Internet address:     http://stats.bls.gov/lprhome.htm  USDL 98-193
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                           PRODUCTIVITY AND COSTS
                             First Quarter 1998


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the first quarter of 1998.  The seasonally-adjusted annual rates
of productivity change in the first quarter were:

               0.8 percent in the business sector and
               0.2 percent in the nonfarm business sector.

     These small productivity gains resulted from strong growth in both
output and hours of all persons.  Output grew at a 5.3 percent annual rate in
both sectors. Hours at work increased 4.4 percent in the business sector and
5.0 percent in the nonfarm business sector. First-quarter measures are
summarized in table A and appear in detail in tables 1 through 5.

     In manufacturing, productivity changes in the first quarter were:

               0.5 percent in manufacturing,
               0.4 percent in durable goods manufacturing, and
               0.6 percent in nondurable goods manufacturing.

     Productivity growth in manufacturing in the first quarter of 1998
reflected a slower rate of increase in both output (1.8 percent) and hours of
all persons (1.3 percent), at seasonally-adjusted annual rates, than in the
fourth quarter of 1997.  Output and hours in manufacturing, which includes
about 18 percent of U.S. business-sector employment, tend to vary more from
quarter to quarter than data for the more aggregate business and nonfarm
business sectors

     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


------------------------------------------------------------------------
Table A. Productivity and costs: Preliminary first-quarter 1998 measures
(Seasonally adjusted annual rates)
------------------------------------------------------------------------                                                            
                                                        Real      
                                              Hourly    hourly    Unit
                   Produc-                    compen-   compen-   labor
Sector             tivity    Output   Hours   sation    sation    costs
-----------------------------------------------------------------------                   
                      Percent change from preceding quarter
Business           0.8       5.3      4.4     4.2       3.7       3.4
Nonfarm business   0.2       5.3      5.0     4.1       3.5       3.8
Manufacturing      0.5       1.8      1.3     2.8       2.3       2.3
  Durable          0.4       2.3      1.9     1.7       1.2       1.3
  Nondurable       0.6       1.1      0.4     4.5       4.0       3.9
                      Percent change from same quarter a year ago
Business           2.0       4.4      2.3     4.3       2.8       2.2
Nonfarm business   1.9       4.4      2.5     4.1       2.6       2.2
Manufacturing      4.1       5.2      1.1     3.7       2.2      -0.3
  Durable          6.0       7.7      1.6     3.4       1.9      -2.5
  Nondurable       1.9       2.3      0.3     4.2       2.7       2.2
-----------------------------------------------------------------------

Business

     From the fourth quarter of 1997 to the first quarter of 1998, business
sector productivity increased at a 0.8 percent annual rate.  Output and hours
advanced 5.3 percent and 4.4 percent, respectively.  During the fourth
quarter of 1997, output had increased 4.8 percent, and hours of all persons
engaged in the sector increased 3.2 percent (seasonally-adjusted annual
rates); productivity rose 1.6 percent (table 1).

     Hourly compensation increased 4.2 percent during the first quarter of
1998.  This measure includes wages and salaries, supplements, employer
contributions to employee benefit plans, and taxes.  Unit labor costs, which
reflect changes in hourly compensation and productivity, increased at a 3.4
percent rate during the first quarter.  This increase in unit labor costs was
less than the 3.9 percent rise in the fourth quarter.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.7 percent
annual rate in the first quarter.  The first-quarter increase in real hourly
compensation was the largest recorded since a 5.0 percent rise was posted in
the first quarter of 1992.

     The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, rose just 0.3 percent
in the first quarter.  In the fourth quarter of 1997, the price of business
output increased at an annual  rate of 0.9 percent.

Nonfarm business

     Productivity edged up 0.2 percent in the nonfarm business sector in the
first quarter, as output increased 5.3 percent and hours of all persons went
up 5.0 percent.  During the fourth quarter of 1997, productivity had risen
1.4 percent in this sector, reflecting gains of 4.9 percent in output and 3.5
percent in hours (table 2).  The first-quarter increase in productivity was
the smallest since the third quarter of 1996, when output per hour declined
0.7 percent.

     Hourly compensation increased at a 4.1 percent annual rate in the first
quarter.  When the rise in the CPI-U was taken into account, real hourly
compensation rose 3.5 percent in the first quarter of 1998;  it had increased
3.1 percent in the fourth quarter of 1997.  Increases in both quarters were
larger than at any time since the first quarter of 1992, when real hourly
compensation rose 4.8 percent.

     Unit labor costs rose 3.8 percent in the first quarter, the same as in
the previous quarter.  The implicit price deflator for nonfarm business
output rose 0.7 percent in the first quarter, compared with a 1.0 percent
rise one quarter earlier.

Manufacturing

     Productivity increased at a 0.5 percent seasonally-adjusted annual rate
in manufacturing in the first quarter of 1998, as output rose 1.8 percent and
hours of all persons increased 1.3 percent.  This was the slowest growth in
manufacturing output per hour since it fell during the second and third
quarters of 1993.  In contrast, productivity increased at a rate of 4.3
percent in the fourth quarter of 1997, output grew 8.2 percent, and hours
grew 3.8 percent (table 3).  The durable and nondurable subsectors of
manufacturing had similar growth rates in productivity in the first quarter,
0.4 and 0.6 percent, respectively.  In durable goods manufacturing, output
growth slowed to a 2.3 percent annual rate in the first quarter from 10.3
percent one quarter earlier.   Hours worked in durable goods industries rose
1.9 percent in the first quarter of 1998.  Nondurable goods manufacturing
output rose 1.1 percent in the first quarter, and hours edged up 0.4 percent
(tables 4 and 5).

