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                           PRODUCTIVITY AND COSTS
                         Third Quarter 2005, revised
                                      
     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the third quarter of 2005.  The seasonally adjusted annual rates
of productivity growth in the third quarter were:

               5.4 percent in the business sector and
               4.7 percent in the nonfarm business sector.

In both sectors, changes in productivity are higher than the preliminary
estimates published November 3, reflecting upward revisions to output.
Movements in hours were unchanged in both sectors.

     In manufacturing, revised productivity increases in the third quarter
were:

               3.4 percent in manufacturing,
               6.5 percent in durable goods manufacturing, and
               0.2 percent in nondurable goods manufacturing.

   Productivity grew more slowly in the manufacturing sector than was
reported on Nov. 3. The third-quarter change in manufacturing output was
revised down and the decrease in hours was less than reported last month.
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.  Third-quarter
measures are summarized in table A and appear in detail in tables 1 through 5.

    The data sources and methods used in the preparation of the
manufacturing series differ from those used in preparing the business and
nonfarm business series, and these measures are not directly comparable.
Output measures for business and nonfarm business are based on measures of
gross domestic product prepared by the Bureau of Economic Analysis of the
U.S. Department of Commerce.  Quarterly output measures for manufacturing
reflect indexes of industrial production independently prepared by the Board
of Governors of the Federal Reserve System.  See Technical Notes for further
information on data sources.

---------------------------------------------------------------------------
Table A. Productivity and costs: Revised third-quarter 2005 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             5.4       5.0    -0.4     4.2       -0.8      -1.1
Nonfarm business     4.7       4.8     0.1     3.7       -1.4      -1.0
Manufacturing        3.4       2.4    -1.0     3.1       -1.9      -0.3
  Durable            6.5       6.9     0.3     2.6       -2.4      -3.6
  Nondurable         0.2      -3.1    -3.3     3.8       -1.3       3.6
---------------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business             3.1       4.2     1.1     5.0        1.1       1.9
Nonfarm business     3.1       4.4     1.2     5.0        1.2       1.8
Manufacturing        4.5       3.0    -1.4     6.2        2.4       1.7
  Durable            6.3       5.6    -0.7     5.6        1.8      -0.7
  Nondurable         2.5      -0.2    -2.6     7.3        3.4       4.7
---------------------------------------------------------------------------

Business

     From the second quarter to the third quarter of 2005, business sector
productivity rose at an annual rate of 5.4 percent, as output increased 5.0
percent and hours of all persons engaged in the sector dropped slightly, 0.4
percent (table 1).  Output per hour had increased 0.8 percent in the second
quarter.

     Hourly compensation in the business sector increased 4.2 percent during
the third quarter of 2005, following a decline of 0.1 percent in the second
quarter (as revised).  Hourly compensation includes wages and salaries,
supplements, employer contributions to employee benefit plans, and taxes.
Real hourly compensation, which takes into account changes in consumer
prices, fell 0.8 percent in the third quarter and 4.0 percent in the second
quarter.

   Unit labor costs fell 1.1 percent in the third quarter of 2005 following
a decline of 0.9 percent one quarter earlier.  The implicit price deflator
for the business sector, which reflects changes both in unit labor costs and
in unit nonlabor payments, rose 2.8 percent in the third quarter of 2005.

Nonfarm business

     Output per hour of all persons in the nonfarm business sector increased
4.7 percent during the third quarter of 2005, reflecting increases in output
and hours of 4.8 percent and 0.1 percent, respectively (table 2).  In the
previous quarter, productivity in nonfarm businesses had risen 2.1 percent as
output grew 4.4 percent and hours increased 2.2 percent.

     Hourly compensation grew 3.7 percent in the third quarter of 2005,
following the 0.9-percent rise in the second quarter (as revised).  When the
rise in consumer prices is taken into account, real hourly compensation
declined 1.4 percent in the third quarter of 2005 and 3.1 percent one quarter
earlier.

   Unit labor costs fell 1.0 percent in the third quarter, similar to the
previous quarter, when they dropped 1.2 percent.  The implicit price deflator
for nonfarm business increased 3.1 percent in the third quarter of 2005.

