TEXT
Table 1. Business sector: Productivity, hourly compensation, unit labor costs,
Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs,
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits,


 
 
 
 
Historical, technical                    USDL 95-454
  information:(202) 606-5606             Transmission of this
Current data:(202) 606-7828              material is embargoed
Media contact:(202) 606-5902             until 10:00 A.M. EST
                                         Tuesday, November 7, 1995.
 
 
                            PRODUCTIVITY AND COSTS
                              Third Quarter 1995
 
 
     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 third quarter of 1995.  The preliminary seasonally-adjusted
annual rates of productivity growth in the third quarter were:
 
               2.1 percent in the business sector, and
               2.0 percent in the nonfarm business sector.
 
In both the business and the nonfarm business sectors, productivity increases
in the third quarter were smaller than those recorded in the second quarter (as
revised).
 
     In manufacturing, productivity increases in the third quarter were:
 
               6.2 percent in manufacturing,
               8.1 percent in durable goods manufacturing, and
               3.0 percent in nondurable goods manufacturing.
 
 
     The 6.2 percent rise in manufacturing productivity came primarily from the
durable goods sector, where productivity rose 8.1 percent.  In the slightly-
smaller nondurable goods sector, productivity rose 3.0 percent in the third
quarter.  Output and hours in manufacturing, which includes nearly 20 percent
of U.S. business sector employment, tend to vary more from quarter to quarter
than data for the more aggregate business and nonfarm business sectors.  Third-
quarter measures are summarized in table A and appear in detail in tables 1
through 5.
 
-------------------------------------------------------------------------------
NOTE:  BLS plans to switch to annually-weighted output indexes for computations
underlying its  regular Productivity  and Costs  news releases.   These  output
indexes are designed to eliminate a source of bias in aggregate measures and to
reduce the  size of  future historical revisions to these measures.  As part of
this  comprehensive  revision  program,  the  December  14,  1995,  release  of
Productivity and  Costs (with revised third-quarter figures) has been postponed
to allow  time to incorporate revised data from the National Income and Product
Accounts; a  new release date has not yet been scheduled.  See Upcoming Changes
to BLS Productivity and Costs Measures (page 5).
 
 
                                        2
 
Table A.  Productivity and costs:  Preliminary third-quarter 1995 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          2.1     4.9   2.8    3.2    1.1    1.1
   Nonfarm business  2.0     4.9   2.9    3.1    1.0    1.1
   Manufacturing     6.2     3.0  -3.0    3.7    1.7   -2.3
   Durable           8.1     6.4  -1.6    3.7    1.6   -4.1
   Nondurable        3.0    -2.1  -4.9    3.5    1.5    0.6
 
 
                      Percent change from same quarter a year ago
 
   Business          3.3     4.7   1.4    3.6    0.9    0.3
   Nonfarm business  3.4     4.8   1.4    3.7    1.0    0.3
   Manufacturing     4.0     3.1  -0.8    3.2    0.5   -0.8
   Durable           4.3     4.7   0.3    2.6   -0.1   -1.6
   Nondurable        3.4     0.8  -2.5    3.8    1.1    0.4
 
 
 
     Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the U.S.
Department of Commerce.  Quarterly output measures for manufacturing reflect
independent indexes of industrial production prepared by the Board of Governors
of the Federal Reserve System.  See Technical Notes for further information on
data sources (page 8).
 
Business
 
     From the second quarter to the third quarter of 1995, business sector
productivity increased at a 2.1 percent annual rate.  Output rose 4.9 percent,
and hours of all persons engaged in the sector increased 2.8 percent
(seasonally adjusted annual rates).  The increase in hours reflected 1.4
percent increases in both employment and average weekly hours.  This was the
first increase in average weekly hours in 1995; they had fallen 2.8 percent in
the second quarter and 0.5 percent in the first quarter.  After revisions,
second-quarter productivity in the business sector rose 4.6 percent, as output
increased 2.0 percent, and hours of all persons fell 2.5 percent (tables B and
1).
 
 
                                        3
     Hourly compensation increased 3.2 percent during the third quarter of
1995, compared with a 3.8 percent rise in the second quarter.  This measure
includes wages and salaries, supplements, employer contributions to employee
benefit plans, and taxes.  Unit labor costs, which reflect changes in hourly
compensation and productivity, increased at a 1.1 percent annual rate during
the third quarter.  During the previous quarter, these costs had fallen 0.8
percent.
 
     Real hourly compensation, which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U), increased 1.1 percent in the third
quarter, and 0.4 percent in the second quarter of 1995.
 
     The implicit price deflator for the business sector, which reflects
changes in unit labor costs and unit nonlabor payments, increased at a 0.2
percent annual rate in the third quarter, down from a 1.3 percent increase
during the second quarter of 1995.
 
