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USDL 98-92
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EST
TUESDAY, MARCH 10, 1998.


                           PRODUCTIVITY AND COSTS
                  Fourth Quarter and Annual Averages, 1997


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised fourth-quarter seasonally-adjusted annual rates of
productivity change--as measured by output per hour of all persons--and
revised annual changes for the full year 1997.  In the fourth quarter,
productivity rose in both the business and nonfarm business sectors by less
than it had in the previous quarter.  Percent changes in business and nonfarm
business productivity were:

                                  Fourth  Annual averages
                                 quarter     1996-1997
     Business sector                1.8          1.9
     Nonfarm business sector        1.6          1.7
     
     For the year 1997, productivity increases in both sectors were about the
same as the 1996 increases.  Fourth-quarter productivity and related measures
are summarized in table A and appear in detail in tables 1 through 5; the
preliminary and revised fourth-quarter and annual data appear in table C.

     In the manufacturing sector, increases in productivity were:

                                     Fourth  Annual averages
                                     quarter     1996-1997
     Manufacturing                     4.3          4.4
       Durable goods manufacturing     6.3          5.7
       Nondurable goods manufacturing  1.3          3.2

     Manufacturing productivity rose at a 4.3 percent annual rate in the
fourth quarter as output growth accelerated to 8.2 percent and hours of all
persons grew 3.8 percent (table A).  On an annual basis, manufacturing
productivity rose 4.4 percent in 1997, the largest increase in a decade.
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.


-----------------------------------------------------------------------
Table A. Productivity and costs: Revised fourth-quarter 1997 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           1.8       5.0      3.2     5.5       3.4       3.7
 Nonfarm business   1.6       5.1      3.5     5.2       3.1       3.5
 Manufacturing      4.3       8.2      3.8     6.1       3.9       1.8
   Durable          6.3       9.9      3.4     7.5       5.3       1.1
   Nondurable       1.3       5.6      4.2     3.9       1.7       2.5
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
 Business           2.3       4.6      2.3     4.2       2.3       1.9
 Nonfarm business   2.1       4.6      2.4     4.1       2.2       1.9
 Manufacturing      4.8       6.3      1.4     4.1       2.2      -0.7
   Durable          6.9       9.4      2.4     4.2       2.2      -2.6
   Nondurable       2.6       2.7      0.1     3.9       2.0       1.3
-----------------------------------------------------------------------


     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 data 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.


                    THIRD-TO-FOURTH QUARTER CHANGES, 1997
                                      
Business

     Business sector productivity rose at a 1.8 percent annual rate in the
fourth quarter of 1997 as output increased 5.0 percent and hours of all
persons engaged in the sector increased 3.2 percent.  The fourth-quarter
increase in labor productivity was smaller than those posted in the previous
two quarters.  In the third quarter of 1997, labor productivity rose 3.5
percent as output increased 3.6 percent and hours of all persons grew 0.1
percent (table 1).

     Hourly compensation rose faster, 5.5 percent, during the fourth quarter
of 1997 than it had in the previous quarter, when it grew 4.2 percent.  This
measure includes wages and salaries, supplements, employer contributions to
employee-benefit plans, and taxes.  Unit labor costs, which reflect changes
in both hourly compensation and productivity, increased at a 3.7 percent
annual rate during the fourth quarter, after having increased only 0.7
percent in the third quarter.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.4 percent
annual rate for persons in the business sector.  This was the largest
quarterly increase in the series since a 5.0-percent rise was posted in the
first quarter of 1992.  Real hourly compensation rose 2.2 percent during the
third quarter.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, rose 0.9 percent in the
fourth quarter.  This increase was down slightly from the 1.1 percent gain in
the third quarter of 1997.

Nonfarm business

     In the nonfarm business sector, productivity rose 1.6 percent at an
annual rate in the fourth quarter as output rose 5.1 percent, and hours of
all persons--employees, proprietors, and unpaid family workers--rose 3.5
percent.  During the third quarter, nonfarm productivity had increased 3.6
percent as output grew 3.7 percent and hours edged up 0.1 percent (table 2).

     Hourly compensation rose 5.2 percent in the fourth quarter, more rapidly
than in the third quarter when it grew 3.8 percent.  The fourth-quarter
increase in hourly compensation in the nonfarm business sector was the
largest since a 7.7-percent rise was posted in the first quarter of 1992.
Real hourly compensation in the fourth quarter of 1997 increased 3.1 percent
when the increase in the CPI-U was taken into account.  During the third
quarter, it had risen 1.8 percent.

     Unit labor costs rose 3.5 percent in the fourth quarter, up from a 0.2-
percent increase in the third quarter of 1997.  The implicit price deflator
for nonfarm business rose less in the fourth quarter, 1.0 percent, than it
had one quarter earlier when it increased 1.2 percent.