     Hourly compensation of all manufacturing workers rose 2.8 percent during
the first quarter after increasing at a rate of 6.1 percent per year in the
fourth quarter of 1997.  Real hourly compensation in the manufacturing sector
rose 2.3 percent in the first quarter of 1998; it had posted a 4.0 percent
gain during the previous quarter.

     Unit labor costs in manufacturing grew 2.3 percent in the first quarter
of 1998, as unit labor costs of durable goods producers rose 1.3 percent, and
those of nondurable goods producers grew at a 3.9 percent annual rate.  Unit
labor costs in total manufacturing recorded their largest increase since the
third quarter of 1993, when they rose 3.6 percent.

Fourth-quarter and annual measures for nonfinancial corporations

     Fourth-quarter and annual 1997 measures of productivity and costs also
were announced today for the nonfinancial corporate sector (tables B, C, and
6).  Output per all-employee hour rose 0.6 percent from the third to the
fourth quarter of 1997 as output increased 4.9 percent and employee hours
rose 4.3 percent.  In the third quarter, productivity had increased 6.3
percent as output jumped 7.8 percent and all-employee hours rose 1.5 percent
(seasonally adjusted annual rates).  The sector includes all corporations
doing business in the United States, except those classified as depository
institutions, nondepository institutions, security and commodity brokers,
insurance carriers, regulated investment offices, small business investment
offices, and real estate investment trusts.

---------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Fourth-quarter 1997 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
1997 IV 0.6      4.9     4.3    4.7       2.6     4.1     -11.0    0.4
                 Percent change from same quarter a year ago
1997 IV 2.7      5.9     3.1    4.0       2.1     1.3     2.2      0.8
---------------------------------------------------------------------------

     Hourly compensation increased 4.7 percent in the fourth quarter, and
real hourly compensation rose 2.6 percent.  Unit labor costs increased 4.1
percent in the fourth quarter, the largest increase since the first quarter
of 1995 when they rose 5.6 percent.  In the third quarter of 1997, unit labor
costs had declined 1.9 percent.  Total unit costs rose 2.4 during the fourth
quarter after having dropped 1.9 percent during the third quarter.  In the
fourth quarter, unit profits fell 11.0 percent.  Unit profits had risen 14.3
percent during the third quarter of 1997.   The implicit price deflator for
nonfinancial corporate output edged up 0.4 percent in the fourth quarter.

     Productivity grew 2.6 percent in nonfinancial corporations in calendar
year 1997.  In 1996, productivity had grown 3.1 percent.  Output grew faster
in 1997, 5.7 percent, than it had one year earlier, when it grew 4.5 percent.
Hours of employees in nonfinancial corporations grew 2.9 percent during 1997,
compared with 1.4 percent one year earlier.

----------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity
and related measures, 1988-1997
----------------------------------------------------------------------
Measure             1988 1989 1990 1991 1992 1993 1994 1995 1996 1997  
Productivity         1.7 -1.4  0.7  1.5  2.6  1.2  2.1  0.8  3.1  2.6  
Output               5.3  1.6  1.0 -1.3  3.0  3.4  6.3  3.7  4.5  5.7  
Hours                3.5  3.0  0.3 -2.8  0.4  2.2  4.1  2.9  1.4  2.9  
Hourly compensation  4.0  2.5  5.2  4.6  4.6  2.1  1.8  2.3  3.5  3.8  
Real hourly         -0.2 -2.2 -0.2  0.3  1.5 -0.9 -0.8 -0.5  0.6  1.5  
compensation
Unit labor costs     2.3  3.9  4.4  3.0  2.0  0.9 -0.3  1.5  0.4  1.1  
Unit nonlabor costs  2.5  7.3  3.0  3.9 -2.9 -0.6  0.3 -0.2 -1.2 -1.7  
Total unit cost      2.3  4.8  4.0  3.2  0.7  0.5 -0.2  1.1  0.0  0.4  
Unit profits         8.1 -7.4 -1.5 -0.8  6.5 13.3 18.7  4.7 10.0  3.5  
Implicit price       2.9  3.5  3.5  2.9  1.2  1.7  1.8  1.5  1.2  0.8  
deflator
----------------------------------------------------------------------

     The 1997 increase in hourly compensation was 3.8 percent, about the same
as the 3.5 percent increase in 1996.  Real hourly compensation rose 1.5
percent in 1997.  It had increased 0.6 percent in 1996, after having fallen
in the three previous years.

     Total unit costs rose 0.4 percent in 1997, reflecting an increase of 1.1
percent in unit labor costs and a 1.7 percent drop in unit nonlabor costs.
Unit profits for the year rose 3.5 percent; in 1996, they had posted a 10.0
percent gain.

REVISED MEASURES

     Current and previous measures for the fourth quarter of 1997 for the
business, nonfarm business, and manufacturing sectors are compared in table
D.  Some of the quarterly movements differ slightly from those reported on
March 10, based on information then available.