Manufacturing

     Productivity increased 3.4 percent in manufacturing in the third quarter
of 2005, as output increased 2.4 percent and hours of all persons decreased
1.0 percent (seasonally adjusted annual rates).  Productivity growth in
manufacturing grew more slowly than in the second quarter of the year, when
it rose 4.0 percent (as revised).  In the second quarter of 2005, output rose
1.2 percent and hours of all persons dropped 2.6 percent.  In durable goods
industries, productivity increased 6.5 percent in the third quarter,
reflecting increases of 6.9 percent in output and 0.3 percent in hours.
Productivity grew more slowly in the nondurable goods industries, 0.2
percent, as output declined 3.1 percent and hours fell 3.3 percent (tables 3,
4, and 5).  Hours in nondurable goods manufacturing have fallen in every
quarter beginning with the third quarter of 1999.

     The hourly compensation of all manufacturing workers rose 3.1 percent in
the third quarter of 2005.  In durable goods manufacturing, hourly
compensation increased 2.6 percent and in nondurable goods manufacturing it
grew 3.8 percent.  When the increase in consumer prices is taken into
account, real hourly compensation for all manufacturing workers fell 1.9
percent in the third quarter.

     Unit labor costs in manufacturing declined 0.3 percent in the third
quarter of 2005 and 0.2 percent in the previous quarter.  In durable goods
manufacturing, unit labor costs declined 3.6 percent in the third quarter
while unit labor costs in nondurable goods manufacturing rose 3.6 percent.

Nonfinancial Corporations

     Third-quarter 2005 measures of productivity and costs also were released
for nonfinancial corporations (tables B and 6).  Output per all-employee hour
grew at a 3.2 percent annual rate, more slowly than the 4.3 percent increase
in the previous quarter (as revised).  Output increased 4.0 percent in the
third quarter, and hours of all employees rose 0.8 percent (seasonally
adjusted annual rates).  The nonfinancial corporate sector includes all
corporations doing business in the United States, except those classified as
depository institutions, nondepository institutions, security and commodity
brokers, insurance carriers, regulated investment offices, small business
investment offices, and real estate investment trusts.

-----------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Third-quarter 2005 productivity and cost
measures
(Seasonally adjusted annual rates)
-----------------------------------------------------------------------------                                                                     
                                           Real                      
                                   Hourly  hourly   Unit             Implicit
         Produc-                   compen- compen-  labor   Unit     price
Period   tivity   Output  Hours    sation  sation   costs   profits  deflator
-----------------------------------------------------------------------------                                                                     
                 Percent change from preceding quarter
2005 III  3.2      4.0     0.8      4.5    -0.6      1.3     -2.9     1.7
-----------------------------------------------------------------------------
                 Percent change from same quarter a year ago
2005 III  4.7      6.0     1.3      5.4     1.5      0.7     13.3     1.6
-----------------------------------------------------------------------------     
     
     Hourly compensation in nonfinancial corporations increased 4.5 percent
in the third quarter, up from the second quarter increase of 0.8 percent.
When the rise in consumer prices is taken into account, real hourly
compensation fell 0.6 percent in the third quarter.

     Unit labor costs for the sector rose 1.3 percent in third quarter 2005
after falling 3.4 percent one quarter earlier. Unit nonlabor costs rose 5.5
percent, while unit profits dropped at a 2.9 percent annual rate in the third
quarter.  As a result of these movements, the implicit price deflator for the
output of nonfinancial corporations--which reflects a weighted average of
these three measures--increased 1.7 percent.

Revised Measures

     Current and previous measures for the second and third quarters of 2005
for the business, nonfarm business, and manufacturing sectors are compared in
table C.  In the third quarter, productivity in the business and nonfarm
business sectors was revised up 0.6 percentage point, reflecting similar
upward revisions in the output measures.  Unit labor costs in the business
and nonfarm business sectors showed the same 0.5 percentage-point downward
revision in the third quarter, reflecting the higher productivity figures.
In manufacturing, a downward revision to output combined with an upward
revision to hours to dampen the third-quarter productivity change to 3.4
percent.  Hourly compensation in manufacturing was revised up slightly.  The
combination of a downward revision to productivity and an upward revision to
hourly compensation made the decline in unit labor costs, 0.3 percent, much
shallower than the 1.6-percent drop reported on Nov. 3.

