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                          PRODUCTIVITY AND COSTS
                        Third Quarter 2007, revised

     The Bureau of Labor Statistics of the U.S. Department of Labor today 
reported revised productivity data--as measured by output per hour of all 
persons--for the third quarter of 2007.  The seasonally adjusted annual rates 
of productivity growth in the third quarter were:

                  6.7 percent in the business sector and
                  6.3 percent in the nonfarm business sector.

In both sectors, changes in productivity are higher than the preliminary 
estimates published November 7, and represent the largest productivity gains 
since the third quarter of 2003.  The upward revisions to productivity 
resulted from upward revisions to output--which grew 5.7 percent in both 
sectors--and small downward revisions to hours, which fell 1.0 percent in the 
business sector and 0.6 percent in the nonfarm business sector in the third 
quarter.

In manufacturing, revised productivity increases in the third quarter were:

                  5.0 percent in manufacturing,
                  6.1 percent in durable goods manufacturing, and
                  4.3 percent in nondurable goods manufacturing.

     Productivity growth in the manufacturing sector was revised up, 
reflecting a small upward revision to output and a smaller downward revision 
to hours (table C).  Output and hours in manufacturing, which includes about 
12 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.  
Third-quarter measures are summarized in table A and appear in detail in 
tables 1 through 5.

     The data sources and methods used in the preparation of the 
manufacturing series differ from those used in preparing the business and 
nonfarm business series, and these measures are not directly comparable.  
Output measures for business and nonfarm business are based on measures of 
gross domestic product prepared by the Bureau of Economic Analysis of the 
U.S. Department of Commerce.  Quarterly output measures for manufacturing 
reflect indexes of industrial production independently prepared by the Board 
of Governors of the Federal Reserve System.  See Technical Notes for further 
information on data sources.     


------------------------------------------------------------------------------
Table A. Productivity and costs: Revised third-quarter 2007 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                 6.7       5.7     -1.0        4.7      2.7      -2.0
Nonfarm business         6.3       5.7     -0.6        4.2      2.3      -2.0
Manufacturing            5.0       4.5     -0.5        1.5     -0.3      -3.3
  Durable                6.1       6.7      0.6        0.7     -1.2      -5.1
  Nondurable             4.3       1.9     -2.3        3.0      1.1      -1.3

                   Percent change from same quarter a year ago

Business                 2.9       3.2      0.3        5.9      3.5       3.0
Nonfarm business         2.7       3.2      0.5        5.8      3.3       3.0
Manufacturing            2.8       1.9     -0.8        5.6      3.2       2.8
  Durable                3.9       3.0     -0.9        5.9      3.4       1.9
  Nondurable             1.4       0.7     -0.7        5.1      2.7       3.7
------------------------------------------------------------------------------


Business

     Business sector productivity grew at an annual rate of 6.7 percent 
during the third quarter of 2007, the largest gain since a 9.1 percent 
increase in the third quarter of 2003 (seasonally adjusted annual rates).  
Output rose 5.7 percent, the largest increase since a 10.4 percent rise in 
the third quarter of 2003.   Hours of all persons engaged in the sector fell 
1.0 percent, the first decline in the series since the second quarter of 
2003, when hours fell 2.2 percent.  When the third quarter of 2007 is 
compared to the third quarter of 2006, productivity rose 2.9 percent.  This 
is the largest four-quarter increase since output per hour grew 3.4 percent 
from the second quarter of 2003 to the second quarter of 2004.

     Hourly compensation in the business sector increased 4.7 percent during 
the third quarter of 2007.   A downward revision reduced hourly compensation 
growth to 2.4 percent in the second quarter, lower than the 5.8 percent 
increase reported on November 7.   From the third quarter of 2006 to the 
third quarter of 2007, hourly compensation increased 5.9 percent, the largest 
four-quarter gain since an increase of 6.7 percent from the fourth quarter of 
1999 to the fourth quarter of 2000.  Hourly compensation includes accrued 
wages and salaries, supplements, employer contributions to employee benefit 
plans, and taxes.  Real hourly compensation, which takes into account changes 
in consumer prices, grew 2.7 percent in the third quarter and fell 3.3 
percent in the second quarter. 

     Unit labor costs fell 2.0 percent in the third quarter of 2007, a larger 
decline than previously reported, reflecting the upward revision to 
productivity and the downward revision to hourly compensation.  In the second 
quarter, unit labor costs declined 1.1 percent, in contrast to the 2.2 
percent increase reported on Nov. 7.  The implicit price deflator for the 
business sector, which reflects changes both in unit labor costs and in unit 
nonlabor payments, grew 0.2 percent in the third quarter of 2007.


Nonfarm business

     Output per hour of all persons in the nonfarm business sector rose 6.3 
percent during the third quarter of 2007, the largest gain since a 10.4 
percent increase in the third quarter of 2003.  Output increased 5.7 percent 
and hours of all persons engaged in the sector declined 0.6 percent, as 
revised.  Hours growth was the lowest since the second quarter of 2003, when 
hours fell 1.3 percent.  In the second quarter of 2007, productivity had 
increased 2.2 percent, reflecting gains of 4.2 percent in output and 2.0 
percent in hours.  

