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                           PRODUCTIVITY AND COSTS
                             Third Quarter 1996


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the third quarter of 1996.  The seasonally-adjusted annual rates
of productivity growth in the third quarter were:

               0.0 percent in the business sector, and
              -0.3 percent in the nonfarm business sector.

In the business sector, productivity was unchanged as a 2.1 percent output
increase in the third quarter was accompanied by a nearly-equal increase (2.0
percent) in the hours of all persons engaged in the sector.  Similarly, labor
productivity in the nonfarm business sector fell as hours of all persons rose
2.1 percent, but output grew only 1.8 percent.

     In manufacturing, revised productivity increases in the third quarter
were:

               6.3 percent in manufacturing,
               8.3 percent in durable goods manufacturing, and
               3.9 percent in nondurable goods manufacturing.

   The third-quarter productivity increase in manufacturing occurred as
output rose at a 5.6 percent rate and hours fell 0.7 percent. 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.  Third-quarter
measures are summarized in table A and appear in detail in tables 1
through 5.



---------------------------------------------------------------------
Table A. Productivity and costs: Revised third-quarter 1996 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            0.0      2.1     2.0     3.8      1.5      3.8
Nonfarm business   -0.3      1.8     2.1     3.4      1.1      3.7
Manufacturing       6.3      5.6    -0.7     4.6      2.3     -1.6
  Durable           8.3      7.7    -0.6     4.6      2.3     -3.4
  Nondurable        3.9      3.0    -0.9     4.7      2.3      0.7
---------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            0.7      2.6     1.9     3.9      0.9      3.2
Nonfarm business    0.3      2.4     2.1     3.7      0.7      3.4
Manufacturing       4.6      4.1    -0.5     3.7      0.8     -0.9
  Durable           6.0      6.8     0.8     3.1      0.2     -2.7
  Nondurable        3.0      0.6    -2.3     4.4      1.4      1.4
---------------------------------------------------------------------


     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 independent indexes of industrial production prepared by the Board of
Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.


Business

     From the second quarter to the third quarter of 1996, business sector
productivity was unchanged.  As revised, output rose 2.1 percent, and hours
of all persons engaged in the sector increased 2.0 percent (seasonally
adjusted annual rates).  During the second quarter of 1996, productivity had
increased 1.2 percent (as revised), as output rose 5.0 percent and hours rose
3.8 percent (table 1).

     Hourly compensation increased 3.8 percent during the third quarter of
1996, down from a 4.3 percent rise in the second quarter.  This measure
includes wages and salaries, supplements, employer contributions to employee
benefit plans, and taxes.  Unit labor costs rose 3.8 percent in the third
quarter and 3.1 percent in the previous quarter.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose 1.5 percent in the
third quarter after increasing 0.4 percent in the second quarter of 1996.

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, increased at a
1.2 percent annual rate in the third quarter of 1996, down from the 2.4
percent increase posted in the previous quarter.


Nonfarm business

     Productivity decreased 0.3 percent in the nonfarm business sector during
the third quarter of 1996 as output rose 1.8 percent and hours of all persons
increased 2.1 percent.  This was the first decline in productivity since a
1.2 percent drop during the fourth quarter of 1995.  During the second
quarter of 1996, productivity had increased 0.6 percent in the nonfarm
business sector, reflecting a gain of 4.8 percent in output coupled with a
4.1 percent rise in hours (table 2).

     Hourly compensation increased at a 3.4 percent annual rate in the third
quarter, compared with a 3.9 percent increase one quarter earlier.  When the
rise in the CPI-U is taken into account, real hourly compensation rose at a
1.1 percent annual rate in the third quarter.  Real hourly compensation has
now risen in eight consecutive quarters.

   Unit labor costs increased 3.7 percent in the third quarter of 1996 and
3.3 percent in the second quarter.  The implicit price deflator rose 1.1
percent in the third quarter of 1996, reflecting both the increase in unit
labor costs and a 3.5 percent drop in unit nonlabor payments.  In the second
quarter, the implicit price deflator for the nonfarm business sector had
increased 2.1 percent.