-----------------------------------------------------------------------
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 2005
Business:                                                         
  Previous          4.8      4.3      -0.4      4.2      -0.9     -0.6
  Revised           5.4      5.0      -0.4      4.2      -0.8     -1.1
Nonfarm business:                                                 
  Previous          4.1      4.2       0.1      3.6      -1.4     -0.5
  Revised           4.7      4.8       0.1      3.7      -1.4     -1.0
Manufacturing:                                                    
  Previous          4.5      3.1      -1.4      2.9      -2.1     -1.6
  Revised           3.4      2.4      -1.0      3.1      -1.9     -0.3
-----------------------------------------------------------------------
                           Second quarter 2005
Business:                                                         
  Previous          0.8      4.0       3.1      3.0      -1.1      2.2
  Revised           0.8      4.0       3.1     -0.1      -4.0     -0.9
Nonfarm business:                                                 
  Previous          2.1      4.4      2.2       4.0      -0.1      1.8
  Revised           2.1      4.4      2.2       0.9      -3.1     -1.2
Manufacturing:                                                    
  Previous          3.6      0.9     -2.6       7.9       3.6      4.2
  Revised           4.0      1.2     -2.6       3.8      -0.4     -0.2
-----------------------------------------------------------------------
     
     
     The second-quarter 2005 measures of hourly compensation, real hourly
compensation, and unit labor costs were revised to reflect new information on
compensation.  In the business sector, hourly compensation now shows a slight
decline in the second quarter of 0.1 percent, down substantially from the 3.0
percent increase previously reported.  Unit labor costs were revised down by
a similar amount and now reflect a 0.9 percent drop rather than a 2.2-percent
increase.  The downward revisions to hourly compensation and unit labor costs
in nonfarm businesses were similar to those of the larger sector.  In the
second quarter of 2005, hourly compensation in nonfarm businesses rose 0.9
percent (revised down from 4.0 percent) and unit labor costs fell 1.2 percent
(revised down from a 1.8-percent increase).

     In manufacturing, hourly compensation also rose more slowly, 3.8
percent, than reported on Nov. 3.  Real hourly compensation dropped 0.4
percent rather than rising, after revision.  Manufacturing output and
productivity also were revised to incorporate historical revisions and new
seasonal factors in the Index of Industrial Production (IIP) released on
November 7.  
(http://www.federalreserve.gov/releases/G17/revisions/current/g17rev.pdf)  As
a result of these revisions, productivity in the second quarter of 2005 rose
more rapidly, 4.0 percent, than previously reported.  As a result of the
upward revision to productivity and a downward revision to hourly
compensation, manufacturing unit labor costs, which had been reported as
rising at a 4.2 percent annual rate, actually fell slightly, 0.2 percent.
Appendix tables 1-3 show revised quarterly manufacturing measures for 2000-
2002.  In the manufacturing sector, annual indexes for 1987-2001 are
unchanged.  Quarterly measures for all years may have been affected by the
historical revisions and rebasing of the IIP.

Revised measures: Nonfinancial corporations
     
     Measures for the nonfinancial corporate sector also were revised to
reflect updated information on output and employee compensation during the
second quarter of 2005 (table D).  With hours unchanged, productivity was
revised down along with output.  Hourly compensation also was revised down,
from 3.7 to 0.8 percent.  Since hourly compensation was revised down more
than productivity, unit labor costs show more of a decline, 3.4 percent, than
previously reported on Nov. 3.