Manufacturing

     Manufacturing productivity rose at a 4.3 percent seasonally adjusted
annual rate in the fourth quarter of 1997, down from an increase of 8.0
percent in the third quarter.  Output in the fourth quarter rose 8.2 percent,
and hours of all persons increased 3.8 percent.  The fourth-quarter output
increase was the largest since a 13.3-percent increase in the first quarter
of 1984.  In the third quarter, manufacturing output had grown 6.1 percent,
but hours had dropped 1.7 percent (table 3).  Productivity and output grew
more rapidly in durable goods industries than in nondurable goods.  In
durable goods, productivity increased 6.3 percent in the fourth quarter as
output rose 9.9 percent and hours of all persons grew 3.4 percent.  In
nondurable goods, output grew 5.6 percent and hours of all persons increased
4.2 percent, resulting in a productivity increase of 1.3 percent (tables 4
and 5).

     Hourly compensation of all manufacturing workers increased 6.1 percent
during the fourth quarter, up sharply from the 3.4 percent increase in the
previous quarter.  Hourly compensation rose 7.5 percent in durable goods
industries and 3.9 percent in nondurable goods industries.  When the increase
in consumer prices was taken into account, real hourly compensation in
manufacturing rose 3.9 percent in the fourth quarter and 1.5 percent in the
third quarter.

     Unit labor costs rose in the fourth quarter of 1997 by 1.8 percent, as
hourly compensation in the manufacturing sector rose faster than labor
productivity.  Unit labor costs had dropped in the third quarter by 4.2
percent as productivity increases exceeded increases in hourly compensation.
In durable goods, unit labor costs rose 1.1 percent in the fourth quarter
after having dropped 7.8 percent in the previous quarter.  Unit labor costs
in durable goods industries had fallen in 15 of the last 17 quarters.  In
nondurable goods industries, unit labor costs rose 2.5 percent in the fourth
quarter, more rapidly than the 0.2-percent rise one quarter earlier.

                                      
                      ANNUAL AVERAGE CHANGES, 1996-1997

Business

     In calendar year 1997, business productivity increased 1.9 percent,
after having increased 2.0 percent in the previous year (table 1).  Output
grew 4.5 percent in 1997 and 3.5 percent in 1996.  The 1997 output increase
was the largest since an 8.5-percent rise in 1984.  Hours of all persons in
the business sector rose 2.6 percent in 1997 and 1.4 percent in the previous
year.
     

--------------------------------------------------------------------
Table B. Productivity and costs: Revised 1997 annual averages
(Seasonally adjusted annual rates)
--------------------------------------------------------------------
                                                      Real      
                                             Hourly   hourly   Unit
                   Produc-                   compen-  compen-  labor
     Sector        tivity    Output  Hours   sation   sation   costs
--------------------------------------------------------------------                                  
                 Percent change from previous year
Business             1.9       4.5     2.6     3.9      1.6     2.0
Nonfarm business     1.7       4.5     2.7     3.8      1.5     2.1
Manufacturing        4.4       5.6     1.1     3.5      1.2    -0.9
  Durable            5.7       8.0     2.2     3.1      0.8    -2.5
  Nondurable         3.2       2.9    -0.3     4.0      1.6     0.7
--------------------------------------------------------------------

     
     Hourly compensation increased 3.9 percent in both 1996 and 1997.  Real
hourly compensation also increased in both years--0.9 percent in 1996 and 1.6
percent in 1997.  These were the first increases in real hourly compensation
since 1992 when it rose 2.1 percent.

     Unit labor costs increased 2.0 percent in 1997, up slightly from the 1.8-
percent increase in the previous year.  The implicit price deflator rose 1.7
percent in 1997 and 1.9 percent in 1996.  These are the only increases of
less than 2 percent in this series since the mid-1960s.

Nonfarm business

     Productivity increased 1.7 percent in the nonfarm business sector during
1997, as output rose 4.5 percent and hours of all persons increased 2.7 per
cent.  In 1996, productivity rose 1.9 percent, output rose 3.5 percent, and
hours of all persons grew 1.6 percent.

     Hourly compensation grew 3.8 percent in both 1997 and 1996.  However,
because the increase in the CPI-U was smaller in 1997 than in the previous
year, the increase in real hourly compensation in 1997, 1.5 percent, was
larger than the 0.8-percent increase in 1996.  The 1997 increase in real
hourly compensation was the largest since a 2.1 percent rise in 1992.
     
     Unit labor costs in the nonfarm business sector grew 2.1 percent in
1997, slightly more than the 1.9-percent increase posted in 1996.  The
implicit price deflator, which reflects nonlabor payments as well as labor
costs, rose 1.7 percent in both of the past two years.
     
