USDL 03-411
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
THURSDAY, AUG. 7, 2003.

Internet address:      http://www.bls.gov/lpc/
Historical, technical  
  information:         (202) 691-5606
Current data:          (202) 691-5200
Media contact:         (202) 691-5902
                                      
                                      
                           PRODUCTIVITY AND COSTS
                             Second Quarter 2003
                                      
                                      
     The Bureau of Labor Statistics of the U.S. Department of Labor reported
preliminary productivity data--as measured by output per hour of all persons-
-for the second quarter of 2003.  The preliminary seasonally adjusted annual
rates of productivity change in the second quarter were:

               6.1 percent in the business sector and
               5.7 percent in the nonfarm business sector.

In the business sector, productivity grew as output rose 3.2 percent and
hours dropped 2.7 percent.  A similar pattern occurred in nonfarm businesses,
output grew 3.4 percent and hours fell 2.2 percent.

     In manufacturing, the preliminary productivity changes in the second
quarter were:

               4.2 percent in manufacturing,
               3.8 percent in durable goods manufacturing, and
               4.4 percent in nondurable goods manufacturing.

Manufacturing productivity grew 4.2 percent in the second quarter reflecting
declines in output and hours of 2.1 and 6.1 percent, respectively.  Output
and hours in manufacturing, which includes about 15 percent of U.S. business-
sector employment, tend to vary more from quarter to quarter than data for
the aggregate business and nonfarm business sectors.  Second-quarter measures
are summarized in table A and appear in detail in tables 1 through 5.

-----------------------------------------------------------------------------
The  data  in  this release reflect the annual benchmark revision  and  other
changes to the BLS establishment survey data released by BLS on June  6.   In
addition, revisions to the Current Population Survey first released by BLS on
Feb.  7  have been fully incorporated into the measures.  The employment  and
hours  series also incorporate new information on seasonal patterns  and  new
hours worked to hours paid ratios.  See Revised Measures.  Appendix tables 1-
4  show  revised  historical  series for the business  and  nonfarm  business
sectors.
-----------------------------------------------------------------------------

--------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary second-quarter 2003 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            6.1        3.2      -2.7     3.9       3.3      -2.0
Nonfarm business    5.7        3.4      -2.2     3.5       2.9      -2.1
Manufacturing       4.2       -2.1      -6.1     5.4       4.8       1.2
  Durable           3.8       -3.1      -6.7     5.2       4.6       1.4
  Nondurable        4.4       -1.0      -5.2     5.8       5.2       1.3
--------------------------------------------------------------------------
                      Percent change from same quarter a year ago

Business            4.0        2.9      -1.1     3.1       0.9      -0.9
Nonfarm business    3.8        2.9      -0.9     2.8       0.6      -1.0
Manufacturing       4.8       -0.9      -5.5     5.6       3.4       0.7
  Durable           5.5       -0.7      -5.9     5.2       3.0      -0.2
  Nondurable        4.1       -1.0      -4.9     6.4       4.1       2.2
--------------------------------------------------------------------------     
     
     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

Business

     From the first quarter to the second quarter of 2003, business sector
output per hour increased at a 6.1-percent annual rate.  Output rose 3.2
percent and hours of all persons engaged in the sector fell 2.7 percent
(seasonally adjusted annual rates).  As revised, labor productivity grew 2.7
percent in the first quarter of 2003, when output increased 1.4 percent and
hours decreased 1.2 percent (table 1).

     Hourly compensation increased 3.9 percent in the second quarter, less
than the 4.8 percent gain in the first quarter of 2003 (seasonally adjusted
annual rates).  This measure includes wages and salaries; vacation and other
paid leave; bonuses, stock options, and other supplements; employer
contributions to employee benefit plans; and taxes.  Real hourly
compensation, which takes into account changes in consumer prices, rose at a
3.3-percent annual rate during the second quarter of 2003, after rising 0.9
percent during the previous quarter.  The second quarter increase of 3.3
percent was the largest in the business sector since a 4.7-percent increase
in the third quarter of 2000.

     Unit labor costs, which reflect changes in both hourly compensation and
productivity, fell 2.0 percent during the second quarter of 2003 after rising
2.0 percent in the previous quarter.  The implicit price deflator for the
business sector, which reflects changes in both unit labor costs and unit
nonlabor payments, increased 0.9 percent in the second quarter and 1.6
percent in the first quarter of 2003.

Nonfarm business

     Productivity increased 5.7 percent in the nonfarm business sector during
the second quarter of 2003, as output rose 3.4 percent and hours of all
persons declined 2.2 percent (seasonally adjusted annual rates).  Output per
hour grew at a 2.1 percent annual rate in the first quarter of 2003, as
output increased 1.4 percent and hours decreased 0.7 percent (table 2).

     Hourly compensation in the nonfarm business sector increased 3.5 percent
in second quarter 2003, down from the 4.1-percent rise one quarter earlier.
When the rise in consumer prices is taken into account, real hourly
compensation for the second quarter of 2003 rose 2.9 percent.  As in the
larger business sector, the second quarter increase in real hourly
compensation was the largest since the third quarter of 2000, when it rose
5.0 percent.

     Unit labor costs decreased 2.1 percent in the second quarter of 2003,
after rising 2.0 percent during the first quarter.  The implicit price
deflator for nonfarm business output grew 0.8 percent in the second quarter,
down from the 1.4-percent increase in the previous quarter.

Manufacturing

     Productivity increased 4.2 percent in manufacturing, as output fell 2.1
percent and hours of all persons declined 6.1 percent (seasonally adjusted
annual rates).  In the previous quarter, productivity rose 4.9 percent,
reflecting decreases in output and hours of 0.7 and 5.3 percent,
respectively.  In durable goods, productivity rose 3.8 percent in the second
quarter as output dropped 3.1 percent and hours of all persons fell 6.7
percent.  In nondurable goods, second-quarter productivity increased by 4.4
as output declined 1.0 percent and hours fell 5.2 percent (tables 3, 4, and
5).

     Hourly compensation of all manufacturing workers rose 5.4 percent during
the second quarter, reflecting growth of 5.2 percent in durable goods and 5.8
percent in nondurable goods.  When the increase in consumer prices is taken
into account, the real hourly compensation of all manufacturing workers
increased by 4.8 percent in the second quarter, after rising 3.3 percent one
quarter earlier.

     Unit labor costs in manufacturing grew 1.2 percent in the second
quarter.  In durable goods industries, unit labor costs rose 1.4 percent and
in nondurable goods industries, they increased 1.3 percent.  The change in
unit labor costs is roughly equal to the change in hourly compensation less
the change in productivity.

Revised Measures

     Current and previous measures for the first quarter of 2003 for the
business, nonfarm business, and manufacturing sectors are compared in table
B.  In the business and nonfarm business sectors, productivity was revised up
slightly from the numbers reported on June 4.  This occurred as both output
and hours were revised down, hours more than output.  Hourly compensation and
unit labor costs grew more than reported on June 4, based on information then
available.  In manufacturing, productivity growth grew substantially faster
than reported on June 4 as a result of a sharp downward revision to hours.
Hourly compensation also shows a steep upward revision in the first quarter.
Unit labor costs were revised down, reflecting the fact that the upward
revision to productivity was larger than the upward revision to hourly
compensation.