Nonfarm business
 
     Productivity rose 2.0 percent in the nonfarm business sector during the
third quarter of 1995 as output rose 4.9 percent and hours of all persons
increased 2.9 percent.  During the second quarter of 1995, productivity had
risen 4.9 percent (as revised) in the nonfarm business sector, reflecting a
gain of 2.4 percent in output and a decline of 2.4 percent in hours (table 2).
 
     Hourly compensation increased at a 3.1 percent annual rate in the third
quarter, compared with a 3.7 percent increase one quarter earlier.  When the
rise in the CPI-U is taken into account, real hourly compensation rose at a 1.0
percent annual rate in the third quarter.  Unit labor costs increased 1.1
percent during the July-September period, after falling 1.2 percent during the
second quarter of 1995.
 
     The implicit price deflator for nonfarm business output fell 0.1 percent
in the third quarter, compared with a 1.2 percent increase one quarter earlier.
 
Manufacturing
 
     Productivity increased 6.2 percent in manufacturing in the third quarter
of 1995, as output rose 3.0 percent and hours of all persons fell 3.0 percent
(seasonally adjusted annual rates).  This increase in manufacturing
productivity was the largest since a 10.6 percent increase was recorded in the
second quarter of 1987.  In the durable goods sector, third-quarter
productivity rose 8.1 percent as output increased 6.4 percent and hours fell
1.6 percent.  Although productivity increased 3.0 percent in the nondurable
goods sector, output and hours both fell, at annual rates of 2.1 and 4.9
percent, respectively.  In the second quarter of 1995, manufacturing
productivity had risen 2.7 percent as both output and hours declined, 3.4 and
5.9 percent, respectively (tables 3, 4, and 5).
 
     Hourly compensation of all manufacturing workers increased 3.7 percent
during the third quarter, up from the 0.5 percent increase recorded in the
second quarter (seasonally adjusted annual rates).  Real hourly compensation
rose 1.7 percent in the third quarter when the increase in the CPI-U is taken
into account.  In the second quarter of 1995, real hourly compensation of
manufacturing workers had fallen 2.8 percent.
 
 
                                        4
 
     Unit labor costs fell at a 2.3 percent annual rate in the third quarter of
1995.  These costs had decreased 2.2 percent during the second quarter of 1995
and have now declined in eight of the last 11 quarters.
 
Revised Measures
 
     Current and previous measures for the second quarter of 1995 for the
business, nonfarm business, and manufacturing sectors are compared in table B.
The quarterly movements differ somewhat from those reported on September 7
based on information then available.
 
 
  Table B. Previous and revised productivity and related measures
  Quarterly percent change at seasonally adjusted annual rate
 
 
                                                 Real
                                        Hourly   hourly  Unit
                Produc-                 compen-  compen- labor
   Sector       tivity Output  Hours    sation   sation  costs
 
 
                         Second quarter 1995
  Business:
   Previous...   4.7    2.1    -2.4      3.7      0.3    -1.0
   Current....   4.6    2.0    -2.5      3.8      0.4    -0.8
 
  Nonfarm business:
   Previous...   4.8    2.3    -2.3      3.5      0.1    -1.2
   Current....   4.9    2.4    -2.4      3.7      0.3    -1.2
 
  Manufacturing:
   Previous...   2.6   -3.4    -5.9      0.4     -2.9    -2.1
   Current....   2.7   -3.4    -5.9      0.5     -2.8    -2.2
 
 
                                        5
Revised measures: Nonfinancial Corporations
 
     Productivity and cost measures for the second quarter for nonfinancial
corporations, which were revised to incorporate the most recent information,
were somewhat different from the preliminary results announced on September 7
(table C).
 
 
 
 Table C.  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
 
 
                         Second quarter 1995
 
 Previous 5.4    3.5   -1.8    3.3   -0.1   -2.0    6.6    -0.1
 Current  5.2    3.2   -1.9    3.5    0.1   -1.6    4.9     0.1
 
 
 
Upcoming Changes in Productivity and Costs Measures
 
     The Bureau of Labor Statistics plans to switch to annually-weighted output
indexes for computations underlying its Productivity and Costs news releases
early in 1996.  This change will parallel the changes being made by the Bureau
of Economic Analysis, U.S. Department of Commerce, to replace its fixed-
weighted index as the featured measure of real gross domestic product (GDP)
with a chain-type, annual-weighted index.  BEA will compute quarterly data for
business and nonfarm business output for BLS using the same conventions it uses
to compute quarterly GDP.  Starting with its chain-type, annual-weighted
measure of real GDP, BEA will remove those GDP components that BLS excludes
from its definitions of the business and nonfarm business sectors.
 
