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                           PRODUCTIVITY AND COSTS
                             Second Quarter 1999


     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 second quarter of 1999.  The seasonally adjusted annual
rates of productivity change in the second quarter were:

               0.8 percent in the business sector and
               0.6 percent in the nonfarm business sector.

In both sectors, changes in productivity were revised down compared with
results reported on Aug. 5, reflecting downward revisions in output and
upward revisions in hours of all persons.  (See table C.)

     In manufacturing, the revised productivity changes in the second quarter
were:
               4.8 percent in manufacturing,
               8.2 percent in durable goods manufacturing, and
               0.1 percent in nondurable goods manufacturing.

     In total manufacturing, the change in productivity was revised downward
slightly compared with the preliminary estimate.  Output and hours in
manufacturing, which includes about 17 percent of U.S. business-sector
employment, tend to vary more from quarter to quarter than data for the more
aggregate business and nonfarm business sectors.  Second-quarter measures are
summarized in table A and appear in detail in tables 1 through 5; the
differences between these measures and the preliminary second-quarter figures
issued on Aug. 5 are shown in table C.

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|Effective with the release of third-quarter data in November 1999, the      |
|Productivity and Costs news release will be issued at 8:30 a.m. E.T. rather |
|than 10:00 a.m.                                                             |
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Table A. Productivity and costs: Revised second-quarter 1999 measures
(Seasonally adjusted annual rates)
-----------------------------------------------------------------------                                                            
                                                       Real      
                                             Hourly    hourly    Unit
                  Produc-                    compen-   compen-   labor
Sector            tivity    Output   Hours   sation    sation    costs
-----------------------------------------------------------------------                   
                      Percent change from preceding quarter
Business           0.8       1.9      1.0     5.4       1.8       4.5
Nonfarm business   0.6       1.8      1.2     5.1       1.5       4.5
Manufacturing      4.8       4.2     -0.6     6.1       2.5       1.3
  Durable          8.2       7.0     -1.1     6.6       3.0      -1.5
  Nondurable       0.1       0.4      0.2     5.4       1.8       5.3
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business           3.0       4.5      1.4     4.7       2.5       1.6
Nonfarm business   2.8       4.5      1.7     4.3       2.2       1.5
Manufacturing      5.3       2.7     -2.4     4.5       2.3      -0.8
  Durable          8.6       5.6     -2.7     4.2       2.0      -4.1
  Nondurable       1.2      -0.8     -2.0     5.0       2.9       3.8
-----------------------------------------------------------------------
-----------------------------------------------------------------------


     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

Business

     From the first to the second quarter of 1999, business sector
productivity rose at a 0.8 percent annual rate, as output increased 1.9
percent and hours of all persons engaged in the sector increased 1.0 percent
(table A).  In the previous quarter, productivity had increased 3.9 percent,
reflecting a larger increase in output, 4.9 percent, and an increase in hours
of 0.9 percent (table 1).

     The increase of 5.4 percent in hourly compensation in the second quarter
of 1999 marked the fourth consecutive quarter that the measure grew more than
4.0 percent (seasonally adjusted annual rates).  Hourly compensation includes
wages and salaries, supplements, employer contributions to employee benefit
plans, and taxes.  Real hourly compensation, which takes into account changes
in the Consumer Price Index for All Urban Consumers (CPI-U), increased at a
1.8 percent annual rate in the second quarter of 1999 after rising 3.6
percent in the first quarter.

     Unit labor costs, which reflect changes in both hourly compensation and
productivity, accelerated from a 1.1-percent rise in the first quarter of
1999 to a 4.5-percent growth rate in the second quarter.  The second-quarter
increase in unit labor costs was the largest since a 6.5-percent jump in the
first quarter of 1993.  The implicit price deflator for the business sector
rose 1.3 percent in the second quarter of 1999 as a 4.4-percent drop in unit
nonlabor payments offset part of the rise in unit labor costs.

