USDL 05-177
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EST,
 THURSDAY, FEBRUARY 3, 2005
                                     
Internet address:       http://www.bls.gov/lpc/      

Historical, technical 
  information: (202) 691-5606                              
Current data:  (202) 691-5200               
Media contact: (202) 691-5902              
                                      
                                      
                           PRODUCTIVITY AND COSTS
                       Preliminary Fourth Quarter and
                          Annual Averages for 2004
                                      
                                      
     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the fourth quarter and for the full year 2004.  The seasonally
adjusted annual rates of productivity change in the fourth quarter and the
annual average changes were:

                                     Fourth   Annual averages
                                     quarter     2003-2004
                                     
     Business sector                   2.5          4.0
     Nonfarm business sector           0.8          4.1
     
     
     In the fourth quarter, productivity increased 2.5 percent in the
business sector--about the same as in the third quarter, when it increased
2.4 percent (seasonally adjusted annual rates).  In nonfarm businesses,
productivity grew more slowly in the fourth quarter, 0.8 percent, than in the
third quarter, when it rose 1.8 percent.  On an annual average basis,
productivity rose 4.0 percent in the business sector and 4.1 percent in the
nonfarm business sector.

     In the manufacturing sector, increases in productivity were:

                                     Fourth   Annual averages
                                     quarter     2003-2004
                                     
     Manufacturing sector              5.6          4.9
       Durable goods manufacturing     7.3          6.1
       Nondurable goods manufacturing  3.7          3.9
       
     
     Manufacturing productivity grew 5.6 percent in the fourth quarter.  On
an annual average basis, output per hour in the manufacturing sector posted a
4.9-percent increase in 2004.  Output and hours in manufacturing, which
includes about 13 percent of U.S. business-sector employment, tend to vary
more from quarter to quarter than data for the aggregate business and nonfarm
business sectors. Fourth-quarter productivity and related measures are
summarized in table A, and annual average data in table B.  Detailed
information is presented in tables 1 through 5.

------------------------------------------------------------------------------
Table A. Productivity and costs:  Preliminary fourth-quarter 2004 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            2.5       3.3      0.8     4.2       0.8        1.7
Nonfarm business    0.8       2.8      1.9     3.1      -0.3        2.3
Manufacturing       5.6       4.5     -1.0     6.0       2.5        0.4
  Durable           7.3       6.6     -0.6     6.1       2.6       -1.1
  Nondurable        3.7       2.0     -1.7     5.7       2.2        2.0
------------------------------------------------------------------------------  
                      Percent change from same quarter a year ago
                      
Business            2.9       4.2      1.3     4.0       0.6        1.1
Nonfarm business    2.5       4.2      1.6     3.6       0.2        1.0
Manufacturing       4.8       5.0      0.2     3.2      -0.2       -1.5
  Durable           5.4       6.7      1.2     2.4      -0.9       -2.8
  Nondurable        4.4       2.9     -1.4     4.4       1.0        0.1
------------------------------------------------------------------------------                                      
                                      
     The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production 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, 2004
                                      
Business

     Productivity in the business sector increased by 2.5 percent in the
fourth quarter of 2004, reflecting increases of 3.3 percent in output and 0.8
percent in hours of all persons (seasonally adjusted annual rates).  Output
per hour had increased 2.4 percent in the third quarter, as output  and hours
increased 4.5 percent and 2.0 percent, respectively.

     Hourly compensation grew 4.2 percent in the fourth quarter of 2004,
following a 3.8-percent increase one quarter earlier. This measure includes
wages and salaries, supplements, employer contributions to employee-benefit
plans, and taxes.  Real hourly compensation, which takes into account changes
in consumer prices, rose 0.8 percent in the fourth quarter, and 1.9 percent
in the third quarter, of 2004.

     Unit labor costs, which relate hourly compensation to output per hour,
increased 1.7 percent in the fourth quarter.  Business sector unit labor
costs had increased 1.3 percent in the third quarter of 2004.

Nonfarm business

     In the nonfarm business sector, productivity increased 0.8 percent in
the fourth quarter of 2004, as output grew 2.8 percent and hours of all
persons grew 1.9 percent (seasonally adjusted annual rates).    Productivity
had increased 1.8 percent in the third quarter of 2004, reflecting a 4.2-
percent rise in output and 2.4-percent growth in hours of all persons (table
2).  The fourth-quarter 0.8-percent increase in productivity was the smallest
since the first quarter of 2001, when nonfarm business output per hour
declined 0.4 percent.

     Hourly compensation in the nonfarm business sector rose 3.1 percent in
the fourth quarter of 2004, following a 3.5-percent increase in the third
quarter.  When changes in consumer prices were taken into account, real
hourly compensation declined 0.3 percent during the fourth quarter of 2004
and increased 1.6 percent in the third quarter.

     Unit labor costs increased 2.3 percent in the fourth quarter, after
rising 1.6 percent in the third quarter of 2004.  The implicit price deflator
for nonfarm business output increased 2.0 percent in the fourth quarter of
2004, after increasing 1.8 percent one quarter earlier.

Manufacturing

     Manufacturing productivity grew 5.6 percent (seasonally adjusted annual
rate) in the fourth quarter of 2004 as output increased 4.5 percent and hours
decreased 1.0 percent (table 3).    In the third quarter, manufacturing
productivity increased 4.2 percent, reflecting a 4.0-percent rise in output
and a 0.1-percent decline in hours.  In durable goods manufacturing,
productivity rose 7.3 percent in the fourth quarter as output grew 6.6
percent and hours decreased 0.6 percent (table 4).  Among nondurable goods
manufacturers, productivity increased 3.7 percent in the fourth quarter as
output rose 2.0 percent and hours at work in the sector fell 1.7 percent
(table 5).

     Average hourly compensation of manufacturing workers increased 6.0
percent in the fourth quarter of 2004, reflecting increases in hourly
compensation of 6.1 percent in durable goods manufacturing and 5.7 percent in
nondurable goods manufacturing.  When the increase in consumer prices was
taken into account, real hourly compensation in total manufacturing rose 2.5
percent.

     Unit labor costs for the manufacturing sector rose 0.4 percent in fourth-
quarter 2004.  In durable goods manufacturing, unit labor costs fell 1.1
percent, and in nondurable goods manufacturing unit labor costs increased 2.0
percent.

     
                      ANNUAL AVERAGE CHANGES, 2003-2004
                                      
Business

     Business sector productivity increased 4.0 percent when the annual
average for 2004 was compared with the annual average for 2003 (table B).
Output increased 5.1 percent and hours of all persons engaged in the sector
rose 1.0 percent.  Productivity had increased 4.5 percent in 2003, when
output rose 3.8 percent and hours fell 0.7 percent.  The 4.5-percent
productivity increase in 2003 was the largest in the sector since a 4.6-
percent rise in 1962.