     Table B also shows comparisons of current and previous measures for the
fourth quarter of 2002.  In that quarter, productivity in the business and
nonfarm business sectors also was revised up, reflecting downward revisions
to hours growth.  In addition, hourly compensation in the fourth quarter was
revised down in both sectors reflecting both the changes in hours and new
compensation data.  Reflecting both of these revisions, unit labor costs in
both sectors were revised down by more than three percentage points and now
show very little change in the quarter.  In the manufacturing sector,
productivity was revised up with the incorporation of the new hours data and
now shows an increase of 3.6 percent in the fourth quarter rather than the
decline reported on June 4.  Hourly compensation also was revised up.  As in
the first quarter numbers, unit labor costs show less of an increase than
reported earlier as the upward revision to hourly compensation was less than
that to productivity.

----------------------------------------------------------------------
Table B. 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
----------------------------------------------------------------------                                                                
                             First quarter 2003
Business:                                                       
  Previous          2.5       2.0     -0.5    3.8      0.0       1.3
  Current           2.7       1.4     -1.2    4.8      0.9       2.0
Nonfarm business:                                               
  Previous          1.9       1.8     -0.1    3.4     -0.4       1.5
  Current           2.1       1.4     -0.7    4.1      0.2       2.0
Manufacturing:                                                  
  Previous          1.9      -0.7     -2.6    4.5      0.7       2.6
  Current           4.9      -0.7     -5.3    7.3      3.3       2.2

                             Fourth quarter 2002
Business:                                                       
  Previous          0.3       1.7      1.5    3.6      1.6       3.3
  Current           1.5       1.7      0.2    1.6     -0.4       0.1
Nonfarm business:                                               
  Previous          0.7       1.7      0.9    3.9      1.9       3.2
  Current           1.7       1.7      0.0    1.6     -0.4      -0.1
Manufacturing:                                                  
  Previous         -0.5      -3.7     -3.2    5.4      3.4       5.9
  Current           3.6      -3.7     -7.1    7.4      5.3       3.6
----------------------------------------------------------------------     
     
     Hours data for the business and nonfarm business sectors now incorporate
all of the changes made to the Current Establishment Statistics (CES) data
reported on June 6 and the Current Population Survey (CPS) data reported on
Feb. 7.  They also include a new method of adjusting hours paid to hours at
work for the period following 2000, when the Bureau's last Hours at Work
Survey was conducted.  All of the data incorporate new information on
seasonal patterns.  Appendix tables 1 and 2 present quarterly and annual
measures for the business and nonfarm business sectors for 1998-2000 and
appendix tables 3 and 4 show annual indexes for all years beginning in 1947.

     In manufacturing, only revised data for recent years were used to
prepare the productivity and cost measures; these were linked to the SIC-
based hours series previously published by the BLS.  For employees in
manufacturing establishments, new information adjusted to the old SIC basis
was used beginning with the second quarter of 2001.  Small revisions to the
hours of self-employed workers that reflect the most recent information on
seasonal trends extend back to 1998.

     The historical revisions to the employment and average weekly hours data
from the CES change the indexes of employment and hours in the business and
nonfarm business sectors for all years.  The CES data incorporate several
major changes, as described in release USDL 03-281
(ftp://ftp.bls.gov/pub/news.release/History/empsit.06062003.news).  These
include the conversion to NAICS, the completion of the CES sample redesign,
and annual benchmark revisions.

     The changes to the CPS data used in the productivity measures were
primarily related to the new levels introduced with the use of weights from
the 2000 population census.  For the purpose of measuring productivity, the
revisions to employment and hours in 2000 due to new population weights were
interpolated back to 1990 (when the previous population census was
conducted).  New information on employment and hours levels for the farm
sector was introduced beginning with January 2000; the 1947-1999 measures
were adjusted to this level.

     Productivity and cost measures were revised to reflect new measures of
hours at work to hours paid.  The Bureau's Hours at Work Survey was
discontinued following the collection of data for 2000.  New measures based
on information from the National Compensation Survey, which collects data on
hours worked and employer leave practices, have been linked to the levels
beginning with the first quarter of 2001.  A description of these measures is
available at http://www.bls.gov/lpc/lprhws/lprhwhp.pdf.

     Current and previous changes in the annual measures for the business,
nonfarm business, and manufacturing sectors are compared in table C.  In the
business and nonfarm business sectors, productivity was revised up in both
2001 and 2002, reflecting the downward revisions to hours of all persons.
The hourly compensation data also were revised upward by a similar amount.
As a result, unit labor costs in both years are about the same as they were
in the previously published data.  Similarly, in manufacturing, productivity
and hourly compensation were revised up in 2001 and 2002 as a result of
downward revisions to hours.  Unit labor costs were revised only slightly
downward in 2002 and were unchanged in 2001.

-----------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Annual percent changes
-----------------------------------------------------------------------                                                                
                                                      Real      
                                             Hourly   hourly    Unit
                   Produc-                   compen-  compen-   labor
Sector             tivity   Output   Hours   sation   sation    costs
-----------------------------------------------------------------------                                                                
                         Annual average 2002
Business:                                                       
  Previous          4.8      2.7     -2.0     2.5      0.9      -2.2
  Current           5.3      2.7     -2.5     2.8      1.2      -2.3
Nonfarm business:                                              
  Previous          4.8      2.7     -2.0     2.4      0.8      -2.3
  Current           5.4      2.7     -2.5     2.8      1.2      -2.4
Manufacturing:                                                  
  Previous          4.5     -1.1     -5.4     3.3      1.6      -1.2
  Current           6.4     -1.1     -7.0     5.0      3.4      -1.3

                         Annual average 2001
Business:                                                       
  Previous          1.1     -0.2     -1.3     2.9      0.2       1.8
  Current           2.0     -0.2     -2.1     3.8      1.0       1.8
Nonfarm business:                                               
  Previous          1.1     -0.1     -1.2     2.7     -0.1       1.6
  Current           1.9     -0.1     -2.0     3.6      0.8       1.7
Manufacturing:                                                  
  Previous          0.8     -4.9     -5.6     1.5     -1.2       0.8
  Current           1.6     -4.9     -6.4     2.4     -0.4       0.8
-----------------------------------------------------------------------

Revised measures: Nonfinancial Corporations

     Productivity and cost measures for the first quarter for nonfinancial
corporations also were revised to incorporate more recent information than
was available on June 4.  Productivity was revised up, reflecting both an
upward revision to output and a larger drop in employee hours.  Hourly
compensation was revised up.  However, the upward revision to productivity
was much larger than the upward revision to hourly compensation and unit
labor costs were revised down.  Unit profits also were revised up (table D).

     Productivity and cost measures for the fourth quarter of 2002 also were
revised to incorporate more recent information on output, hours, and employee
compensation.  Fourth quarter 2003 productivity did not rise as rapidly as
reported on June 4, reflecting a downward revision to output that was much
larger than the downward revision to hours.  Hourly compensation also was
revised down and unit labor costs show a larger decline than originally
reported.

     The hours measures for most employees of nonfinancial corporations have
been revised only beginning with the second quarter of 2001.  The output and
compensation measures for nonfinancial corporations are not yet available on
a NAICS basis so BLS is continuing to use the levels reported on an SIC basis
for the months prior to April 2001.  In order to capture the CES benchmark to
the Covered Employment and Wages (CEW), CES data for April 2001 through March
2003 reported on a NAICS basis are converted back to the SIC using bridge
tables published for first quarter 2001 CEW data.  In addition, estimates of
hours for employees working on incorporated farms were revised back to 1958.
The corporate farm sector has historically been small and the changes in
productivity and cost movements due to the incorporation of this revision are
very small.  As a result of the various revisions, hours in the nonfinancial
corporate sector now show larger drops in 2001 and 2002 than previously
published.  The new measures are shown in table 6.