---------------------------------------------------------------------------
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
---------------------------------------------------------------------------                                                                  
                            Second quarter 2005
Previous  6.3      9.0     2.6     3.7      -0.5    -2.4   41.7     1.4
Revised   4.3      7.1     2.6     0.8      -3.2    -3.4   44.3     1.4
---------------------------------------------------------------------------


--------------------------------------------------------------------------------
| The  index  numbers and rates of change reported by BLS for productivity  and|
| costs  in its news release are rounded to one decimal place.  Effective  with|
| the  release of today's data, all percent changes in this release and on  the|
| BLS  web  site  are calculated using index numbers to three  decimal  places.|
| These    index    numbers   are   available   at   the    BLS    web    site,|
| http://www.bls.gov/data/home.htm, or by contacting the BLS Division of  Major|
| Sector Productivity.  (Telephone 202--691-5606 or email DPRWEB@BLS.GOV)      |
|                                                                              |
| Previously, the percent changes were calculated using the data underlying the|
| index  numbers  rather  than  the index numbers themselves.   The  change  in|
| calculation  method may cause published productivity growth rates  to  change|
| slightly--likely by no more than a tenth--from the rates that were calculated|
| using  the earlier method.  The convention of publishing in the news  release|
| index values rounded to one decimal place will continue.                     |
--------------------------------------------------------------------------------

NEXT RELEASE DATE

    The next release of Productivity and Costs is scheduled for 8:30 AM EST,
Thursday, February 2, 2006.  Preliminary fourth-quarter and annual 2005
measures will be released at that time.

--------------------------------------------------------------------------
     Scheduled release dates for productivity and costs measures for major
sectors of the U.S. economy in 2006 are:
--------------------------------------------------------------------------
     Reference period              2006 release date
     2005:                         
     Fourth quarter, Annual        February 2
     Fourth quarter, Annual        March 7
     (revised)
     2006:                         
     First quarter                 May 4
     First quarter (revised)       June 1
     Second quarter                August 8
     Second quarter (revised)      September 6
     Third quarter                 November 2
     Third quarter (revised)       December 5
--------------------------------------------------------------------------

     These dates are based on presently available schedules for the release
of underlying source data in 2006.  Each issue of Productivity and Costs
contains a "Next release date" paragraph that readers should use to confirm
the dates above.


                                      
                               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

  2003       I     125.6      144.6     115.2     147.8       115.5      117.7       116.4      117.2
            II     127.9      146.4     114.5     150.3       117.3      117.5       117.2      117.4
           III     130.5      149.8     114.8     152.0       118.0      116.4       120.3      117.9
            IV     130.6      150.8     115.5     152.8       118.4      117.0       120.5      118.3

        ANNUAL     128.6      147.9     115.0     150.7       117.3      117.2       118.6      117.7

  2004       I     131.7      152.6     115.9     154.4       118.5      117.3       123.0      119.4
            II     132.8      154.1     116.1     155.7       118.2      117.2       126.1      120.5
           III     133.3      155.8     116.9     158.2       119.6      118.7       124.2      120.7
            IV     134.3      157.2     117.1     162.5       121.8      121.0       122.3      121.5

        ANNUAL     133.0      154.9     116.5     157.7       119.5      118.6       123.9      120.6

  2005       I     135.3      158.9     117.5     164.4       122.5      121.5       123.6      122.3
            II     135.5      160.4     118.4    r164.3      r121.2     r121.2      r126.2      123.1
           III    r137.3     r162.4    r118.3    r166.0      r121.0     r120.9      r129.1     r123.9
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2003       I       2.8        1.7      -1.1       5.5         1.3        2.6         0.5        1.8
            II       7.6        4.9      -2.6       7.0         6.5       -0.6         2.8        0.6
           III       8.4        9.9       1.3       4.5         2.3       -3.6        10.7       r1.6
            IV       0.3        2.6       2.3       2.3         1.4        2.1         0.9        1.6

        ANNUAL       3.9        3.4      -0.5       3.9         1.6        0.0         3.7        1.4

  2004       I       3.4        4.9       1.5       4.2         0.3        0.8         8.6        3.7
            II       3.4        4.0       0.6       3.3        -1.0       -0.1        10.3        3.8
           III       1.4        4.4       3.0       6.5         4.8        5.0       r-5.9        0.7
            IV       3.1        3.6       0.5      11.3         7.5        7.9        -6.0        2.4