------------------------------------------------------------------------------
 Table B. Annual average changes in productivity and related
measures, 1995-2004
------------------------------------------------------------------------------
        Measure    1995  1996  1997  1998  1999  2000  2001  2002  2003  2004
------------------------------------------------------------------------------                                                             
 Business:
 
  Productivity      0.2   2.9   1.9   2.7   2.9   2.9   2.5   4.3   4.5   4.0
  Output            2.9   4.6   5.3   4.8   5.1   3.9   0.3   1.8   3.8   5.1
  Hours             2.7   1.6   3.4   2.1   2.2   1.0  -2.1  -2.4  -0.7   1.0                                     
  Hourly            
  compensation	    2.0   3.4   3.2   6.0   4.8   7.1   4.2   3.2   4.1   4.3
  Real hourly      
  compensation     -0.4   0.7   1.0   4.6   2.6   3.6   1.3   1.5   1.8   1.6    
  Unit labor costs  1.9   0.5   1.3   3.3   1.8   4.0   1.6  -1.1  -0.4   0.3
 -----------------------------------------------------------------------------                                                           
 Nonfarm Business: 
 
  Productivity      0.5   2.7   1.6   2.7   2.8   2.8   2.5   4.4   4.4   4.1
  Output            3.2   4.5   5.2   5.0   5.2   3.8   0.4   1.8   3.8   5.3
  Hours             2.7   1.8   3.5   2.2   2.3   1.0  -2.0  -2.5  -0.6   1.1                                                            
  Hourly            
  compensation	    2.1   3.4   3.1   5.9   4.6   7.1   4.0   3.3   4.1   4.2	
  Real hourly      
  compensation     -0.3   0.7   0.9   4.5   2.5   3.6   1.1   1.6   1.7   1.5     
  Unit labor costs  1.6   0.7   1.4   3.2   1.8   4.2   1.5  -1.1  -0.4   0.1
 -----------------------------------------------------------------------------                                                           
 Manufacturing: 
 
  Productivity      3.6   3.6   3.6   4.8   3.6   4.7   2.1   7.6   5.0   4.9
  Output            4.5   3.2   5.5   4.5   2.9   3.0  -4.6  -0.1   0.0   4.8                                                   
  Hours             0.8  -0.4   1.8  -0.3  -0.6  -1.6  -6.5  -7.1  -4.8  -0.1                                                              
  Hourly            
  compensation	    1.9   1.9   2.6   5.8   3.9   9.1   2.3   6.7   8.5   3.6
  Real hourly      
  compensation     -0.5  -0.8   0.5   4.3   1.8   5.6  -0.4   5.0   6.1   0.9   
  Unit labor costs -1.7  -1.6  -0.9   1.0   0.3   4.2   0.2  -0.8   3.3  -1.3
------------------------------------------------------------------------------

     Hourly compensation in the business sector increased 4.3 percent in
2004, following a 4.1-percent increase in 2003.  Real hourly compensation
increased 1.6 percent in 2004 and 1.8 percent one year earlier.  Unit labor
costs in the business sector rose 0.3 percent in 2004 and fell 0.4 percent in
2003.  The implicit price deflator for the business sector rose 1.7 percent
in 2004 and 1.3 percent in 2003.

Nonfarm business

     Productivity increased 4.1 percent in the nonfarm business sector in
2004, reflecting increases of 5.3 percent in output and 1.1 percent in hours.
During 2003, output per hour  increased 4.4 percent in nonfarm business, as
output rose 3.8 percent and hours of all persons fell 0.6 percent.  Nonfarm
productivity also had increased 4.4 percent in 2002. When the productivity
increases for 2002, 2003, and 2004 are combined, productivity for the 2001-
2004 period rose 4.3 percent in nonfarm businesses.  The last comparable
three-year rise occurred over the 1948-1951 period, when productivity
increased at a 4.2 percent annual rate, incorporating gains of 3.3 percent in
1949, 6.6 percent in 1950, and 2.7 percent in 1951.

     In 2004, hourly compensation increased 4.2 percent, similar to the 4.1-
percent rise in 2003. When the increase in consumer prices was taken into
account, real hourly compensation rose 1.5 percent in 2004 and 1.7 percent in
2003.

     Unit labor costs in the nonfarm business sector edged up 0.1 percent in
2004, following a 0.4-percent decline in 2003.  The implicit price deflator
for nonfarm business rose 1.6 percent in 2004 and 1.1 percent in 2003.

Manufacturing

     In manufacturing, labor productivity rose 4.9 percent in 2004, as output
grew 4.8 percent and hours of all persons declined 0.1 percent (table B).
Although productivity had increased at a similar rate in 2003, 5.0 percent,
that productivity gain was due almost entirely to falling hours, as output
was unchanged.  There was a 6.1-percent increase in durable goods
manufacturing productivity in 2004, as output rose 7.1 percent and hours rose
0.9 percent.  Nondurable goods manufacturing posted a more modest increase in
productivity, 3.9 percent, reflecting an increase in output of 2.1 percent
and a decrease in hours of 1.8 percent.

     Hourly compensation of manufacturing workers increased 3.6 percent in
2004, down from the 8.5-percent growth rate in 2003.  In 2004, hourly
compensation rose 2.9 percent in durable goods manufacturing and 4.8 percent
in nondurable good manufacturing.  Taking into account the rise in consumer
prices, real hourly compensation in manufacturing rose 0.9 percent in 2004
and 6.1 percent one year earlier.

     Unit labor costs in manufacturing fell 1.3 percent in 2004.  These costs
had increased 3.3 percent in calendar year 2003.  Unit labor costs in durable
goods manufacturing fell 3.0 percent in 2004, compared with a 0.8-percent
rise in unit labor costs in nondurable goods manufacturing.

Revised Measures

     Current and previous measures for the third quarter of 2004 for the
business and nonfarm business sectors are compared in table C.  In the
business and nonfarm business sectors, productivity, output, and hours growth
in the third quarter were the same as reported on Dec. 7.  Also in both of
these sectors, hourly compensation and real hourly compensation grew less
than reported in December.  Because hourly compensation was revised down
while productivity was unchanged, unit labor costs in the third quarter
increased less than previously reported.


------------------------------------------------------------------------------
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 2004
                             
Business:                                                       
  Previous          2.4      4.5      2.0     4.0      2.1       1.5
  Current           2.4      4.5      2.0     3.8      1.9       1.3
Nonfarm business:                                               
  Previous          1.8      4.2      2.4     3.6      1.8       1.8
  Current           1.8      4.2      2.4     3.5      1.6       1.6
Manufacturing:                                                  
  Previous          4.6      4.5     -0.1     4.6      2.7       0.0
  Current           4.2      4.0     -0.1     4.5      2.6       0.3
------------------------------------------------------------------------------     
     
     
     In the manufacturing sector, output and productivity were revised down
in the third quarter, and hours of all persons were unchanged.  Growth in
hourly compensation and real hourly compensation were also revised down.
Because the downward revision to productivity was greater than that to hourly
compensation, unit labor costs were revised up.
     
     Manufacturing sector productivity and costs measures reflect revised
source data.  Revised indexes of industrial production were published by the
Board of Governors of the Federal Reserve System on Dec. 22.  Incorporating
the revised data impacted quarterly measures of output, productivity, and
unit labor costs back to 1987 and annual measures for 2002 and 2003. Also,
revised data on manufacturing compensation for 1987-1997 were provided by the
U.S. Department of Commerce on a NAICS rather than SIC basis for the first
time.  Annual and quarterly measures of hourly compensation, real hourly
compensation, and unit labor costs were subject to revision from this source
back to 1987.  Annual historical data for manufacturing, durable
manufacturing, and nondurable manufacturing  are presented in appendix tables
1-3.  Tables showing the quarterly and annual data for all years, 1987-2004,
will be posted on the BLS website later today.