Manufacturing

     Manufacturing productivity grew 4.4 percent in 1997, continuing a trend
of annual increases that began in 1980.  Output in the manufacturing sector
increased 5.6 percent in 1997, and hours of all persons rose 1.1 percent.  In
1996, manufacturing productivity rose 3.7 percent as output increased 3.2
percent and hours fell 0.5 percent.  Although productivity increased in both
the durable and nondurable goods sectors in 1997, durable goods manufacturers
had a larger increase (5.7 percent) than nondurable goods manufacturers (3.2
percent).  Trends in output and hours also were different in the two
subsectors.  Output and hours rose 8.0 and 2.2 percent, respectively, in the
durable goods sector in 1997.  In the nondurable goods sector, output rose
2.9 percent while hours fell slightly, 0.3 percent (tables B, 3, 4, and 5).

     The hourly compensation of manufacturing workers increased 3.5 percent
in 1997, somewhat faster than the 3.2-percent increase that occurred in 1996.
Real hourly compensation in the manufacturing sector rose 1.2 percent in 1997
following a 0.2 percent rise in the previous year.  The 1997 increase in
real hourly compensation was the largest since 1992, when it rose 1.4 percent.
Hourly compensation in durable goods rose 3.1 percent in 1997, and real hourly
compensation increased 0.8 percent.  In nondurable goods industries, hourly
compensation rose 4.0 percent, while real hourly compensation grew 1.6
percent.

     Unit labor costs in the manufacturing sector fell 0.9 percent last year.
This was the third consecutive year of falling unit labor costs in this
sector: they fell 0.5 percent in 1996 and 0.3 percent in 1995.  In durable
goods, unit labor costs have fallen every year since 1991 (when they rose 3.4
percent).  Unit labor costs in durable goods industries fell 2.5 percent in
1997, and they rose 0.7 percent in nondurable goods.
     
Revised Measures

     Productivity and cost data for the fourth quarter and full year 1997 for
business, nonfarm business, and manufacturing were revised to incorporate the
most recent information.  In the business and nonfarm business sectors,
productivity and output measures for the fourth quarter are lower and unit
labor costs are higher than those reported on Feb. 10 based on information
available at that time.  Unit labor costs also were revised up in the
manufacturing sector due to changes in the hourly compensation data.  Annual
measures of productivity and costs were unchanged in all sectors.  Quarterly
series for real hourly compensation in the business, nonfarm business, and
manufacturing sectors were revised back to the first quarter of 1993 to
incorporate the annual recalculation of seasonal factors for the Consumer
Price Index (table C).
     
     
--------------------------------------------------------------------
Table C. Previous and revised productivity and related measures:
Fourth-quarter and annual averages, 1997
(Seasonally adjusted annual rates)
--------------------------------------------------------------------                                                          
                                                   Real      
                                          Hourly   hourly    Unit
                 Produc-                  compen-  compen-   labor
Sector           tivity   Output   Hours  sation   sation    costs
--------------------------------------------------------------------                                                               
            Percent change, third to fourth quarter 1997
Business:                                                      
  Previous         2.2      5.5      3.2    5.4      3.2      3.1
  Current          1.8      5.0      3.2    5.5      3.4      3.7
Nonfarm business:                                              
  Previous         2.0      5.5      3.5    5.1      2.9      3.0
  Current          1.6      5.1      3.5    5.2      3.1      3.5
Manufacturing:                                                 
  Previous         4.2      8.3      4.0    5.7      3.6      1.5
  Current          4.3      8.2      3.8    6.1      3.9      1.8
--------------------------------------------------------------------
                     Percent change, 1996 - 1997
Business:                                                      
  Previous         1.9      4.5      2.6    3.9      1.6      2.0
  Current          1.9      4.5      2.6    3.9      1.6      2.0
Nonfarm business:                                              
  Previous         1.7      4.5      2.7    3.8      1.5      2.1
  Current          1.7      4.5      2.7    3.8      1.5      2.1
Manufacturing:                                                 
  Previous         4.4      5.6      1.1    3.5      1.2     -0.9
  Current          4.4      5.6      1.1    3.5      1.2     -0.9
--------------------------------------------------------------------


                              Next release date
                                      
     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Thursday, May 7, 1998, and will present preliminary first-quarter
measures for business, nonfarm business, and manufacturing.  Fourth-quarter
and annual data for nonfinancial corporations will be released at that time.
                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. Weekly paid hours are adjusted to hours at  work  using
 the BLS Hours at Work survey, conducted for this purpose.
       Data  from  the BLS Current Population Survey (CPS) are used  for  farm
 labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
 prepared  by the Bureau of Economic Analysis (BEA) of the Department  of Com-
 merce and the CPS are used to measure labor input for government enterprises,
 proprietors, and unpaid family workers.
 