     In addition, future BLS business and nonfarm business output measures will
no longer exclude the statistical discrepancy-the measure of the difference
between GDP as measured on the product side and on the income side.  The
product side adds up the values of goods and services produced while the income
side adds up the disposition of the income generated by production in the form
of wages, salaries, supplements, profits, net interest, and business taxes.
Although conceptually equal, the two sides differ because they are measured
using different data sources.  It has been determined that the income side
definition which BLS has been using has led to larger revisions of BLS
productivity data between the preliminary and revised press releases than would
a product side definition.  This is because BEA's data on the income side are
incomplete at the time that the GDP statistics are first issued each quarter.
BLS has, in effect, used a product side measure of output growth in its first
press release of each quarter, and then an income side definition at the time
of the second release.
 
 
                                        6
 
     For its historical annual data on manufacturing output, BLS will use the
annually-weighted measure of "sectoral output" it developed some years ago as
part of its manufacturing multifactor productivity data set.  This output
series will replace the series on constant dollar gross product originating
currently used.  Quarterly data on manufacturing output, and annual data for
the most recent one or two years, will continue to be based on movements in the
index of industrial production prepared monthly by the Board of Governors of
the Federal Reserve System.
 
     The output and productivity data under the new concepts are currently
being updated and revised to incorporate new source data.  However, BLS has
produced indexes for some sectors based on currently-available source data.
The following table shows results for the nonfarm business sector.
 
 
Table D.  The effects of improved measurement techniques on output and
productivity:  Nonfarm business sector
(Seasonally adjusted annual rates)
 
                  Output                   Productivity
 
           ___________________     ______________________________________
 
             (a)         (b)           (c)         (d)             (e)
 
           Published   Improved     Published   Improved
           base-year   annually-    base-year   annually-
  Year and weighted    weighted     weighted    weighted        Difference
  quarter  income side product side income side product side     (d) - (c)
 
                           Compound annual rates of change
 
1960 - 1994   3.1        3.4          1.5         1.8           0.3
  1960 - 1973 4.2        4.7          2.5         3.0           0.5
  1973 - 1979 2.5        2.9          0.6         1.0           0.4
  1979 - 1990 2.4        2.6          0.8         0.9           0.1
  1990 - 1994 2.7        2.1          1.8         1.2          -0.6
 
                      Percent change from preceding quarter
 
1995 I        4.5        2.2          2.5         0.2          -2.3
1995 II       2.4        0.9          4.9         3.4          -1.5
1995 III      4.9        3.6          2.0         0.7          -1.3
 
 
     A statement containing information about these measures may be obtained
from the Division of Productivity Research (202-606-5606).  For a discussion of
the manufacturing "sectoral output" measure mentioned above, see William
Gullickson, "Measurement of productivity growth in U.S. manufacturing," Monthly
Labor Review, July 1995, pp. 13-28.
 
 
                                        7
     BEA has announced a schedule of release dates for the comprehensive
revision of the National Income and Product Accounts.  Revised estimates for
1959-92 are scheduled for release on November 21, 1995.  Revised third-quarter
1995 data, combined with the release of revised estimates for 1993 through the
second quarter of 1995, are scheduled for release on December 15.  As soon as
possible after that date, BLS will issue revised quarterly productivity and
costs measures, back to 1959, based on the new concepts and data.   The revised
productivity and cost measures also will incorporate information from the 1994
Hours at Work Survey and will feature a 1992 base year for the indexes.
 
 
                                        8
 
                                TECHNICAL NOTES
 
 
 