Revised measures: Nonfinancial Corporations
     
     Revised third-quarter productivity and output measures for nonfinancial
corporations also were announced today.  In the third quarter, output and
productivity increased less, and hours increased more, than reported on Dec.
7.  Hourly compensation was revised down less than was productivity,
resulting in a smaller decline in unit labor costs  than previously reported
(table D).


------------------------------------------------------------------------------
Table D.  Nonfinancial corporations:  Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
------------------------------------------------------------------------------                                                                     
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
------------------------------------------------------------------------------                                                                     
                              Third quarter 2004
                              
Previous     4.2      5.6     1.3    4.0      2.1    -0.3    0.9      0.3
Current      3.9      5.4     1.4    3.8      1.9    -0.1    0.6      0.2
------------------------------------------------------------------------------
     
     The measure of output for the nonfinancial corporate sector has been
revised by the Bureau of Economic Analysis (BEA), U.S. Department of
Commerce.  As a result, several measures for this sector were revised back to
1958.  Recent quarterly and annual data for nonfinancial corporations are
shown in table 6.  Appendix table 4 provides complete annual measures.  And
full quarterly and annual historical series will be posted on the BLS website
later today.

Upcoming changes to productivity and cost data

    Later this year, BLS will improve the way it uses data for farm workers,
the nonfarm self- employed, and nonfarm unpaid family workers in the
productivity program by accounting for the effects of multiple jobholding.
Current measures treat all hours worked by individuals whose primary job is
in these groups as being on the primary job. This may overstate the hours of
some workers while omitting the hours of others. The revised measures will be
adjusted in two ways. First, hours worked by these workers in their primary
jobs will be used in each measure.  Secondly, the hours of all persons who
hold more than one job will be examined. Hours worked in secondary jobs by
the self-employed, unpaid family workers, and farm wage and salary workers
will be included in the hours used for the productivity and cost measures.
The aggregate effect of these changes is small.

     
                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 A.M.
EST, Thursday, March 3, 2005.  Revised fourth-quarter and annual average
measures for business, nonfarm business, and manufacturing will be released
at that time.


                                      

                                      
                               TECHNICAL NOTES
                                      
Labor  Hours: Hours data for the labor productivity and cost measures include
hours for all persons working in the sector-wage and salary workers, the self-
employed,  and  unpaid family workers.  The primary source of  hours  and  em-
ployment  data is the BLS Current Employment Statistics (CES) program,  which
provides  monthly survey data on the number of jobs held by wage  and  salary
workers in nonfarm establishments.  The CES also provides average weekly paid
hours  of  production  and  nonsupervisory workers in  these  establishments.
Weekly  paid hours are adjusted to hours at work using data from the National
Compensation Survey (NCS).  The BLS Hours at Work survey, conducted for  this
purpose,  was  used for years prior to 2001.  The Office of Productivity  and
Technology  estimates  average weekly hours at  work  for  nonproduction  and
supervisory  workers  using  information from the Current  Population  Survey
(CPS), the CES, and the NCS.
     Data  from  the  CPS are used for farm labor, nonfarm  proprietors,  and
nonfarm unpaid family workers.  Estimates of labor input for government enter
prises are derived from the CPS, the CES, and the National Income and Product
Accounts  (NIPA)  prepared by the Bureau of Economic Analysis  (BEA)  of  the
Department of Commerce.

Output: Business sector output is an annual-weighted index constructed  after
excluding  from  gross domestic product (GDP) the following outputs:  general
government, nonprofit institutions, and private households (including  owner-
occupied  housing). Corresponding exclusions also are made in  labor  inputs.
Business  output accounted for about 78 percent of the value of GDP in  2000.
Nonfarm business, which also excludes farming, accounted for about 77 percent
of GDP in 2000.
   Annual  indexes  for  manufacturing and its durable and  nondurable  goods
components  are  constructed by deflating current-dollar  industry  value  of
production  data from the U.S. Bureau of the Census with deflators  from  the
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 3-digit NAICS industries: wood  product
manufacturing;  nonmetallic  mineral  product  manufacturing;  primary  metal
manufacturing;  fabricated  metal  product manufacturing;  machinery  manufac
turing;  computer and electronic product manufacturing; electrical  equipment
and   appliance   manufacturing;  transportation   equipment   manufacturing;
furniture and related product manufacturing; and miscellaneous manufacturing.
Nondurables include: food manufacturing; beverage and tobacco product manufac-
turing;  textile mills; textile product mills; apparel manufacturing; leather
and  allied product manufacturing; paper manufacturing; printing and  related
support activities; petroleum and coal products manufacturing; chemical  manu-
facturing; and plastics and rubber products manufacturing.
   Nonfinancial  corporate output is an annual-weighted index  calculated  on
the  basis of the costs incurred and the incomes earned from production.  The
output  measure excludes the following outputs from GDP: general  government;
nonprofit  institutions;  private households;  unincorporated  business;  and
those  corporations classified as offices of bank holding companies,  offices
of  other holding companies, or offices in the finance and insurance  sector.
Nonfinancial corporations accounted for about 54 percent of the value of  GDP
in 2000.

Productivity:  These productivity measures describe the relationship  between
real  output  and the labor time involved in its production.  They  show  the
changes  from  period to period in the amount of goods and services  produced
per  hour.  Although these measures relate output to hours  at  work  of  all
persons engaged in a sector, they do not measure the specific contribution of
labor,  capital, or any other factor of production. Rather, they reflect  the
joint  effects  of many influences, including changes in technology;  capital
investment; level of output; utilization of capacity, energy, and  materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
     Information  in  this release will be made available to sensory-impaired
individuals  upon request. Voice phone: 202-691-5606; Federal  Relay  Service
number: 1-800-877-8339.


  Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2002       I     122.7      142.2     115.9     143.2       115.2      116.7       113.4      115.5
            II     123.2      142.9     116.0     144.4       115.2      117.2       113.6      115.9
           III     124.7      144.3     115.7     145.0       115.0      116.3       115.7      116.1
            IV     125.0      144.7     115.7     145.5       114.8      116.3       116.8      116.5

        ANNUAL     123.9      143.5     115.8     144.5       115.0      116.6       114.9      116.0

  2003       I     126.2      145.5     115.3     147.4       115.3      116.8       117.7      117.1
            II     128.6      147.5     114.7     149.6       116.8      116.4       119.0      117.3
           III     131.2      150.8     114.9     151.7       117.7      115.6       120.8      117.5
            IV     132.0      152.3     115.4     153.2       118.7      116.0       120.7      117.8

        ANNUAL     129.5      149.0     115.1     150.5       117.1      116.2       119.6      117.4

  2004       I     133.3      154.3     115.8     154.2       118.4      115.7       122.9      118.4
            II     134.2      155.8     116.1     156.2       118.6      116.4       124.4      119.4
           III     135.0      157.5     116.6     157.7      r119.1      116.8      r124.6     r119.7
            IV     135.8      158.8     116.9     159.3       119.3      117.3       125.3      120.3