 Output: Business sector output is an annual-weighted index constructed  after
 excluding  from  gross domestic product (GDP) the following outputs:  General
 government, nonprofit institutions, paid employees of private households, and
 the  rental value of owner-occupied dwellings. Corresponding exclusions  also
 are  made in labor inputs. Business output accounted for about 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes are constructed by deflating current-dollar
 industry  value  of production data from the U.S. Bureau of the  Census  with
 deflators  from  the BEA.  These deflators are based on  data  from  the  BLS
 producer  price  program  and  other sources.   The  industry  shipments  are
 aggregated  using annual weights, and intrasector transactions  are  removed.
 Quarterly  manufacturing output measures are based on the index of industrial
 production prepared monthly by the Board of Governors of the Federal  Reserve
 System  adjusted to be consistent with annual indexes of manufacturing sector
 output  prepared  by  BLS.   Durables  include  the  following  2-digit   SIC
 industries:   Primary  metal  industries;  fabricated  metal  products;  non-
 electrical  machinery;  industrial  and  commercial  machinery  and  computer
 equipment;   electronic   and  other  electrical  equipment;   transportation
 equipment;  instruments; lumber and lumber products; furniture and  fixtures;
 stone, clay, and glass and concrete products; and miscellaneous manufactures.
 Nondurables  include:  Food and kindred products, tobacco  products,  textile
 mill  products,  apparel  products, paper and allied products,  printing  and
 publishing,  chemicals and chemical products, petroleum refining and  related
 industries, rubber and plastic products, and leather and leather products.
      Nonfinancial corporate output is an annual-weighted index constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  dwellings; unincorporated business; and those corporations which  are
 depository  institutions, nondepository institutions, security and  commodity
 brokers,  insurance  carriers, regulated investment offices,  small  business
 investment   offices,   and  real  estate  investment  trusts.   Nonfinancial
 corporations accounted for about 52 percent of the value of GDP in 1992.
 
 Productivity:  These productivity measures describe the relationship  between
 real  output  and the labor time involved in its production.  They  show  the
 changes  from  period to period in the amount of goods and services  produced
 per  hour.  Although these measures relate output to hours  at  work  of  all
 persons engaged in a sector, they do not measure the specific contribution of
 labor,  capital, or any other factor of production. Rather, they reflect  the
 joint  effects  of many influences, including changes in technology;  capital
 investment; level of output; utilization of capacity, energy, and  materials;
 the organization of production; managerial skill; and the characteristics and
 effort of the work force.
 
       Information  in this release will be made available to sensory-impaired
 individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 
Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1995       I     100.1      108.7     108.6     105.7        98.2      105.5       108.3      106.5
            II     100.3      108.7     108.3     106.5        98.2      106.1       108.4      107.0
           III     100.6      109.8     109.2     107.3        98.4      106.7       108.8      107.4
            IV     101.2      110.7     109.3     108.3       r98.7      107.0       109.1      107.8

        ANNUAL     100.5      109.5     108.9     106.9        98.4      106.3       108.7      107.2

  1996       I     102.0      111.4     109.2     109.3        98.9      107.2       110.5      108.4
            II     102.8      113.2     110.1     110.8       r99.3      107.8       111.0      108.9
           III     102.6      113.5     110.6     111.8        99.6      108.9       110.7      109.6
            IV     103.1      115.0     111.5     112.7        99.6      109.3       111.3      110.0

        ANNUAL     102.6      113.3     110.4     111.1        99.3      108.3       110.9      109.2

  1997       I     103.5      116.6     112.7     113.8      r100.1      110.0       111.6      110.6
            II     104.1      117.8     113.1     114.7       100.5      110.2       112.4      111.0
           III     105.0      118.8     113.1     115.9       101.1      110.4       112.9      111.3
            IV    r105.5     r120.3     114.0    r117.5       101.9     r111.4      r111.8     r111.5

        ANNUAL     104.5      118.4     113.3     115.4       100.9     r110.5      r112.2      111.1

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I      -2.3        0.8       3.1       2.4       r-0.2        4.8        -0.2        2.9
            II       0.9        0.2      -0.8       3.2       r-0.1        2.3         0.4        1.6
           III       1.0        4.2       3.1       3.0         0.9        2.0         1.3        1.7
            IV       2.6        3.0       0.4       3.9         1.4        1.2         1.3        1.3

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I       3.1        2.8      -0.3       3.7        r0.6        0.7         5.1        2.3
            II       3.1        6.6       3.4       5.5        r1.7        2.3         1.8        2.1
           III      -0.7        0.9       1.6       3.6        r1.2        4.4        -1.1        2.4
            IV       2.0        5.4       3.3       3.4         0.0        1.4         2.2        1.7

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.6        5.9       4.2       4.1        r1.9        2.5         1.2        2.0
            II       2.2        3.9       1.6       3.1        r1.8        0.9         2.7        1.5
           III       3.5        3.6       0.1       4.2        r2.2        0.7         1.8        1.1
            IV      r1.8       r5.0       3.2      r5.5        r3.4       r3.7       r-3.7       r0.9

        ANNUAL       1.9        4.5       2.6       3.9         1.6        2.0         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I      -0.6        3.3       3.9       1.5        -1.3        2.2         3.2        2.6
            II      -0.4        1.7       2.1       2.4        -0.6        2.8         1.8        2.4
           III       0.0        2.4       2.3       2.7         0.1        2.7         1.3        2.2
            IV       0.6        2.0       1.5       3.1         0.5        2.6         0.7        1.9