     Hourly compensation in the nonfarm business sector rose 4.2 percent in 
the third quarter of 2007.  After a downward revision, second-quarter hourly 
compensation increased 1.0 percent; lower than a 4.4 percent rise reported on 
November 7.  From the third quarter of 2006 to the third quarter of 2007, 
hourly compensation increased 5.8 percent, the largest four-quarter gain 
since an increase of 6.5 percent from the fourth quarter of 1999 to the 
fourth quarter of 2000.  When the rise in consumer prices is taken into 
account, real hourly compensation rose 2.3 percent in the third quarter of 
2007 and fell 4.7 percent in the second quarter. 

     As in the business sector, nonfarm business unit labor costs decreased 
2.0 percent in the third quarter of 2007 due to the upward revision to 
productivity and the downward revision to hourly compensation.  Nonfarm 
business unit labor costs also declined 1.1 percent in the second quarter.  
The implicit price deflator for the nonfarm business sector, which reflects 
changes both in unit labor costs and in unit nonlabor payments, edged down 
0.1 percent in the third quarter of 2007.  


Manufacturing

     Productivity increased 5.0 percent in manufacturing in the third quarter 
of 2007, as output increased 4.5 percent and hours of all persons decreased 
0.5 percent (seasonally adjusted annual rates).  When the third quarter of 
2007 is compared with the third quarter of 2006, productivity increased 2.8 
percent, less than during any four-quarter period since the period ending 
with the fourth quarter of 2004, when productivity also increased 2.8 
percent.  In durable goods industries, productivity increased 6.1 percent in 
the third quarter of 2007.  Output grew 6.7 percent and hours rose 0.6 
percent.  Productivity grew more slowly in the nondurable goods industries, 
4.3 percent, reflecting an increase of 1.9 percent in output and a decrease 
of 2.3 percent in hours (tables 3, 4, and 5).

     The average hourly compensation of all manufacturing workers rose 1.5 
percent in the third quarter of 2007.  Hourly compensation was revised down 
substantially in the second quarter, from the 3.7 percent increase reported 
previously to a 1.4 percent decrease.  In durable goods industries, hourly 
compensation increased 0.7 percent in the third quarter, compared with a 3.0 
percent rise in nondurable goods manufacturing.  When the increase in 
consumer prices is taken into account, real hourly compensation for all 
manufacturing workers declined 0.3 percent in the third quarter of 2007.

     Unit labor costs in manufacturing fell 3.3 percent in the third quarter 
of 2007 and fell 3.7 percent in the second quarter, as revised.  Unit labor 
costs declined 5.1 percent in durable goods industries and fell 1.3 percent 
in nondurable goods manufacturing during the third quarter.


Nonfinancial Corporations 

     Third-quarter 2007 measures of productivity and costs also were released 
for nonfinancial corporations (tables B and 6).  Output per all-employee hour 
grew at a 4.2 percent annual rate.  This was the largest increase since the 
third quarter of 2004 when productivity increased 5.2 percent.  Output 
increased 4.7 percent in the third quarter of 2007, and hours of all 
employees rose 0.5 percent (seasonally adjusted annual rates).  The 
nonfinancial corporate sector includes all corporations doing business in the 
United States, except those classified as depository institutions, 
nondepository institutions, security and commodity brokers, insurance 
carriers, regulated investment offices, small business investment offices, 
and real estate investment trusts.

------------------------------------------------------------------------------
Table B.  Nonfinancial corporations: third-quarter 2007 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

2007 III   4.2     4.7     0.5     4.4      2.5      0.2    -10.1      -1.5

                     Percent change from same quarter a year ago

2007 III   2.0     2.7     0.7     5.7      3.3      3.6    -10.8       1.0
------------------------------------------------------------------------------

     Hourly compensation in nonfinancial corporations rose 4.4 percent in the 
third quarter.  When consumer prices are taken into account, real hourly 
compensation rose 2.5 percent in the third quarter, a reversal from the 3.5 
percent decrease in the second quarter, as revised.

     In the nonfinancial corporate sector, unit labor costs increased 0.2 
percent, unit nonlabor costs declined by 1.8 percent, and unit profits fell 
10.1 percent in the third quarter of 2007 (seasonally adjusted annual rates).  
As a result of these movements, the implicit price deflator for the output of 
nonfinancial corporations--which reflects a weighted average of these three 
measures--fell 1.5 percent.


Revised Measures

     Current and previous measures for the second and third quarters of 2007 
for the business, nonfarm business, and manufacturing sectors are compared in 
table C.  In the third quarter, productivity in the business and nonfarm 
business sectors was higher than reported Nov. 7, due to 1.4 percentage point 
upward revisions to output and 0.1 percentage point downward revisions to 
hours.  In manufacturing, productivity was also revised up--by 0.4 percentage 
point--due to a small upward revision to output and a small downward revision 
to hours.  Hourly compensation was revised down in all three sectors, and the 
combination of faster productivity growth and slower hourly compensation 
growth led to downward revisions to unit labor costs in the third quarter. 