Manufacturing

     Productivity increased 6.3 percent in manufacturing in the third quarter
of 1996, as output rose 5.6 percent and hours of all persons fell 0.7 percent
(seasonally adjusted annual rates).  This increase in labor productivity was
more than double the 2.9 percent increase posted in the second quarter, when
output rose 7.1 percent and hours increased 4.1 percent.  Manufacturing
productivity has increased in every quarter since the second quarter of 1993
(when it declined 0.3 percent).  In the durable goods industries,
productivity grew 8.3 percent in the third quarter as output rose 7.7 percent
and hours fell 0.6 percent.  In the nondurable goods industries, third-
quarter productivity grew 3.9 percent as output rose 3.0 percent and hours
dropped 0.9 percent (tables 3, 4, and 5).

     Hourly compensation of all manufacturing workers rose 4.6 percent during
the third quarter and 5.8 percent during the second quarter (seasonally
adjusted annual rates).  Real hourly compensation increased 2.3 percent when
the increase in the CPI-U is taken into account.  During the second quarter,
real hourly compensation rose 1.9 percent.

     Unit labor costs fell at a 1.6 percent annual rate in the third quarter
of 1996 as the 6.3 percent productivity increase in the manufacturing sector
exceeded the 4.6 percent increase in hourly compensation.  Unit labor costs
rose 2.8 percent in the second quarter of 1996. In durable goods industries,
these costs fell 3.4 percent in the third quarter of 1996 and have fallen in
10 of the last 12 quarters.  A 0.7 percent increase in unit labor costs was
recorded in nondurable goods in the third quarter, down from the 1.6 percent
increase posted in the second quarter of 1996.
   

--------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Third-quarter 1996 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
1996 III   3.6     5.8     2.2    4.1      1.7     0.5    -1.3     0.0
--------------------------------------------------------------------------
                 Percent change from same quarter a year ago
1996 III   2.2     4.5     2.2    3.7      0.7     1.5    3.6      1.0
--------------------------------------------------------------------------


Nonfinancial Corporations

    Third-quarter 1996 measures of productivity and costs also were
announced today for nonfinancial corporations (tables B and 6).  Output per
all-employee hour rose at a 3.6 percent annual rate, compared with a 1.5
percent increase during the second quarter (as revised).  Output increased
5.8 percent in the third quarter of 1996, while hours of all employees
increased 2.2 percent.  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.
   
   Hourly compensation increased 4.1 percent in the third quarter; it had
risen 3.9 percent in the second quarter.  When the rise in the CPI-U is taken
into account, real hourly compensation increased 1.7 percent in the third
quarter--the first increase reported in 1996.  Real hourly compensation was
unchanged in the second quarter and had fallen 0.5 percent in the first
quarter of the year.


   Unit labor costs for nonfinancial corporations rose 0.5 percent in the
third quarter, after increasing 2.4 percent during the previous quarter.
Unit nonlabor costs fell 1.1 percent in the third quarter, and unit profits
dropped at a 1.3 percent annual rate.  This was the first decrease in unit
profits in calendar year 1996.  The implicit price deflator for the output of
nonfinancial corporations was unchanged in the third quarter of 1996, after
demonstrating an increase in every quarter since a 0.2 percent decline was
posted in the first quarter of 1986.


--------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
--------------------------------------------------------------------                                                              
                                                   Real      
                                          Hourly   hourly    Unit
                 Produc-                  compen-  compen-   labor
Sector           tivity   Output   Hours  sation   sation    costs
--------------------------------------------------------------------                                                              
                             Third quarter 1996
Business:                                                     
  Previous         0.3      2.4     2.0     4.3      2.0      4.0
  Current          0.0      2.1     2.0     3.8      1.5      3.8
Nonfarm business:                                             
  Previous         0.2      2.3     2.1     3.9      1.6      3.7
  Current         -0.3      1.8     2.1     3.4      1.1      3.7
Manufacturing:                                                
  Previous         6.3      5.4     -0.8    4.6      2.2     -1.6
  Current          6.3      5.6     -0.7    4.6      2.3     -1.6
--------------------------------------------------------------------


Revised Measures

   Current and previous measures for the third quarter of 1996 for the
business, nonfarm business, and manufacturing sectors are compared in
table C.  The quarterly movements differ from those reported on November 7,
based on the information available at that time.