        ANNUAL       0.0        2.3       2.4       2.5        -0.3        2.6         1.7        2.3

  1996       I       1.9        2.5       0.6       3.5         0.7        1.5         2.0        1.7
            II       2.5        4.2       1.7       4.0        r1.1        1.5         2.4        1.8
           III       2.0        3.3       1.3       4.2         1.2        2.1         1.8        2.0
            IV       1.8        3.9       2.0       4.0        r0.9        2.2         2.0        2.1

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.5        4.7       3.1       4.1         1.2        2.6         1.0        2.0
            II       1.3        4.0       2.7       3.6         1.2        2.3         1.2        1.9
           III       2.3        4.7       2.3       3.7         1.5        1.3         2.0        1.6
            IV      r2.3       r4.6       2.3       4.2         2.3       r1.9        r0.5        1.4

        ANNUAL       1.9        4.5       2.6       3.9         1.6        2.0         1.2        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 10, 1998 
  r=revised                                                              Source: Bureau of Labor Statistics

Table 2. Nonfarm business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1995       I     100.3      108.9     108.6     105.5        98.1      105.2       109.6      106.8
            II     100.5      108.9     108.4     106.3       r98.0      105.8       109.6      107.2
           III     100.8      110.2     109.3     107.1        98.3      106.3       109.7      107.5
            IV     101.4      111.0     109.5     108.1        98.6      106.7       109.8      107.8

        ANNUAL     100.7      109.8     109.0     106.7        98.3      106.0       109.7      107.3

  1996       I     102.1      111.7     109.4     109.1        98.7      106.9       111.0      108.4
            II     102.8      113.5     110.4     110.5        99.1      107.5       111.3      108.8
           III     102.6      113.8     110.9     111.4        99.3      108.6       110.9      109.4
            IV     103.1      115.3     111.9     112.3        99.3      109.0       111.4      109.8

        ANNUAL     102.6      113.6     110.7     110.8        99.1      108.0       111.2      109.1

  1997       I     103.4      116.9     113.1     113.5       r99.8      109.8       111.7      110.5
            II     104.0      118.0     113.5     114.4       100.2      110.0       112.4      110.9
           III     104.9      119.1     113.5     115.5       100.7      110.1       113.2      111.2
            IV    r105.3     r120.6     114.5    r117.0       101.4     r111.0      r112.2      111.5

        ANNUAL    r104.3      118.7     113.7     115.0      r100.6      110.2      r112.4      111.0

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1995       I      -1.8        1.2       3.1       2.3       r-0.3        4.2         1.3        3.1
            II       0.8        0.2      -0.7       3.1       r-0.3        2.3         0.1        1.5
           III       1.4        4.6       3.1       3.1         1.0        1.7         0.5        1.2
            IV       2.2        3.0       0.7       3.7         1.2        1.4         0.1        1.0

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I       2.8        2.6      -0.3       3.9        r0.7        1.0         4.6        2.3
            II       2.9        6.8       3.8       5.1        r1.3        2.2         0.9        1.7
           III      -0.7        1.0       1.7       3.3        r0.8        4.0        -1.4        2.0
            IV       1.9        5.4       3.5       3.4         0.0        1.5         2.0        1.7

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.1        5.6       4.5       4.3        r2.0        3.1         1.1        2.4
            II       2.3        3.8       1.5       3.2        r1.8        0.9         2.3        1.4
           III       3.6        3.7       0.1       3.8         1.8        0.2         2.9        1.2
            IV      r1.6       r5.1       3.5      r5.2        r3.1       r3.5       r-3.2       r1.0

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1        r1.1        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1995       I      -0.3        3.5       3.9       1.6        -1.2        2.0         4.3        2.8
            II      -0.3        1.9       2.2       2.3        -0.7        2.6         2.5        2.6
           III       0.4        2.7       2.3       2.8         0.2        2.4         1.5        2.1
            IV       0.6        2.2       1.6       3.1         0.4        2.4         0.5        1.7

        ANNUAL       0.2        2.6       2.4       2.5        -0.3        2.4         2.1        2.3

  1996       I       1.8        2.6       0.7       3.5        r0.6        1.6         1.3        1.5
            II       2.3        4.2       1.8       3.9        r1.0        1.6         1.5        1.6
           III       1.8        3.3       1.5       4.0         1.0        2.1         1.0        1.7
            IV       1.7        3.9       2.2       3.9         0.7        2.2         1.5        1.9

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.3        4.7       3.4       4.0        r1.1        2.7         0.6        1.9
            II       1.1        4.0       2.8       3.5        r1.2        2.4         1.0        1.9
           III       2.2        4.7       2.4       3.7         1.4        1.4         2.1        1.7
            IV      r2.1       r4.6       2.4       4.1        r2.2       r1.9        r0.7        1.5