Labor Input:  The  primary  source  of  clay, and glass and concrete products;
hours and  employment data  is the BLS  and miscellaneous  manufactures.  Non-
Current  Employment  Statistics  (CES)  durables  include:  Food  and  kindred
program, which provides monthly survey  products,  tobacco  products,  textile
data on  total employment  and average  mill products, apparel products, paper
weekly hours  of production  and  non-  and  allied   products,  printing  and
supervisory workers in nonagricultural  publishing,  chemicals   and  chemical
establishments.   Jobs   rather   than  products,   petroleum   refining   and
persons are  counted. Weekly hours are  related industries, rubber and plastic
adjusted  to   the   hours   at   work  products,    leather    and    leather
definition using the BLS Hours at Work  products. Manufacturing  accounted for
survey, conducted for this purpose.     about  19  percent  of  GDP  in  1992.
     Data   from   the   BLS   Current  Quarterly     manufacturing     output
Population Survey  (CPS) are  used for  measures are  based on  the  index  of
farm labor; in the nonfarm sector, the  industrial production prepared monthly
National Income  and Product  Accounts  by  the  Board  of  Governors  of  the
(NIPA) prepared  by the Bureau of Eco-  Federal Reserve System adjusted by BLS
nomic Analysis  of the  Department  of  to annual  manufacturing output levels
Commerce  and  the  CPS  are  used  to  (gross product  originating) from  the
measure  labor  input  for  government  National Income  and Product  Accounts
enterprises,  proprietors  and  unpaid  prepared by  the  Bureau  of  Economic
family workers.                         Analysis of  the  U.S.  Department  of
                                        Commerce.
Output:  Business   sector  output  is       Nonfinancial corporate  output is
equal to  gross domestic product (GDP)  equal to GDP in constant 1987 dollars,
in constant 1987 dollars, less general  less   the    output   of    nonprofit
government,   output    of   nonprofit  institutions, output of paid employees
institutions, output of paid employees  of private households, rental value of
of private households, rental value of  owner-occupied              dwellings,
owner-occupied dwellings, and the sta-  unincorporated business, the output of
tistical discrepancy  in computing the  corporations engaged  in banking,  fi-
NIPA.  Corresponding   exclusions  are  nance, stock  and  commodity  trading,
also made  in labor  inputs.  Business  and credit and insurance agencies, and
output was  about 78 percent of GDP in  the   statistical    discrepancy    in
1992. Nonfarm business, which also ex-  computing   the   NIPA.   Nonfinancial
cludes farming,  was about  77 percent  corporations accounted  for  about  56
of GDP in 1992.                         percent of GDP in 1992.
     Total manufacturing  measures are
computed by  summing  series  prepared
for the  durable and  nondurable goods
sectors.    Durables    include    the
following  2-digit   SIC   industries:
Primary metal  industries;  fabricated
metal     products;      nonelectrical
machinery; industrial  and  commercial
machinery  and   computer   equipment;
electronic   and    other   electrical
equipment;  transportation  equipment;
instruments; lumber  and lumber  prod-
ucts; furniture  and fixtures;  stone,
 
 
                                        9
Productivity: These  productivity mea-  including   changes   in   technology;
sures   describe    the   relationship  capital investment;  level of  output;
between real output and the labor time  utilization of  capacity, energy,  and
involved in  its production. They show  materials; the organization of produc-
the changes  from period  to period in  tion;  managerial   skill;   and   the
the amount  of goods and services pro-  characteristics and effort of the work
duced   per   hour.   Although   these  force.
measures relate  output  to  hours  at
work  of  all  persons  engaged  in  a       Information in  this release will
sector,  they   do  not   measure  the  be made  available to sensory-impaired
specific   contribution    of   labor,  individuals upon request. Voice phone:
capital,  or   any  other   factor  of  202-606-STAT; TDD phone: 202-606-5897;
production. Rather,  they reflect  the  TDD message  referral phone number: 1-
joint  effects   of  many  influences,  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 1982=100
 
  1993       I     116.2      138.1     118.9     158.7       107.0     136.6       149.5       140.8
            II     116.3      139.6     120.0     159.9       107.0     137.5       149.6       141.4
           III     117.0      140.9     120.5     160.6       107.0     137.3       150.5       141.6
            IV     118.4      143.9     121.5     161.3       106.6     136.2       154.0       142.1
 
        ANNUAL     117.0      140.6     120.2     160.1       106.9     136.9       150.9       141.5
 
  1994       I     118.9      145.8     122.6     163.3       107.4     137.3       153.4       142.6
            II     118.5      147.2     124.2     163.6       106.9     138.1       155.6       143.8
           III     119.5      148.8     124.6     164.9       106.8     138.0       157.8       144.5
            IV     120.7      151.6     125.6     166.4       107.2     137.8       159.0       144.8
 
        ANNUAL     119.4      148.4     124.2     164.5       107.1     137.8       156.4       143.9
 
  1995       I     121.3      153.2     126.3     167.9       107.3     138.4       159.3       145.3
            II     122.7      154.0     125.5     169.5      r107.5     138.1       161.3       145.7
           III     123.3      155.8     126.3     170.8       107.8     138.5       160.7       145.8
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1993       I      -2.1        0.6       2.7       2.5        -0.6       4.6        -1.9         2.3
            II       0.6        4.2       3.6       3.1         0.1       2.5         0.3         1.7
           III       2.2        4.0       1.7       1.8         0.1      -0.4         2.4         0.6
            IV       5.0        8.6       3.5       1.7        -1.5      -3.2         9.6         1.2
 
        ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
  1994       I       1.8        5.5       3.6       5.1         2.9       3.2        -1.6         1.5
            II      -1.4        3.7       5.2       0.9        -1.7       2.3         5.9         3.5
           III       3.2        4.5       1.3       3.1        -0.4      -0.1         5.8         2.0
            IV       4.3        7.8       3.3       3.6         1.3      -0.7         3.1         0.7
 
        ANNUAL       2.1        5.5       3.4       2.8         0.2       0.7         3.6         1.7
 
  1995       I       2.1        4.3       2.2       3.8         0.7       1.7         0.9         1.4
            II      r4.6       r2.0     r-2.5      r3.8        r0.4     r-0.8         5.0        r1.3
           III       2.1        4.9       2.8       3.2         1.1       1.1        -1.5         0.2
 