        ANNUAL       3.4        4.8       1.3       4.6         1.9        1.2         4.4        2.4

  2005       I       2.9        4.4       1.4       4.7         2.3        1.7         4.4        2.7
            II       0.8        4.0       3.1     r-0.1       r-4.0      r-0.9        r8.7        2.6
           III      r5.4       r5.0      -0.4       4.2       r-0.8      r-1.1        r9.4       r2.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2003       I       2.4        2.0      -0.4       3.0         0.1        0.6         2.7        1.4
            II       3.8        2.6      -1.1       3.6         1.4       -0.2         3.9        1.3
           III       4.7        4.2      -0.5       4.3         2.0       -0.4         4.6        1.4
            IV       4.7        4.7       0.0       4.8         2.9        0.1         3.7        1.4

        ANNUAL       3.9        3.4      -0.5       3.9         1.6        0.0         3.7        1.4

  2004       I       4.9        5.5       0.6       4.5         2.6       -0.4         5.7        1.9
            II       3.8        5.3       1.4       3.6         0.8       -0.2         7.6        2.7
           III       2.1        4.0       1.8       4.1         1.4        1.9         3.3        2.4
            IV       2.8        4.2       1.4       6.3         2.8        3.4         1.5        2.6

        ANNUAL       3.4        4.8       1.3       4.6         1.9        1.2         4.4        2.4

  2005       I       2.7        4.1       1.3       6.4         3.3        3.6         0.5        2.4
            II       2.1        4.1       2.0      r5.5        r2.5       r3.4        r0.1        2.1
           III      r3.1       r4.2       1.1      r5.0        r1.1       r1.9        r3.9        2.7
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       Dec. 6, 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

  2003       I     124.9      144.8     115.9     147.0       114.9      117.7       118.2      117.9
            II     126.9      146.5     115.4     149.3       116.5      117.6       118.7      118.0
           III     129.9      150.2     115.6     151.2       117.4      116.4       121.6      118.3
            IV     130.1      151.2     116.2     152.2       117.9      116.9       121.3      118.6

        ANNUAL     128.0      148.2     115.8     149.9       116.7      117.1       120.0      118.2

  2004       I     130.8      152.8     116.8     153.5       117.8      117.3       123.5      119.6
            II     132.2      154.5     116.8     154.9       117.6      117.1       126.5      120.6
           III     132.7      156.3     117.8     157.2       118.8      118.5       125.3      121.0
            IV     133.5      157.7     118.2     161.0       120.7      120.7       123.7      121.8

        ANNUAL     132.3      155.3     117.4     156.7       118.7      118.4       124.7      120.7

  2005       I     134.5      159.4     118.5     163.2       121.6      121.3       125.0      122.7
            II     135.3      161.2     119.2    r163.6      r120.6     r120.9      r127.9      123.5
           III    r136.8     r163.1     119.2    r165.0      r120.2     r120.6      r130.9     r124.4
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2003       I       3.1        2.0      -1.1       5.8         1.5        2.6         0.8        1.9
            II       6.6        4.7      -1.8       6.2         5.8       -0.3         1.7        0.4
           III       9.6       10.4       0.8       5.1         2.9       -4.1        10.2        1.0
            IV       0.8        2.8       2.0       2.7         1.8        2.0        -1.1        0.8

        ANNUAL       3.8        3.3      -0.5       4.0         1.6        0.2         3.2        1.3

  2004       I       2.1        4.2       2.0       3.5        -0.5        1.3         7.4        3.6
            II       4.5        4.6       0.1       3.7        -0.7       -0.8        10.0        3.2
           III       1.3        4.6       3.3       6.1         4.4       r4.8        -3.6        1.5
            IV       2.5        3.9       1.4      10.2         6.4        7.6        -5.1        2.6