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1        r1.1        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       March 10, 1998
  r=revised                                                              Source: Bureau of Labor Statistics
Table 3. Manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I            106.6        112.2        105.2        107.2          r99.7         100.6
            II            107.7        112.0        104.0        108.2           99.8         100.5
           III            108.8        112.8        103.6        109.2          100.2         100.4
            IV            109.2        113.0        103.4        110.1          100.4         100.8

        ANNUAL            108.1        112.5        104.1        108.7          100.1         100.6

  1996       I            110.4        113.4        102.7        110.8          100.2         100.3
            II            111.6        115.7        103.7        112.0         r100.4         100.4
           III            113.0        117.0        103.6        112.9          100.6          99.9
            IV            114.0        118.3        103.7        113.5          100.3          99.5

        ANNUAL            112.1        116.1        103.6        112.1          100.3         100.0

  1997       I            114.9        120.0        104.4        114.7          100.8          99.8
            II            116.0        121.5        104.7        115.4          101.1          99.5
           III            118.3        123.3        104.3        116.4          101.5          98.4
            IV            119.5       r125.7       r105.2       r118.1         r102.5         r98.9

        ANNUAL            117.1        122.6        104.7       r116.1         r101.5          99.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              3.3          3.9          0.5          2.2          r-0.4          -1.1
            II              4.3         -0.4         -4.5          3.8           r0.4          -0.5
           III              4.2          2.6         -1.5          3.9            1.7          -0.3
            IV              1.6          0.8         -0.7          3.2            0.7           1.6

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I              4.4          1.5         -2.7          2.4          r-0.7          -1.9
            II              4.2          8.1          3.8          4.7           r0.9           0.5
           III              5.3          4.9         -0.4          3.1           r0.7          -2.1
            IV              3.6          4.2          0.6          1.9           -1.4          -1.6

        ANNUAL              3.7          3.2         -0.5          3.2            0.2          -0.5

  1997       I              3.3          6.2          2.8          4.4           r2.2           1.0
            II              3.8          4.9          1.1          2.6           r1.3          -1.1
           III              8.0          6.1         -1.7          3.4           r1.5          -4.2
            IV             r4.3         r8.2         r3.8         r6.1           r3.9          r1.8

        ANNUAL              4.4          5.6          1.1          3.5            1.2          -0.9

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              2.7          5.6          2.8          2.0           -0.9          -0.7
            II              2.7          3.6          0.9          2.8           -0.2           0.1
           III              3.5          3.2         -0.3          3.1            0.5          -0.4
            IV              3.3          1.7         -1.6          3.2            0.6          -0.1

        ANNUAL              3.2          3.5          0.3          2.9            0.1          -0.3

  1996       I              3.6          1.1         -2.4          3.3            0.5          -0.3
            II              3.6          3.2         -0.3          3.5            0.7           0.0
           III              3.8          3.8          0.0          3.4            0.4          -0.5
            IV              4.4          4.7          0.3          3.0           -0.1          -1.3

        ANNUAL              3.7          3.2         -0.5          3.2            0.2          -0.5

  1997       I              4.1          5.8          1.7          3.5            0.6          -0.5
            II              4.0          5.0          1.0          3.0           r0.7          -0.9
           III              4.7          5.3          0.7          3.1            0.9          -1.5
            IV              4.8         r6.3         r1.4         r4.1           r2.2          -0.7

        ANNUAL              4.4          5.6          1.1          3.5            1.2          -0.9

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics
Table 4. Durable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I            110.6        118.2        106.9        107.1          r99.6          96.8
            II            111.4        118.1        106.0        107.9           99.5          96.8
           III            112.8        119.6        106.0        108.8           99.8          96.4
            IV            113.5        120.6        106.3        109.3          r99.6          96.3

        ANNUAL            112.1        119.1        106.3        108.2           99.7          96.6

  1996       I            115.2        121.8        105.7        109.7           99.2          95.2
            II            116.9        125.4        107.3        111.0           99.5          94.9
           III            118.6        127.2        107.3        111.7           99.5          94.2
            IV            119.5        128.4        107.5        111.8           98.8          93.6

        ANNUAL            117.4        125.7        107.1        110.9           99.1          94.5

  1997       I            120.7        131.3        108.8        113.1           99.4          93.7
            II            122.5        133.9        109.3        113.7           99.6          92.8
           III            125.8        137.2        109.1        114.4           99.7          90.9
            IV           r127.7       r140.5       r110.0       r116.5         r101.0         r91.2

        ANNUAL            124.1       r135.7        109.4        114.3           99.9          92.1

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              4.9          5.7          0.8          2.4          r-0.2          -2.4
            II              3.1         -0.4         -3.4          3.0          r-0.4          -0.1
           III              5.0          5.0          0.0          3.3            1.2          -1.6
            IV              2.5          3.5          1.0          2.0           -0.4          -0.5