Nonfarm business

     Productivity in the nonfarm business sector increased 0.6 percent during
the second quarter of 1999, as output increased 1.8 percent and hours of all
persons rose 1.2 percent  (table A).  The increases in productivity and
output were the smallest since the second quarter of 1998, when productivity
increased 0.4 percent and output increased 1.7 percent (table 2).

     Hourly compensation grew at a 5.1 percent annual rate in the second
quarter of 1999, following a 4.4 percent increase in the first quarter.  When
the rise in the CPI-U is taken into account, real hourly compensation
increased 1.5 percent in the second quarter of 1999.

     In the second quarter of 1999, unit labor costs increased 4.5 percent,
the largest increase since the first quarter of 1994, when they also rose 4.5
percent.  Unit nonlabor payments fell 3.5 percent in the second quarter of
1999, and the implicit price deflator for nonfarm business output rose 1.6
percent (seasonally adjusted annual rates).

Manufacturing

     In the second quarter of 1999, productivity increased 4.8 percent in
manufacturing, as output grew 4.2 percent and hours of all persons fell 0.6
percent (seasonally adjusted annual rates).  The second-quarter increase in
output per hour was due primarily to an 8.2 percent productivity gain in the
durable goods sector, as output per hour increased only 0.1 percent in the
nondurable goods sector (tables 3, 4, and 5).  In durable goods, output rose
7.0 percent in the second quarter while hours of all persons dropped 1.1
percent.  Nondurable goods manufacturing output rose 0.4 percent last quarter
and hours increased 0.2 percent.

     Hourly compensation of all manufacturing workers increased 6.1 percent
during the second quarter of 1999, reflecting a 6.6 percent rise in hourly
compensation in durable goods industries and a 5.4 percent increase in the
nondurable goods sector.  Real hourly compensation in the total manufacturing
sector rose 2.5 percent in the second quarter, reflecting increases in
durable and nondurable manufacturing of 3.0 and 1.8 percent, respectively.

     Unit labor costs in manufacturing rose 1.3 percent in the second quarter
of 1999.  Trends in the two subsectors differed; unit labor costs in durable
goods dropped 1.5 percent and those in nondurable goods rose 5.3 percent.

Nonfinancial corporations

     Preliminary second-quarter 1999 measures of productivity and costs also
were announced today for nonfinancial corporations (tables B and 6).
Productivity increased 2.7 percent during the second quarter, as output rose
3.7 percent and hours increased 1.0 percent (seasonally adjusted annual
rates).  The increases in output and hours were the smallest since the first
quarter of 1996, when output rose 1.4 percent and hours were unchanged.
Nonfinancial corporations include 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.


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-------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary second-quarter 1999
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
1999 II   2.7      3.7     1.0    5.1      1.5     2.3    -5.9     1.0
-------------------------------------------------------------------------
               Percent change from same quarter a year ago
1999 II   3.8      5.5     1.6    4.6      2.4     0.7    -0.9     0.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------


     Hourly compensation rose 5.1 percent in the second quarter, after
rising 4.9 percent in the first quarter of 1999.  When the rise in the
CPI-U is taken into account, real hourly compensation increased 1.5
percent in the second quarter of 1999, down from the 3.4-percent increase
one quarter earlier (table 6).

     Unit labor costs for nonfinancial corporations increased 2.3 percent
in the second quarter of 1999, after declining 0.1 percent in the
previous quarter.  Unit nonlabor costs rose 1.3 percent in the second
quarter, up from the 6.2 percent decline one quarter earlier.  Unit
profits fell 5.9 percent in the second quarter, after rising 13.4 percent
in the first quarter of 1999.  The implicit price deflator for
nonfinancial corporate output rose 1.0 percent in the second quarter of
1999.

Revised Measures

     Current and previous measures for the second quarter of 1999 for the
business, nonfarm business, and manufacturing sectors are compared in table C.
The quarterly movements differ from those reported on Aug. 5 based on
information then available.  In the business and nonfarm business sectors,
changes in output (which are based on information from the national income
and product accounts prepared by the U.S. Department of Commerce) were
revised down, leading to smaller increases in productivity and larger
increases in unit labor costs than previously reported.  Measures for the
manufacturing sector reflect only minor revisions.