        ANNUAL       3.4        4.8       1.4       4.5         1.8        1.1         3.9        2.1

  2005       I       3.2        4.3       1.1       5.5         3.1        2.2         4.4        3.0
            II       2.1        4.4       2.2      r0.9       r-3.1      r-1.2        r9.4        2.7
           III      r4.7       r4.8       0.1      r3.7        -1.4      r-1.0       r10.0       r3.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2003       I       2.0        1.7     r-0.3       3.0         0.1        1.0         2.7        1.6
            II       3.5        2.5      -0.9       3.5         1.3        0.1         3.2        1.2
           III       4.8        4.2      -0.5       4.4         2.1       -0.4         4.1        1.2
            IV       5.0        4.9       0.0       5.0         3.0        0.0         2.8        1.0

        ANNUAL       3.8        3.3      -0.5       4.0         1.6        0.2         3.2        1.3

  2004       I       4.7        5.5       0.7       4.4         2.5       -0.3         4.5        1.5
            II       4.2        5.5       1.2       3.7         0.9       -0.4         6.5        2.1
           III       2.2        4.0       1.9       4.0         1.2        1.8         3.0        2.3
            IV       2.6        4.3       1.7       5.8         2.4        3.2         1.9        2.7

        ANNUAL       3.4        4.8       1.4       4.5         1.8        1.1         3.9        2.1

  2005       I       2.9        4.4       1.5       6.3         3.3        3.4         1.2        2.6
            II       2.3        4.3       2.0      r5.6        r2.6       r3.3        r1.1        2.4
           III      r3.1       r4.4       1.2      r5.0        r1.2       r1.8        r4.5       r2.8
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       Dec. 6, 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

  2003       I           r153.1       r133.1         86.9        156.5          122.3        r102.2
            II           r154.8       r132.3         85.5        159.2          124.3        r102.8
           III           r158.7       r133.6         84.2        161.5          125.4        r101.8
            IV           r159.8       r135.7         84.9        163.2          126.5        r102.1

        ANNUAL           r156.6       r133.7         85.4        160.1          124.6        r102.2

  2004       I           r161.2       r137.6         85.4        159.1          122.1         r98.7
            II           r164.4       r139.8         85.1        161.1          122.3         r98.0
           III           r166.2       r141.2         85.0        164.9          124.7         r99.2
            IV           r168.5       r142.7         84.7        169.3          126.9        r100.5
  
        ANNUAL           r165.1       r140.4         85.0        163.6          124.0         r99.1

  2005       I           r170.5       r144.2         84.6        172.2          128.3        r101.0
            II           r172.2       r144.7         84.0       r173.8         r128.2        r101.0
           III           r173.7       r145.5        r83.8       r175.2         r127.6        r100.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I             r7.0         r0.3         -6.3         17.9           13.1         r10.2
            II             r4.3        r-2.4         -6.5          6.9            6.5          r2.5
           III            r10.4         r3.9         -5.9          5.9            3.7         r-4.0
            IV             r3.0         r6.4          3.3          4.3            3.4          r1.3

        ANNUAL             r5.9         r0.7         -4.9          8.3           r5.8          r2.2

  2004       I             r3.4         r5.9          2.4         -9.7          -13.1        r-12.7
            II             r8.3         r6.6         -1.6          5.1            0.7         r-3.0
           III              4.4         r4.1         -0.3          9.8            8.0          r5.1
            IV             r5.7         r4.3         -1.3         11.2            7.4          r5.2

        ANNUAL             r5.4         r5.0         -0.4          2.2           -0.5         r-3.1

  2005       I             r4.9         r4.2         -0.7          7.1            4.6          r2.1
            II             r4.0         r1.2         -2.6         r3.8          r-0.4         r-0.2
           III             r3.4         r2.4        r-1.0         r3.1          r-1.9         r-0.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I             r6.1         r1.6         -4.2          8.2            5.2          r2.0
            II             r5.2        r-0.5         -5.4          7.8            5.5          r2.5
           III             r6.3        r-0.1         -6.0          8.4            6.0          r2.0
            IV             r6.1         r2.0         -3.9          8.7            6.6          r2.4

        ANNUAL             r5.9         r0.7         -4.9          8.3           r5.8          r2.2