------------------------------------------------------------------------------
Table C. Previous and revised productivity and related measures:
Quarterly percent change at seasonally adjusted annual rate 
------------------------------------------------------------------------------
                                                               Real
                                                     Hourly    hourly    Unit
                        Produc-                      compen-   compen-   labor
Sector                  tivity    Output   Hours     sation    sation    costs
------------------------------------------------------------------------------                  

                                Third quarter 2007

Business:                                               
  Previous               5.3       4.3     -0.9        5.1       3.1     -0.2
  Revised                6.7       5.7     -1.0        4.7       2.7     -2.0
Nonfarm business:                                               
  Previous               4.9       4.3     -0.5        4.7       2.7     -0.2
  Revised                6.3       5.7     -0.6        4.2       2.3     -2.0
Manufacturing:                                          
  Previous               4.6       4.3     -0.4        2.3       0.4     -2.2
  Revised                5.0       4.5     -0.5        1.5      -0.3     -3.3

                                Second quarter 2007

Business:                                               
  Previous               3.6       4.4      0.8        5.8      -0.2      2.2
  Revised                3.6       4.4      0.8        2.4      -3.3     -1.1
Nonfarm business:                                               
  Previous               2.2       4.2      2.0        4.4      -1.5      2.2
  Revised                2.2       4.2      2.0        1.0      -4.7     -1.1
Manufacturing:                                          
  Previous               2.4       4.4      2.0        3.7      -2.2      1.3
  Revised                2.4       4.4      2.0       -1.4      -6.9     -3.7
------------------------------------------------------------------------------
        
     The second-quarter 2007 measures of hourly compensation, real hourly 
compensation, and unit labor costs were revised to reflect new information on 
employee compensation reported by the Bureau of Economic Analysis of the U.S. 
Department of Commerce on Nov. 29.  In both the business and nonfarm business 
sectors, hourly compensation growth was revised down by 3.4 percentage 
points.  Because productivity was not revised, the hourly compensation 
revisions caused corresponding downward revisions to unit labor costs, which 
now decline rather than increase in the second quarter.  

     In the manufacturing sector, hourly compensation was revised down by 5.1 
percentage points in the second quarter.  As a result, manufacturing unit 
labor costs, which had been reported as rising at a 1.3 percent annual rate, 
actually fell 3.7 percent in the second quarter.


Revised measures: Nonfinancial corporations
       
     Measures for the nonfinancial corporate sector also were revised to 
reflect updated information on output and employee compensation during the 
second quarter of 2007 (table D).  Productivity was revised down along with 
output, as hours grew at the same rate reported Nov 7.  Hourly compensation 
was revised down from a 4.9-percent gain to a 2.3-percent increase during the 
second quarter.  Because hourly compensation was revised down more than 
productivity, the increase in unit labor costs was also revised down, from 
1.1 percent to 0.2 percent.

------------------------------------------------------------------------------
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
------------------------------------------------------------------------------

                               Second quarter 2007

Previous   3.8     4.6     0.8      4.9     -1.0     1.1      8.6       1.4
Revised    2.1     2.9     0.8      2.3     -3.5     0.2     10.4       1.4
------------------------------------------------------------------------------


                                Next release date

     The next release of Productivity and Costs is scheduled for 8:30 AM EST, 
Wednesday, February 6, 2008.  Preliminary fourth-quarter and annual 2007 
measures for the business, nonfarm business, and manufacturing sectors will 
be released at that time.


==============================================================================
     
     Scheduled release dates for productivity and costs measures for major 
sectors of the U.S. economy in 2008 are:

Reference period                         2008 release date

2007:   
Fourth quarter, Annual                   February 6
Fourth quarter, Annual (revised)         March 5

2008:   
First quarter                            May 7
First quarter (revised)                  June 4
Second quarter                           August 8
Second quarter (revised)                 September 4
Third quarter                            November 6
Third quarter (revised)                  December 3

==============================================================================


     These dates are based on presently available schedules for the release 
of underlying source data in 2008.  Each issue of Productivity and Costs 
contains a "Next release date" paragraph that readers should use to confirm 
the dates above.

				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 em-
ployment 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.
Weekly paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for this
purpose, was used for earlier years.  The Office of Productivity and
Technology estimates average weekly hours at work for nonproduction and
supervisory workers using information from the Current Population Survey
(CPS), the CES, and the NCS.
      Data from the CPS are used for farm labor, nonfarm proprietors, and
nonfarm unpaid family workers.  Estimates of labor input for government
enterprises are derived from the CPS, the CES, and the National Income and
Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of
the Department of Commerce.
      The CES measures jobs, counting a person who is employed by two or more 
establishments at each place of employment. In contrast, the CPS features 
measures of employment that count each person only once and classify each 
person according to his or her primary job; hours worked at all jobs by that 
person accrue to his or her primary job.  However, the CPS also collects more 
detailed information on employment and hours worked at primary jobs and all 
other jobs, separately.  The BLS productivity measures use the more detailed 
information on employment and hours to assign all hours worked to the correct 
industrial sector and avoid duplicating hours data from the CES.