   The productivity and cost measures also were revised to reflect the
results of the 1995 Hours at Work Survey (HWS), which are now available.
This survey is used to adjust the number of hours for which private nonfarm
employees are paid, as reported in the BLS Current Establishment Survey, to
hours at the workplace.  For 1995, these new results show that hours of all
persons increased more than had originally been reported.  In the nonfarm
business sector, hours of all persons grew 2.4 percent in 1995 rather than
2.0 percent, as previously reported.  All of the increase in the ratio of
hours at work to hours paid occurred outside of the manufacturing sector,
where the increase in the hours of all persons remained 0.1 percent for the
calendar year.


                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EST, Tuesday, February 11, 1997.  Preliminary fourth-quarter and annual 1996
measures will be released at that time.

     Scheduled release dates for productivity and costs measures for major
sectors of the U.S. economy in 1997 are:

     -----------------------------------------------
     Reference period              1997 release date
     1996:                         
     Fourth quarter, Annual        February 11
     Fourth quarter, Annual        March 11
     (revised)
     1997:                         
     First quarter                 May 7
     First quarter (revised)       June 18
     Second quarter                August 12
     Second quarter (revised)      September 9
     Third quarter                 November 13
     Third quarter (revised)       December 4
     -----------------------------------------------
          
          
     These dates are based on presently available schedules for the release
of underlying source data in 1997.  Each issue of Productivity and Costs
contains a "Next release date" paragraph which readers should use to confirm
the dates above.

                                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

  1994       I    r100.5      104.9    r104.4     104.0       r99.5      103.6       104.5      103.9
            II    r100.6      106.7    r106.0     104.2        99.0      103.6       105.7      104.4
           III     101.1      107.7     106.6     104.7        98.6      103.6       107.6      105.1
            IV    r101.1      108.7    r107.6    r105.5       r98.8      104.4       107.8      105.6

        ANNUAL     100.7      107.0     106.2     104.5        99.0      103.8       106.5      104.7

  1995       I    r100.4      108.8    r108.4    r106.2       r98.8      105.8       107.4      106.4
            II    r100.8      109.0    r108.2    r107.3       r98.9      106.5      r107.8      106.9
           III    r101.2      110.3    r109.0    r108.3       r99.3     r107.0      r108.3      107.5
            IV    r101.0      110.4    r109.3    r109.4       r99.8     r108.3      r106.7      107.8

        ANNUAL    r100.8      109.6    r108.8    r107.8       r99.2     r106.9      r107.6      107.1

  1996       I    r101.5      111.2    r109.6    r110.3       r99.8     r108.6      r107.4      108.2
            II    r101.8      112.6    r110.6    r111.4       r99.9     r109.4      r107.7      108.8
           III    r101.8     r113.2    r111.1    r112.5      r100.2     r110.5      r106.8      109.1
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I     r-1.7        1.7      r3.5      r2.8        r0.8        4.6        -1.3        2.4
            II      r0.5        6.9      r6.4      r0.7        -1.8        0.2         4.6        1.8
           III      r1.9        4.1      r2.1      r2.0       r-1.7       r0.1         7.3        2.7
            IV      r0.2        3.8      r3.6      r2.9        r0.7        2.8        r0.8        2.0

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I     r-2.6        0.3      r3.0      r2.8        r0.0        5.6       r-1.4        3.0
            II      r1.4        0.7     r-0.7      r4.1        r0.7       r2.6        r1.3        2.2
           III      r1.4        4.8      r3.3      r3.6        r1.5       r2.1         1.8        2.0
            IV      -0.6        0.5       1.1      r4.3         1.9        5.0        -5.6        1.0