-----------------------------------------------------------------------------
Table D.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------                                                                     
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------                                                                     
                            First quarter 2003

Previous     2.9      2.4     -0.5   4.7      0.8     1.7    2.2      1.0
Current      4.5      2.8     -1.6   5.4      1.5     0.9    7.6      0.7

                            Fourth quarter 2002

Previous     5.0      4.5     -0.5   4.9      2.8    -0.1   20.8      0.9
Current      3.6      2.8     -0.8   2.6      0.6    -1.0   22.8      0.9
-----------------------------------------------------------------------------                                      
                                      
                              Upcoming changes
                                      
     Historical measures of output and compensation for all sectors, along
with the conversion of the manufacturing and nonfinancial corporate sectors
from the 1987 Standard Industrial Classification (SIC) to the 2002 North
American Industry Classification System (NAICS), will be prepared following
the release of the revised national income and product accounts in December.
On January 7, 2004, the BLS will post revised productivity and cost measures
through fourth quarter, 2002 on its web site.  More specific information will
be announced later this year.
                                      
                                      
                              Next release date
                                      
     The next release of Productivity and Costs is scheduled for 8:30 a.m.
EDT, Thursday, Sept. 4, 2003.  Revised second-quarter measures for business,
nonfarm business, and manufacturing will be released at that time, along with
preliminary measures for nonfinancial corporations.
                                      

                               TECHNICAL NOTES
                                      
Labor Hours: Hours data for the labor productivity and cost 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.  The
Office of Productivity and Technology estimates average weekly paid hours of
nonproduction and supervisory workers.  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 77 percent of
the value of GDP in 1996.  Nonfarm business, which also excludes farming,
accounted for about 76 percent of GDP in 1996.
    Annual indexes for manufacturing and its durable and nondurable goods
components 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; nonelectrical 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 calculated on
the basis of the costs incurred and the incomes earned from production.  The
output measure excludes the following outputs from GDP: 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 53 percent of the value of GDP in 1996.

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: 202-691-5200; Federal Relay Service
number: 1-800-877-8339.


  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

  2001       I    r117.4      140.4    r119.6    r137.4      r111.9     r117.1      r112.0      115.2
            II    r117.8      139.4    r118.3    r138.2      r111.6     r117.3      r113.3      115.8
           III    r118.8      139.1    r117.1    r139.1      r112.1     r117.1      r115.1      116.4
            IV    r121.3      140.3    r115.6    r139.8      r112.8     r115.2      r117.0      115.9

        ANNUAL    r118.8      139.8    r117.6    r138.6      r112.1     r116.7      r114.3      115.8

  2002       I    r123.9      142.3    r114.9    r141.0      r113.4     r113.8      r119.7      116.0
            II    r124.1      142.5    r114.8    r142.4      r113.5     r114.7      r118.8      116.2
           III    r125.9      144.4    r114.6    r143.1      r113.5     r113.6      r120.9      116.3
            IV    r126.4      145.0    r114.7    r143.7      r113.4     r113.7      r122.1      116.8

        ANNUAL    r125.1      143.5    r114.7    r142.5      r113.5      113.9       120.4      116.3

  2003       I    r127.2     r145.5    r114.3    r145.4      r113.7     r114.2      r122.3     r117.2
            II     129.1      146.6     113.6     146.8       114.6      113.7       124.0      117.5
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2001       I     r-0.5       -1.0     r-0.5      r4.6        r0.8       r5.1        r0.3        3.4
            II      r1.5       -2.8     r-4.3      r2.3       r-0.9       r0.8        r4.6        2.2
           III      r3.3       -0.9     r-4.1      r2.5        r1.6      r-0.8         6.8        1.8
            IV      r8.7        3.5     r-4.8      r2.1        r2.7      r-6.1        r6.7       -1.6

        ANNUAL      r2.0       -0.2     r-2.1      r3.8        r1.0        1.8        r2.3        2.0

  2002       I      r8.7        5.9     r-2.6      r3.5        r2.2      r-4.8        r9.6        0.3
            II      r0.8        0.6     r-0.2      r4.0        r0.4       r3.1       r-3.2        0.7
           III      r5.9        5.3     r-0.6      r2.1        r0.0      r-3.6        r7.6        0.5
            IV      r1.5        1.7      r0.2      r1.6       r-0.4       r0.1        r3.8        1.5

        ANNUAL      r5.3        2.7     r-2.5      r2.8        r1.2      r-2.3        r5.3        0.4

  2003       I      r2.7       r1.4     r-1.2      r4.8        r0.9       r2.0        r0.8       r1.6
            II       6.1        3.2      -2.7       3.9         3.3       -2.0         5.8        0.9
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2001       I      r2.2        1.4     r-0.8      r4.9        r1.4        2.6         1.4        2.2
            II      r1.1       -0.7     r-1.7      r4.8        r1.4       r3.7       r-0.5        2.1
           III      r1.7       -1.0     r-2.6      r3.3        r0.6       r1.6        r3.7        2.3
            IV      r3.2       -0.3     r-3.4      r2.9        r1.0      r-0.3        r4.6        1.4

        ANNUAL      r2.0       -0.2     r-2.1      r3.8        r1.0        1.8        r2.3        2.0

  2002       I      r5.5        1.4     r-3.9      r2.6        r1.4       -2.8        r6.9        0.7
            II      r5.4        2.3     r-2.9      r3.0        r1.7      r-2.2        r4.9        0.3
           III      r6.0        3.8     r-2.1      r2.9        r1.3      r-2.9        r5.0        0.0
            IV      r4.2        3.4     r-0.8      r2.8        r0.5      r-1.4        r4.3        0.7

        ANNUAL      r5.3        2.7     r-2.5      r2.8        r1.2      r-2.3        r5.3        0.4

  2003       I      r2.7       r2.2     r-0.5      r3.1        r0.2       r0.4        r2.2        1.1
            II       4.0        2.9      -1.1       3.1         0.9       -0.9         4.5        1.1
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 7, 2003
  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

  2001       I    r116.9      140.7    r120.3    r136.7      r111.3     r117.0      r113.5      115.7
            II    r117.4      139.7    r119.0    r137.4      r111.0     r117.1      r114.9      116.3
           III    r118.3      139.4    r117.8    r138.2      r111.4     r116.8      r116.8      116.8
            IV    r120.7      140.4    r116.3    r138.9      r112.1     r115.1      r119.0      116.5

        ANNUAL    r118.3      140.1    r118.4    r137.8      r111.4     r116.5      r116.1      116.3

  2002       I    r123.4      142.5    r115.5    r140.2      r112.8     r113.6      r121.5      116.4
            II    r123.7      142.9    r115.5    r141.5      r112.9     r114.4      r121.2      116.8
           III    r125.5      144.7    r115.3    r142.2      r112.8     r113.3      r123.1      116.9
            IV    r126.0      145.3    r115.3    r142.8      r112.7     r113.3      r124.3      117.3

        ANNUAL    r124.7      143.9    r115.4    r141.7      r112.8      113.6       122.5      116.9

  2003       I    r126.7     r145.8    r115.1    r144.2      r112.8     r113.8      r124.5      117.7
            II     128.5      147.0     114.4     145.5       113.6      113.2       126.2      117.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2001       I     r-0.4       -0.9     r-0.5      r4.3        r0.5       r4.7        r0.8        3.3
            II      r1.6       -2.7     r-4.3      r2.0       r-1.2        0.3        r5.0        2.0
           III      r3.4       -0.8     r-4.1      r2.4        r1.5      r-0.9        r6.6        1.7
            IV      r8.3        2.9     r-5.0      r2.1        r2.7      r-5.7        r7.7       -1.0