Output: Business sector output is an annual-weighted index constructed after 
excluding from gross domestic product (GDP) the following outputs: general 
government, nonprofit institutions, and private households (including owner-
occupied housing). Corresponding exclusions also are made in labor inputs. 
Business output accounted for about 78 percent of the value of GDP in 2000. 
Nonfarm business, which also excludes farming, accounted for about 77 percent 
of GDP in 2000.
      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 
BLS.  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 3-digit NAICS industries: wood product 
manufacturing; nonmetallic mineral product manufacturing; primary metal 
manufacturing; fabricated metal product manufacturing; machinery manufac-
turing; computer and electronic product manufacturing; electrical equipment 
and appliance manufacturing; transportation equipment manufacturing; 
furniture and related product manufacturing; and miscellaneous manufacturing. 
Nondurables include: food manufacturing; beverage and tobacco product 
manufacturing; textile mills; textile product mills; apparel manufacturing; 
leather and allied product manufacturing; paper manufacturing; printing and 
related support activities; petroleum and coal products manufacturing; 
chemical manufacturing; and plastics and rubber products manufacturing.
      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; private households; unincorporated business; and 
those corporations classified as offices of bank holding companies, offices 
of other holding companies, or offices in the finance and insurance sector. 
Nonfinancial corporations accounted for about 54 percent of the value of GDP 
in 2000.

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.

Labor Compensation: Estimates of labor compensation by major sector, required 
for measures of hourly compensation and unit labor costs, are based primarily 
on employee compensation data from the NIPA, prepared by the BEA.   The 
compensation of employees in general government, nonprofit institutions and 
private households are subtracted from compensation of domestic employees to 
derive employee compensation for the business sector. The labor compensation 
of proprietors cannot be explicitly identified and must be estimated.   This 
is done by assuming that proprietors have the same hourly compensation as 
employees in the same sector.  The quarterly labor productivity and cost 
measures do not contain estimates of compensation for unpaid family workers.  

Unit Labor Costs:  The measures of unit labor costs in this release describe 
the relationship between compensation per hour and productivity, or real 
output per hour, and can be used as an indicator of inflationary pressure on 
producers.  Increases in hourly compensation increase unit labor costs; labor 
productivity increases offset compensation increases and lower unit labor 
costs. 

Presentation of the data:  The quarterly data in this release are presented 
in three ways; as index number series where 1992=100, as percent changes from 
the corresponding quarter of the previous year, and as percent changes from 
the previous quarter presented at a compound annual rate.  Annual data are 
presented both as index number series and percent changes from the previous 
year.  
	The index numbers and rates of change reported in the productivity and 
costs news release are rounded to one decimal place.  All percent changes in 
this release and on the BLS web site are calculated using index numbers to 
three decimal places.  These index numbers are available at the BLS web site, 
http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major 
Sector Productivity.  (Telephone 202-691-5606 or email DPRWEB@BLS.GOV)

        Information in this release will be made available to sensory-impaired 
individuals upon request. Voice phone: 202-691-5606; 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

2005       I     134.4      157.2     117.0     161.4       120.3      120.1       128.2      123.1
          II     134.3      158.5     118.0     161.7       119.4      120.4       129.8      123.9
         III     135.9      160.6     118.2     164.2       119.6      120.8       132.0      125.0
          IV     135.5      161.0     118.8     165.4       119.4      122.0       133.0      126.1

      ANNUAL     135.0      159.3     118.0     163.2       119.7      120.9       130.8      124.5

2006       I     136.4      163.2     119.6     168.2       120.9      123.4       133.0      127.0
          II     136.6      164.2     120.2     168.1       119.3      123.0       136.5      128.0
         III     136.1      164.4     120.8     168.7       118.9      124.0       136.6      128.7
          IV     136.5      165.5     121.2     173.4       122.8      127.0       132.2      128.9

      ANNUAL     136.4      164.3     120.5     169.6       120.4      124.3       134.6      128.2

2007       I     136.6      165.6     121.2     175.7       123.3      128.6       132.9      130.2
          II     137.8      167.3     121.5    r176.8      r122.2     r128.3      r135.4      130.9
         III    r140.0     r169.7    r121.2    r178.8      r123.0     r127.7      r136.6     r131.0
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2005       I       3.0        3.7       0.7       3.0         1.1        0.0         9.1        3.4
          II      -0.3        3.3       3.6       0.7        -3.1        1.0         5.1        2.6
         III       4.9        5.5       0.6       6.2         0.7        1.3         7.1        3.5
          IV      -1.1        1.0       2.1       2.9        -0.5        4.0         3.1        3.7

      ANNUAL       2.0        3.6       1.6       4.0         0.6        2.0         4.9        3.1

2006       I       2.5        5.5       2.9       7.2         5.1        4.6         0.0        2.8
          II       0.8        2.5       1.7      -0.4        -5.1       -1.2        10.7        3.3
         III      -1.5        0.6       2.2       1.6        -1.6        3.1         0.5        2.1
          IV       1.2        2.6       1.4      11.4        13.8       10.1       -12.4        0.8