        ANNUAL      r0.1        2.5      r2.4      r3.1        r0.3       r3.0         1.0        2.3

  1996       I      r2.1        3.0      r0.8      r3.2        r0.0       r1.1         2.4        1.5
            II      r1.2        5.0      r3.8      r4.3        r0.4       r3.1        r1.1        2.4
           III      r0.0       r2.1       2.0      r3.8        r1.5       r3.8       r-3.3        1.2
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I      r0.3        3.4      r3.1      r2.3        -0.2        2.0         2.4        2.2
            II       0.8        4.5      r3.6      r1.9       r-0.5        1.0         3.7        2.0
           III       1.1        4.8       3.6       1.9        -1.0        0.8         5.1        2.3
            IV      r0.2        4.1      r3.9      r2.1       r-0.5        1.9         2.8        2.2

        ANNUAL       0.5        4.2       3.7       1.9        -0.6        1.4         3.5        2.2

  1995       I      r0.0        3.8      r3.8      r2.1       r-0.7       r2.1        r2.8        2.4
            II      r0.2        2.2      r2.0      r3.0       r-0.1        2.8        r2.0        2.5
           III      r0.1        2.4      r2.3      r3.4        r0.7        3.3        r0.6        2.3
            IV     r-0.1        1.6      r1.7      r3.7        r1.0       r3.8       r-1.0        2.0

        ANNUAL      r0.1        2.5      r2.4      r3.1        r0.3       r3.0         1.0        2.3

  1996       I      r1.1        2.2      r1.1      r3.8        r1.0        2.7        -0.1        1.7
            II       1.0        3.3       2.2      r3.8         1.0        2.8        -0.1        1.7
           III       0.7       r2.6      r1.9      r3.9        r0.9       r3.2       r-1.4        1.5
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       December 5, 1996
  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

  1994       I    r100.3      104.9     104.6    r103.8       r99.2      103.4      r104.8      103.9
            II    r100.6      106.7     106.1    r104.1       r98.9      103.5       106.3      104.5
           III     101.0      107.8     106.7    r104.5        98.4      103.5       108.4      105.3
            IV    r101.1      108.8    r107.6    r105.4       r98.7     r104.2       108.4      105.7

        ANNUAL     100.7      107.0     106.3     104.3        98.8      103.7       107.0      104.9

  1995       I    r100.5      109.0    r108.4    r106.2       r98.7      105.6      r108.2      106.5
            II    r100.9      109.2    r108.3    r107.2       r98.8      106.3      r108.5      107.1
           III    r101.3      110.6    r109.1    r108.2       r99.2      106.8      r108.9      107.5
            IV    r101.1      110.7    r109.5    r109.3       r99.6     r108.1      r107.1      107.8

        ANNUAL    r100.9      109.9    r108.9    r107.7       r99.1      106.7      r108.2      107.2

  1996       I    r101.5      111.4    r109.8    r110.2       r99.7     r108.5      r107.4      108.1
            II    r101.7      112.8    r110.9    r111.3       r99.7     r109.4      r107.3      108.7
           III    r101.6     r113.3    r111.5    r112.2      r100.0     r110.4      r106.4      109.0
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1994       I     r-1.8        0.8      r2.7      r2.9        r0.9       r4.9       r-1.7        2.5
            II       1.0        7.0      r6.0      r1.3        -1.2        0.3         5.6        2.2
           III      r1.7        4.2      r2.4      r1.8       r-1.9        0.1        r8.2        2.9
            IV      r0.4        4.0      r3.6      r3.3        r1.0        2.9        r0.1        1.9

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I     r-2.3        0.6      r2.9      r2.9        r0.1       r5.3       r-0.9        3.0
            II      r1.5        0.9     r-0.6      r4.0        r0.6       r2.5        r1.1        2.0
           III      r1.8        5.0      r3.2      r3.7        r1.6        1.9        r1.4        1.7
            IV     r-1.2        0.3       1.5      r4.0         1.6        5.2        -6.4        0.9