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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
--------------------------------------------------------------------                                                               
                             Second quarter 1999
Business:                                                      
  Previous          1.6      2.5      0.9     5.4      1.8       3.8
  Current           0.8      1.9      1.0     5.4      1.8       4.5
Nonfarm business:                                              
  Previous          1.3      2.4      1.1     5.1      1.5       3.8
  Current           0.6      1.8      1.2     5.1      1.5       4.5
Manufacturing:                                                 
  Previous          4.9      4.2     -0.7     6.0      2.4       1.1
  Current           4.8      4.2     -0.6     6.1      2.5       1.3
--------------------------------------------------------------------
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                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 AM EST,
Friday, Nov. 12, 1999.  Preliminary third-quarter measures for business,
nonfarm business, and manufacturing will be released at that time along with
revised historical measures for all sectors.



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|NOTICE: The Nov. 12, 1999, release of "Productivity and Costs" will          |
|incorporate a comprehensive, historical revision of the national income and  |
|product accounts produced by the Bureau of Economic Analysis, U.S. Department|
|of Commerce.  Beginning with that release, BLS also plans to incorporate the |
|Consumer Price Index research series using current methods (CPI-U-RS) into   |
|its measure of real hourly compensation.  Information on this series is      |
|available in "CPI research series using current methods, 1978-98," Monthly   |
|Labor Review, June 1999.                                                     |
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                               TECHNICAL NOTES
                                      
Labor Hours: Hours data for the labor productivity and costs measures include
hours for all persons working in the sector--wage and salary workers, the
self-employed, and unpaid family workers.  The primary source of hours and
employment data is the BLS Current Employment Statistics (CES) program, which
provides monthly survey data on the number of jobs held by wage and salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours of production and nonsupervisory workers in these establishments.
Average weekly paid hours of nonproduction and supervisory workers are
estimated by the Office of Productivity and Technology.  Weekly paid hours
are adjusted to hours at work using the BLS Hours at Work survey, conducted
for this purpose.
     Data from the BLS Current Population Survey (CPS) are used for farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared by the Bureau of Economic Analysis (BEA) of the Department of
Commerce and the CPS are used to measure labor input for government
enterprises, proprietors, and unpaid family workers.

Output: Business sector output is an annual-weighted index constructed after
excluding from gross domestic product (GDP) the following outputs: General
government, nonprofit institutions, paid employees of private households, and
the rental value of owner-occupied dwellings. Corresponding exclusions also
are made in labor inputs. Business output accounted for about 76 percent of
the value of GDP in 1992. Nonfarm business, which also excludes farming,
accounted for about 75 percent of GDP in 1992.
     Annual manufacturing indexes are constructed by deflating current-dollar
industry value of production data from the U.S. Bureau of the Census with
deflators from the BEA.  These deflators are based on data from the BLS
producer price program and other sources.  The industry shipments are
aggregated using annual weights, and intrasector transactions are removed.
Quarterly manufacturing output measures are based on the index of industrial
production prepared monthly by the Board of Governors of the Federal Reserve
System adjusted to be consistent with annual indexes of manufacturing sector
output prepared by BLS.  Durables include the following 2-digit SIC
industries: Primary metal industries; fabricated metal products; non-
electrical machinery; industrial and commercial machinery and computer
equipment; electronic and other electrical equipment; transportation
equipment; instruments; lumber and lumber products; furniture and fixtures;
stone, clay, and glass and concrete products; and miscellaneous manufactures.
Nondurables include: Food and kindred products, tobacco products, textile
mill products, apparel products, paper and allied products, printing and
publishing, chemicals and chemical products, petroleum refining and related
industries, rubber and plastic products, and leather and leather products.
     Nonfinancial corporate output is an annual-weighted index constructed by
excluding from GDP the following outputs: General government; nonprofit
institutions; employees of private households; the rental value of owner-
occupied dwellings; unincorporated business; and those corporations which are
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 52 percent of the value of GDP in 1992.