      ANNUAL       1.0        3.1       2.1       3.9         0.6        2.9         2.9        2.9

2007       I       0.2        0.2       0.0       5.5         1.6        5.3         2.1        4.1
          II       3.6        4.4       0.8      r2.4       r-3.3      r-1.1        r7.7        2.2
         III      r6.7       r5.7     r-1.0      r4.7        r2.7      r-2.0        r3.7       r0.2
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I       2.5        3.8       1.2       5.0         1.9        2.4         4.1        3.1
          II       1.5        3.5       2.0       3.8         0.9        2.3         3.6        2.8
         III       2.4        3.9       1.5       4.0         0.3        1.6         5.8        3.2
          IV       1.6        3.4       1.7       3.2        -0.5        1.6         6.1        3.3

      ANNUAL       2.0        3.6       1.6       4.0         0.6        2.0         4.9        3.1

2006       I       1.5        3.8       2.3       4.2         0.5        2.7         3.8        3.1
          II       1.7        3.6       1.8       3.9         0.0        2.2         5.1        3.3
         III       0.2        2.4       2.2       2.8        -0.6        2.6         3.5        3.0
          IV       0.7        2.8       2.1       4.8         2.8        4.1        -0.6        2.2

      ANNUAL       1.0        3.1       2.1       3.9         0.6        2.9         2.9        2.9

2007       I       0.2        1.5       1.3       4.4         1.9        4.3        -0.1        2.6
          II       0.8        1.9       1.1      r5.2        r2.4       r4.3       r-0.8        2.3
         III      r2.9       r3.2       0.3      r5.9        r3.5       r3.0        r0.0       r1.8
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       December 5, 2007
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

2005       I     133.4      157.4     118.0     160.3       119.5      120.2       129.6      123.6
          II     133.5      158.6     118.8     160.9       118.8      120.5       131.3      124.5
         III     135.0      160.8     119.1     163.2       118.8      120.9       133.7      125.6
          IV     134.5      161.2     119.8     164.2       118.6      122.1       134.8      126.8

      ANNUAL     134.1      159.5     118.9     162.1       118.9      120.9       132.4      125.1

2006       I     135.3      163.4     120.8     167.1       120.1      123.5       135.0      127.7
          II     135.6      164.4     121.2     167.0       118.6      123.2       138.7      128.9
         III     135.0      164.7     122.0     167.5       118.0      124.0       138.6      129.4
          IV     135.6      165.7     122.2     172.4       122.1      127.1       133.6      129.5

      ANNUAL     135.4      164.5     121.5     168.5       119.7      124.5       136.5      128.9

2007       I     135.9      165.9     122.1     174.9       122.7      128.7       133.9      130.6
          II     136.6      167.6     122.7    r175.4      r121.2     r128.4      r136.3      131.3
         III    r138.7     r169.9    r122.5    r177.2      r121.9     r127.7      r137.4     r131.3
---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

2005       I       3.7        3.9       0.2       3.6         1.6       -0.1        10.4        3.8
          II       0.3        3.2       2.9       1.5        -2.4        1.2         5.1        2.7
         III       4.4        5.6       1.1       5.7         0.2        1.3         7.8        3.8
          IV      -1.4        0.9       2.4       2.6        -0.8        4.1         3.2        3.7

      ANNUAL       1.9        3.6       1.6       4.0         0.7        2.0         5.5        3.4

2006       I       2.5        5.7       3.1       7.2         5.1        4.6         0.5        3.0
          II       0.8        2.4       1.6      -0.2        -5.0       -1.0        11.5        3.7
         III      -1.6        0.8       2.4       1.3        -1.8        2.9        -0.4        1.6
          IV       1.8        2.6       0.8      12.2        14.6       10.3       -13.6        0.3

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.7        0.3      -0.3       5.9         2.0        5.2         1.0        3.6
          II       2.2        4.2       2.0      r1.0       r-4.7      r-1.1        r7.4        2.1
         III      r6.3       r5.7     r-0.6      r4.2        r2.3      r-2.0        r3.0      r-0.1
---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

2005       I       2.5        3.8       1.4       4.9         1.8        2.3         4.8        3.3
          II       1.4        3.4       2.0       3.9         0.9        2.5         4.3        3.2
         III       2.2        3.8       1.5       4.0         0.3        1.7         6.4        3.5
          IV       1.7        3.4       1.7       3.3        -0.4        1.6         6.6        3.5

      ANNUAL       1.9        3.6       1.6       4.0         0.7        2.0         5.5        3.4

2006       I       1.4        3.8       2.4       4.2         0.5        2.8         4.1        3.3
          II       1.5        3.6       2.0       3.8        -0.2        2.2         5.7        3.5
         III       0.1        2.4       2.4       2.7        -0.7        2.6         3.6        3.0
          IV       0.9        2.8       2.0       5.0         3.0        4.1        -0.9        2.2