---------------------------------------------------------------------
Table D. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
---------------------------------------------------------------------                                                          
                                                      Real      
                                             Hourly   hourly    Unit
                   Produc-                   compen-  compen-   labor
Sector             tivity   Output   Hours   sation   sation    costs
---------------------------------------------------------------------                                                                
                             Fourth quarter 1997
Business:                                                       
  Previous         1.8      5.0      3.2     5.5      3.4       3.7
  Current          1.6      4.8      3.2     5.6      3.4       3.9
Nonfarm business:                                               
  Previous         1.6      5.1      3.5     5.2      3.1       3.5
  Current          1.4      4.9      3.5     5.2      3.1       3.8
Manufacturing:                                                  
  Previous         4.3      8.2      3.8     6.1      3.9       1.8
  Current          4.3      8.2      3.8     6.1      4.0       1.8
---------------------------------------------------------------------

     Bureau of Labor Statistics measures of output for the manufacturing
sectors have been revised back to 1949.  These revisions reflect revised
price deflators estimated by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  The revisions also reflect revised shipments data
from the Bureau of the Census of the Commerce Department for the years 1988
to 1992.  Appendix tables 1 to 3 show the annual indexes of productivity and
costs for the total, durable, and nondurable manufacturing sectors,
respectively,  for the years 1949-1997.  The measures of manufacturing output
used in the production of quarterly labor productivity and costs measures
presented in this release are consistent with annual manufacturing output
data released May 6, 1998, in "Multifactor Productivity Trends, 1995 and
1996" (USDL 98-187).
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Thursday, June 4, 1998.  First-quarter measures for nonfinancial
corporations and revised measures for business, nonfarm business, and
manufacturing will be released at that time.

                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. Weekly paid hours are adjusted to hours at  work  using
 the BLS Hours at Work survey, conducted for this purpose.
       Data  from  the BLS Current Population Survey (CPS) are used  for  farm
 labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
 prepared  by the Bureau of Economic Analysis (BEA) of the Department  of Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes are constructed by deflating current-dollar
 industry  value  of production data from the U.S. Bureau of the  Census  with
 deflators  from  the BEA.  These deflators are based on  data  from  the  BLS
 producer  price  program  and  other sources.   The  industry  shipments  are
 aggregated  using annual weights, and intrasector transactions  are  removed.
 Quarterly  manufacturing output measures are based on the index of industrial
 production prepared monthly by the Board of Governors of the Federal  Reserve
 System  adjusted to be consistent with annual indexes of manufacturing sector
 output  prepared  by  BLS.   Durables  include  the  following  2-digit   SIC
 industries:   Primary  metal  industries;  fabricated  metal  products;  non-
 electrical  machinery;  industrial  and  commercial  machinery  and  computer
 equipment;   electronic   and  other  electrical  equipment;   transportation
 equipment;  instruments; lumber and lumber products; furniture and  fixtures;
 stone, clay, and glass and concrete products; and miscellaneous manufactures.
 Nondurables  include:  Food and kindred products, tobacco  products,  textile
 mill  products,  apparel  products, paper and allied products,  printing  and
 publishing,  chemicals and chemical products, petroleum refining and  related
 industries, rubber and plastic products, and leather and leather products.
      Nonfinancial corporate output is an annual-weighted index constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 52 percent of the value of GDP in 1992.
 
 Productivity:  These productivity measures describe the relationship  between
 real  output  and the labor time involved in its production.  They  show  the
 changes  from  period to period in the amount of goods and services  produced
 per  hour.  Although these measures relate output to hours  at  work  of  all
 persons engaged in a sector, they do not measure the specific contribution of
 labor,  capital, or any other factor of production. Rather, they reflect  the
 joint  effects  of many influences, including changes in technology;  capital
 investment; level of output; utilization of capacity, energy, and  materials;
 the organization of production; managerial skill; and the characteristics and
 effort of the work force.
 
       Information  in this release will be made available to sensory-impaired
 individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 

  Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1996       I     102.0      111.4     109.2     109.3        98.9      107.2       110.5      108.4
            II     102.8      113.2     110.1     110.8        99.3      107.8       111.0      108.9
           III     102.6      113.5     110.6     111.8        99.6      108.9       110.7      109.6
            IV     103.1      115.0     111.5     112.7        99.6      109.3       111.3      110.0

        ANNUAL     102.6      113.3     110.4     111.1        99.3      108.3       110.9      109.2

  1997       I     103.5      116.6     112.7     113.8       100.1      110.0       111.6      110.6
            II     104.1      117.8     113.1     114.7       100.5      110.2       112.4      111.0
           III     105.0      118.8     113.1     115.9       101.1      110.4       112.9      111.3
            IV    r105.4     r120.2     114.0     117.5       101.9     r111.5      r111.6      111.5

        ANNUAL     104.5     r118.3     113.3     115.4       100.9      110.5      r112.1      111.1

  1998       I     105.6      121.7     115.3     118.7       102.8      112.4       110.2      111.6
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I       3.1        2.8      -0.3       3.7         0.6        0.7         5.1        2.3
            II       3.1        6.6       3.4       5.5         1.7        2.3         1.8        2.1
           III      -0.7        0.9       1.6       3.6         1.2        4.4        -1.1        2.4
            IV       2.0        5.4       3.3       3.4         0.0        1.4         2.2        1.7

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.6        5.9       4.2       4.1         1.9        2.5         1.2        2.0
            II       2.2        3.9       1.6       3.1         1.8        0.9         2.7        1.5
           III       3.5        3.6       0.1       4.2         2.2        0.7         1.8        1.1
            IV      r1.6       r4.8       3.2      r5.6         3.4       r3.9       r-4.3        0.9