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I              6.2          4.0         -2.1          1.4          r-1.7          -4.4
            II              6.0         12.6          6.2          4.7           r0.9          -1.2
           III              5.9          5.8         -0.1          2.6           r0.2          -3.1
            IV              3.1          3.8          0.7          0.5           -2.8          -2.5

        ANNUAL              4.7          5.5          0.8          2.4           -0.5          -2.2

  1997       I              4.1          9.4          5.1          4.8           r2.5           0.6
            II              6.2          8.1          1.8          2.1           r0.7          -3.9
           III             11.0         10.2         -0.8          2.4           r0.4          -7.8
            IV             r6.3         r9.9         r3.4         r7.5           r5.3          r1.1

        ANNUAL              5.7          8.0          2.2          3.1            0.8          -2.5

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              4.1          7.9          3.7          1.7           -1.1          -2.2
            II              3.5          5.4          1.9          2.5           -0.5          -0.9
           III              3.9          4.7          0.7          2.8            0.2          -1.1
            IV              3.9          3.4         -0.4          2.7           r0.0          -1.1

        ANNUAL              4.0          5.3          1.3          2.6           -0.2          -1.3

  1996       I              4.2          3.0         -1.1          2.4           -0.3          -1.7
            II              4.9          6.2          1.3          2.9            0.0          -1.9
           III              5.1          6.4          1.2          2.7           -0.3          -2.3
            IV              5.3          6.5          1.1          2.3          r-0.8          -2.8

        ANNUAL              4.7          5.5          0.8          2.4           -0.5          -2.2

  1997       I              4.8          7.8          2.9          3.1            0.2          -1.6
            II              4.8          6.8          1.9          2.5            0.1          -2.2
           III              6.1          7.9          1.7          2.4            0.2          -3.4
            IV             r6.9         r9.4          2.4         r4.2           r2.2         r-2.6

        ANNUAL              5.7          8.0          2.2          3.1            0.8          -2.5

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics
Table 5. Nondurable manufacturing sector:   Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I            102.8        105.8        103.0        107.0           99.5         104.1
            II            104.2        105.6        101.4        108.3          r99.8         103.9
           III            105.1        105.6        100.5        109.5          100.4         104.2
            IV            105.3        105.0         99.7        110.7         r100.9         105.2

        ANNUAL            104.4        105.5        101.1        108.9          100.3         104.4

  1996       I            105.9        104.6         98.8        111.8          101.1         105.5
            II            106.6        105.4         98.9        112.9         r101.2         105.9
           III            107.9        106.4         98.6        114.1          101.6         105.7
            IV            109.0        107.6         98.7        115.3          101.9         105.7

        ANNUAL            107.2        106.0         98.9        113.4          101.4         105.7

  1997       I            109.8        108.3         98.6        116.2         r102.2         105.8
            II            110.1        108.6         98.6        117.2          102.7         106.4
           III            111.4        109.0         97.8        118.7          103.4         106.5
            IV            111.8        110.5        r98.8       r119.8         r103.9         107.1

        ANNUAL            110.7        109.1         98.5        117.9          103.0         106.5

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1995       I              1.1          1.3          0.1          1.7          r-0.9           0.6
            II              5.6         -0.8         -6.1          4.8           r1.3          -0.8
           III              3.4         -0.3         -3.6          4.5            2.3           1.0
            IV              0.8         -2.3         -3.1          4.7            2.2           3.8

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I              2.5         -1.2         -3.6          4.0           r0.8           1.4
            II              2.6          3.1          0.4          4.1           r0.4           1.5
           III              4.8          3.8         -0.9          4.0           r1.5          -0.7
            IV              4.3          4.6          0.3          4.3            1.0           0.1

        ANNUAL              2.8          0.5         -2.2          4.1            1.1           1.3

  1997       I              3.0          2.5         -0.5          3.3           r1.1           0.3
            II              1.1          1.2          0.1          3.4           r2.0           2.3
           III              4.8          1.5         -3.1          5.0           r3.0           0.2
            IV             r1.3          5.6         r4.2         r3.9           r1.7          r2.5

        ANNUAL              3.2          2.9         -0.3         r4.0            1.6           0.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1995       I              1.3          3.0          1.6          2.1           -0.7           0.8
            II              1.9          1.3         -0.5          3.0            0.0           1.2
           III              3.0          1.1         -1.8          3.4            0.7           0.4
            IV              2.7         -0.5         -3.2          3.9            1.2           1.1

        ANNUAL              2.3          1.2         -1.1          3.2            0.4           0.9

  1996       I              3.1         -1.1         -4.1          4.5           r1.6           1.4
            II              2.3         -0.2         -2.5          4.3            1.4           1.9
           III              2.7          0.8         -1.8          4.2            1.2           1.5
            IV              3.5          2.5         -1.0          4.1            0.9           0.5