        ANNUAL      r0.3        2.7      r2.4      r3.2        r0.3       r2.9        r1.1        2.2

  1996       I      r1.9        2.7      r0.8      r3.4        r0.2        1.5         1.1        1.4
            II      r0.6        4.8      r4.1      r3.9        r0.1        3.3        -0.1        2.1
           III     r-0.3       r1.8       2.1      r3.4        r1.1        3.7        -3.5        1.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1994       I      r0.2        3.3      r3.1      r2.2       r-0.3        2.0         2.1        2.1
            II      r0.9        4.3      r3.4      r2.0       r-0.4        1.1         3.9        2.1
           III       0.9        4.3       3.4       2.0        -0.8        1.1         5.1        2.5
            IV      r0.3        4.0      r3.7      r2.3       r-0.3        2.0         3.0        2.4

        ANNUAL       0.5        4.0       3.5       2.1        -0.5        1.5         3.5        2.3

  1995       I      r0.2        3.9      r3.7      r2.3       r-0.5       r2.1        r3.2        2.5
            II      r0.3        2.4      r2.1      r3.0       r-0.1        2.7        r2.1        2.5
           III      r0.3        2.6      r2.3      r3.5        r0.8       r3.1        r0.4        2.1
            IV     r-0.1        1.7      r1.8      r3.7        r1.0       r3.7       r-1.2        1.9

        ANNUAL      r0.3        2.7      r2.4      r3.2        r0.3       r2.9        r1.1        2.2

  1996       I      r1.0        2.2      r1.2      r3.8        r1.0        2.8        -0.8        1.5
            II       0.8        3.2       2.4       3.8         0.9        3.0        -1.1        1.5
           III       0.3       r2.4      r2.1      r3.7        r0.7        3.4        -2.3        1.4
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       December 5, 1996
  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

  1994       I            104.8        107.3        102.4        104.4           99.9          99.7
            II            106.2        109.5        103.2        104.7           99.5          98.6
           III            106.6        110.9        104.0        105.5           99.4          99.0
            IV            107.7        113.0       r104.9        106.4           99.6          98.8

        ANNUAL            106.1        110.2        103.8        105.1           99.5          99.0

  1995       I            108.3        114.1        105.3        107.2           99.7          99.0
            II           r109.1        113.5       r104.0       r108.4           99.9          99.4
           III           r110.5        114.2        103.4        109.7          100.6          99.3
            IV            111.5        114.6        102.8       r110.9         r101.1          99.4

        ANNUAL            109.8        114.1        103.9        109.0         r100.4          99.3

  1996       I            113.0        115.3        102.0       r111.0         r100.4          98.2
            II            113.8        117.3       r103.0        112.5          100.8          98.9
           III           r115.6       r118.9       r102.8        113.8          101.4          98.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I              6.7          8.8          2.0          3.3            1.3          -3.1
            II              5.5          8.5          2.9          1.1           -1.4          -4.1
           III              1.7          5.1          3.4         r3.2           -0.6           1.5
            IV              4.1          7.9          3.6         r3.2            0.9          -0.9

        ANNUAL              4.0          6.5          2.4          2.7            0.1          -1.2

  1995       I             r2.5          3.9          1.4         r3.3            0.4           0.8
            II              2.7         -2.1         -4.7          4.3           r0.9           1.5
           III              5.3          2.6         -2.5          5.1            3.0          -0.2
            IV              3.7          1.4         -2.2         r4.2            1.7           0.4

        ANNUAL             r3.5          3.5          0.1          3.7           r0.9           0.2

  1996       I              5.6          2.4        r-3.0          0.4           -2.8          -4.9
            II              2.9          7.1          4.1          5.8            1.9           2.8
           III              6.3         r5.6        r-0.7          4.6           r2.3          -1.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              3.1          4.7          1.5          3.1            0.6           0.0
            II              4.5          6.5          1.9          2.8            0.4          -1.7
           III              4.5          7.1          2.4          2.9            0.0          -1.6
            IV              4.5          7.6          3.0          2.7            0.0          -1.7