        ANNUAL      r1.8        4.5       2.6       3.9         1.6        2.0        r1.1        1.7

  1998       I       0.8        5.3       4.4       4.2         3.7        3.4        -4.9        0.3
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       1.9        2.5       0.6       3.5         0.7        1.5         2.0        1.7
            II       2.5        4.2       1.7       4.0         1.1        1.5         2.4        1.8
           III       2.0        3.3       1.3       4.2         1.2        2.1         1.8        2.0
            IV       1.8        3.9       2.0       4.0         0.9        2.2         2.0        2.1

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.5        4.7       3.1       4.1         1.2        2.6         1.0        2.0
            II       1.3        4.0       2.7       3.6         1.2        2.3         1.2        1.9
           III       2.3        4.7       2.3       3.7         1.5        1.3         2.0        1.6
            IV      r2.2       r4.5       2.3      r4.3         2.3       r2.0        r0.3        1.4

        ANNUAL      r1.8        4.5       2.6       3.9         1.6        2.0        r1.1        1.7

  1998       I       2.0        4.4       2.3       4.3         2.8        2.2        -1.2        1.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 7, 1998 
  r=revised                                                              Source: Bureau of Labor Statistics


  Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1996       I     102.1      111.7     109.4     109.1        98.7      106.9       111.0      108.4
            II     102.8      113.5     110.4     110.5        99.1      107.5       111.3      108.8
           III     102.6      113.8     110.9     111.4        99.3      108.6       110.9      109.4
            IV     103.1      115.3     111.9     112.3        99.3      109.0       111.4      109.8

        ANNUAL     102.6      113.6     110.7     110.8        99.1      108.0       111.2      109.1

  1997       I     103.4      116.9     113.1     113.5        99.8      109.8       111.7      110.5
            II     104.0      118.0     113.5     114.4       100.2      110.0       112.4      110.9
           III     104.9      119.1     113.5     115.5       100.7      110.1       113.2      111.2
            IV     105.3     r120.5     114.5     117.0       101.4     r111.1      r112.1      111.5

        ANNUAL     104.3     r118.6     113.7     115.0       100.6     r110.3      r112.3      111.0

  1998       I     105.3      122.1     115.9     118.1       102.3      112.2       110.7      111.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I       2.8        2.6      -0.3       3.9         0.7        1.0         4.6        2.3
            II       2.9        6.8       3.8       5.1         1.3        2.2         0.9        1.7
           III      -0.7        1.0       1.7       3.3         0.8        4.0        -1.4        2.0
            IV       1.9        5.4       3.5       3.4         0.0        1.5         2.0        1.7

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.1        5.6       4.5       4.3         2.0        3.1         1.1        2.4
            II       2.3        3.8       1.5       3.2         1.8        0.9         2.3        1.4
           III       3.6        3.7       0.1       3.8         1.8        0.2         2.9        1.2
            IV      r1.4       r4.9       3.5       5.2         3.1       r3.8       r-3.9        1.0

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.1        1.7

  1998       I       0.2        5.3       5.0       4.1         3.5        3.8        -4.7        0.7
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       1.8        2.6       0.7       3.5         0.6        1.6         1.3        1.5
            II       2.3        4.2       1.8       3.9         1.0        1.6         1.5        1.6
           III       1.8        3.3       1.5       4.0         1.0        2.1         1.0        1.7
            IV       1.7        3.9       2.2       3.9         0.7        2.2         1.5        1.9

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.3        4.7       3.4       4.0         1.1        2.7         0.6        1.9
            II       1.1        4.0       2.8       3.5         1.2        2.4         1.0        1.9
           III       2.2        4.7       2.4       3.7         1.4        1.4         2.1        1.7
            IV       2.1       r4.5       2.4       4.1         2.2       r2.0        r0.6        1.5

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.1        1.7

  1998       I       1.9        4.4       2.5       4.1         2.6        2.2        -0.9        1.1
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 7, 1998
  r=revised                                                              Source: Bureau of Labor Statistics



  Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r112.7       r115.8        102.7        110.8          100.2         r98.3
            II           r114.1       r118.3        103.7        112.0          100.4         r98.2
           III           r115.8       r119.9        103.6        112.9          100.6         r97.5
            IV           r116.9       r121.2        103.7        113.5          100.3         r97.1

        ANNUAL           r114.7       r118.8        103.6        112.1          100.3         r97.8

  1997       I           r117.8       r123.0        104.4        114.7          100.8         r97.3
            II           r118.9       r124.5        104.7        115.4          101.1         r97.1
           III           r121.2       r126.4        104.3        116.4          101.5         r96.0
            IV           r122.5       r128.9        105.2        118.1          102.5         r96.5

        ANNUAL           r120.0       r125.7        104.7        116.1          101.5         r96.7

  1998       I            122.6        129.4        105.6        119.0          103.1          97.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r5.5         r2.6         -2.7          2.4           -0.7         r-2.9
            II             r5.0         r9.0          3.8          4.7            0.9         r-0.4
           III             r5.9         r5.4         -0.4          3.1            0.7         r-2.6
            IV             r3.9         r4.5          0.6          1.9           -1.4         r-1.9

        ANNUAL             r4.7         r4.2         -0.5          3.2            0.2         r-1.4