 
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year
 
  1993       I       1.5        3.3       1.8       4.3         1.1       2.7         0.7         2.0
            II       1.3        3.8       2.5       3.9         0.8       2.6         0.6         1.9
           III       1.0        3.6       2.6       3.0         0.2       2.0         3.2         2.4
            IV       1.4        4.3       2.9       2.3        -0.5       0.8         2.5         1.4
 
        ANNUAL       1.3        3.8       2.4       3.4         0.4       2.0         1.8         1.9
 
  1994       I       2.4        5.6       3.1       2.9         0.4       0.5         2.6         1.2
            II       1.9        5.4       3.5       2.3        -0.1       0.4         4.0         1.7
           III       2.1        5.6       3.4       2.7        -0.2       0.5         4.8         2.0
            IV       2.0        5.4       3.4       3.2         0.5       1.2         3.2         1.9
 
        ANNUAL       2.1        5.5       3.4       2.8         0.2       0.7         3.6         1.7
 
  1995       I       2.0        5.1       3.0       2.8         0.0       0.8         3.9         1.9
            II      r3.5       r4.6      r1.0       3.6         0.5       0.0         3.7         1.3
           III       3.3        4.7       1.4       3.6         0.9       0.3         1.9         0.9
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      November 7, 1995
  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 1982=100
 
  1993       I     114.3      138.3     120.9     157.2       105.9     137.4       151.5       142.0
            II     114.5      139.9     122.2     158.1       105.8     138.1       151.8       142.5
           III     115.3      141.5     122.8     158.7       105.7     137.7       153.6       142.8
            IV     116.5      144.3     123.8     159.3       105.3     136.8       156.3       143.1
 
        ANNUAL     115.2      141.0     122.4     158.3       105.7     137.5       153.4       142.6
 
  1994       I     117.0      146.1     124.9     161.2       106.0     137.8       155.5       143.5
            II     116.6      147.3     126.3     161.8       105.7     138.8       158.3       145.1
           III     117.3      148.8     126.8     162.9       105.5     138.8       160.9       145.9
            IV     118.6      151.6     127.9     164.4       105.9     138.7       161.8       146.1
 
        ANNUAL     117.4      148.5     126.5     162.6       105.9     138.5       159.2       145.2
 
  1995       I     119.3      153.3     128.5     166.1       106.2     139.2       162.1       146.6
            II     120.7      154.2     127.7    r167.6       106.2     138.8      r164.3       147.0
           III     121.3      156.1     128.6     168.9       106.5     139.2       163.3       147.0
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)
 
  1993       I      -2.2        1.0       3.2       1.9        -1.1       4.1        -1.4         2.2
            II       0.4        4.7       4.2       2.4        -0.6       2.0         0.8         1.6
           III       2.9        4.9       1.9       1.5        -0.2      -1.3         4.7         0.7
            IV       4.2        7.9       3.5       1.6        -1.6      -2.5         7.3         0.8
 
        ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
  1994       I       1.7        5.2       3.4       4.9         2.7       3.1        -2.1         1.2
            II      -1.4        3.2       4.7       1.4        -1.2       2.8         7.6         4.5
           III       2.7        4.3       1.6       2.7        -0.8       0.0         6.7         2.3
            IV       4.3        7.7       3.3       3.8         1.5      -0.4         2.2         0.5
 
        ANNUAL       1.9        5.3       3.3       2.7         0.1       0.8         3.8         1.8
 
  1995       I       2.5        4.5       2.0       4.1         1.0       1.6         0.7         1.3
            II      r4.9       r2.4     r-2.4      r3.7        r0.3      -1.2        r5.6        r1.2
           III       2.0        4.9       2.9       3.1         1.0       1.1        -2.3        -0.1
  ---------------------------------------------------------------------------------------------------------
 
 
 
                      Percent change from corresponding quarter of previous year
 
  1993       I       1.6        3.5       1.9       4.2         1.0       2.6         1.3         2.1
            II       1.1        4.0       2.9       3.5         0.4       2.4         1.0         1.9
           III       1.2        4.2       2.9       2.6        -0.2       1.3         4.4         2.4
            IV       1.3        4.6       3.2       1.9        -0.9       0.5         2.8         1.3
 
        ANNUAL       1.3        4.1       2.7       3.0         0.0       1.7         2.4         1.9
 
  1994       I       2.3        5.7       3.3       2.6         0.1       0.3         2.6         1.1
            II       1.8        5.3       3.4       2.3        -0.1       0.5         4.3         1.8
           III       1.8        5.2       3.3       2.6        -0.2       0.8         4.8         2.2
            IV       1.8        5.1       3.3       3.2         0.6       1.4         3.5         2.1
 