        ANNUAL      r1.9       -0.1     r-2.0      r3.6        r0.8       r1.7        r2.4        1.9

  2002       I      r9.3        6.2     r-2.9      r3.7        r2.4      r-5.2        r8.7       -0.2
            II      r1.0        0.9      r0.0      r3.9        r0.3       r2.9       r-0.9        1.4
           III      r5.9        5.2     r-0.6      r2.0       r-0.2      r-3.7        r6.6        0.1
            IV      r1.7        1.7      r0.0      r1.6       r-0.4      r-0.1        r3.9        1.4

        ANNUAL      r5.4        2.7     r-2.5      r2.8        r1.2      r-2.4        r5.6        0.5

  2003       I      r2.1       r1.4     r-0.7      r4.1        r0.2       r2.0        r0.4       r1.4
            II       5.7        3.4      -2.2       3.5         2.9       -2.1         5.6        0.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2001       I      r2.0        1.4     r-0.6      r4.5        r1.1       r2.5         1.4        2.1
            II      r1.1       -0.6     r-1.6      r4.6        r1.1        3.5        -0.3        2.1
           III      r1.7       -0.8     r-2.5      r3.0        r0.3       r1.3        r3.7        2.2
            IV      r3.2       -0.4     r-3.5      r2.7        r0.9       -0.5        r5.0        1.5

        ANNUAL      r1.9       -0.1     r-2.0      r3.6        r0.8       r1.7        r2.4        1.9

  2002       I      r5.6        1.3     r-4.0      r2.5        r1.3       -2.9        r7.0        0.6
            II      r5.4        2.3     r-3.0      r3.0        r1.7      r-2.3        r5.4        0.5
           III      r6.1        3.8     r-2.1      r2.9        r1.3       -3.0         5.4        0.1
            IV      r4.4        3.5     r-0.9      r2.8        r0.5      r-1.6        r4.5        0.7

        ANNUAL      r5.4        2.7     r-2.5      r2.8        r1.2      r-2.4        r5.6        0.5

  2003       I      r2.6       r2.3     r-0.3      r2.9        r0.0       r0.2        r2.5        1.1
            II       3.8        2.9      -0.9       2.8         0.6       -1.0         4.1        0.9
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 7, 2003
  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

  2001       I            135.2        134.9         99.8        132.0          107.5          97.6
            II           r135.8        132.8        r97.8       r133.6         r107.9          98.4
           III           r137.8        131.1        r95.1       r135.0         r108.8          97.9
            IV           r139.9        129.1        r92.3       r136.7         r110.3          97.7

        ANNUAL           r137.1        132.0        r96.3       r134.3         r108.6          97.9

  2002       I           r142.9        129.5        r90.6       r138.3         r111.3          96.8
            II           r144.8        130.6        r90.2       r140.5         r112.0         r97.0
           III           r147.2        131.6        r89.4       r141.3         r112.1          96.0
            IV           r148.5        130.3        r87.8       r143.9         r113.6         r96.9

        ANNUAL           r145.8        130.5        r89.5       r141.0         r112.2         r96.7

  2003       I           r150.3        130.1        r86.6       r146.4         r114.5         r97.4
            II            151.9        129.4         85.2        148.4          115.9          97.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2001       I             -2.1         -7.6        r-5.7          1.6           -2.1           3.7
            II             r1.8         -6.2        r-7.9         r5.0           r1.7           3.1
           III             r6.1         -4.9       r-10.3         r4.1           r3.2         r-1.8
            IV             r6.0         -6.1       r-11.5         r5.1           r5.7         r-0.9

        ANNUAL             r1.6         -4.9        r-6.4         r2.4          r-0.4           0.8

  2002       I             r9.1          1.2        r-7.2         r5.0           r3.7         r-3.8
            II             r5.5          3.5        r-1.9         r6.3           r2.7          r0.8
           III             r6.7          3.0        r-3.4         r2.5           r0.3          -3.9
            IV             r3.6         -3.7        r-7.1         r7.4           r5.3          r3.6

        ANNUAL             r6.4         -1.1        r-7.0         r5.0           r3.4         r-1.3

  2003       I             r4.9         -0.7        r-5.3         r7.3           r3.3          r2.2
            II              4.2         -2.1         -6.1          5.4            4.8           1.2
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2001       I              1.2         -2.4         -3.6          0.5           -2.9          -0.7
            II             r0.7         -5.0        r-5.7         r3.4           r0.0          r2.7
           III             r1.8         -5.9        r-7.5         r2.1          r-0.6          r0.3
            IV             r2.9         -6.2        r-8.9         r3.9           r2.1           1.0


        ANNUAL             r1.6         -4.9        r-6.4         r2.4          r-0.4           0.8

  2002       I             r5.7         -4.0        r-9.2         r4.8           r3.6          -0.9
            II             r6.7         -1.7        r-7.8         r5.1           r3.8         r-1.4
           III             r6.8          0.3        r-6.1         r4.7           r3.1          -2.0
            IV             r6.2          1.0        r-4.9         r5.3           r3.0         r-0.9

        ANNUAL             r6.4         -1.1        r-7.0         r5.0           r3.4         r-1.3

  2003       I             r5.2          0.5        r-4.4         r5.9           r2.9          r0.7
            II              4.8         -0.9         -5.5          5.6            3.4           0.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 7, 2003
  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

  2001       I            149.3        158.3        106.0        129.4          105.3         r86.6
            II           r149.7        154.9       r103.5       r131.3         r106.1          87.7
           III           r151.7        151.8       r100.1       r132.0         r106.4          87.0
            IV           r153.7        148.6        r96.7       r134.3         r108.4         r87.4

        ANNUAL           r151.0        153.4       r101.5       r131.7         r106.5          87.2

  2002       I           r158.1        149.4        r94.5       r135.6         r109.1          85.8
            II           r160.7        151.2        r94.1       r138.2         r110.3          86.0
           III           r163.9        152.6        r93.1       r138.8         r110.1         r84.7
            IV           r166.5        151.5        r90.9       r141.7         r111.9         r85.1

        ANNUAL           r162.3        151.2        r93.2       r138.6         r110.3          85.4

  2003       I           r167.9       r151.3        r90.1       r143.6         r112.3         r85.6
            II            169.4        150.1         88.6        145.5          113.6          85.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2001       I            r-2.0         -8.9        r-7.0          3.1           -0.6          r5.2
            II             r1.0         -8.2        r-9.1         r6.2           r2.9           5.1
           III             r5.4         -7.9       r-12.6         r2.0           r1.1          -3.3
            IV             r5.5         -8.0       r-12.8         r7.2           r7.8          r1.6

        ANNUAL             r0.9         -6.3        r-7.1         r1.8          r-0.9           0.9

  2002       I            r11.9          2.1        r-8.7         r3.9           r2.6         r-7.1
            II             r6.7          4.9        r-1.7         r8.1           r4.4          r1.2
           III             r8.3          3.8        r-4.2         r1.6          r-0.5          -6.2
            IV             r6.5         -2.9        r-8.9         r8.7           r6.6          r2.1

        ANNUAL             r7.4         -1.5        r-8.3         r5.2           r3.6         r-2.1

  2003       I             r3.3        r-0.5        r-3.7         r5.5           r1.6          r2.2
            II              3.8         -3.1         -6.7          5.2            4.6           1.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2001       I              0.5         -2.9         -3.3         -1.1           -4.3          -1.6
            II            r-0.2         -6.3        r-6.1         r3.0          r-0.4           3.2
           III             r0.9         -7.8        r-8.6         r1.1          r-1.6          r0.2
            IV             r2.4         -8.2       r-10.4         r4.6           r2.7           2.1