Productivity: These productivity measures describe the relationship between
real output and the labor time involved in its production. They show the
changes from period to period in the amount of goods and services produced
per hour. Although these measures relate output to hours at work of all
persons engaged in a sector, they do not measure the specific contribution of
labor, capital, or any other factor of production. Rather, they reflect the
joint effects of many influences, including changes in technology; capital
investment; level of output; utilization of capacity, energy, and materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.

     Information in this release will be made available to sensory-impaired
individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
TDD message referral phone number: 1-800-326-2577.

  Table 1. Business sector:  Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1997       I     104.3      117.8     112.9     113.2        99.5      108.5       112.3      109.9
            II     104.8      119.1     113.7     113.9        99.8      108.6       113.2      110.3
           III     105.8      120.6     114.0     115.0       100.3      108.7       113.9      110.6
            IV     106.0      121.7     114.7     116.6       101.2      109.9       112.5      110.8

        ANNUAL     105.2      119.8     113.8     114.7       100.3      109.0       112.9      110.4

  1998       I     107.0      123.7     115.7     117.9       102.1      110.2       112.1      110.9
            II     107.0      124.3     116.1     119.1       102.6      111.2       110.5      111.0
           III     107.9      125.5     116.4     120.3       103.2      111.5       110.4      111.1
            IV     109.0      127.7     117.2     121.5       103.8      111.5       110.7      111.2

        ANNUAL     107.7      125.3     116.3     119.7       103.0      111.1       110.9      111.0

  1999       I     110.1      129.3     117.5     123.0       104.7      111.8       110.9      111.5
            II    r110.3     r129.9    r117.8     124.6       105.2     r113.0      r109.7      111.8
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.5        4.9       4.4       3.6         1.0        3.1         1.6        2.5
            II       1.9        4.7       2.7       2.3         1.1        0.4         3.2        1.4
           III       3.8        4.9       1.1       4.1         2.1        0.3         2.4        1.1
            IV       0.9        3.6       2.6       5.4         3.5        4.4        -4.9        0.9

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       3.6        7.1       3.3       4.8         3.7        1.1        -1.2        0.2
            II       0.2        1.7       1.6       3.9         2.1        3.7        -5.5        0.3
           III       3.1        4.0       0.9       4.1         2.4        1.0        -0.3        0.5
            IV       4.3        7.3       2.9       4.2         2.4       -0.1         1.1        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I       3.9        4.9       0.9       5.1         3.6        1.1         0.7        1.0
            II      r0.8       r1.9      r1.0       5.4         1.8       r4.5       r-4.4        1.3
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.3        4.7       3.4       4.0         1.0        2.6         0.4        1.8
            II       0.9        4.3       3.3       3.2         0.9        2.2         0.9        1.8
           III       1.9        4.9       3.0       3.3         1.0        1.4         2.1        1.6
            IV       1.8        4.5       2.7       3.8         1.9        2.0         0.5        1.5

        ANNUAL       1.5        4.6       3.1       3.6         1.2        2.1         1.0        1.7

  1998       I       2.6        5.1       2.4       4.1         2.6        1.5        -0.2        0.9
            II       2.1        4.3       2.1       4.5         2.9        2.4        -2.4        0.6
           III       1.9        4.1       2.1       4.5         2.9        2.5        -3.0        0.5
            IV       2.8        5.0       2.2       4.2         2.6        1.4        -1.5        0.3

        ANNUAL       2.4        4.6       2.2       4.4         2.8        2.0        -1.8        0.6

  1999       I       2.9        4.5       1.6       4.3         2.6        1.4        -1.1        0.5
            II      r3.0       r4.5       1.4       4.7        r2.5       r1.6       r-0.8        0.8
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       September 2, 1999
  r=revised                                                              Source: Bureau of Labor Statistics

  Table 2. Nonfarm business sector:  Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1997       I     104.1      117.9     113.3     112.9        99.2      108.5       112.8      110.0
            II     104.5      119.2     114.1     113.6        99.5      108.7       113.7      110.4
           III     105.4      120.6     114.4     114.6        99.9      108.7       114.6      110.8
            IV     105.7      121.8     115.3     116.0       100.7      109.8       113.3      111.1