        ANNUAL       1.9        5.3       3.3       2.7         0.1       0.8         3.8         1.8
 
  1995       I       2.0        4.9       2.9       3.0         0.1       1.0         4.3         2.1
            II       3.6        4.7       1.1       3.6         0.5       0.0        r3.8         1.3
           III       3.4        4.8       1.4       3.7         1.0       0.3         1.5         0.7
  ---------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                      November 7, 1995
  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 1982=100
 
  1993       I            130.8        134.8        103.0        149.9           101.0        114.6
            II            131.3        135.6        103.2        151.7           101.5        115.5
           III            132.1        136.8        103.6        152.5           101.6        115.4
            IV            133.6        139.3        104.2        153.3           101.4        114.7
 
        ANNUAL            132.0        136.6        103.5        152.0           101.5        115.1
 
  1994       I            135.4        141.8        104.7        154.3           101.4        113.9
            II            136.8        144.3        105.4        153.6           100.3        112.2
           III            138.0        146.3        106.0        154.5           100.0        111.9
            IV            139.3        149.2        107.1        155.9           100.4        112.0
 
        ANNUAL            137.4        145.4        105.8        154.5           100.6        112.5
 
  1995       I            140.5        151.1        107.5        157.7           100.8        112.3
            II            141.4       r149.8        105.9        157.9           100.1        111.7
           III            143.6        150.9        105.1        159.4           100.5        111.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              5.4          7.8          2.2         -2.1            -5.0         -7.1
            II              1.5          2.3          0.8          4.9             1.8          3.3
           III              2.5          3.8          1.2          2.0             0.4         -0.4
            IV              4.7          7.4          2.6          2.3            -0.9         -2.3
 
        ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
  1994       I              5.4          7.5          2.0          2.4             0.3         -2.8
            II              4.3          7.2          2.8         -1.8            -4.2         -5.8
           III              3.4          5.7          2.2          2.4            -1.2         -1.0
            IV              3.7          8.1          4.2          3.8             1.5          0.1
 
        ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
  1995       I              3.5          5.2          1.6          4.7             1.6          1.1
            II             r2.7         -3.4         -5.9         r0.5           r-2.8        r-2.2
           III              6.2          3.0         -3.0          3.7             1.7         -2.3
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              3.6          4.9          1.3          3.3             0.1         -0.3
            II              3.8          4.7          0.9          3.3             0.2         -0.5
           III              3.5          5.0          1.4          2.8             0.0         -0.7
            IV              3.5          5.3          1.7          1.7            -1.0         -1.7
 
        ANNUAL              3.6          5.0          1.4          2.7            -0.3         -0.8
 
  1994       I              3.5          5.2          1.6          2.9             0.4         -0.6
            II              4.2          6.4          2.1          1.2            -1.1         -2.9
           III              4.5          6.9          2.4          1.3            -1.5         -3.0
            IV              4.2          7.1          2.8          1.7            -0.9         -2.4
 
        ANNUAL              4.0          6.4          2.3          1.7            -0.9         -2.3
 
  1995       I              3.7          6.5          2.7          2.2            -0.6         -1.4
            II              3.3          3.8         r0.4          2.8           r-0.2         -0.5
           III              4.0          3.1         -0.8          3.2             0.5         -0.8
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                November 7, 1995
  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 1982=100
 
  1993       I            143.0        143.4        100.3        147.4            99.3        103.1
            II            144.2        144.8        100.4        148.8            99.6        103.2
           III            145.2        146.7        101.1        149.2            99.4        102.8
            IV            148.2        151.0        101.9        150.2            99.3        101.3
 
        ANNUAL            145.3        146.5        100.8        149.0            99.5        102.6
 
  1994       I            150.3        154.4        102.7        151.2            99.4        100.6
            II            151.7        157.1        103.6        150.0            98.0         98.9
           III            153.3        160.1        104.4        150.7            97.6         98.3
            IV            154.9        163.9        105.8        152.4            98.2         98.4
 
        ANNUAL            152.6        158.9        104.1        151.0            98.3         99.0
 
  1995       I            156.5        166.6        106.4        154.3            98.6         98.6
            II            156.8        165.0        105.2        153.3            97.2        r97.7
           III            159.9        167.6        104.8        154.7            97.6         96.7
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              9.0         11.7          2.5         -4.9            -7.7        -12.7
            II              3.6          4.1          0.4          4.0             0.9          0.3
           III              2.7          5.4          2.7          1.1            -0.6         -1.5
            IV              8.5         12.1          3.3          2.6            -0.7         -5.4
 
        ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
  1994       I              5.9          9.5          3.4          2.7             0.5         -3.1
            II              3.6          7.1          3.4         -3.1            -5.6         -6.5
           III              4.4          7.8          3.3          2.1            -1.5         -2.3
            IV              4.1          9.7          5.4          4.5             2.2          0.4
 
        ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
  1995       I              4.4          6.8          2.3          5.1             2.0          0.7
            II             r0.8         -3.7        r-4.5         -2.6            -5.8        r-3.4
           III              8.1          6.4         -1.6          3.7             1.6         -4.1
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              5.9          7.0          1.0          3.0            -0.2         -2.7
            II              6.1          7.0          0.9          2.7            -0.4         -3.2
           III              5.7          7.5          1.8          2.0            -0.8         -3.5
            IV              5.9          8.3          2.2          0.6            -2.0         -5.0
 
        ANNUAL              5.9          7.4          1.5          2.0            -0.9         -3.6
 
  1994       I              5.2          7.7          2.4          2.6             0.1         -2.5
            II              5.1          8.5          3.2          0.8            -1.6         -4.2
           III              5.6          9.1          3.3          1.0            -1.8         -4.3
            IV              4.5          8.5          3.8          1.5            -1.1         -2.9
 
        ANNUAL              5.0          8.5          3.3          1.3            -1.2         -3.5
 
  1995       I              4.1          7.8          3.6          2.1            -0.8         -2.0
            II              3.4          5.0         r1.5          2.2            -0.8        r-1.2
           III              4.3          4.7          0.3          2.6            -0.1         -1.6
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                November 7, 1995
  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 1982=100
 
  1993       I            116.2        124.2        106.9        155.1           104.5        133.5
            II            115.8        124.2        107.3        157.5           105.4        136.0
           III            116.4        124.6        107.1        158.7           105.8        136.4
            IV            116.2        124.9        107.5        159.4           105.4        137.2
 
        ANNUAL            116.1        124.5        107.2        157.7           105.3        135.8
 
  1994       I            117.4        126.3        107.5        160.1           105.3        136.4
            II            119.0        128.6        108.1        160.2           104.7        134.7
           III            119.5        129.4        108.3        161.3           104.5        135.0
            IV            120.4        131.2        109.0        162.3           104.5        134.8
 
        ANNUAL            119.0        128.9        108.2        161.0           104.8        135.2
 
  1995       I            121.0        132.1        109.1        163.9           104.7        135.4
            II            122.6       r131.1        106.9       r166.0           105.2       r135.3
           III            123.5        130.4        105.6        167.4           105.6        135.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
 
  1993       I              0.7          2.6          1.9          2.3            -0.7          1.6
            II             -1.3         -0.1          1.2          6.3             3.2          7.7
           III              2.1          1.4         -0.7          3.2             1.5          1.1
            IV             -0.7          0.9          1.5          1.8            -1.5          2.5
 
        ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
  1994       I              4.4          4.6          0.1          1.8            -0.4         -2.6
            II              5.4          7.4          1.9          0.3            -2.2         -4.8
           III              1.8          2.5          0.7          2.6            -0.9          0.8
            IV              2.9          5.6          2.6          2.5             0.3         -0.4
 
        ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
  1995       I              2.1          2.8          0.7          3.9             0.8          1.8
            II             r5.5        r-2.8        r-7.9          5.2            r1.8        r-0.3
           III              3.0         -2.1         -4.9          3.5             1.5          0.6
  --------------------------------------------------------------------------------------------------
 
 
 
                     Percent change from corresponding quarter of previous year
 
  1993       I              0.5          2.2          1.6          3.8             0.6          3.2
            II              0.7          1.7          1.0          4.3             1.1          3.6
           III              0.6          1.6          1.0          4.0             1.1          3.3
            IV              0.2          1.2          1.0          3.4             0.6          3.2
 
        ANNUAL              0.4          1.7          1.2          3.8             0.8          3.3
 
  1994       I              1.1          1.7          0.6          3.2             0.7          2.1
            II              2.8          3.5          0.7          1.7            -0.6         -1.0
           III              2.7          3.8          1.1          1.6            -1.2         -1.1
            IV              3.6          5.0          1.3          1.8            -0.8         -1.8
 
        ANNUAL              2.5          3.5          1.0          2.0            -0.5         -0.4
 
  1995       I              3.0          4.6          1.5          2.3            -0.5         -0.7
            II             r3.1         r2.0         -1.1          3.6             0.5          0.5
           III              3.4          0.8         -2.5          3.8             1.1          0.4
  --------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                November 7, 1995
  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    cost     fits   deflator
      quarter   hour      Output  hours      (1)      sation(2)  costs    cost(6)  (7)      (8)      (4)
  ----------------------------------------------------------------------------------------------------------
                                             Indexes 1982=100
 
  1993       I    119.9     143.3    119.5    153.9     103.7     128.3    116.8    125.0    183.7    128.7
            II    121.2     145.9    120.4    154.4     103.3     127.3    115.8    124.1    199.4    128.7
           III    122.2     148.1    121.2    154.8     103.1     126.7    115.8    123.6    202.5    128.5
            IV    123.4     150.9    122.3    155.0     102.5     125.7    114.8    122.6    220.9    128.7
 