        ANNUAL     134.7      156.6     116.3     156.9       118.9      116.5       124.3      119.4

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2002       I       5.9        3.5      -2.3       4.9         3.5       -1.0         1.0       -0.3
            II       1.7        2.1       0.4       3.4        -0.1        1.7         1.0        1.4
           III       4.8        3.8      -1.0       1.6        -0.7       -3.1         7.3        0.7
            IV       1.2        1.2       0.0       1.3        -0.6        0.0         3.8        1.4

        ANNUAL       4.3        1.8      -2.4       3.2         1.5       -1.1         4.5        0.9

  2003       I       3.9        2.2      -1.6       5.5         1.7        1.6         3.1        2.1
            II       7.6        5.6      -1.9       6.1         5.4       -1.4         4.5        0.8
           III       8.5        9.3       0.7       5.6         3.1       -2.6         6.3        0.7
            IV       2.4        4.2       1.7       4.0         3.3        1.6        -0.4        0.8

        ANNUAL       4.5        3.8      -0.7       4.1         1.8       -0.4         4.1        1.3

  2004       I       3.9        5.3       1.3       2.8        -0.8       -1.1         7.4        2.1
            II       2.9        3.9       1.0       5.2         0.5        2.3         5.0        3.3
           III       2.4        4.5       2.0      r3.8        r1.9       r1.3        r0.7       r1.1
            IV       2.5        3.3       0.8       4.2         0.8        1.7         2.4        2.0

        ANNUAL       4.0        5.1       1.0       4.3         1.6        0.3         4.0        1.7

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2002       I       4.9        0.8      -3.9       3.2         1.9       -1.6         6.6        1.2
            II       4.0        1.1      -2.8       3.4         2.1       -0.6         3.5        0.9
           III       4.9        2.8      -2.0       3.3         1.6       -1.6         5.0        0.8
            IV       3.4        2.7      -0.7       2.8         0.5       -0.6         3.2        0.8

        ANNUAL       4.3        1.8      -2.4       3.2         1.5       -1.1         4.5        0.9

  2003       I       2.9        2.3      -0.6       2.9         0.1        0.0         3.8        1.4
            II       4.4        3.2      -1.1       3.6         1.4       -0.7         4.7        1.3
           III       5.3        4.5      -0.7       4.6         2.4       -0.6         4.4        1.3
            IV       5.6        5.3      -0.3       5.3         3.4       -0.3         3.4        1.1

        ANNUAL       4.5        3.8      -0.7       4.1         1.8       -0.4         4.1        1.3

  2004       I       5.6        6.1       0.5       4.6         2.7       -0.9         4.4        1.1
            II       4.4        5.6       1.2       4.4         1.5        0.0         4.5        1.7
           III       2.9        4.4       1.5       4.0         1.2       r1.0        r3.1        1.8
            IV       2.9        4.2       1.3       4.0         0.6        1.1         3.8        2.1

        ANNUAL       4.0        5.1       1.0       4.3         1.6        0.3         4.0        1.7

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 3, 2005
  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

  2002       I     122.4      142.6     116.5     142.6       114.7      116.4       115.1      116.0
            II     122.8      143.2     116.7     143.8       114.7      117.1       115.4      116.5
           III     124.1      144.5     116.4     144.3       114.4      116.2       117.7      116.8
            IV     124.6      145.0     116.4     144.7       114.3      116.1       118.9      117.2

        ANNUAL     123.5      143.9     116.5     143.8       114.5      116.5       116.8      116.6

  2003       I     125.8      145.9     116.0     146.6       114.7      116.6       119.6      117.7
            II     127.8      147.8     115.6     148.7       116.1      116.3       120.4      117.8
           III     130.6      151.1     115.7     150.9       117.1      115.5       122.3      118.0
            IV     131.7      152.8     116.1     152.5       118.2      115.9       121.9      118.1

        ANNUAL     129.0      149.4     115.8     149.7       116.5      116.1       121.1      117.9

  2004       I     132.8      155.0     116.7     153.3       117.7      115.4       124.3      118.7
            II     134.1      156.5     116.7     155.5       118.0      115.9       125.7      119.6
           III     134.7      158.2     117.4    r156.8       118.5     r116.4      r126.3     r120.1
            IV     135.0      159.3     118.0     158.0       118.4      117.1       126.8      120.7

        ANNUAL     134.2      157.2     117.1     156.0       118.2      116.2       125.8      119.8

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2002       I       6.9        4.0      -2.7       5.5         4.1       -1.4         1.6       -0.3
            II       1.1        1.7       0.6       3.4        -0.1        2.3         1.0        1.8
           III       4.5        3.6      -0.9       1.5        -0.8       -2.9         8.0        1.0
            IV       1.6        1.4      -0.2       1.2        -0.6       -0.3         4.2        1.3

        ANNUAL       4.4        1.8      -2.5       3.3         1.6       -1.1         4.7        1.0

  2003       I       3.7        2.4      -1.3       5.3         1.5        1.6         2.4        1.9
            II       6.7        5.3      -1.4       5.7         5.0       -1.0         2.9        0.5
           III       9.0        9.3       0.3       6.1         3.6       -2.7         6.3        0.6
            IV       3.1        4.6       1.4       4.4         3.6        1.2        -1.2        0.3

        ANNUAL       4.4        3.8      -0.6       4.1         1.7       -0.4         3.7        1.1

  2004       I       3.7        5.7       2.0       2.0        -1.6       -1.6         8.0        2.0
            II       3.9        4.2       0.3       5.9         1.1        1.9         4.6        2.9
           III       1.8        4.2       2.4      r3.5        r1.6       r1.6        r2.1       r1.8
            IV       0.8        2.8       1.9       3.1        -0.3        2.3         1.6        2.0

        ANNUAL       4.1        5.3       1.1       4.2         1.5        0.1         3.9        1.6

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2002       I       5.1        0.9      -4.0       3.2         2.0       -1.8         6.7        1.2
            II       4.0        1.0      -2.9       3.5         2.2       -0.5         3.4        0.9
           III       4.8        2.6      -2.1       3.4         1.7       -1.3         5.2        1.0
            IV       3.5        2.7      -0.8       2.9         0.6       -0.6         3.7        1.0

        ANNUAL       4.4        1.8      -2.5       3.3         1.6       -1.1         4.7        1.0

  2003       I       2.7        2.3      -0.5       2.9         0.0        0.1         3.9        1.5
            II       4.1        3.2      -0.9       3.4         1.2       -0.7         4.4        1.2
           III       5.2        4.6      -0.7       4.6         2.4       -0.6         3.9        1.1
            IV       5.6        5.4      -0.2       5.4         3.4       -0.2         2.5        0.8

        ANNUAL       4.4        3.8      -0.6       4.1         1.7       -0.4         3.7        1.1

  2004       I       5.6        6.2       0.6       4.5         2.6       -1.0         3.9        0.8
            II       4.9        6.0       1.0       4.6         1.7       -0.3         4.4        1.5
           III       3.1        4.7       1.5      r3.9         1.2        0.8        r3.3       r1.8
            IV       2.5        4.2       1.6       3.6         0.2        1.0         4.1        2.2

        ANNUAL       4.1        5.3       1.1       4.2         1.5        0.1         3.9        1.6

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 3, 2005
  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