        ANNUAL              4.0          6.5          2.4          2.7            0.1          -1.2

  1995       I              3.4          6.3          2.8          2.7           -0.2          -0.7
            II              2.7          3.6         r0.8          3.5            0.4           0.7
           III              3.6          3.0         -0.6         r4.0            1.3           0.3
            IV              3.5          1.4         -2.0          4.2            1.5           0.7

        ANNUAL             r3.5          3.5          0.1          3.7           r0.9           0.2

  1996       I              4.3          1.0         -3.1          3.5            0.7          -0.8
            II              4.4          3.4         -1.0          3.8            0.9          -0.5
           III              4.6          4.1         -0.5          3.7            0.8         r-0.9
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 5, 1996
  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

  1994       I           r106.9        110.4        103.2       r104.2           99.7          97.5
            II            108.2        112.6        104.1        104.5           99.3          96.6
           III            109.0        114.8        105.3        105.3           99.1          96.6
            IV           r110.4        117.5       r106.5       r106.1           99.3          96.1

        ANNUAL            108.4        113.8        105.0        104.8           99.2          96.7

  1995       I           r111.7        119.5       r107.0       r106.9          r99.4         r95.8
            II           r112.1        119.0       r106.1       r108.0          r99.5          96.3
           III           r113.9        120.4       r105.8       r109.4         r100.3          96.1
            IV           r115.1        121.5       r105.6       r110.4         r100.7          95.9

        ANNUAL           r113.1        120.1       r106.1       r108.6         r100.0          96.0

  1996       I           r117.2        123.1       r105.0       r109.7          r99.3          93.6
            II           r118.3        126.3       r106.8       r111.6         r100.0          94.3
           III           r120.7        128.6       r106.6       r112.8         r100.5          93.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I             r7.3         11.0         r3.4         r3.0           r0.9          -4.1
            II              4.8          8.6          3.6          1.0           -1.5          -3.7
           III             r3.2          7.8         r4.5         r3.1          r-0.7          -0.1
            IV             r5.0          9.9         r4.7         r3.1           r0.8          -1.8

        ANNUAL              4.9          8.5          3.5          2.5            0.0          -2.2

  1995       I             r4.9          7.0         r2.0         r3.2           r0.3          -1.6
            II             r1.5         -1.9        r-3.3         r3.9           r0.5           2.4
           III             r6.5          5.1        r-1.4         r5.4           r3.3          -1.0
            IV              4.3          3.6         -0.7          3.6            1.2          -0.7

        ANNUAL             r4.4          5.5         r1.1         r3.6           r0.8          -0.7

  1996       I             r7.7          5.5        r-2.0        r-2.3          r-5.4          -9.3
            II              3.7         10.7         r6.8          6.8           r2.8           3.0
           III             r8.3         r7.7        r-0.6          4.6           r2.3         r-3.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              4.4          6.8          2.3          3.1            0.6          -1.2
            II             r5.2          8.4         r3.0          2.8           r0.3          -2.4
           III             r5.9          9.5          3.5          2.9            0.0          -2.8
            IV             r5.1          9.3         r4.0         r2.5          r-0.1          -2.4

        ANNUAL              4.9          8.5          3.5          2.5            0.0          -2.2

  1995       I             r4.5          8.3         r3.7         r2.6          r-0.3          -1.8
            II             r3.6          5.6         r1.9         r3.3           r0.2          -0.3
           III             r4.4          4.9         r0.5         r3.9           r1.2          -0.5
            IV             r4.3          3.4        r-0.9         r4.0           r1.3          -0.2

        ANNUAL             r4.4          5.5         r1.1         r3.6           r0.8          -0.7

  1996       I             r5.0          3.0        r-1.9         r2.6          r-0.1          -2.2
            II              5.5          6.2          0.6          3.3            0.4          -2.1
           III              6.0          6.8         r0.8          3.1            0.2          -2.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 5, 1996
  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