        ANNUAL             r0.9         -6.3        r-7.1         r1.8          r-0.9           0.9

  2002       I             r5.9         -5.6       r-10.8         r4.8           r3.6          -1.0
            II             r7.3         -2.4        r-9.1         r5.3           r3.9         r-1.9
           III             r8.1          0.5        r-7.0         r5.2           r3.5          -2.7
            IV             r8.3          1.9        r-5.9         r5.5           r3.2         r-2.6

        ANNUAL             r7.4         -1.5        r-8.3         r5.2           r3.6         r-2.1

  2003       I             r6.2         r1.3        r-4.7         r5.9           r3.0         r-0.2
            II              5.5         -0.7         -5.9          5.2            3.0          -0.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 7, 2003
  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

  2001       I            123.1        112.7         91.6        134.7          109.7         109.4
            II           r123.8        111.7        r90.2       r135.8         r109.7         109.7
           III           r125.6        111.3        r88.6       r138.6         r111.7         110.3
            IV           r127.4        110.1        r86.4       r139.2         r112.4        r109.3

        ANNUAL           r125.0        111.5        r89.2       r137.0         r110.8         109.7

  2002       I           r129.1        110.2        r85.4       r141.6         r113.9         109.7
            II           r130.4        110.8        r84.9       r142.9         r113.9         109.5
           III           r131.9        111.4        r84.4       r144.3         r114.5         109.4
            IV           r131.8        110.1        r83.5       r146.4         r115.5        r111.0

        ANNUAL           r130.8        110.6        r84.6       r143.8         r114.5        r109.9

  2003       I           r134.3       r109.9        r81.9       r149.8         r117.2        r111.6
            II            135.7        109.6         80.8        152.0          118.7         112.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2001       I             -2.5         -6.0         -3.6         -0.8           -4.4           1.8
            II             r2.3         -3.8        r-5.9         r3.3           r0.0          r1.0
           III             r5.8         -1.4        r-6.7         r8.4           r7.4          r2.5
            IV             r6.0         -4.0        r-9.4         r1.9           r2.5          -3.8

        ANNUAL             r2.3         -3.2        r-5.3         r3.6           r0.8           1.3

  2002       I             r5.4          0.3        r-4.9         r7.1           r5.8           1.6
            II             r4.2          1.9        r-2.1         r3.5           r0.0         r-0.6
           III             r4.6          2.3        r-2.2         r4.2           r2.0          -0.4
            IV            r-0.2         -4.6        r-4.4         r5.7           r3.7          r6.0

        ANNUAL             r4.7         -0.8        r-5.2         r4.9           r3.3          r0.2

  2003       I             r7.6        r-0.6        r-7.6         r9.8           r5.8          r2.0
            II              4.4         -1.0         -5.2          5.8            5.2           1.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2001       I              2.1         -1.9         -3.9          3.1           -0.3           1.0
            II             r1.7         -3.4        r-5.1         r4.1           r0.7           2.4
           III             r2.5         -3.5        r-5.9         r4.1           r1.3           1.5
            IV             r2.8         -3.8        r-6.4         r3.1           r1.3           0.3

        ANNUAL             r2.3         -3.2        r-5.3         r3.6           r0.8           1.3

  2002       I             r4.8         -2.2        r-6.7         r5.1           r3.9          r0.3
            II             r5.3         -0.8        r-5.8         r5.2           r3.9         r-0.1
           III             r5.0          0.1        r-4.7         r4.2           r2.5         r-0.8
            IV             r3.5         -0.1        r-3.4         r5.1           r2.8          r1.6

        ANNUAL             r4.7         -0.8        r-5.2         r4.9           r3.3          r0.2

  2003       I             r4.0        r-0.3        r-4.1         r5.8           r2.8          r1.7
            II              4.1         -1.0         -4.9          6.4            4.1           2.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                August 7, 2003
  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

  2001       I   r118.7    147.9    r124.7   r131.2    r106.8     110.6    111.6    110.8     93.1    109.3
            II   r120.0    147.8    r123.1   r132.6    r107.1     110.4    113.5    111.3     95.4    109.9
           III   r121.3    147.7    r121.7   r133.8    r107.8     110.3    115.5    111.7     97.9    110.5
            IV   r124.5    149.6    r120.2   r134.7    r108.7     108.2    114.1    109.8    107.6    109.6

        ANNUAL   r121.1    148.2    r122.4   r133.0    r107.6     109.9    113.7    110.9     98.5    109.8

  2002       I   r126.0    150.8    r119.7   r135.9    r109.4     107.9    114.0    109.5    107.6    109.4
            II   r127.7    152.8    r119.6   r137.3    r109.5     107.5    114.5    109.4    107.8    109.3
           III   r128.7    153.4    r119.2   r138.2    r109.7     107.4    115.4    109.6    104.6    109.1
            IV   r129.9   r154.5    r118.9   r139.1    r109.8    r107.1   r115.2    109.3   r110.1    109.4

        ANNUAL   r128.1   r152.9    r119.4   r137.7    r109.6     107.5   r114.8   r109.4   r107.5    109.3

  2003       I   r131.3   r155.5    r118.4   r141.0    r110.2    r107.3   r114.6   r109.3   r112.2    109.6
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2001       I     -2.6     -3.3      -0.7     -1.2     r-4.7       1.4     10.1      3.7    -20.2      1.7
            II     r4.7     -0.5     r-5.0     r4.3      r1.0      -0.4      7.1      1.6     10.0      2.2
           III     r4.4     -0.3     r-4.5     r3.7      r2.8      -0.6      7.2      1.5     10.8      2.2
            IV    r10.8      5.4     r-4.9     r2.7      r3.3      -7.3     -4.9     -6.7     46.1     -3.3

        ANNUAL     r2.0     -0.1     r-2.1     r3.1      r0.3       1.0      6.5      2.5    -11.7      1.2

  2002       I     r5.0      3.3     r-1.6     r3.7      r2.5      -1.2     -0.2     -0.9     -0.2     -0.8
            II     r5.5      5.3     r-0.3     r4.2      r0.6      -1.3      1.7     -0.5      0.9     -0.3
           III     r3.1      1.7     r-1.4     r2.7      r0.5      -0.5      3.1      0.5    -11.2     -0.5
            IV     r3.6     r2.8     r-0.8     r2.6      r0.6     r-1.0    r-0.6    r-0.9    r22.8      0.9

        ANNUAL     r5.8     r3.1     r-2.5     r3.5      r1.8     r-2.2     r1.0     -1.3     r9.1     -0.5

  2003       I     r4.5     r2.8     r-1.6     r5.4      r1.5      r0.9    r-1.9     r0.1     r7.6     r0.7
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2001       I      0.9      0.4      -0.4      3.5       0.1       2.6      6.7      3.7    -22.0      1.3
            II     r1.5     -0.1     r-1.6     r3.9      r0.5       2.3      6.8      3.5    -19.7      1.3
           III     r1.6     -1.1     r-2.7     r2.7      r0.0       1.1      7.8      2.9    -10.6      1.7
            IV     r4.2      0.3     r-3.8     r2.4      r0.5      -1.8      4.7      0.0      9.2      0.7

        ANNUAL     r2.0     -0.1     r-2.1     r3.1      r0.3       1.0      6.5      2.5    -11.7      1.2

  2002       I     r6.2      1.9     r-4.0     r3.6      r2.4      -2.4      2.2     -1.2     15.5      0.0
            II     r6.4      3.4     r-2.8     r3.6      r2.3      -2.6      0.9     -1.7     13.0     -0.6
           III      6.1      3.9      -2.1      3.3       1.7      -2.6     -0.1     -1.9      6.9     -1.3
            IV     r4.3     r3.2      -1.0     r3.3      r1.0     r-1.0     r1.0     -0.4     r2.4     -0.2