  1997       I              3.3          6.2          2.8          4.4            2.2           1.0
            II              3.8          4.9          1.1          2.6            1.3          -1.1
           III              8.0          6.1         -1.7          3.4            1.5          -4.2
            IV              4.3          8.2          3.8          6.1           r4.0           1.8

        ANNUAL             r4.6         r5.8          1.1          3.5            1.2         r-1.1

  1998       I              0.5          1.8          1.3          2.8            2.3           2.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r4.7         r2.2         -2.4          3.3            0.5         r-1.3
            II             r4.6         r4.3         -0.3          3.5            0.7         r-1.0
           III             r4.8         r4.7          0.0          3.4            0.4         r-1.4
            IV             r5.1         r5.4          0.3          3.0           -0.1         r-1.9

        ANNUAL             r4.7         r4.2         -0.5          3.2            0.2         r-1.4

  1997       I             r4.5         r6.3          1.7          3.5            0.6         r-1.0
            II             r4.2         r5.3          1.0          3.0            0.7         r-1.1
           III              4.7         r5.4          0.7          3.1            0.9         r-1.6
            IV              4.8          6.3          1.4          4.1            2.2         r-0.6

        ANNUAL             r4.6         r5.8          1.1          3.5            1.2         r-1.1

  1998       I              4.1          5.2          1.1          3.7            2.2          -0.3
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 7,  1998
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r119.9       r126.8        105.7        109.7           99.2         r91.5
            II           r122.1       r131.1        107.3        111.0           99.5         r90.9
           III           r124.2       r133.2        107.3        111.7           99.5         r89.9
            IV           r125.3       r134.6        107.5        111.8           98.8         r89.3

        ANNUAL           r122.7       r131.4        107.1        110.9           99.1         r90.4

  1997       I           r126.5       r137.7        108.8        113.1           99.4         r89.4
            II           r128.5       r140.4        109.3        113.7           99.6         r88.5
           III           r131.9       r143.8        109.1        114.4           99.7         r86.7
            IV           r134.0       r147.4        110.0        116.5          101.0         r86.9

        ANNUAL           r130.1       r142.3        109.4        114.3           99.9         r87.9

  1998       I            134.1        148.3        110.5        117.0          101.3          87.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I             r8.1         r5.9         -2.1          1.4           -1.7         r-6.2
            II             r7.5        r14.2          6.2          4.7            0.9         r-2.6
           III             r6.9         r6.8         -0.1          2.6            0.2         r-4.0
            IV             r3.5         r4.3          0.7          0.5           -2.8         r-2.9

        ANNUAL             r6.3         r7.1          0.8          2.4           -0.5         r-3.7

  1997       I              4.1          9.4          5.1          4.8            2.5           0.6
            II              6.2          8.1          1.8          2.1            0.7          -3.9
           III             11.0         10.2         -0.8          2.4            0.4          -7.8
            IV             r6.7        r10.3          3.4         r7.6           r5.4          r0.9

        ANNUAL             r6.0         r8.3          2.2          3.1            0.8         r-2.8

  1998       I              0.4          2.3          1.9          1.7            1.2           1.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r6.0         r4.8         -1.1          2.4           -0.3         r-3.3
            II             r6.7         r8.0          1.3          2.9            0.0         r-3.6
           III             r6.7         r8.0          1.2          2.7           -0.3         r-3.8
            IV             r6.5         r7.7          1.1          2.3           -0.8         r-3.9

        ANNUAL             r6.3         r7.1          0.8          2.4           -0.5         r-3.7

  1997       I             r5.5         r8.6          2.9          3.1            0.2         r-2.2
            II             r5.2         r7.1          1.9          2.5            0.1         r-2.6
           III             r6.2         r8.0          1.7          2.4            0.2         r-3.6
            IV             r7.0         r9.5          2.4          4.2            2.2          -2.6

        ANNUAL             r6.0         r8.3          2.2          3.1            0.8         r-2.8

  1998       I              6.0          7.7          1.6          3.4            1.9          -2.5
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 7, 1998
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1996       I           r105.8       r104.5         98.8        111.8          101.1        r105.7
            II           r106.5       r105.3         98.9        112.9          101.2        r106.1
           III           r107.7       r106.3         98.6        114.1          101.6        r105.9
            IV           r108.9       r107.5         98.7        115.3          101.9        r105.9

        ANNUAL           r107.1       r105.9         98.9        113.4          101.4        r105.9

  1997       I           r109.7       r108.2         98.6        116.2          102.2        r106.0
            II           r110.0       r108.5         98.6        117.2          102.7        r106.6
           III           r111.3       r108.9         97.8        118.7          103.4        r106.6
            IV           r111.6       r110.3         98.8        119.8          103.9        r107.3

        ANNUAL           r110.6       r109.0         98.5        117.9          103.0        r106.6

  1998       I            111.8        110.6         98.9        121.1          104.9         108.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I              2.5         -1.2         -3.6          4.0            0.8           1.4
            II              2.6          3.1          0.4          4.1            0.4           1.5
           III              4.8          3.8         -0.9          4.0            1.5          -0.7
            IV              4.3          4.6          0.3          4.3            1.0           0.1

        ANNUAL              2.8         r0.6         -2.2          4.1            1.1           1.3

  1997       I              3.0          2.5         -0.5          3.3            1.1           0.3
            II              1.1          1.2          0.1          3.4            2.0           2.3
           III              4.8          1.5         -3.1          5.0            3.0           0.2
            IV             r1.2         r5.5          4.2         r3.8            1.7          r2.6