        ANNUAL     104.9      119.9     114.3     114.3        99.9      108.9       113.6      110.6

  1998       I     106.5      123.9     116.3     117.4       101.6      110.2       113.1      111.2
            II     106.6      124.4     116.7     118.5       102.1      111.1       111.6      111.3
           III     107.3      125.6     117.1     119.7       102.7      111.5       111.5      111.5
            IV     108.4      127.9     118.0     120.8       103.2      111.4       111.8      111.5

        ANNUAL     107.2      125.5     117.0     119.1       102.5      111.1       112.0      111.4

  1999       I     109.4      129.4     118.3     122.1       104.0      111.6       112.5      111.9
            II    r109.6     r130.0     118.7     123.6      r104.3     r112.8      r111.5     r112.3
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1997       I       0.0        4.5       4.5       3.8         1.2        3.8         1.8        3.1
            II       1.7        4.5       2.8       2.3         1.1        0.5         3.2        1.5
           III       3.5        4.8       1.2       3.7         1.7        0.2         3.4        1.4
            IV       1.0        4.0       2.9       5.2         3.3        4.1        -4.4        0.9

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       3.2        7.0       3.7       4.6         3.6        1.4        -0.8        0.6
            II       0.4        1.7       1.4       3.9         2.0        3.5        -5.4        0.2
           III       2.7        4.0       1.2       4.1         2.4        1.3        -0.3        0.7
            IV       4.1        7.4       3.1       3.8         2.0       -0.4         1.2        0.2

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I       3.6        5.0       1.3       4.4         2.9        0.8         2.4        1.3
            II      r0.6       r1.8      r1.2       5.1         1.5       r4.5       r-3.5        1.6
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1997       I       1.0        4.6       3.6       3.9         0.9        2.9         0.5        2.0
            II       0.6        4.1       3.4       3.2         0.8        2.5         1.3        2.0
           III       1.6        4.7       3.1       3.2         1.0        1.6         2.7        2.0
            IV       1.6        4.4       2.8       3.7         1.8        2.1         0.9        1.7

        ANNUAL       1.2        4.5       3.2       3.5         1.2        2.3         1.3        1.9

  1998       I       2.4        5.1       2.6       3.9         2.4        1.5         0.3        1.1
            II       2.0        4.4       2.3       4.3         2.7        2.3        -1.9        0.8
           III       1.8        4.1       2.3       4.4         2.8        2.6        -2.7        0.6
            IV       2.6        5.0       2.3       4.1         2.5        1.5        -1.4        0.4

        ANNUAL       2.2        4.6       2.4       4.2         2.6        2.0        -1.4        0.7

  1999       I       2.7        4.5       1.7       4.0         2.3        1.3        -0.6        0.6
            II      r2.8       r4.5       1.7       4.3         2.2       r1.5       r-0.1        1.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       September 2, 1999
  r=revised                                                              Source: Bureau of Labor Statistics

  Table 3. Manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            116.7        122.5        105.0        113.1           99.4          96.9
            II            118.0        124.5        105.5        114.1           99.9          96.7
           III            120.4        126.8        105.3        115.5          100.7          95.9
            IV            121.6        129.1        106.2        117.7          102.1          96.8

        ANNUAL            119.2        125.7        105.5        115.1          100.6          96.6

  1998       I            122.1        129.9        106.4        118.8          102.8          97.3
            II            123.2        130.7        106.1        119.5          103.0          97.0
           III            124.6        130.8        105.0        120.4          103.3          96.6
            IV            126.2        132.4        104.9        121.4          103.8          96.2

        ANNUAL            124.0        130.9        105.6        120.0          103.3          96.8

  1999       I            128.2        132.9        103.7        123.0          104.7          95.9
            II            129.7        134.2        103.5        124.8         r105.4         r96.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.1          7.2          3.0          4.3            1.7           0.2
            II              4.7          6.6          1.8          3.4            2.2          -1.2
           III              8.4          7.7         -0.6          5.0            3.0          -3.1
            IV              4.1          7.5          3.3          7.9            5.9           3.7