  2002       I           r144.5       r131.1         90.7       r143.8         r115.7         r99.6
            II           r146.4       r132.4         90.4       r146.7         r117.0        r100.2
           III           r148.7       r133.2         89.5       r148.3         r117.6         r99.7
            IV           r149.7       r132.1         88.2       r149.6         r118.1         r99.9

        ANNUAL           r147.3       r132.2         89.7       r147.1         r117.1         r99.8

  2003       I           r151.6       r131.8         87.0       r155.4         r121.6        r102.6
            II           r152.7       r130.7         85.6       r158.2         r123.5        r103.6
           III           r156.7       r132.1         84.3       r161.3         r125.2        r103.0
            IV           r158.1       r134.2         84.9       r163.6         r126.7        r103.5

        ANNUAL           r154.7       r132.2         85.4       r159.6         r124.2        r103.2

  2004       I           r158.8       r136.0         85.6       r161.9         r124.3        r101.9
            II           r161.7       r138.0         85.3       r164.6         r124.9        r101.8
           III           r163.4       r139.4         85.3       r166.4         r125.7        r101.8
            IV            165.6        140.9         85.1        168.8          126.5         101.9

        ANNUAL            162.4        138.6         85.3        165.4          125.4         101.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I            r10.9         r3.2         -6.9         14.2           12.7          r3.0
            II             r5.5         r4.1         -1.3          8.2            4.5          r2.5
           III             r6.6         r2.4         -3.9          4.5            2.1         r-1.9
            IV             r2.7        r-3.2         -5.7          3.5            1.6          r0.8

        ANNUAL             r7.6        r-0.1         -7.1          6.7            5.0         r-0.8

  2003       I             r5.0        r-0.9         -5.6         16.6           12.3         r11.0
            II             r3.0        r-3.4         -6.3          7.4            6.7          r4.2
           III            r10.8         r4.5         -5.7          8.1            5.6         r-2.4
            IV             r3.7         r6.6          2.8          5.7            4.9          r2.0

        ANNUAL             r5.0         r0.0         -4.8          8.5            6.1          r3.3

  2004       I             r1.9         r5.4          3.4         -4.1           -7.4         r-5.9
            II             r7.5         r5.9         -1.4          6.8            2.0         r-0.6
           III             r4.2         r4.0         -0.1         r4.5           r2.6          r0.3
            IV              5.6          4.5         -1.0          6.0            2.5           0.4

        ANNUAL              4.9          4.8         -0.1          3.6            0.9          -1.3

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I             r7.3        r-2.8         -9.4          4.1            2.8         r-3.0
            II             r8.0        r-0.5         -7.9          7.0            5.6         r-0.9
           III             r8.6         r1.5         -6.6          8.2            6.5         r-0.3
            IV             r6.3         r1.6         -4.5          7.5            5.1          r1.1

        ANNUAL             r7.6        r-0.1         -7.1          6.7            5.0         r-0.8

  2003       I             r4.9          0.6         -4.2          8.1            5.1          r3.0
            II             r4.3         -1.3         -5.4          7.9            5.6          r3.4
           III             r5.3        r-0.8         -5.8          8.8            6.5          r3.3
            IV              5.6         r1.6         -3.8          9.4            7.3          r3.6

        ANNUAL             r5.0         r0.0         -4.8          8.5            6.1          r3.3

  2004       I              4.8          3.2         -1.5          4.2            2.3          -0.6
            II             r5.9         r5.6         -0.3          4.0            1.1         r-1.8
           III             r4.3         r5.5          1.2         r3.1            0.4         r-1.1
            IV              4.8          5.0          0.2          3.2           -0.2          -1.5

        ANNUAL              4.9          4.8         -0.1          3.6            0.9          -1.3

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 3, 2005 
  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

  2002       I           r161.8       r153.1         94.6       r140.8         r113.3         r87.0
            II           r164.5       r155.3         94.4       r143.8         r114.7         r87.4
           III           r167.7       r156.6         93.4       r145.0         r115.0         r86.5
            IV           r170.8       r156.3         91.5       r146.3         r115.5         r85.7

        ANNUAL           r166.2       r155.3         93.5       r144.0         r114.6         r86.6

  2003       I           r172.5       r155.7         90.2       r153.4         r120.0         r88.9
            II           r174.1       r154.3         88.7       r156.4         r122.1         r89.8
           III           r180.7       r157.6         87.2       r159.6         r123.9         r88.3
            IV           r182.8       r161.5         88.3       r161.8         r125.3         r88.5

        ANNUAL           r177.5       r157.3         88.6       r157.8         r122.8         r88.9

  2004       I           r184.0       r164.6         89.5       r158.8         r121.9         r86.3
            II           r187.3       r167.1         89.2       r161.7         r122.7         r86.3
           III           r189.4       r169.5         89.5       r163.3         r123.4         r86.2
            IV            192.8        172.3         89.3        165.7          124.2          86.0

        ANNUAL            188.4        168.4         89.4        162.4          123.0          86.2

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I            r13.1         r4.1         -8.0          8.4            7.0         r-4.1
            II             r6.7         r6.0         -0.7          8.6            5.0          r1.8
           III             r8.0          3.3         -4.3          3.5            1.1         r-4.2
            IV             r7.5        r-0.7         -7.6          3.6            1.7         r-3.6

        ANNUAL             r8.6        r-0.4         -8.3          5.6            3.9         r-2.8

  2003       I             r4.2        r-1.6         -5.6         20.8           16.4         r15.9
            II             r3.7        r-3.4         -6.8          8.0            7.3          r4.2
           III            r16.1         r8.7         -6.3          8.7            6.1         r-6.4
            IV             r4.8        r10.1          5.1          5.5            4.7          r0.6

        ANNUAL             r6.8         r1.3         -5.2          9.6            7.1          r2.6

  2004       I             r2.6         r8.1          5.4         -7.1          -10.4         r-9.5
            II             r7.4         r6.0         -1.3          7.4            2.5          r0.0
           III             r4.6         r6.0         r1.3         r4.1           r2.2         r-0.5
            IV              7.3          6.6         -0.6          6.1            2.6          -1.1

        ANNUAL              6.1          7.1          0.9          2.9            0.2          -3.0

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I             r7.7        r-4.4        -11.2          3.3            2.0         r-4.1
            II             r8.6        r-1.5         -9.3          6.0            4.7         r-2.4
           III             r9.3         r1.4         -7.3          7.0            5.2         r-2.2
            IV             r8.8         r3.2         -5.2          6.0            3.7         r-2.6

        ANNUAL             r8.6        r-0.4         -8.3          5.6            3.9         r-2.8

  2003       I             r6.6         r1.7         -4.6          8.9            5.9          r2.2
            II             r5.8        r-0.6         -6.1          8.7            6.5          r2.8
           III             r7.8         r0.7         -6.6         10.1            7.7          r2.2
            IV             r7.1         r3.3         -3.5         10.6            8.5          r3.3

        ANNUAL             r6.8         r1.3         -5.2          9.6            7.1          r2.6

  2004       I              6.7          5.8         -0.8          3.5            1.7         r-2.9
            II             r7.6         r8.3          0.6          3.4            0.5         r-3.9
           III             r4.8         r7.6         r2.6          2.3          r-0.4         r-2.4
            IV              5.4          6.7          1.2          2.4           -0.9          -2.8