        ANNUAL              2.8          0.5         -2.2          4.1            1.1           1.3

  1997       I              3.7          3.5         -0.2          3.9            1.0           0.3
            II              3.3          3.0         -0.3          3.8            1.4           0.5
           III              3.3          2.4         -0.8          4.0            1.8           0.7
            IV             r2.6          2.7         r0.1         r3.9           r2.0           1.3

        ANNUAL              3.2          2.9         -0.3         r4.0            1.6           0.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                March 10, 1998
  r=revised                                                       Source: Bureau of Labor Statistics
Table 6. Nonfinancial corporations:   Productivity, hourly compensation, unit labor costs, unit profits,
  and prices, seasonally adjusted
 
                Output                      Hourly    Real                Unit     Total    Unit   Implicit
      Year      per all-                    compen-   hourly     Unit     non-     unit     pro-   price
      and       employee          Employee  sation    compen-    labor    labor    costs    fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    costs(6) (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  1995       I    102.9    112.3     109.2    105.1      97.7     102.2     99.8    101.6    135.2    104.6
            II    103.4    112.9     109.2    105.9      97.6     102.4    100.1    101.8    134.9    104.8
           III    104.7    114.9     109.7    106.6      97.8     101.9     99.0    101.1    145.5    105.1
            IV    105.4    115.9     110.0    107.5      98.0     102.0     99.1    101.2    147.3    105.4

        ANNUAL    104.1    114.0     109.5    106.3      97.9     102.1     99.5    101.4    140.8    105.0

  1996       I    106.0    116.5     109.9    108.3      98.0     102.1     99.2    101.4    152.5    106.0
            II    107.1    118.7     110.8    109.7     r98.3     102.4     98.4    101.4    154.7    106.2
           III    107.8    120.0     111.3    110.7      98.6     102.7     98.1    101.5    156.0    106.4
            IV    108.3    121.5     112.1    111.5      98.6     102.9     97.4    101.5    156.4    106.5

        ANNUAL    107.3    119.2     111.0    110.1      98.4     102.6     98.3    101.4    154.9    106.3

  1997       I    108.8    123.3     113.3    112.6     r99.0     103.5     97.0    101.8    157.9    106.9
            II    109.4    124.7     114.0    113.5     r99.4     103.7     97.1    102.0    159.1    107.2
           III    111.1    127.1     114.4    114.7     100.0     103.2     96.6    101.5    164.5    107.2
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1995       I     -3.3      0.0       3.4      2.1     r-0.5       5.6      2.8      4.9    -18.1      1.8
            II      2.0      2.0       0.0      3.0     r-0.3       1.0      1.0      1.0     -0.8      0.8
           III      5.2      7.2       1.9      2.9       0.7      -2.2     -4.2     -2.7     35.4      1.3
            IV      2.8      3.8       1.0      3.3       0.8       0.4      0.4      0.4      4.9      1.0

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      2.4      2.0      -0.3      3.1     r-0.1       0.7      0.6      0.7     15.0      2.4
            II      4.1      7.6       3.4      5.1      r1.4       1.1     -3.1      0.0      5.8      0.7
           III      2.7      4.3       1.6      3.8      r1.4       1.1     -1.4      0.5      3.5      0.9
            IV      2.1      5.2       3.1      3.0      -0.3       0.9     -2.8      0.0      1.0      0.1

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      1.7      6.1       4.3      4.0      r1.8       2.3     -1.8      1.3      3.8      1.6
            II      2.4      4.7       2.3      3.2      r1.8       0.8      0.5      0.7      3.2      1.1
           III      6.3      7.8       1.5      4.3      r2.3      -1.9     -1.9     -1.9     14.3      0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1995       I     -0.7      3.9       4.7      1.4      -1.4       2.2     -1.7      1.2      6.6      1.8
            II      0.3      3.5       3.1      2.1      -0.9       1.8      1.3      1.7      1.9      1.7
           III      1.5      4.3       2.7      2.5      -0.1       1.0     -0.5      0.6      6.7      1.3
            IV      1.6      3.2       1.6      2.8       0.2       1.2      0.0      0.9      3.6      1.2

        ANNUAL      0.8      3.7       2.9      2.3      -0.5       1.5     -0.2      1.1      4.7      1.5

  1996       I      3.1      3.7       0.6      3.1       0.3       0.0     -0.6     -0.2     12.8      1.4
            II      3.6      5.1       1.5      3.6       0.7       0.0     -1.6     -0.4     14.6      1.3
           III      3.0      4.4       1.4      3.8      r0.9       0.8     -0.9      0.4      7.2      1.2
            IV      2.8      4.8       1.9      3.8       0.6       1.0     -1.7      0.3      6.2      1.0

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      2.6      5.8       3.1      4.0       1.0       1.3     -2.3      0.4      3.5      0.8
            II      2.2      5.1       2.8      3.5      r1.2       1.3     -1.4      0.6      2.9      0.9
           III      3.1      5.9       2.8      3.6       1.4       0.5     -1.5      0.0      5.5      0.7
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        March 10, 1998
  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.