      ANNUAL       1.0        3.2       2.2       3.9         0.6        2.9         3.1        3.0

2007       I       0.4        1.5       1.1       4.7         2.2        4.3        -0.8        2.3
          II       0.7        2.0       1.2      r5.0        r2.3       r4.2       r-1.7        1.9
         III      r2.7       r3.2       0.5      r5.8        r3.3       r3.0       r-0.9       r1.5
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                       December 5, 2007
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

2005       I            168.3        142.7         84.8        166.2          123.9          98.7
          II            170.9        143.8         84.1        167.8          123.9          98.2
         III            172.4        144.5         83.8        170.2          124.0          98.7
          IV            173.7        147.3         84.8        168.8          121.9          97.2

      ANNUAL            171.3        144.6         84.4        168.3          123.4          98.2

2006       I            175.4        149.5         85.2        172.6          124.1          98.4
          II            177.0        151.6         85.6        170.1          120.8          96.1
         III            179.8        153.4         85.3        170.7          120.2          94.9
          IV            180.7        152.6         84.4        176.4          125.0          97.6

      ANNUAL            178.2        151.7         85.1        172.4          122.5          96.8

2007       I            181.5        152.9         84.3        180.2          126.4          99.3
          II            182.6        154.6         84.7       r179.6         r124.2         r98.4
         III           r184.8       r156.3        r84.6       r180.3         r124.1         r97.6
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I              4.9          4.6         -0.3          1.0           -0.9          -3.7
          II              6.3          3.1         -3.0          4.0            0.0          -2.2
         III              3.5          2.1         -1.4          5.6            0.1           2.1
          IV              3.1          7.9          4.6         -3.1           -6.4          -6.0

      ANNUAL              4.8          3.5         -1.2          4.2            0.8          -0.6

2006       I              4.0          6.0          1.9          9.4            7.2           5.1
          II              3.7          5.7          2.0         -5.8          -10.2          -9.1
         III              6.5          4.8         -1.6          1.4           -1.8          -4.8
          IV              2.0         -2.1         -4.0         14.2           16.6          12.0

      ANNUAL              4.0          4.9          0.9          2.5           -0.8          -1.5

2007       I              1.7          0.9         -0.8          8.9            4.8           7.0
          II              2.4          4.4          2.0        r-1.4          r-6.9         r-3.7
         III             r5.0         r4.5        r-0.5         r1.5          r-0.3         r-3.3
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              4.4          3.1         -1.2          6.0            2.9           1.5
          II              5.1          3.4         -1.6          5.0            2.1           0.0
         III              5.2          3.3         -1.9          4.0            0.3          -1.1
          IV              4.4          4.4          0.0          1.8           -1.8          -2.5

      ANNUAL              4.8          3.5         -1.2          4.2            0.8          -0.6

2006       I              4.2          4.7          0.5          3.9            0.1          -0.3
          II              3.6          5.4          1.8          1.3           -2.5          -2.1
         III              4.3          6.1          1.7          0.3           -3.0          -3.8
          IV              4.0          3.6         -0.5          4.5            2.5           0.5

      ANNUAL              4.0          4.9          0.9          2.5           -0.8          -1.5

2007       I              3.5          2.3         -1.1          4.4            1.9           0.9
          II              3.1          2.0         -1.1         r5.6           r2.8          r2.4
         III             r2.8          1.9         -0.8         r5.6           r3.2          r2.8
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                December 5, 2007
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

2005       I            189.8        169.7         89.4        161.4          120.3          85.0
          II            193.4        171.6         88.8        162.5          120.0          84.0
         III            196.5        174.5         88.8        165.2          120.4          84.1
          IV            200.7        180.5         89.9        163.6          118.2          81.5

      ANNUAL            195.1        174.1         89.2        163.2          119.7          83.6

2006       I            202.7        182.9         90.3        168.4          121.0          83.1
          II            205.5        187.1         91.1        165.7          117.7          80.7
         III            210.1        189.6         90.3        166.4          117.3          79.2
          IV            211.5        188.9         89.3        173.0          122.5          81.8

      ANNUAL            207.4        187.2         90.2        168.4          119.6          81.2

2007       I            212.3        188.7         88.9        176.5          123.8          83.1
          II            215.1        192.1         89.3       r175.9         r121.6         r81.8
         III           r218.3       r195.2        r89.4       r176.2         r121.3         r80.7
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I              4.1          5.5          1.3          0.4           -1.5          -3.6
          II              7.7          4.7         -2.8          2.7           -1.2          -4.7
         III              6.6          6.8          0.2          7.0            1.4           0.4
          IV              8.9         14.5          5.2         -3.8           -7.0         -11.7

      ANNUAL              5.3          5.0         -0.3          3.8            0.5          -1.4

2006       I              3.9          5.5          1.5         12.1            9.9           7.9
          II              5.7          9.4          3.5         -6.1          -10.5         -11.2
         III              9.3          5.5         -3.5          1.7           -1.5          -6.9
          IV              2.7         -1.4         -4.1         16.6           19.1          13.5