  1994       I           r102.9        104.3        101.4       r104.6         r100.0         101.7
            II           r104.4        106.3        101.9       r104.9           99.6         100.4
           III            104.4        106.9        102.4       r105.6           99.5         101.2
            IV           r105.2        108.3       r102.9       r106.4           99.7         101.1

        ANNUAL            104.2        106.5        102.2        105.3           99.7         101.1

  1995       I           r105.3        108.4       r103.0       r107.3          r99.8         102.0
            II           r106.4        107.8       r101.3       r108.6         r100.1         102.0
           III           r107.4        107.7       r100.2       r109.7         r100.6         102.1
            IV           r108.2        107.3        r99.1       r110.9         r101.2         102.5

        ANNUAL           r106.9        107.8       r100.9       r109.2         r100.5         102.1

  1996       I           r109.1        106.9        r98.0       r112.2         r101.5         102.9
            II           r109.6        107.5        r98.1       r113.2         r101.5         103.3
           III           r110.7       r108.3        r97.9       r114.5         r102.0        r103.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1994       I             r6.3          6.4          0.1         r3.6           r1.6         r-2.5
            II              6.0          8.1          1.9          1.1           -1.4          -4.7
           III             r0.1          2.0         r1.9         r3.1          r-0.7           3.0
            IV             r3.2          5.4         r2.1         r3.1           r0.8          -0.2

        ANNUAL              3.1          4.1          1.0          2.6            0.1          -0.5

  1995       I             r0.1          0.6         r0.5         r3.4           r0.5           3.3
            II             r4.4         -2.5        r-6.7         r4.6           r1.2           0.2
           III             r3.9         -0.3        r-4.1         r4.2           r2.1           0.3
            IV              3.0         -1.4         -4.3          4.7           r2.2           1.6

        ANNUAL             r2.6          1.3        r-1.3         r3.7           r0.8           1.0

  1996       I             r3.1         -1.5         -4.4         r4.7           r1.4           1.6
            II              2.0          2.4         r0.3         r3.7           -0.2           1.6
           III             r3.9         r3.0        r-0.9          4.7            2.3          r0.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1994       I              1.9          2.4          0.5          3.0            0.5           1.1
            II             r4.0          4.4          0.5         r2.7            0.2          -1.2
           III              3.2          4.3          1.0          2.6           -0.2          -0.6
            IV             r3.9          5.4         r1.5         r2.7           r0.1          -1.1

        ANNUAL              3.1          4.1          1.0          2.6            0.1          -0.5

  1995       I             r2.3          4.0         r1.6         r2.7          r-0.2           0.3
            II             r1.9          1.3        r-0.6         r3.5           r0.4           1.6
           III             r2.9          0.7        r-2.1         r3.8           r1.1           0.9
            IV             r2.8         -0.9        r-3.7         r4.2           r1.5           1.3

        ANNUAL             r2.6          1.3        r-1.3         r3.7           r0.8           1.0

  1996       I             r3.6         -1.4        r-4.9         r4.5           r1.7           0.9
            II              3.0         -0.2         -3.1          4.3            1.4           1.3
           III             r3.0         r0.6         -2.3          4.4            1.4           1.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 5, 1996
  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

  1994       I    102.7    107.4    r104.5   r103.8      99.2     101.0    102.1    101.3    120.5    102.8
            II   r102.6    108.9    r106.1   r103.8      98.6     101.2     98.7    100.5    134.5    103.1
           III    102.4    109.7     107.0    104.1      98.0     101.6     99.3    101.0    136.5    103.7
            IV   r102.7    111.5    r108.5   r104.7     r98.0     101.9     98.3    100.9    141.5    104.0