        ANNUAL              4.7          6.5          1.8          4.0            1.7          -0.7

  1998       I              1.5          2.4          0.9          3.8            2.7           2.3
            II              3.7          2.5         -1.2          2.4            0.6          -1.2
           III              4.8          0.4         -4.1          3.1            1.5          -1.5
            IV              5.3          4.8         -0.5          3.5            1.7          -1.8

        ANNUAL              4.0          4.2          0.1          4.3            2.7           0.2

  1999       I              6.3          1.6         -4.5          5.2            3.7          -1.1
            II             r4.8          4.2        r-0.6         r6.1           r2.5          r1.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              4.2          6.7          2.4          3.6            0.6          -0.6
            II              4.2          5.9          1.6          3.4            1.0          -0.8
           III              5.0          6.3          1.2          3.9            1.6          -1.1
            IV              5.3          7.3          1.9          5.2            3.2          -0.1

        ANNUAL              4.7          6.5          1.8          4.0            1.7          -0.7

  1998       I              4.6          6.0          1.4          5.0            3.5           0.4
            II              4.4          5.0          0.6          4.8            3.1           0.4
           III              3.5          3.2         -0.3          4.3            2.7           0.8
            IV              3.8          2.5         -1.2          3.2            1.6          -0.6

        ANNUAL              4.0          4.2          0.1          4.3            2.7           0.2

  1999       I              5.0          2.3         -2.6          3.5            1.8          -1.4
            II              5.3          2.7        r-2.4         r4.5            2.3          -0.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                September 2, 1999
  r=revised                                                       Source: Bureau of Labor Statistics

  Table 4. Durable manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            125.0        136.9        109.5        110.6           97.2          88.5
            II            127.3        140.3        110.2        111.5           97.7          87.6
           III            131.0        144.6        110.4        112.8           98.3          86.1
            IV            133.4        148.3        111.2        115.4          100.2          86.5

        ANNUAL            129.2        142.5        110.3        112.6           98.4          87.1

  1998       I            133.8        149.6        111.8        116.0          100.4          86.7
            II            135.8        151.3        111.4        116.3          100.2          85.6
           III            138.7        153.1        110.4        116.8          100.3          84.2
            IV            141.6        156.3        110.4        117.8          100.7          83.2

        ANNUAL            137.5        152.6        111.0        116.7          100.5          84.9

  1999       I            144.6        157.1        108.7        119.2          101.5          82.5
            II           r147.4       r159.8        108.3       r121.1         r102.3         r82.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.4         10.4          5.8          3.8            1.2          -0.6
            II              7.6         10.4          2.6          3.2            2.0          -4.1
           III             12.1         12.8          0.6          4.6            2.6          -6.7
            IV              7.4         10.7          3.0          9.8            7.8           2.2

        ANNUAL              6.3          9.4          2.9          3.6            1.3          -2.6

  1998       I              1.3          3.5          2.2          1.9            0.9           0.6
            II              6.1          4.6         -1.4          1.1           -0.7          -4.7
           III              8.8          4.8         -3.7          1.8            0.2          -6.4
            IV              8.6          8.6          0.0          3.3            1.6          -4.9

        ANNUAL              6.4          7.0          0.6          3.7            2.1          -2.6

  1999       I              8.6          2.1         -6.0          5.0            3.4          -3.4
            II             r8.2         r7.0        r-1.1         r6.6           r3.0         r-1.5
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              5.3          9.3          3.8          2.9            0.0          -2.3
            II              5.3          8.1          2.6          2.7            0.4          -2.4
           III              6.8          9.3          2.3          3.3            1.0          -3.3
            IV              7.8         11.1          3.0          5.3            3.4          -2.3