        ANNUAL              6.1          7.1          0.9          2.9            0.2          -3.0

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 3, 2005 
  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

  2002       I           r127.0       r107.9         85.0       r147.9         r119.0        r116.5
            II           r128.3       r108.4         84.5       r150.5         r120.1        r117.4
           III           r129.7       r108.7         83.8       r152.9         r121.3        r117.9
            IV           r128.4       r106.9         83.3       r154.3         r121.8         120.2

        ANNUAL           r128.3       r108.0         84.2       r151.4         r120.5        r118.0

  2003       I           r130.3       r106.9         82.1       r157.7         r123.4        r121.1
            II           r130.9       r106.0         81.0       r160.2         r125.1        r122.3
           III           r132.3       r105.9         80.0       r163.0         r126.5        r123.2
            IV           r133.4       r106.5         79.9       r165.2         r128.0        r123.9

        ANNUAL           r131.7       r106.3         80.7       r161.5         r125.7        r122.6

  2004       I           r134.0       r107.1         79.9       r165.9         r127.4        r123.8
            II           r136.5       r108.6         79.6       r168.1         r127.6        r123.2
           III           r137.9       r109.0        r79.1       r170.2         r128.6        r123.4
            IV            139.2        109.6         78.7        172.6          129.3         124.0

        ANNUAL            136.9        108.6         79.3        169.2          128.2         123.6


  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I             r7.7         r2.2         -5.1         26.5           24.9         r17.4
            II             r4.2         r1.8         -2.3          7.2            3.6          r2.9
           III             r4.6         r1.1         -3.3          6.6            4.1          r1.9
            IV            r-4.0        r-6.4         -2.5          3.7            1.8          r8.0

        ANNUAL             r5.6         r0.2         -5.2          9.3            7.5          r3.4

  2003       I             r5.9         r0.1         -5.5          9.1            5.1          r3.0
            II             r2.1        r-3.5         -5.5          6.3            5.7          r4.2
           III             r4.2        r-0.6         -4.6          7.2            4.7          r2.9
            IV             r3.2         r2.4         -0.7          5.6            4.8          r2.4

        ANNUAL             r2.6        r-1.5         -4.1          6.7            4.3          r3.9

  2004       I             r1.9         r2.1          0.2          1.5           -2.0         r-0.4
            II             r7.6         r5.7         -1.7          5.6            0.8         r-1.9
           III             r4.3         r1.7        r-2.5         r5.0           r3.0          r0.6
            IV              3.7          2.0         -1.7          5.7            2.2           2.0

        ANNUAL              3.9          2.1         -1.8          4.8            2.0           0.8

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I             r5.9        r-0.9         -6.4          6.2            5.0          r0.3
            II             r6.4         r0.6         -5.4          9.2            7.9          r2.7
           III             r7.3         r1.5         -5.4         10.9            9.2          r3.4
            IV             r3.0        r-0.4         -3.3         10.6            8.2          r7.4

        ANNUAL             r5.6         r0.2         -5.2          9.3            7.5          r3.4

  2003       I             r2.6        r-0.9         -3.4          6.6            3.6          r3.9
            II             r2.1        r-2.2         -4.2          6.4            4.2          r4.2
           III             r2.0        r-2.6         -4.5          6.6            4.3          r4.5
            IV             r3.9        r-0.4         -4.1          7.1            5.1          r3.1

        ANNUAL             r2.6        r-1.5         -4.1          6.7            4.3          r3.9

  2004       I              2.9         r0.1         -2.7          5.2            3.3           2.2
            II             r4.2         r2.4         -1.7          5.0            2.1          r0.7
           III             r4.2         r3.0        r-1.2         r4.4           r1.6          r0.2
            IV              4.4          2.9         -1.4          4.4            1.0           0.1

        ANNUAL              3.9          2.1         -1.8          4.8            2.0           0.8

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 3, 2005 
  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

  2002       I   r126.8   r150.2     118.5    139.9     112.6    r110.4   r113.6   r111.3    r88.8   r109.3
            II   r128.1   r151.7     118.4    141.3     112.7    r110.3   r112.7   r111.0    r94.5   r109.5
           III   r129.0   r152.2     117.9    142.1     112.7    r110.1   r112.8   r110.9    r95.8   r109.5
            IV   r129.6   r152.4     117.6    142.9     112.8    r110.2   r112.8   r110.9   r102.3   r110.1

        ANNUAL    128.4    151.6     118.1    141.5     112.7    r110.3    113.0    111.0     95.4    109.6

  2003       I   r130.2   r152.2     116.8    144.1     112.7    r110.7   r114.0   r111.6   r100.0   r110.5
            II   r132.7   r154.4     116.4    146.3     114.2    r110.3   r112.6   r110.9   r112.2   r111.0
           III   r135.3   r157.3     116.2    148.5     115.3    r109.8   r112.6   r110.5   r120.3   r111.4
            IV   r136.8   r159.6     116.7    150.0     116.2    r109.7   r112.2   r110.4   r125.1   r111.7

        ANNUAL   r133.7   r155.9     116.5    147.3     114.6    r110.1   r112.9   r110.8   r114.6   r111.2

  2004       I   r137.0   r160.9     117.5    150.9     115.9    r110.2   r111.1   r110.4   r129.9   r112.2
            II   r138.1   r162.6     117.7    152.9     116.1    r110.7   r111.4   r110.9   r136.3   r113.2
           III   r139.4   r164.7    r118.2   r154.3    r116.6    r110.7   r111.7   r111.0   r136.5   r113.2
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2002       I     r7.5     r5.4      -2.0      1.7       0.4     r-5.4    r-7.0    r-5.9    r91.5    r-1.3
            II     r4.3     r4.2      -0.1      4.0       0.4     r-0.3    r-3.1    r-1.1    r28.2     r0.8
           III     r2.9     r1.1      -1.7      2.3       0.0     r-0.6     r0.3    r-0.3     r5.8     r0.1
            IV     r1.9     r0.7      -1.2      2.2       0.3      r0.3     r0.0     r0.2    r29.9     r2.3

        ANNUAL     r3.9     r1.0      -2.8      3.1       1.4     r-0.8     r0.3    r-0.5    r16.0     r0.6

  2003       I     r1.9    r-0.7      -2.5      3.6      -0.2      r1.6     r4.4     r2.4    r-8.8     r1.4
            II     r7.7     r6.0      -1.5      6.2       5.5     r-1.4    r-4.9    r-2.4    r58.5     r1.8
           III     r8.2     r7.6      -0.6      6.2       3.6     r-1.9     r0.1    r-1.4    r32.3     r1.4
            IV     r4.3     r6.0       1.6      4.2       3.4     r-0.1    r-1.5    r-0.5    r16.8     r1.1

        ANNUAL     r4.2     r2.8      -1.3      4.0       1.7     r-0.1    r-0.1    r-0.1    r20.1     r1.4