        ANNUAL     r5.8     r3.1     r-2.5     r3.5      r1.8     r-2.2     r1.0     -1.3     r9.1     -0.5

  2003       I     r4.2     r3.1     r-1.0     r3.7      r0.8     r-0.5     r0.6    r-0.2     r4.3     r0.2
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        August 7, 2003
  r=revised                                                               Source: Bureau of Labor Statistics



Appendix table 1. Business sector: Revised 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

  1998       I   r109.6      126.7    r115.6    r117.3      r103.5     r107.0      r115.9      110.3
            II   r109.6      127.3    r116.2    r118.8      r104.5     r108.4      r113.9      110.4
           III   r110.2      128.7    r116.8    r120.2      r105.2     r109.0      r113.5      110.7
            IV   r111.5      131.3    r117.8    r121.4      r105.9     r108.9      r114.1      110.8

        ANNUAL   r110.2      128.5    r116.6    r119.4      r104.8     r108.4      r114.3      110.6

  1999       I   r112.3      132.4    r117.9    r123.9      r107.6     r110.3      r112.7      111.2
            II   r112.1      133.0    r118.7    r123.9      r106.9     r110.6      r113.0      111.5
           III   r113.1      134.9    r119.4    r125.0      r107.0     r110.6      r113.9      111.8
            IV   r114.7      137.7    r120.1    r126.5      r107.5     r110.3      r115.2      112.1

        ANNUAL   r113.0      134.5    r119.0    r124.8      r107.2     r110.4      r113.7      111.6

  2000       I   r114.8      138.4    r120.6    r131.1      r110.3     r114.1      r110.4      112.8
            II   r116.6      140.3    r120.3    r131.9      r110.1     r113.1      r113.8      113.4
           III   r116.8      140.4    r120.2    r134.6      r111.4     r115.3      r111.0      113.7
            IV   r117.5      140.7    r119.7    r135.9      r111.7      115.6      r111.9      114.3

        ANNUAL   r116.5      140.0    r120.1    r133.5      r111.0     r114.6      r111.8      113.5

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1998       I     r5.2        7.5       2.2      r7.4        r6.7        2.1       r-2.1        0.5
            II    r-0.2        1.9      r2.2      r5.1        r3.9        5.3       r-7.0        0.5
           III     r2.4        4.4      r1.9      r4.8        r2.9        2.3       r-1.3        0.9
            IV     r4.5        8.2      r3.5      r4.1        r2.4       -0.4         2.0        0.5

        ANNUAL      2.6        4.9       2.2       5.5         4.0        2.8       r-2.3        0.8

  1999       I      3.1        3.4      r0.3      r8.3        r6.8       r5.1       r-4.8        1.3
            II    r-0.8        2.1      r3.0      r0.2       r-2.7        1.1         0.9        1.0
           III     r3.6        5.9      r2.2      r3.5        r0.4       -0.1         3.3        1.2
            IV      5.8        8.4       2.4      r4.9        r1.9      r-0.8        r4.5        1.1

        ANNUAL     r2.5        4.7      r2.1      r4.5         2.4        1.9       r-0.6        1.0

  2000       I     r0.5        2.2      r1.7     r15.2       r11.0      r14.6      r-15.5        2.4
            II     r6.3        5.4     r-0.8      r2.6       r-0.8       -3.5        12.9        2.2
           III     r0.7        0.4     r-0.3      r8.5        r4.7        7.8        -9.6        1.1
            IV     r2.6        0.9     r-1.7      r3.9        r0.9       r1.2        r3.2        1.9

        ANNUAL     r3.1        4.1      r0.9      r6.9        r3.5        3.7        -1.7        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1998       I      3.4        5.7       2.2       4.8         3.4        1.4        r0.6        1.1
            II      2.3        4.4       2.0       5.8        r4.4        3.5       r-3.4        0.8
           III      2.0        4.2       2.2       5.9         4.4        3.9       r-4.1        0.7
            IV     r2.9        5.5      r2.5       5.3         4.0        2.3        -2.1        0.6

        ANNUAL      2.6        4.9       2.2       5.5         4.0        2.8       r-2.3        0.8

  1999       I     r2.4        4.5      r2.0       5.6         4.0       r3.1       r-2.8        0.8
            II      2.3        4.5       2.2       4.3         2.3        2.0        -0.8        0.9
           III      2.6        4.9       2.2      r4.0         1.7        1.4        r0.3        1.0
            IV     r2.9        4.9      r2.0      r4.2        r1.5        1.3         0.9        1.2

        ANNUAL     r2.5        4.7      r2.1      r4.5         2.4        1.9       r-0.6        1.0

  2000       I     r2.2        4.6       2.3      r5.8        r2.5        3.5        -2.0        1.4
            II     r4.0        5.4       1.3      r6.4        r3.0        2.3         0.8        1.7
           III      3.3        4.1       0.7       7.7         4.1        4.3        -2.5        1.7
            IV     r2.5        2.2     r-0.3      r7.4        r3.9       r4.8       r-2.8        1.9

        ANNUAL     r3.1        4.1      r0.9      r6.9        r3.5        3.7        -1.7        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 7, 2003
                                                                         Source: Bureau of Labor Statistics



Appendix table 2. Nonfarm business sector: Revised 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

  1998       I   r109.5      127.0    r116.0    r117.0      r103.2     r106.8      r117.1      110.5
            II   r109.6      127.7    r116.5    r118.5       104.3     r108.1      r115.1      110.6
           III   r110.2      129.0    r117.1     119.9       105.0     r108.8      r114.7      111.0
            IV    111.4      131.6    r118.2     121.1       105.6     r108.7      r115.3      111.1

        ANNUAL   r110.2      128.8    r116.9     119.1       104.5     r108.1      r115.5      110.8

  1999       I   r112.0      132.7     118.4    r123.3      r107.1     r110.0      r114.1      111.5
            II   r111.8      133.3    r119.3     123.4       106.4     r110.4      r114.6      111.9

           III   r112.7      135.3    r120.0    r124.4      r106.5     r110.4      r115.6      112.3
            IV   r114.5      138.0    r120.6    r126.2      r107.2     r110.2      r116.9      112.6

        ANNUAL   r112.8      134.8    r119.6     124.3       106.8     r110.3      r115.3      112.1

  2000       I   r114.6      138.7    r121.0     130.8       110.1     r114.2      r112.0      113.4
            II   r116.1      140.5    r121.0    r131.4      r109.7     r113.1      r115.3      113.9
           III   r116.4      140.6    r120.8    r134.2      r111.0     r115.3      r112.6      114.3
            IV   r117.0      141.0    r120.5     135.3       111.2      115.6      r113.3      114.8

        ANNUAL   r116.1      140.2    r120.7     133.0       110.6     r114.6      r113.3      114.1

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1998       I     r5.0        7.8      r2.7      r7.2        r6.6       r2.1       r-1.8        0.6
            II     r0.3        2.1      r1.7      r5.5        r4.3        5.1        -6.8        0.4
           III     r2.0        4.3      r2.3      r4.7        r2.8        2.7        -1.3        1.2
            IV     r4.4        8.3      r3.7      r3.9         2.2      r-0.5        r2.1        0.5