      ANNUAL              6.3          7.5          1.1          3.2           -0.1          -2.9

2007       I              1.6         -0.5         -2.0          8.5            4.5           6.9
          II              5.2          7.3          2.0        r-1.4          r-6.9         r-6.2
         III             r6.1         r6.7         r0.6         r0.7          r-1.2         r-5.1
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              3.3          3.0         -0.3          6.0            2.9           2.6
          II              4.8          4.0         -0.8          4.4            1.5          -0.4
         III              6.2          5.1         -1.0          3.5           -0.2          -2.5
          IV              6.8          7.8          0.9          1.5           -2.1          -5.0

      ANNUAL              5.3          5.0         -0.3          3.8            0.5          -1.4

2006       I              6.8          7.8          1.0          4.3            0.6          -2.3
          II              6.3          9.0          2.6          2.0           -1.9          -4.0
         III              6.9          8.7          1.6          0.7           -2.6          -5.8
          IV              5.4          4.7         -0.7          5.7            3.6           0.3

      ANNUAL              6.3          7.5          1.1          3.2           -0.1          -2.9

2007       I              4.8          3.2         -1.5          4.9            2.3           0.1
          II              4.6          2.6         -1.9         r6.1           r3.4          r1.4
         III             r3.9         r3.0        r-0.9         r5.9           r3.4          r1.9
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                December 5, 2007
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

2005       I            147.3        114.7         77.8        173.3          129.2         117.6
          II            149.1        115.1         77.2        176.1          130.0         118.1
         III            149.5        114.2         76.4        177.3          129.2         118.6
          IV            148.4        114.4         77.1        176.5          127.5         118.9

      ANNUAL            148.6        114.6         77.1        175.8          129.0         118.3

2006       I            149.8        116.3         77.6        178.3          128.2         119.0
          II            150.7        116.8         77.5        175.9          124.9         116.7
         III            151.6        117.9         77.8        176.4          124.3         116.4
          IV            152.0        117.1         77.0        180.5          127.9         118.8

      ANNUAL            151.0        117.0         77.5        177.8          126.3         117.7

2007       I            152.4        117.8         77.3        184.8          129.7         121.2
          II            152.1        118.2         77.7       r184.1         r127.3        r121.1
         III           r153.7       r118.7        r77.2       r185.5         r127.7        r120.7
--------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2005       I              6.4          3.3         -2.9          1.8           -0.2          -4.3
          II              4.9          1.3         -3.4          6.5            2.5           1.6
         III              1.0         -3.0         -4.0          2.8           -2.6           1.7
          IV             -2.9          0.8          3.8         -1.9           -5.2           1.0

      ANNUAL              4.8          1.9         -2.7          4.8            1.4           0.0

2006       I              3.9          6.6          2.7          4.3            2.3           0.4
          II              2.4          1.7         -0.7         -5.4           -9.9          -7.6
         III              2.4          4.1          1.7          1.2           -2.0          -1.2
          IV              1.0         -2.9         -3.9          9.7           12.0           8.6

      ANNUAL              1.6          2.1          0.5          1.1           -2.1          -0.5

2007       I              1.2          2.6          1.4          9.8            5.7           8.5
          II             -0.8          1.2          2.1        r-1.5          r-7.0         r-0.6
         III             r4.3         r1.9        r-2.3         r3.0           r1.1         r-1.3
--------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

2005       I              6.3          3.3         -2.8          5.9            2.8          -0.4
          II              5.8          2.5         -3.1          6.1            3.0           0.2
         III              4.7          1.2         -3.3          4.9            1.1           0.1
          IV              2.3          0.6         -1.7          2.3           -1.4           0.0

      ANNUAL              4.8          1.9         -2.7          4.8            1.4           0.0

2006       I              1.7          1.4         -0.3          2.9           -0.8           1.2
          II              1.1          1.5          0.4         -0.1           -3.9          -1.2
         III              1.4          3.3          1.8         -0.5           -3.8          -1.9
          IV              2.4          2.3         -0.1          2.3            0.3          -0.1

      ANNUAL              1.6          2.1          0.5          1.1           -2.1          -0.5

2007       I              1.7          1.3         -0.4          3.6            1.2           1.9
          II              0.9          1.2          0.3         r4.7           r1.9          r3.7
         III             r1.4         r0.7         -0.7         r5.1           r2.7          r3.7
--------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                December 5, 2007
r=revised                                                       Source: Bureau of Labor Statistics




Table 6. Nonfinancial corporate sector: 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

2005       I    140.3    164.6     117.3    158.0     117.8     112.6    111.5    112.3    151.9    115.9
          II    141.1    166.8     118.2    158.5     117.0     112.3    111.7    112.1    161.7    116.6
         III    140.5    166.9     118.8    160.8     117.1     114.4    115.1    114.6    147.5    117.6
          IV    141.4    169.2     119.7    161.8     116.9     114.5    112.8    114.0    159.5    118.1