  2004       I     r0.6     r3.4       2.8      2.3      -1.3      r1.6    r-4.0     r0.1    r16.3     r1.6
            II      3.3     r4.3       0.9      5.5       0.7      r2.1      1.3      1.9    r21.0      3.8
           III     r3.9     r5.4      r1.4     r3.8      r1.9     r-0.1     r0.9     r0.1     r0.6     r0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2002       I      3.4     -1.1      -4.3      3.2       2.0     r-0.1      4.0     r1.0     r1.6      1.0
            II     r3.8     r0.4      -3.2      3.4       2.1     r-0.4     r1.0     r0.0     r8.8     r0.6
           III     r4.3     r1.9      -2.4      3.1       1.4     r-1.2    r-1.1    r-1.2    r21.4     r0.3
            IV     r4.1     r2.8      -1.3      2.5       0.3     r-1.5    r-2.5    r-1.8    r35.5     r0.5

        ANNUAL     r3.9     r1.0      -2.8      3.1       1.4     r-0.8     r0.3    r-0.5    r16.0     r0.6

  2003       I     r2.7     r1.3      -1.4      3.0       0.1      r0.3     r0.4     r0.3    r12.6     r1.2
            II     r3.6     r1.8      -1.7      3.6       1.4      r0.0    r-0.1     r0.0    r18.7     r1.4
           III     r4.9     r3.3      -1.5      4.5       2.3     r-0.4    r-0.2    r-0.3    r25.5     r1.7
            IV     r5.5     r4.7      -0.8      5.0       3.1     r-0.5    r-0.5    r-0.5    r22.3     r1.4

        ANNUAL     r4.2     r2.8      -1.3      4.0       1.7     r-0.1    r-0.1    r-0.1    r20.1     r1.4

  2004       I     r5.2     r5.7       0.5      4.7       2.8     r-0.5    r-2.6    r-1.0    r29.9     r1.5
            II     r4.1     r5.3       1.2      4.5       1.6      r0.4    r-1.0     r0.0    r21.5     r2.0
           III     r3.0     r4.7       1.7     r3.9       1.2      r0.9    r-0.8      0.4    r13.4     r1.7
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        February 3, 2005
  r=revised                                                               Source: Bureau of Labor Statistics


SOURCES:  Output data are from the Bureau of Economic Analysis and the Census
Bureau of the U.S. Department of Commerce; the Bureau of Labor Statistics,
U.S. Department of Labor; and the Federal Reserve Board.  Compensation and
hours data are from the Bureau of Labor Statistics and the Bureau of Economic
Analysis.

RELIABILITY:  Productivity and cost measures are regularly revised as more
complete information becomes available.  The measures are first published
within 40 days of the close of the reference period; revisions appear 30 days
later, and second revisions after an additional 60 days.  In the business
sector, the third publication (second revision) of a quarterly index of
output per hour of all persons has differed from the initial value by between
-1.4 and +1.4 index points approximately 95 percent of the time.  This
interval is based on the performance of this measure between the fourth
quarter of 1995 and the third quarter of 2004.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  The change for recent quarters is based on the Consumer Price Index for
     all urban consumers (CPI-U).  The trend from 1978-2003 is based on the
     Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, consumption of fixed capital,
     taxes on production and imports less subsidies, net interest and
     miscellaneous payments, business current transfer payments, rental
     income of persons, and the current surplus of government enterprises.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include consumption of fixed capital, taxes on
     production and imports less subsidies, net interest and miscellaneous
     payments, and business current transfer payments.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits before tax with inventory
     valuation and capital consumption adjustments.



 Appendix table 1. Manufacturing sector:  Productivity, hourly compensation, and unit labor costs,
 Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987              88.4         91.7        103.8        r81.3           r98.0        r92.0
       1988              90.0         96.3        107.0        r84.1           r97.8        r93.4
       1989              90.3         97.2        107.6        r86.6           r96.6        r95.9

       1990              92.9         97.6        105.0        r90.5           r96.1        r97.3
       1991              95.4         96.0        100.5        r95.6           r98.0       r100.1
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             102.7        104.1        101.4       r102.0           r99.5        r99.3
       1994             106.1        110.0        103.8       r105.3          r100.6        r99.3

       1995             109.9        115.0        104.6       r107.3          r100.1        r97.6
       1996             113.9        118.6        104.2       r109.3           r99.3        r96.0
       1997             118.0        125.1        106.0       r112.2           r99.8        r95.1
       1998             123.6        130.7        105.7       r118.7          r104.2        r96.0
       1999             128.1        134.6        105.1       r123.4          r106.0        r96.4

       2000             134.1        138.6        103.4       r134.7          r112.0       r100.5
       2001             136.9        132.3         96.6       r137.8          r111.5       r100.7
       2002            r147.3       r132.2         89.7       r147.1          r117.1        r99.8
       2003            r154.7       r132.2         85.4       r159.6          r124.2       r103.2
       2004            r162.4       r138.6        r85.3       r165.4          r125.4       r101.9
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             February 3, 2005 
  r=revised                                                    Source: Bureau of Labor Statistics




 Appendix table 2. Durable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs, Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987              89.3         95.1        106.5        r81.3           r97.9        r91.0
       1988              91.2        100.9        110.6        r83.6           r97.2        r91.6
       1989              91.1        101.1        111.0        r85.9           r95.8        r94.3

       1990              93.2        100.1        107.4        r89.5           r95.0        r96.0
       1991              94.5         95.9        101.4         94.9           r97.3        100.4
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             104.5        106.0        101.4       r101.9           r99.4        r97.4
       1994             109.7        114.8        104.7       r105.4          r100.7        r96.1

       1995             115.2        122.8        106.6       r106.7           r99.5        r92.6
       1996             120.7        129.5        107.3        108.1            98.2         89.5
       1997             126.3        139.5        110.5        110.6            98.4         87.6
       1998             135.4        150.2        111.0       r117.1          r102.7        r86.5
       1999             143.3        158.5        110.6       r122.4          r105.2        r85.4

       2000             150.9        165.7        109.8       r134.2          r111.6        r89.0
       2001             152.9        155.9        101.9       r136.4          r110.3        r89.2
       2002            r166.2       r155.3         93.5       r144.0          r114.6        r86.6
       2003            r177.5       r157.3         88.6       r157.8          r122.8        r88.9
       2004            r188.4       r168.4        r89.4       r162.4          r123.0        r86.2
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             February 3, 2005
  r=revised                                                    Source: Bureau of Labor Statistics




 Appendix table 3. Nondurable manufacturing sector:  Productivity, hourly compensation,
 and unit labor costs, Indexes 1992=100
                                                                             Real
                     Output per                  Hours       Compensa-       compensa-      Unit 
                     hour of                     of all      tion per        tion per       labor
       Year          all persons    Output       persons     hour (1)        hour (2)       costs
  -----------------------------------------------------------------------------------------------
       1987              90.5         90.2         99.7        r80.8           r97.4        r89.3
       1988              92.0         93.3        101.5        r84.2           r98.0        r91.6
       1989              92.3         94.7        102.7        r87.1           r97.2        r94.4

       1990              94.8         96.1        101.4        r91.7           r97.4        r96.8
       1991              97.4         96.6         99.2        r96.5           r98.9        r99.1
       1992             100.0        100.0        100.0        100.0           100.0        100.0
       1993             100.5        101.9        101.4       r102.3           r99.8       r101.8
       1994             102.2        104.5        102.3       r104.7          r100.1       r102.5