        ANNUAL              3.2          2.9         -0.3          4.0            1.6           0.7

  1998       I              0.6          1.1          0.4          4.5            4.0           3.9
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I             r3.2        r-1.0         -4.1          4.5            1.6          r1.2
            II             r2.4        r-0.1         -2.5          4.3            1.4           1.9
           III              2.7          0.8         -1.8          4.2            1.2           1.5
            IV              3.5          2.5         -1.0          4.1            0.9           0.5

        ANNUAL              2.8         r0.6         -2.2          4.1            1.1           1.3

  1997       I              3.7          3.5         -0.2          3.9            1.0           0.3
            II              3.3          3.0         -0.3          3.8            1.4           0.5
           III              3.3          2.4         -0.8          4.0            1.8           0.7
            IV             r2.5         r2.6          0.1          3.9            2.0           1.3

        ANNUAL              3.2          2.9         -0.3          4.0            1.6           0.7

  1998       I              1.9          2.3          0.3          4.2            2.7           2.2
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 7, 1998
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I    102.9    112.3     109.2    105.1      97.7     102.2     99.8    101.6    135.2    104.6
            II    103.4    112.9     109.2    105.9      97.6     102.4    100.1    101.8    134.9    104.8
           III    104.7    114.9     109.7    106.6      97.8     101.9     99.0    101.1    145.5    105.1
            IV    105.4    115.9     110.0    107.5      98.0     102.0     99.1    101.2    147.3    105.4

        ANNUAL    104.1    114.0     109.5    106.3      97.9     102.1     99.5    101.4    140.8    105.0

  1996       I    106.0    116.5     109.9    108.3      98.0     102.1     99.2    101.4    152.5    106.0
            II    107.1    118.7     110.8    109.7      98.3     102.4     98.4    101.4    154.7    106.2
           III    107.8    120.0     111.3    110.7      98.6     102.7     98.1    101.5    156.0    106.4
            IV    108.3    121.5     112.1    111.5      98.6     102.9     97.4    101.5    156.4    106.5

        ANNUAL    107.3    119.2     111.0    110.1      98.4     102.6     98.3    101.4    154.9    106.3

  1997       I    108.8    123.3     113.3    112.6      99.0     103.5     97.0    101.8    157.9    106.9
            II    109.4    124.7     114.0    113.5      99.4     103.7     97.1    102.0    159.1    107.2
           III    111.1    127.1     114.4    114.7     100.0     103.2     96.6    101.5    164.5    107.2
            IV    111.3    128.6     115.6    116.0     100.6     104.3     95.9    102.1    159.8    107.3

        ANNUAL    110.2    125.9     114.3    114.2      99.9     103.7     96.6    101.9    160.3    107.2

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1995       I     -3.3      0.0       3.4      2.1      -0.5       5.6      2.8      4.9    -18.1      1.8
            II      2.0      2.0       0.0      3.0      -0.3       1.0      1.0      1.0     -0.8      0.8
           III      5.2      7.2       1.9      2.9       0.7      -2.2     -4.2     -2.7     35.4      1.3
            IV      2.8      3.8       1.0      3.3       0.8       0.4      0.4      0.4      4.9      1.0

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      2.4      2.0      -0.3      3.1      -0.1       0.7      0.6      0.7     15.0      2.4
            II      4.1      7.6       3.4      5.1       1.4       1.1     -3.1      0.0      5.8      0.7
           III      2.7      4.3       1.6      3.8       1.4       1.1     -1.4      0.5      3.5      0.9
            IV      2.1      5.2       3.1      3.0      -0.3       0.9     -2.8      0.0      1.0      0.1

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      1.7      6.1       4.3      4.0       1.8       2.3     -1.8      1.3      3.8      1.6
            II      2.4      4.7       2.3      3.2       1.8       0.8      0.5      0.7      3.2      1.1
           III      6.3      7.8       1.5      4.3       2.3      -1.9     -1.9     -1.9     14.3      0.2
            IV      0.6      4.9       4.3      4.7       2.6       4.1     -2.9      2.4    -11.0      0.4

        ANNUAL      2.6      5.7       2.9      3.8       1.5       1.1     -1.7      0.4      3.5      0.8

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1995       I     -0.7      3.9       4.7      1.4      -1.4       2.2     -1.7      1.2      6.6      1.8
            II      0.3      3.5       3.1      2.1      -0.9       1.8      1.3      1.7      1.9      1.7
           III      1.5      4.3       2.7      2.5      -0.1       1.0     -0.5      0.6      6.7      1.3
            IV      1.6      3.2       1.6      2.8       0.2       1.2      0.0      0.9      3.6      1.2

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      3.1      3.7       0.6      3.1       0.3       0.0     -0.6     -0.2     12.8      1.4
            II      3.6      5.1       1.5      3.6       0.7       0.0     -1.6     -0.4     14.6      1.3
           III      3.0      4.4       1.4      3.8       0.9       0.8     -0.9      0.4      7.2      1.2
            IV      2.8      4.8       1.9      3.8       0.6       1.0     -1.7      0.3      6.2      1.0

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      2.6      5.8       3.1      4.0       1.0       1.3     -2.3      0.4      3.5      0.8
            II      2.2      5.1       2.8      3.5       1.2       1.3     -1.4      0.6      2.9      0.9
           III      3.1      5.9       2.8      3.6       1.4       0.5     -1.5      0.0      5.5      0.7
            IV      2.7      5.9       3.1      4.0       2.1       1.3     -1.5      0.6      2.2      0.8