  2004       I             r5.2         r3.4         -1.8          1.6           -0.2         r-3.4

            II             r6.2         r5.7         -0.5          1.2           -1.6          -4.7
           III             r4.7         r5.7          0.9          2.1           -0.6         r-2.5
            IV             r5.4         r5.2         -0.2          3.7            0.3         r-1.6

        ANNUAL             r5.4         r5.0         -0.4          2.2           -0.5         r-3.1

  2005       I             r5.8         r4.8         -1.0          8.3            5.1          r2.3
            II             r4.7         r3.4         -1.2         r7.9           r4.8          r3.0
           III             r4.5         r3.0        r-1.4         r6.2           r2.4          r1.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 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

  2003       I           r174.1       r157.0         90.1        154.9          121.1         r89.0
            II           r176.4       r156.3         88.6        157.7          123.1         r89.4
           III           r182.8       r159.3         87.1        160.1          124.3         r87.6
            IV           r184.5       r162.9         88.3        161.9          125.5         r87.8

        ANNUAL           r179.4       r158.9         88.5        158.6          123.5         r88.4

  2004       I           r186.3       r166.3         89.3        155.5          119.4         r83.5
            II           r190.2       r169.1         88.9        158.2          120.1         r83.2
           III           r192.7       r172.0         89.2        162.1          122.6         r84.1
            IV           r196.1       r174.5         89.0        166.0          124.4         r84.6

        ANNUAL           r191.3       r170.5         89.1        160.4          121.6         r83.9

  2005       I           r199.6       r177.4         88.9        169.0          125.9         r84.7
            II           r201.8       r178.6         88.5       r170.1         r125.5         r84.3
           III           r205.0       r181.5        r88.6       r171.2         r124.7         r83.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I             r7.6         r0.7         -6.4         22.2           17.2         r13.6
            II             r5.4        r-1.8         -6.9          7.3            6.9          r1.8
           III            r15.2         r8.0         -6.3          6.2            3.9         r-7.8
            IV             r3.7         r9.5         r5.6          4.7            3.8          r1.0

        ANNUAL             r8.0         r2.3         -5.3          9.3            6.9          r1.3

  2004       I             r4.0         r8.5          4.3        -14.9          -18.1        r-18.1
            II             r8.7         r7.0         -1.5          6.9           r2.4         r-1.6
           III             r5.5         r6.9          1.3         10.3            8.5          r4.6
            IV             r7.3         r6.1         -1.1          9.9            6.1          r2.5


        ANNUAL             r6.6         r7.3          0.6          1.1           -1.5         r-5.2

  2005       I             r7.3         r6.8         -0.5          7.5            5.1          r0.2
            II             r4.3         r2.6         -1.7         r2.6          r-1.5         r-1.6
           III             r6.5         r6.9         r0.3         r2.6          r-2.4         r-3.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I             r8.0         r2.9         -4.7          9.1            6.0          r1.0
            II             r7.2         r0.6         -6.1          8.7            6.4          r1.4
           III             r8.8         r1.6         -6.7          9.6            7.3          r0.7
            IV             r7.9         r4.0         -3.6          9.9            7.8          r1.9

        ANNUAL             r8.0         r2.3         -5.3          9.3            6.9          r1.3

  2004       I             r7.0         r5.9         -1.0          0.4           -1.4         r-6.1
            II              7.8         r8.2          0.4          0.3           -2.5          -6.9
           III             r5.4         r8.0          2.4          1.3           -1.4         r-3.9
            IV             r6.3         r7.1          0.7          2.5           -0.9         r-3.6

        ANNUAL             r6.6         r7.3          0.6          1.1           -1.5         r-5.2

  2005       I             r7.2         r6.7         -0.5          8.7            5.5          r1.4
            II             r6.1         r5.6         -0.5         r7.5           r4.5          r1.4
           III             r6.3         r5.6        r-0.7         r5.6           r1.8         r-0.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 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

  2003       I           r131.8       r108.3         82.1        158.0          123.5        r119.9
            II           r132.7       r107.4         80.9        160.5          125.3        r120.9
           III           r134.2       r107.1         79.8        162.7          126.3        r121.2
            IV           r135.2       r107.8         79.7        163.9          127.0        r121.2