        ANNUAL    102.6    109.3     106.6    104.1      98.5     101.4     99.6    100.9    133.4    103.4

  1995       I   r101.8    111.4    r109.4   r105.3     r97.9     103.4    100.0    102.5    130.9    104.7
            II   r102.4    112.1    r109.4   r106.3     r98.0     103.8    100.9    103.0    130.1    105.1
           III   r103.7    114.0    r110.0   r107.3     r98.4     103.5     99.7    102.5    142.1    105.5
            IV   r104.3    115.2    r110.5   r108.3     r98.8     103.9    100.0    102.8    140.4    105.7

        ANNUAL   r103.1    113.2    r109.8   r106.8     r98.3     103.6    100.1    102.7    136.0    105.2

  1996       I   r104.6    115.8    r110.7   r109.0     r98.6     104.3     99.3    102.9    145.1    106.1
            II   r105.0    117.4    r111.9   r110.1     r98.7     104.9     98.4    103.1    147.8    106.5
           III    105.9    119.1     112.5    111.2      99.1     105.0     98.1    103.1    147.3    106.5
  ---------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1994       I     r1.0      5.0      r4.0     r3.6      r1.6       2.6     12.0      5.1    -22.4      2.2
            II     -0.5      5.7      r6.3      0.0      -2.5       0.5    -12.8     -3.3     55.2      1.2
           III    r-0.6      2.8      r3.5     r1.1     r-2.6       1.7      2.4      1.9      5.9      2.3
            IV     r1.1      6.7      r5.5     r2.4      r0.1       1.2     -3.7     -0.1     15.6      1.4

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I    r-3.4     -0.2      r3.3     r2.4     r-0.5       6.0      7.0      6.3    -26.8      2.4
            II     r2.3      2.4      r0.2     r3.8      r0.4       1.5      3.7      2.1     -2.4      1.6
           III     r4.9      7.2      r2.2     r3.7      r1.7      -1.1     -4.7     -2.1     42.2      1.6
            IV     r2.4      4.3       1.8     r3.9      r1.5       1.5      1.0      1.4     -4.8      0.7

        ANNUAL     r0.4      3.5      r3.0     r2.6     r-0.2       2.2      0.6      1.8      1.9      1.8

  1996       I     r1.3      2.2      r0.9     r2.7     r-0.5       1.5     -2.6      0.4     14.3      1.7
            II     r1.5      5.6      r4.1     r3.9      r0.0       2.4     -3.6      0.8      7.5      1.5
           III      3.6      5.8       2.2      4.1       1.7       0.5     -1.1      0.1     -1.3      0.0
  ---------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1994       I     r2.6      6.1      r3.4     r2.3     r-0.2      -0.3      1.5      0.2     17.1      1.5
            II     r1.7      5.8      r4.1     r1.9     r-0.5       0.2     -1.3     -0.2     20.6      1.6
           III      1.0      5.2       4.2      1.6      -1.2       0.7     -0.6      0.3     18.1      1.9
            IV     r0.2      5.1      r4.8     r1.8     r-0.9       1.5     -0.9      0.9     10.2      1.8

        ANNUAL      1.3      5.6       4.2      1.8      -0.7       0.5     -0.3      0.3     16.2      1.7

  1995       I    r-0.9      3.7      r4.6     r1.5     r-1.4       2.4     -2.1      1.1      8.6      1.8
            II    r-0.2      2.9      r3.1     r2.4     r-0.6       2.6      2.3      2.5     -3.3      1.9
           III     r1.2      4.0      r2.8     r3.1      r0.4       1.9      0.5      1.5      4.1      1.8
            IV     r1.5      3.4      r1.9     r3.5      r0.8       1.9      1.7      1.9     -0.8      1.6

        ANNUAL     r0.4      3.5      r3.0     r2.6     r-0.2       2.2      0.6      1.8      1.9      1.8

  1996       I     r2.7      4.0      r1.3     r3.5      r0.8       0.8     -0.7      0.4     10.9      1.4
            II      2.5      4.8       2.2      3.6       0.7       1.1     -2.5      0.1     13.6      1.4
           III      2.2      4.5       2.2      3.7       0.7       1.5     -1.6      0.7      3.6      1.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       December 5, 1996
  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 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.