        ANNUAL      2.6        5.0       2.4       5.4         3.9        2.7       r-2.0        0.9

  1999       I      2.4        3.3       0.9      r7.5        r5.9       r4.9       r-4.1        1.4
            II    r-0.9        1.9      r2.8      r0.3       r-2.6        1.3        r1.8        1.5
           III     r3.5        6.0      r2.4      r3.5        r0.4        0.0        r3.8        1.4
            IV      6.3        8.3       1.9      r5.7        r2.6      r-0.6        r4.4        1.3

        ANNUAL     r2.3        4.6      r2.3      r4.3         2.2        2.0        -0.2        1.2

  2000       I     r0.3        1.9      r1.6     r15.4       r11.3      r15.1      r-15.7        2.7
            II     r5.7        5.4     r-0.2      r1.9       r-1.4       -3.6       r12.3        1.9
           III     r0.8        0.2     r-0.6      r8.8        r5.0       r7.9        -9.1        1.4
            IV     r2.2        1.1     r-1.0      r3.3        r0.4       r1.1        r2.6        1.6

        ANNUAL     r3.0        4.0       1.0       7.0        r3.6        3.9       r-1.8        1.8

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1998       I      3.2        5.7       2.4      r4.7         3.2        1.4        r1.1        1.3
            II     r2.3        4.5      r2.1      r5.7         4.2       r3.4        -3.0        0.8
           III      2.0        4.4       2.4       5.9         4.4       r3.9       r-3.9        0.8
            IV      2.9        5.6       2.6       5.3        r4.0        2.3        -2.0        0.7

        ANNUAL      2.6        5.0       2.4       5.4         3.9        2.7       r-2.0        0.9

  1999       I      2.3        4.5       2.1       5.4         3.8        3.0       r-2.6        0.9
            II      1.9        4.4       2.4      r4.1         2.0        2.1        -0.4        1.1
           III     r2.3        4.8      r2.5       3.8        r1.4        1.4         0.8        1.2
            IV     r2.8        4.8      r2.0      r4.2        r1.5        1.4         1.4        1.4

        ANNUAL     r2.3        4.6      r2.3      r4.3         2.2        2.0        -0.2        1.2

  2000       I      2.3        4.5      r2.2      r6.1        r2.8        3.7        -1.8        1.7
            II     r3.9        5.4      r1.4      r6.5        r3.1        2.5        r0.6        1.8
           III     r3.2        3.9       0.7      r7.8         4.3        4.5        -2.6        1.8
            IV     r2.2        2.2     r-0.1       7.2        r3.7        4.9        -3.1        1.9

        ANNUAL     r3.0        4.0       1.0       7.0        r3.6        3.9       r-1.8        1.8

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       August 7, 2003
                                                                         Source: Bureau of Labor Statistics



 Appendix table 3. Business sector: Productivity, hourly compensation, unit labor costs, and prices
 Indexes 1992=100
                                                            Real
                Output per            Hours     Compensa-   compensa-  Unit      Unit non-   Implicit
                hour of               of all    tion per    tion per   labor     labor pay-  price
       Year     all persons  Output   persons   hour (1)    hour (2)   costs     ments (3)   deflator (4)
  -------------------------------------------------------------------------------------------------------
       1947       r32.7       20.7     r63.3       r7.0      r40.6      21.4         18.9       20.5
       1948       r34.2       21.8     r63.8       r7.6      r40.7      22.2        r20.9       21.7
       1949       r34.9       21.6     r61.7       r7.7      r41.9      22.0        r20.7       21.5

       1950       r37.8       23.7     r62.6       r8.2      r44.2      21.8         21.8       21.8
       1951       r38.9       25.2     r64.7       r9.0      r44.9      23.2         24.0       23.5
       1952       r40.1       26.0     r64.8       r9.6      r46.8      23.9         23.4       23.7
       1953       r41.5       27.2     r65.7      r10.2      r49.4      24.5         22.9       23.9
       1954       r42.4       26.9     r63.4      r10.5      r50.6      24.8         22.8       24.1

       1955       r44.1       29.0     r65.8      r10.8      r52.1      24.4         24.3       24.4
       1956       r44.1       29.5     r66.8      r11.5      r54.7      26.0         23.7       25.2
       1957       r45.5       30.0     r65.9      r12.2      r56.4      26.9         24.4       26.0
       1958       r46.8       29.4     r62.9      r12.8      r57.3      27.3         25.0       26.5
       1959       r48.6       31.9     r65.5      r13.3      r59.2      27.4         25.5       26.7

       1960       r49.5       32.5     r65.6      r13.9      r60.7      28.0        r25.1       27.0
       1961       r51.3       33.1     r64.5      r14.4      r62.5      28.1         25.5       27.2
       1962       r53.6       35.2     r65.7      r15.1      r64.6      28.1         26.3       27.4
       1963       r55.7       36.8     r66.1      r15.6      r66.1      28.0         26.9       27.6
       1964       r57.6       39.2     r68.0       16.2       67.7     r28.1         27.5       27.9

       1965       r59.7       41.9     r70.3       16.8       69.1      28.2        r28.7       28.4
       1966       r62.1       44.8     r72.1       17.9       71.7      28.9        r29.4       29.1
       1967       r63.5       45.6     r71.9       19.0      r73.6      29.9        r29.8       29.9
       1968       r65.5       47.9     r73.2       20.4       76.0     r31.2        r30.7       31.0
       1969       r65.8       49.4     r75.1       21.9      r77.2     r33.2        r31.0       32.4

       1970       r67.1       49.4     r73.6      r23.6       78.6      35.1        r31.7       33.9
       1971       r70.0       51.3     r73.3       25.0       80.1      35.8        r34.5       35.3
       1972        72.2       54.7      75.7       26.6      r82.3      36.8        r35.9       36.5
       1973        74.5       58.5     r78.6      r28.8      r84.1     r38.7        r37.8       38.4
       1974        73.2       57.6     r78.7      r31.6      r83.1      43.2        r40.1       42.1

       1975        75.8       57.0     r75.3      r34.8      r83.9     r46.0        r46.2       46.1
       1976       r78.4       60.9     r77.7      r37.9      r86.2     r48.3        r48.7       48.5
       1977       r79.7       64.3     r80.7      r40.9      r87.4     r51.3        r51.7       51.4
       1978       r80.6       68.3     r84.8      r44.5      r88.9     r55.2        r55.0       55.1
       1979       r80.5       70.6     r87.7      r48.8      r89.1     r60.6        r58.5       59.8

       1980       r80.3       69.8     r86.9      r54.1      r88.9     r67.3        r61.7       65.2
       1981       r81.9       71.7     r87.6      r59.2      r89.0     r72.3        r69.4       71.2
       1982        81.6       69.6      85.2      r63.7      r90.5     r78.1        r70.5       75.3
       1983       r84.5       73.3     r86.7      r66.3      r90.4     r78.5        r76.6       77.8
       1984       r86.8       79.7     r91.8      r69.2      r90.7     r79.7        r80.6       80.0

       1985       r88.5       83.1     r93.8      r72.6      r92.1     r82.0        r82.4       82.2
       1986       r91.2       86.1     r94.4      r76.4      r95.2     r83.8        r83.0       83.5
       1987       r91.6       89.2     r97.3      r79.3      r95.6     r86.6        r83.8       85.6
       1988        93.0       92.9     r99.9      r83.4      r97.0     r89.7        r85.8       88.3
       1989        93.9       96.2    r102.5      r85.7      r95.5     r91.2        r92.0       91.5

       1990       r95.3       97.6    r102.5       90.7       96.3     r95.2        r94.0       94.8
       1991       r96.4       96.5    r100.1       95.0      r97.4     r98.6        r97.1       98.1
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.5      103.1     102.6     r102.4      r99.9     101.9        102.5      102.2
       1994      r101.7      108.1    r106.3     r104.4      r99.7     102.6        106.4      104.0