        ANNUAL      2.6      5.7       2.9      3.8       1.5       1.1     -1.7      0.4      3.5      0.8

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 7, 1998
  r=revised                                                               Source: Bureau of Labor Statistics


 Appendix table 1. Manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1949              33.2         26.3         79.2          8.3            48.8         24.9

       1950              33.8         28.9         85.6          8.7            50.6         25.8
       1951              33.4         30.8         92.2          9.6            51.7         28.6
       1952              34.7         32.4         93.4         10.2            54.0         29.4
       1953              35.8         35.2         98.2         10.8            56.6         30.1
       1954              36.7         32.9         89.7         11.3            58.7         30.7

       1955              38.3         36.3         94.7         11.7            61.2         30.5
       1956              38.1         36.6         96.1         12.4            64.2         32.7
       1957              38.9         36.8         94.6         13.2            65.8         33.9
       1958              39.4         34.2         86.7         13.8            67.0         35.0
       1959              40.2         37.2         92.6         14.3            69.0         35.6

       1960              40.9         37.7         92.2         14.9            70.6         36.5
       1961              42.2         37.9         89.8         15.3            72.0         36.4
       1962              43.3         40.5         93.5         15.9            74.0         36.8
       1963              45.1         42.6         94.5         16.4            75.2         36.4
       1964              47.0         45.4         96.5         17.1            77.3         36.4

       1965              48.0         49.0        102.1         17.5            77.7         36.4
       1966              48.5         52.8        108.7         18.2            79.0         37.6
       1967              50.5         54.6        108.1         19.2            80.8         38.1
       1968              52.3         57.3        109.7         20.7            83.4         39.6
       1969              53.0         58.8        111.0         22.2            85.0         41.9

       1970              54.7         57.1        104.5         23.8            86.1         43.5
       1971              58.3         58.6        100.6         25.3            87.5         43.4
       1972              60.5         63.6        105.2         26.6            89.2         44.0
       1973              62.1         68.7        110.5         28.6            90.5         46.1
       1974              62.8         67.9        108.1         31.8            90.5         50.6

       1975              64.7         63.0         97.3         35.6            93.0         55.1
       1976              67.3         68.7        102.0         38.6            95.2         57.4
       1977              69.7         74.0        106.2         42.0            97.2         60.3
       1978              70.5         78.0        110.7         45.4            97.6         64.4
       1979              70.1         79.1        112.8         49.8            96.2         71.1

       1980              70.4         75.8        107.6         55.8            94.9         79.2
       1981              71.4         76.4        107.1         61.3            94.6         85.9
       1982              75.2         73.7         98.0         67.2            97.7         89.4
       1983              77.9         77.1         99.0         69.0            97.2         88.7
       1984              80.2         84.5        105.4         71.4            96.4         89.0

       1985              83.2         87.1        104.7         75.3            98.1         90.5
       1986              86.9         89.6        103.1         78.6           100.6         90.5
       1987              89.2         92.7        103.9         80.8            99.8         90.6
       1988              90.7         96.9        106.8         84.0            99.6         92.6
       1989              90.8         97.4        107.2         86.8            98.2         95.5

       1990              93.0         97.5        104.9         91.0            97.6         97.8
       1991              94.9         95.4        100.6         95.7            98.6        100.9
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             102.0        103.4        101.4        102.9            99.9        100.9
       1994             105.2        109.1        103.8        105.6           100.0        100.4

       1995             109.6        114.1        104.1        108.7           100.1         99.2
       1996             114.7        118.8        103.6        112.1           100.3         97.8
       1997             120.0        125.7        104.7        116.1           101.5         96.7
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             May 7,  1998
                                                               Source: Bureau of Labor Statistics



 Appendix table 2. Durable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1949              31.5         22.7         72.1          8.1            47.8         25.7

       1950              33.4         26.8         80.4          8.5            49.7         25.6
       1951              32.0         29.0         90.7          9.5            51.0         29.6
       1952              33.5         31.2         93.0         10.2            53.8         30.3
       1953              35.4         35.5        100.1         10.7            56.3         30.2
       1954              35.4         31.4         88.5         11.2            58.5         31.6

       1955              37.4         35.3         94.6         11.7            61.3         31.4
       1956              35.7         34.5         96.8         12.5            64.2         34.9
       1957              36.2         34.5         95.5         13.2            65.9         36.5
       1958              35.8         30.2         84.4         13.9            67.7         38.9
       1959              36.9         33.8         91.6         14.4            69.6         39.2

       1960              37.0         33.8         91.4         15.0            71.2         40.6
       1961              38.0         33.4         87.9         15.5            72.5         40.6
       1962              39.6         36.8         92.8         16.1            74.7         40.6
       1963              41.7         39.4         94.5         16.5            75.8         39.6
       1964              43.4         42.2         97.2         17.2            77.8         39.6

       1965              45.2         47.1        104.3         17.5            78.0         38.7
       1966              46.0         52.1        113.3         18.3            79.1         39.7
       1967              47.6         53.5        112.5         19.2            80.7         40.4
       1968              49.3         56.2        114.1         20.7            83.4         42.0
       1969              49.8         57.7        115.8         22.2            84.9         44.6