        ANNUAL              6.3          9.4          2.9          3.6            1.3          -2.6

  1998       I              7.0          9.3          2.1          4.8            3.3          -2.0
            II              6.6          7.8          1.1          4.3            2.6          -2.2
           III              5.9          5.9          0.0          3.6            2.0          -2.1
            IV              6.1          5.4         -0.7          2.0            0.5          -3.9

        ANNUAL              6.4          7.0          0.6          3.7            2.1          -2.6

  1999       I              8.0          5.0         -2.8          2.8            1.1          -4.9
            II             r8.6         r5.6        r-2.7         r4.2           r2.0         r-4.1
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                September 2, 1999
  r=revised                                                       Source: Bureau of Labor Statistics

  Table 5. Nondurable manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I            109.8        108.8         99.0        116.2          102.1         105.8
            II            110.2        109.3         99.2        117.3          102.7         106.4
           III            111.3        109.7         98.6        118.9          103.6         106.8
            IV            111.3        110.7         99.5        120.3          104.4         108.1

        ANNUAL            110.7        109.6         99.1        118.2          103.3         106.8

  1998       I            111.8        111.0         99.3        122.2          105.8         109.3
            II            112.0        111.0         99.1        123.7          106.6         110.4
           III            112.0        109.6         97.9        125.3          107.5         111.8
            IV            112.5        109.7         97.5        126.4          108.0         112.4

        ANNUAL            112.1        110.3         98.4        124.4          107.1         111.0

  1999       I            113.3        109.9         97.0        128.2          109.1         113.1
            II           r113.3       r110.0        r97.1       r129.9         r109.6        r114.6
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1997       I              4.3          3.4         -0.9          4.7            2.1           0.4
            II              1.3          1.9          0.7          3.7            2.5           2.4
           III              4.2          1.7         -2.4          5.5            3.5           1.2
            IV             -0.1          3.6          3.7          4.9            3.0           5.0

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I              2.0          1.1         -0.9          6.7            5.7           4.6
            II              0.7         -0.2         -0.9          4.7            2.8           4.0
           III              0.1         -4.7         -4.7          5.3            3.6           5.2
            IV              1.5          0.2         -1.3          3.6            1.9           2.1

        ANNUAL              1.3          0.6         -0.6          5.3            3.6           3.9

  1999       I              3.0          0.8         -2.1          5.8            4.3           2.7
            II             r0.1         r0.4         r0.2         r5.4           r1.8          r5.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1997       I              3.3          3.7          0.4          4.3            1.4           1.0
            II              3.2          3.4          0.2          4.2            1.9           1.0
           III              3.1          2.6         -0.5          4.6            2.3           1.5
            IV              2.4          2.6          0.2          4.7            2.8           2.2

        ANNUAL              3.0          3.1          0.1          4.5            2.1           1.4

  1998       I              1.8          2.1          0.2          5.2            3.6           3.3
            II              1.7          1.5         -0.1          5.4            3.7           3.7
           III              0.6         -0.1         -0.7          5.4            3.7           4.7
            IV              1.1         -0.9         -2.0          5.1            3.5           4.0

        ANNUAL              1.3          0.6         -0.6          5.3            3.6           3.9

  1999       I              1.3         -1.0         -2.3          4.8            3.1           3.5
            II             r1.2        r-0.8         -2.0         r5.0           r2.9          r3.8
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                September 2, 1999
  r=revised                                                       Source: Bureau of Labor Statistics

  Table 6. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1997       I    108.9    124.3     114.1    111.8      98.2     102.6     97.3    101.2    156.6    106.2
            II    109.5    126.2     115.2    112.4      98.5     102.6     97.1    101.2    157.3    106.3
           III    111.0    128.7     115.9    113.6      99.0     102.3     96.4    100.7    161.7    106.3
            IV    111.4    130.2     116.9    115.1      99.8     103.3     95.7    101.3    155.7    106.3

        ANNUAL    110.3    127.3     115.4    113.3      99.0     102.7     96.6    101.1    157.8    106.3

  1998       I    112.1    132.1     117.8    116.1     100.5     103.5     95.4    101.4    153.5    106.2
            II    112.9    133.4     118.1    117.3     101.1     103.9     95.5    101.7    150.4    106.1
           III    114.2    135.4     118.6    118.6     101.8     103.8     95.2    101.6    151.8    106.1
            IV    115.1    137.2     119.3    119.7     102.3     104.1     96.2    102.0    146.6    106.0