       1995      r102.3      111.5    r108.9     r106.5      r99.4     104.1        109.4      106.0
       1996      r105.1      116.4    r110.7     r109.9      r99.8    r104.6       r113.2      107.7
       1997      r107.4      122.5    r114.0     r113.2     r100.7    r105.4       r117.0      109.7
       1998      r110.2      128.5    r116.6     r119.4     r104.8    r108.4       r114.3      110.6
       1999      r113.0      134.5    r119.0     r124.8     r107.2    r110.4       r113.7      111.6

       2000      r116.5      140.0    r120.1     r133.5     r111.0    r114.6       r111.8      113.5
       2001      r118.8      139.8    r117.6     r138.6     r112.1    r116.7       r114.3      115.8
       2002      r125.1      143.5    r114.7     r142.5     r113.5     113.9        120.4      116.3
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     August 7, 2003
                                                                       Source: Bureau of Labor Statistics



Appendix table 4. Nonfarm business sector:  Productivity, hourly compensation, unit labor costs, and prices
 Indexes 1992=100
                                                            Real
                Output per            Hours     Compensa-   compensa-  Unit      Unit non-   Implicit
                hour of               of all    tion per    tion per   labor     labor pay-  price
       Year     all persons  Output   persons   hour (1)    hour (2)   costs     ments (3)   deflator (4)
  -------------------------------------------------------------------------------------------------------
       1947       r37.3       20.3     r54.4       r7.4      r43.1      19.9        r17.9       19.2
       1948       r38.3       21.2     r55.3       r8.1      r43.4     r21.1        r19.5       20.5
       1949       r39.6       21.0     r53.1       r8.3      r45.3      21.0        r20.1       20.7

       1950       r42.2       23.1     r54.8       r8.8      r47.3     r20.9        r21.0       20.9
       1951       r43.3       24.9     r57.4       r9.6      r47.7      22.1        r22.6       22.3
       1952       r44.1       25.6     r58.0      r10.1      r49.3     r22.9         22.4       22.7
       1953       r45.1       26.9     r59.5      r10.7      r51.7      23.6         22.4       23.2
       1954       r46.0       26.4     r57.4      r11.0      r53.0      23.9         22.5       23.4

       1955       r47.9       28.6     r59.8      r11.4      r55.1      23.8        r23.8       23.8
       1956       r47.5       29.1     r61.2      r12.1      r57.7      25.5        r23.2       24.7
       1957       r48.8       29.7     r60.9      r12.8      r59.0      26.3         24.0       25.4
       1958       r49.8       29.1     r58.3      r13.3      r59.7      26.7        r24.3       25.9
       1959       r51.8       31.6     r61.0      r13.8      r61.6      26.7        r25.1       26.2

       1960       r52.4       32.1     r61.3      r14.5      r63.2     r27.6        r24.5       26.5
       1961       r54.2       32.8     r60.5      r15.0      r64.8      27.6         25.0       26.7
       1962       r56.6       35.0     r61.9      r15.6      r66.7      27.5        r25.9       26.9
       1963       r58.6       36.6     r62.6      r16.1      r68.1      27.5         26.5       27.1
       1964       r60.4       39.1     r64.8      r16.6      r69.4     r27.5         27.3       27.5

       1965       r62.2       41.9     r67.3       17.2      r70.6      27.6        r28.3       27.8
       1966       r64.5       44.9     r69.6       18.2      r72.6      28.2        r29.0       28.5
       1967       r65.6       45.7     r69.6       19.3      r74.7     r29.3        r29.5       29.4
       1968       r67.7       48.1     r71.1       20.7      r76.9     r30.5         30.4       30.5
       1969       r67.8       49.5     r73.1      r22.1      r77.9      32.6        r30.6       31.9

       1970       r68.8       49.5     r71.9       23.7      r79.0      34.4         31.3       33.3
       1971       r71.6       51.4     r71.7      r25.2      r80.6      35.2        r34.0       34.7
       1972       r74.0       54.9     r74.2      r26.8      r82.9      36.2        r35.0       35.8
       1973       r76.3       58.9     r77.2      r29.0      r84.5     r37.9        r35.4       37.0
       1974       r75.1       58.0     r77.2      r31.8      r83.5     r42.3        r38.1       40.8

       1975       r77.1       57.0     r73.9      r35.0      r84.3     r45.4        r44.7       45.1
       1976       r79.9       61.1     r76.5      r38.0      r86.5     r47.5        r47.6       47.6
       1977       r81.2       64.6     r79.5      r41.1      r87.8     r50.6        r50.7       50.6
       1978       r82.2       68.8     r83.6      r44.7      r89.4     r54.4        r53.5       54.1
       1979       r81.9       70.9     r86.6      r49.0      r89.5     r59.8        r56.6       58.7

       1980       r81.7       70.2     r85.9      r54.3      r89.3     r66.4        r60.6       64.3
       1981       r82.7       71.6     r86.6      r59.5      r89.6     r72.0        r67.8       70.5
       1982       r82.3       69.4     r84.3      r64.0      r91.0     r77.8        r69.6       74.8
       1983       r85.9       73.8     r85.9      r66.7      r91.0     r77.7        r76.4       77.2
       1984       r87.7       80.0     r91.1      r69.5      r91.2     r79.3        r79.6       79.4

       1985       r88.9       83.0     r93.4      r72.8      r92.4     r81.9        r81.8       81.9
       1986       r91.6       86.2     r94.1      r76.6      r95.5     r83.6        r82.6       83.2
       1987       r91.9       89.3     r97.1      r79.5      r95.8     r86.5        r83.4       85.4
       1988       r93.4       93.3     r99.9      r83.4      r97.0     r89.3        r85.6       87.9
       1989       r94.1       96.5    r102.5      r85.6      r95.4     r91.0        r91.5       91.2

       1990        95.3       97.8    r102.6       90.5      r96.1     r94.9        r93.7       94.5
       1991       r96.5       96.6    r100.1       95.0      r97.4     r98.4        r97.2       98.0
       1992       100.0      100.0     100.0      100.0      100.0     100.0        100.0      100.0
       1993       100.5      103.3     102.9      102.2       99.7     101.7        103.0      102.2
       1994       101.8      108.2    r106.3      104.3      r99.6     102.5        106.9      104.1

       1995      r102.7      111.8    r108.9     r106.5       99.4     103.7        110.4      106.1
       1996      r105.3      116.7    r110.8      109.8      r99.7    r104.3       r113.4      107.6
       1997      r107.4      122.7    r114.2     r113.0     r100.5     105.2       r117.9      109.8
       1998      r110.2      128.8    r116.9      119.1      104.5    r108.1       r115.5      110.8
       1999      r112.8      134.8    r119.6      124.3      106.8    r110.3       r115.3      112.1

       2000      r116.1      140.2    r120.7      133.0      110.6    r114.6       r113.3      114.1
       2001      r118.3      140.1    r118.4     r137.8     r111.4    r116.5       r116.1      116.3
       2002      r124.7      143.9    r115.4     r141.7     r112.8     113.6        122.5      116.9
  -------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                     August 7, 2003
                                                                       Source: Bureau of Labor Statistics




2

                                      1

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
-1.4 and +1.5 index points approximately 95 percent of the time.  This
interval is based on the performance of this measure between the fourth
quarter of 1995 and the first quarter of 2003.



                            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)  The change for recent quarters is based on the Consumer Price Index for
     all urban consumers (CPI-U).  The trend from 1978-2002 is based on the
     Consumer Price Index research series (CPI-U-RS).

(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.