      0.6
            IV      2.9       5.2      2.2      1.8      -0.9      -1.0     -0.8     -1.0     15.5      0.6
 
        ANNUAL      3.0       5.0      2.0      3.0       0.0       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      4.2       6.8      2.4      2.5       0.0      -1.6     -0.1     -1.2     18.8      0.5
            II      2.7       6.1      3.3      2.2      -0.2      -0.5     -0.5     -0.5     14.7      0.9
           III      2.1       5.7      3.5      2.4      -0.4       0.3      0.4      0.3     13.0      1.6
            IV      1.7       5.8      4.0      2.8       0.1       1.0      1.0      1.0      4.2      1.4
 
        ANNUAL      2.6       6.1      3.4      2.4      -0.1      -0.2      0.2     -0.1     12.2      1.1
  ----------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                        May 9, 1995
  r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
 
SOURCE:  Output data from the Bureau of Economic Analysis, U.S. Department of
Commerce, and the Federal Reserve Board.  Compensation and hours data from the
Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of
Economic Analysis.
 
RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published 30
days after the close of the reference period; revisions appear about 35 days
later, and second revisions after an additional 60 days.  In the business
sector, the probability is 0.95 that the third publication (second revision) of
a quarterly index of output per hour of all persons will differ from the
initial value by between -2.0 and +2.0 index points.  This interval is based on
the performance of this measure between the third quarter of 1976 and the
fourth quarter of 1992.
 
 
                             Footnotes, Tables 1-6
 
(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.
 
(2)  Compensation per hour adjusted for changes in the Consumer Price Index for
     All Urban Consumers.
 
(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.
 
(4)  Current dollar gross product divided by constant dollar gross product.
 
(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent change
     between annual average levels.
 
(6)  Unit nonlabor cost includes capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.
 
(7)  Total unit cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.