        ANNUAL    113.6    134.5     118.4    118.0     101.6     103.8     95.6    101.7    150.5    106.1

  1999       I    116.5    139.5     119.7    121.2     103.2     104.0     94.7    101.6    151.3    106.1
            II    117.3    140.7     120.0    122.7     103.6     104.6     95.0    102.1    149.0    106.4
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1997       I      1.5      5.9       4.3      3.5       0.9       2.0     -0.6      1.4      3.2      1.6
            II      2.2      6.3       4.0      2.4       1.2       0.2     -0.6      0.0      1.7      0.2
           III      5.5      8.2       2.5      4.1       2.2      -1.3     -3.1     -1.8     11.8      0.0
            IV      1.2      4.8       3.5      5.3       3.4       4.0     -2.7      2.3    -14.1     -0.1

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.7      5.9       3.2      3.6       2.6       0.9     -1.1      0.4     -5.6     -0.4
            II      2.9      4.0       1.1      4.4       2.5       1.5      0.1      1.1     -7.7     -0.1
           III      4.6      6.1       1.5      4.3       2.6      -0.3     -0.9     -0.4      3.6      0.1
            IV      3.1      5.5       2.3      4.0       2.2       0.8      4.0      1.6    -12.9     -0.4

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I      5.0      6.7       1.6      4.9       3.4      -0.1     -6.2     -1.6     13.4      0.2
            II      2.7      3.7       1.0      5.1       1.5       2.3      1.3      2.1     -5.9      1.0
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1997       I      2.4      5.9       3.5      3.7       0.8       1.3     -1.4      0.6      1.9      0.8
            II      2.1      5.8       3.6      3.1       0.8       1.0     -0.8      0.5      2.0      0.7
           III      2.8      6.4       3.5      3.2       1.0       0.4     -1.2      0.0      4.2      0.5
            IV      2.6      6.3       3.6      3.8       1.9       1.2     -1.8      0.5      0.2      0.4

        ANNUAL      2.5      6.1       3.6      3.5       1.1       1.0     -1.3      0.4      2.1      0.6

  1998       I      2.9      6.3       3.3      3.9       2.3       0.9     -1.9      0.2     -2.0     -0.1
            II      3.1      5.7       2.6      4.4       2.7       1.2     -1.7      0.5     -4.3     -0.1
           III      2.8      5.2       2.3      4.4       2.8       1.5     -1.1      0.8     -6.2     -0.1
            IV      3.3      5.4       2.0      4.1       2.5       0.7      0.5      0.7     -5.8     -0.2

        ANNUAL      3.0      5.6       2.6      4.1       2.5       1.1     -1.0      0.6     -4.6     -0.1

  1999       I      3.9      5.6       1.6      4.4       2.7       0.5     -0.8      0.1     -1.4     -0.1
            II      3.8      5.5       1.6      4.6       2.4       0.7     -0.5      0.4     -0.9      0.2
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        September 2, 1999
  r=revised                                                               Source: Bureau of Labor Statistics
SOURCES:  Output data are from the Bureau of Economic Analysis and the 
Census Bureau of the U.S. Department of Commerce; the Bureau of Labor 
Statistics, U.S. Department of Labor; and the Federal Reserve Board.  
Compensation and hours data are from the Bureau of Labor Statistics and 
the Bureau of Economic Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more 
complete information becomes available.  The measures are first published 
within 40 days of the close of the reference period; revisions appear 30 
days later and second revisions after an additional 60 days.  In the 
business sector, the third publication (second revision) of a quarterly 
index of output per hour of all persons has differed from the initial 
value by between -1.1 and +1.3 index points approximately 95 percent of 
the time.  This interval is based on the performance of this measure 
between the fourth quarter of 1995 and the first quarter of 1999.  



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.