        ANNUAL    121.8     147.0    120.8    154.6     103.3     127.0    115.8    123.8    201.9    128.6
 
  1994       I    124.0     153.0    123.4    156.5     102.9     126.2    116.6    123.5    218.2    129.4
            II    123.8     154.8    125.1    156.8     102.4     126.7    115.2    123.4    228.7    129.9
           III    124.3     156.5    125.9    157.9     102.3     127.1    116.2    124.0    228.8    130.5
            IV    125.3     159.6    127.4    159.1     102.5     127.0    115.9    123.8    230.3    130.4
 
        ANNUAL    124.4     156.0    125.4    157.7     102.7     126.7    116.0    123.7    226.5    130.0
 
  1995       I    125.8     161.4    128.2    160.5     102.6     127.5    116.0    124.2    224.0    130.4
            II   r127.4    r162.6   r127.6    161.8     102.6    r127.0   r116.8   r124.1   r226.7   r130.5
  ----------------------------------------------------------------------------------------------------------
                               Percent change from previous quarter at annual rate(5)
 
  1993       I     -2.2      -0.3      2.0      2.0      -1.0       4.4      3.6      4.2    -14.9      2.3
            II      4.6       7.5      2.8      1.4      -1.5      -3.0     -3.3     -3.1     38.9      0.2
           III      3.2       6.0      2.7      1.0      -0.7      -2.1      0.0     -1.6      6.5     -0.8
            IV      3.9       7.8      3.8      0.6      -2.6      -3.1     -3.4     -3.2     41.5      0.6
 
        ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      2.0       5.8      3.7      3.9       1.7       1.8      6.6      3.1     -4.9      2.2
            II     -0.8       4.8      5.6      0.6      -1.9       1.4     -4.8     -0.3     20.7      1.8
           III      1.6       4.2      2.5      2.9      -0.7       1.2      3.5      1.8      0.3      1.7
            IV      3.4       8.4      4.8      3.2       0.9      -0.3     -1.1     -0.5      2.5     -0.2
 
        ANNUAL      2.2       6.1      3.8      2.0      -0.6      -0.2      0.2     -0.1     12.2      1.1
 
  1995       I      1.7       4.4      2.7      3.4       0.4       1.8      0.5      1.4    -10.4      0.1
            II     r5.2      r3.2    r-1.9     r3.5      r0.1     r-1.6     r2.8    r-0.5     r4.9     r0.1
  ----------------------------------------------------------------------------------------------------------
 
 
 
                            Percent change from corresponding quarter of previous year
 
  1993       I      2.7       4.4      1.6      4.2       1.0       1.4     -2.1      0.5      7.8      1.1
            II      3.0       5.1      2.0      3.3       0.1       0.2     -1.8     -0.3     13.6      0.8
           III      2.6       5.2      2.5      2.2      -0.6      -0.4     -2.7     -1.0     18.5      0.6
            IV      2.3       5.2      2.8      1.3      -1.4      -1.0     -0.8     -1.0     15.5      0.6
 
        ANNUAL      2.8       5.0      2.2      2.8      -0.2       0.0     -1.9     -0.5     14.0      0.8
 
  1994       I      3.4       6.8      3.3      1.7      -0.8      -1.6     -0.1     -1.2     18.8      0.5
            II      2.1       6.1      4.0      1.5      -0.9      -0.5     -0.5     -0.5     14.7      0.9
           III      1.7       5.7      3.9      2.0      -0.9       0.3      0.4      0.3     13.0      1.6
            IV      1.6       5.8      4.2      2.6       0.0       1.0      1.0      1.0      4.2      1.4
 
        ANNUAL      2.2       6.1      3.8      2.0      -0.6      -0.2      0.2     -0.1     12.2      1.1
 
  1995       I      1.5       5.4      3.9      2.5      -0.3       1.0     -0.5      0.6      2.7      0.8
            II      3.0      r5.0      2.0      3.2      r0.2      r0.3     r1.4     r0.6    r-0.9      0.4
  ----------------------------------------------------------------------------------------------------------
  See footnotes following table 6.                                        November 7, 1995
  r=revised                                                               Source: Bureau of Labor Statistics
 
 
 
 
SOURCE:  Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board.  Compensation
and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, 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.  In the business sector, the probability is 0.95 that the third publication (second revision) of a quarterly
index of output per hour of all persons will differ from the initial value by between -1.8 and +2.1 index points.  This interval
is based on the performance of this measure between the second quarter of 1976 and the third quarter of 1992.
 
 
 
                                                        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 gross product divided by constant dollar gross product.
 
(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 cost includes 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 cost is the sum of labor and nonlabor costs.
 
(8)  Unit profits include corporate profits with inventory valuation and capital consumption adjustments.