       1995             104.6        106.3        101.6       r107.8          r100.6       r103.0
       1996             107.1        106.5         99.5       r110.8          r100.7       r103.5
       1997             110.7        110.0         99.4       r114.1          r101.5       r103.1
       1998             113.0        110.6         97.9       r120.3          r105.5       r106.5
       1999             113.9        110.3         96.9       r123.6          r106.2       r108.5

       2000             118.5        111.1         93.8       r133.2          r110.7       r112.4
       2001             121.5        107.8         88.7       r138.6          r112.1       r114.1
       2002            r128.3       r108.0         84.2       r151.4          r120.5       r118.0
       2003            r131.7       r106.3         80.7       r161.5          r125.7       r122.6
       2004            r136.9       r108.6        r79.3       r169.2          r128.2       r123.6
  -----------------------------------------------------------------------------------------------
  See footnotes following Table 6.                             February 3, 2005 
  r=revised                                                    Source: Bureau of Labor Statistics




Appendix table 4. Nonfinancial corporations:  Productivity, hourly compensation, unit labor costs, 
 unit profits, and prices
 Indexes 1992=100
               Output                      Hourly    Real                Unit     Total     Unit  Implicit
               per all-                    compen-   hourly     Unit     non-     unit      pro-  price
               employee           Employee sation    compen     labor    labor    costs     fits  deflator
      Year     hour       Output  hours     (1)      sation(2)  costs    costs(6) (7)       (8)     (4)
  --------------------------------------------------------------------------------------------------------
      1958      r52.8     r25.4     48.0     15.0      67.2     r28.4    r23.5    r27.1    r47.2    r28.9
      1959      r55.3     r28.2     50.9     15.6      69.3     r28.1    r22.3    r26.6    r55.8    r29.2

      1960      r56.2     r29.1     51.8     16.2      70.8     r28.8    r23.3    r27.3    r50.2    r29.4
      1961      r57.9     r29.7     51.3     16.7      72.4     r28.8    r23.8    r27.5    r50.3    r29.5
      1962      r60.4     r32.2     53.3     17.4      74.4     r28.7    r23.4    r27.3    r54.5    r29.7
      1963      r62.5     r34.1     54.5     17.9      75.7     r28.6    r23.4    r27.2    r57.3    r29.9
      1964      r63.5     r36.5     57.5     18.2      76.2     r28.7    r23.3    r27.2    r59.7    r30.1

      1965      r65.1     r39.5     60.7     18.8      77.1     r28.8    r23.1    r27.3    r64.1    r30.6
      1966      r66.2     r42.3     63.9     19.8      79.2     r29.9    r23.3    r28.2    r63.6    r31.3
      1967      r67.1     r43.4     64.6     20.9      81.1     r31.2    r24.7    r29.4    r59.9    r32.2
      1968      r69.5     r46.1     66.4     22.5      83.7     r32.4    r26.2    r30.7    r60.0    r33.4
      1969      r69.5     r47.9     69.0     24.0      84.8     r34.6    r28.6    r33.0    r54.0    r34.8

      1970      r69.8     r47.4     67.9     25.7      85.9     r36.9    r32.2    r35.6    r44.4    r36.4
      1971      r72.7     r49.3     67.9     27.3      87.4     r37.6    r33.6    r36.5    r50.5    r37.8
      1972      r74.2     r53.1     71.6     28.8      89.2     r38.8    r33.9    r37.5    r54.1    r39.0
      1973      r74.8     r56.3     75.2     31.0      90.4     r41.4    r35.7    r39.9    r54.9    r41.2
      1974      r73.3     r55.3     75.5     33.9      89.2     r46.3    r41.1    r44.9    r48.4    r45.2

      1975      r76.1     r54.6     71.7     37.3      89.7     r49.0    r46.6    r48.3    r63.1    r49.6
      1976      r78.5     r58.9     75.0     40.3      91.8     r51.3    r46.4    r50.0    r71.4    r51.9
      1977      r80.6     r63.2     78.4     43.5      93.0     r54.0    r48.4    r52.5    r77.3    r54.7
      1978      r81.7     r67.4     82.5     47.6      95.1     r58.2    r51.2    r56.4    r79.1    r58.4
      1979      r81.0     r69.5     85.8     51.9      94.9     r64.1    r55.8    r61.9    r74.0    r62.9

      1980      r80.8     r68.8     85.2     57.2      94.1     r70.8    r64.9    r69.2    r66.9    r69.0
      1981      r82.9     r71.6     86.4     62.4      93.9     r75.3    r73.4    r74.8    r81.0    r75.4
      1982       83.1      69.9     84.1     66.5      94.4     r80.0     81.3    r80.4    r75.2    r79.9
      1983      r85.7     r73.1     85.3     68.9      94.0     r80.4    r81.6    r80.7    r91.2    r81.7
      1984      r87.8     r79.7     90.8     71.9      94.3     r81.9    r81.3    r81.7   r107.6    r84.1

      1985      r89.6     r83.2     92.9     75.2      95.4     r83.9    r83.6    r83.8   r102.3    r85.5
      1986      r91.4     r85.2     93.2     78.9      98.3     r86.3    r86.3    r86.3    r90.2    r86.6
      1987      r93.3     r89.7     96.1     81.6      98.3     r87.4    r85.8    r87.0   r100.1    r88.1
      1988      r95.7     r94.9     99.1     84.9      98.7     r88.7    r86.8    r88.2   r111.6    r90.3
      1989      r94.6     r96.6    102.2     87.0      97.0     r92.0    r93.3    r92.4   r101.2    r93.2

      1990      r95.4     r97.8    102.5     91.1      96.8     r95.5    r97.3    r96.0    r96.9    r96.1
      1991      r97.4     r97.0     99.6     95.5      97.9     r98.0   r102.7    r99.3    r93.2    r98.7
      1992      100.0     100.0    100.0    100.0     100.0     100.0    100.0    100.0    100.0    100.0
      1993     r100.3    r102.8    102.4    101.8      99.3    r101.4    r99.9   r101.0   r114.1   r102.2
      1994     r102.2    r109.2    106.8    103.6      98.9    r101.3   r100.8   r101.2   r131.7   r103.9

      1995      103.3     114.3    110.6    105.3      98.3    r101.9   r101.2   r101.7    136.9    104.9
      1996     r107.1    r120.6    112.6    108.5      98.6    r101.3   r100.0    100.9   r150.0    105.3
      1997      109.9     128.4    116.9    111.7      99.4     101.7    r99.7   r101.1   r154.3    105.9
      1998     r113.5    r135.8    119.7    118.1     103.6    r104.1    r99.5   r102.9   r137.0   r105.9
      1999     r117.3    r144.0    122.8    123.5     106.1    r105.3   r100.4   r104.0   r129.1   r106.2

      2000     r121.5    r151.5    124.7    132.0     109.7    r108.6   r104.2   r107.4   r108.7   r107.5
      2001     r123.5    r150.2    121.5    137.3     111.1    r111.2   r112.6   r111.6    r82.2   r108.9
      2002      128.4     151.6    118.1    141.5     112.7    r110.3    113.0    111.0     95.4    109.6
      2003     r133.7    r155.9    116.5    147.3     114.6    r110.1   r112.9   r110.8   r114.6   r111.2
  --------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                      February 3, 2005
  r=revised                                                             Source: Bureau of Labor Statistics


1