      ANNUAL    140.8    166.9     118.5    159.8     117.2     113.5    112.8    113.3    155.2    117.0

2006       I    142.4    171.5     120.4    163.8     117.8     115.0    112.5    114.4    164.4    118.8
          II    141.8    171.5     120.9    163.9     116.4     115.6    114.3    115.2    164.8    119.7
         III    142.9    173.6     121.5    164.6     115.9     115.2    113.8    114.8    172.6    120.0
          IV    143.3    174.6     121.8    169.3     119.9     118.1    114.5    117.1    150.0    120.1

      ANNUAL    142.6    172.8     121.2    165.4     117.5     116.0    113.8    115.4    162.9    119.6

2007       I    143.6    175.0     121.9    171.2     120.1     119.2    114.6    118.0    154.3    121.2
          II   r144.3   r176.3     122.1   r172.1    r119.0    r119.3   r114.8   r118.0   r158.2    121.6
         III    145.8    178.3     122.3    174.0     119.7     119.3    114.2    117.9    154.0    121.2
----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

2005       I      0.3      0.3       0.1      2.7       0.7       2.4      6.8      3.6      9.8      4.3
          II      2.2      5.4       3.1      1.2      -2.6      -1.0      0.5     -0.6     28.4      2.5
         III     -1.6      0.4       2.0      6.1       0.5       7.8     12.7      9.1    -30.8      3.4
          IV      2.4      5.6       3.1      2.4      -1.0       0.0     -7.6     -2.1     36.9      1.8

      ANNUAL      1.1      2.7       1.6      3.8       0.5       2.7      3.0      2.8      7.0      3.3

2006       I      3.1      5.5       2.3      5.2       3.2       2.0     -1.0      1.2     12.7      2.6
          II     -1.8     -0.1       1.7      0.2      -4.6       2.0      6.4      3.1      1.2      2.9
         III      3.1      5.0       1.9      1.6      -1.5      -1.4     -1.5     -1.5     20.1      1.0
          IV      1.3      2.4       1.2     11.9      14.3      10.5      2.2      8.3    -42.9      0.3

      ANNUAL      1.3      3.5       2.2      3.5       0.2       2.2      0.9      1.9      5.0      2.2

2007       I      0.7      0.9       0.2      4.5       0.6       3.8      0.5      2.9     11.8      3.9
          II     r2.1     r2.9       0.8     r2.3     r-3.5      r0.2     r0.5     r0.3    r10.4      1.4
         III      4.2      4.7       0.5      4.4       2.5       0.2     -1.8     -0.3    -10.1     -1.5
----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

2005       I      2.2      3.3       1.1      4.8       1.7       2.5      1.8      2.3     12.4      3.4
          II      1.6      3.3       1.7      3.7       0.7       2.1      2.1      2.1     10.9      3.1
         III     -0.1      1.5       1.7      3.8       0.1       4.0      5.4      4.3     -2.1      3.6
          IV      0.8      2.9       2.1      3.1      -0.6       2.3      2.8      2.4      7.5      3.0

      ANNUAL      1.1      2.7       1.6      3.8       0.5       2.7      3.0      2.8      7.0      3.3

2006       I      1.5      4.2       2.6      3.7       0.0       2.2      0.9      1.8      8.2      2.6
          II      0.5      2.8       2.3      3.4      -0.5       2.9      2.3      2.8      1.9      2.7
         III      1.7      4.0       2.3      2.3      -1.0       0.6     -1.1      0.2     17.0      2.1
          IV      1.4      3.2       1.8      4.6       2.6       3.2      1.5      2.7     -5.9      1.7

      ANNUAL      1.3      3.5       2.2      3.5       0.2       2.2      0.9      1.9      5.0      2.2

2007       I      0.8      2.1       1.3      4.5       2.0       3.6      1.8      3.2     -6.1      2.0
          II     r1.8     r2.8       1.0     r5.0      r2.2      r3.2     r0.4     r2.4    r-4.1      1.6
         III      2.0      2.7       0.7      5.7       3.3       3.6      0.3      2.7    -10.8      1.0
----------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                        December 5, 2007
r=revised                                                               Source: Bureau of Labor Statistics




SOURCES:  Output data are from the Bureau of Economic Analysis and the Census 
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics, 
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and 
hours data are from the Bureau of Labor Statistics and the Bureau of Economic 
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 days 
later, and second revisions after an additional 60 days.  In the business 
sector, the third publication (second revision) of a quarterly index of 
output per hour of all persons has differed from the initial value by between 
-1.5 and +1.4 index points approximately 95 percent of the time.  This 
interval is based on the performance of this measure between the fourth 
quarter of 1995 and the second quarter of 2007.

                           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 1978-2006 is based on the 
Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital, 
taxes on production and imports less subsidies, net interest and 
miscellaneous payments, business current transfer payments, rental 
income of persons, and the current surplus of government enterprises.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate is 
calculated using index numbers to three decimal places.  Indexes 
published in the news release are rounded to one decimal place for 
convenience.  Annual changes:  Percent change is calculated using annual 
average indexes to three decimal places.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on 
production and imports less subsidies, net interest and miscellaneous 
payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory 
valuation and capital consumption adjustments.