       1970              50.6         54.0        106.7         23.9            86.3         47.1
       1971              54.5         55.2        101.2         25.5            88.2         46.7
       1972              57.5         61.6        107.1         26.8            89.9         46.6
       1973              60.1         69.3        115.4         28.7            90.7         47.8
       1974              59.9         67.9        113.4         31.8            90.5         53.1

       1975              60.8         60.7         99.8         35.9            93.7         59.1
       1976              63.3         66.1        104.4         39.0            96.2         61.6
       1977              65.3         72.0        110.2         42.4            98.1         64.9
       1978              66.1         77.2        116.7         45.5            97.9         68.8
       1979              66.1         79.5        120.3         49.9            96.4         75.5

       1980              65.9         74.6        113.2         56.1            95.6         85.2
       1981              66.8         75.1        112.4         61.7            95.3         92.5
       1982              69.3         69.8        100.7         67.8            98.5         97.8
       1983              73.5         74.4        101.3         69.3            97.6         94.3
       1984              77.5         85.5        110.4         71.3            96.2         92.0

       1985              80.1         88.4        110.3         74.9            97.7         93.6
       1986              84.3         90.6        107.5         78.7           100.7         93.3
       1987              87.1         93.4        107.2         81.0           100.1         93.0
       1988              89.3         99.3        111.2         83.7            99.3         93.8
       1989              89.8         99.8        111.1         86.5            97.9         96.3

       1990              92.0         98.8        107.4         90.5            97.2         98.5
       1991              93.5         94.9        101.4         95.5            98.3        102.1
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             104.6        106.1        101.5        103.1           100.1         98.6
       1994             109.5        114.9        105.0        105.5            99.9         96.3

       1995             115.4        122.7        106.3        108.2            99.7         93.8
       1996             122.7        131.4        107.1        110.9            99.1         90.4
       1997             130.1        142.3        109.4        114.3            99.9         87.9
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             May 7, 1998
                                                               Source: Bureau of Labor Statistics



 Appendix table 3. Nondurable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1949              33.8         30.0         88.6          8.6            50.9         25.5

       1950              34.1         31.5         92.5          9.0            52.5         26.5
       1951              35.0         32.9         94.1          9.8            52.8         27.9
       1952              36.0         33.8         93.9         10.3            54.4         28.5
       1953              36.7         35.1         95.6         10.8            56.7         29.4
       1954              38.2         34.9         91.3         11.3            59.2         29.7

       1955              39.8         37.7         94.8         11.7            61.1         29.3
       1956              41.3         39.3         95.1         12.4            64.0         30.0
       1957              42.5         39.6         93.2         13.1            65.5         30.9
       1958              43.8         39.3         89.9         13.7            66.3         31.2
       1959              45.0         42.3         93.9         14.1            68.1         31.4

       1960              46.2         43.1         93.3         14.7            69.9         31.9
       1961              47.5         43.9         92.4         15.2            71.5         32.0
       1962              48.3         45.6         94.4         15.7            73.1         32.5
       1963              50.1         47.4         94.5         16.2            74.4         32.4
       1964              52.2         49.9         95.6         16.9            76.5         32.4

       1965              52.5         52.1         99.2         17.3            77.0         32.9
       1966              53.1         54.5        102.7         18.0            78.1         34.0
       1967              55.5         56.8        102.3         19.1            80.2         34.4
       1968              57.6         59.8        103.9         20.5            82.7         35.6
       1969              58.9         61.7        104.7         22.0            84.2         37.4

       1970              61.3         62.2        101.5         23.6            85.4         38.6
       1971              64.0         63.9         99.9         24.9            86.3         38.9
       1972              66.1         67.8        102.6         26.1            87.8         39.6
       1973              67.0         69.7        104.0         28.2            89.1         42.1
       1974              68.8         69.4        100.9         31.5            89.5         45.7

       1975              70.9         66.6         94.0         35.0            91.2         49.3
       1976              73.5         72.6         98.7         37.8            93.1         51.4
       1977              76.9         77.6        101.0         41.0            94.9         53.3
       1978              78.2         80.2        102.6         44.5            95.8         57.0
       1979              77.6         79.9        102.9         48.8            94.4         62.9

       1980              77.8         78.0        100.2         54.4            92.7         69.9
       1981              78.7         78.7         99.9         59.7            92.2         75.9
       1982              82.7         78.1         94.4         65.8            95.7         79.6
       1983              83.8         80.4         96.0         68.2            96.1         81.5
       1984              85.0         84.1         98.9         70.8            95.7         83.3

       1985              88.4         85.9         97.2         74.8            97.6         84.7
       1986              90.9         88.5         97.4         77.8            99.6         85.5
       1987              92.7         92.2         99.5         79.9            98.7         86.2
       1988              93.5         94.5        101.0         83.7            99.2         89.5
       1989              92.9         94.7        102.0         86.5            97.9         93.2

       1990              94.6         96.0        101.5         91.1            97.8         96.3
       1991              96.1         95.5         99.4         95.9            98.8         99.8
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993              99.7        100.9        101.2        102.6            99.6        102.9
       1994             101.3        103.5        102.2        105.5            99.9        104.2

       1995             104.2        105.3        101.1        108.9           100.3        104.6
       1996             107.1        105.9         98.9        113.4           101.4        105.9
       1997             110.6        109.0         98.5        117.9           103.0        106.6
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             May 7, 1998
                                                               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 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.