        ANNUAL           r133.5       r107.7         80.6        161.2          125.5        r120.8

  2004       I           r136.4       r108.5         79.6        164.1          125.9        r120.3
            II           r139.0       r110.1         79.3        164.7          125.1        r118.5
           III           r140.3       r110.3         78.7        168.1          127.1        r119.8
            IV           r141.5       r110.9         78.3        173.5          130.1        r122.6

        ANNUAL           r139.3       r110.0         79.0        167.6          127.0        r120.3

  2005       I           r142.3       r111.1         78.1        176.1          131.3        r123.8
            II           r143.7       r111.0         77.3       r178.7         r131.8        r124.4
           III           r143.7       r110.1        r76.6       r180.3         r131.4        r125.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2003       I             r6.2        r-0.2         -6.0         10.3            5.9          r3.9
            II             r2.9        r-3.2         -5.9          6.3            5.9          r3.3
           III             r4.6        r-0.8         -5.2          5.6            3.4          r1.0
            IV             r3.0         r2.6         -0.4          3.0            2.1          r0.0

        ANNUAL             r3.2        r-1.1         -4.2          6.4            4.0          r3.0

  2004       I             r3.4         r2.6         -0.8          0.5           -3.3         r-2.8
            II             r7.8         r6.0         -1.7          1.7           -2.6         r-5.7
           III             r3.8         r0.7         -3.0          8.4            6.6          r4.4
            IV             r3.7         r2.0        r-1.6         13.7            9.7          r9.6

        ANNUAL              4.3          2.2         -2.1          3.9            1.2          -0.4

  2005       I             r2.0         r0.9         -1.1          6.1            3.7          r4.1
            II             r4.0        r-0.4         -4.3         r5.8           r1.6          r1.7
           III             r0.2        r-3.1        r-3.3         r3.8          r-1.3          r3.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2003       I             r3.4        r-0.1         -3.4          6.7            3.7          r3.1
            II             r2.6        r-1.9         -4.3          6.4            4.1          r3.7
           III             r2.8        r-2.1         -4.8          6.2            3.9          r3.3
            IV              4.2         -0.4         -4.4          6.3            4.3           2.0

        ANNUAL             r3.2        r-1.1         -4.2          6.4            4.0          r3.0

  2004       I             r3.5         r0.3         -3.1          3.8            2.0          r0.3
            II             r4.7         r2.6         -2.0          2.7           -0.2         r-1.9
           III              4.5          3.0         -1.5          3.3            0.6          -1.1
            IV             r4.7         r2.8         -1.8          5.9            2.4          r1.2

        ANNUAL              4.3          2.2         -2.1          3.9            1.2          -0.4

  2005       I             r4.3         r2.4         -1.8          7.4            4.3          r2.9
            II             r3.4         r0.8         -2.5         r8.5           r5.4          r4.9
           III             r2.5        r-0.2        r-2.6         r7.3           r3.4          r4.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 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

  2003       I    130.4    152.3     116.8    144.6     113.0     110.9    111.4    111.0    107.8    110.7
            II    132.7    154.3     116.3    147.0     114.8     110.8    110.5    110.7    113.7    111.0
           III    135.1    156.9     116.2    148.9     115.6     110.2    110.9    110.4    119.9    111.3
            IV    135.9    158.7     116.8    149.8     116.0     110.2    110.8    110.4    124.8    111.7

        ANNUAL    133.5    155.6     116.5    147.6     114.8     110.5    110.9    110.6    116.7    111.2

  2004       I    136.1    160.0     117.5    150.3     115.4     110.4    111.4    110.7    130.2    112.4
            II    136.9    161.3     117.8    151.7     115.2     110.8    111.5    111.0    138.6    113.4
           III    139.4    165.0     118.4    154.0     116.5     110.5    110.3    110.5    139.7    113.1
            IV    142.3    169.0     118.8    158.0     118.4     111.0    108.8    110.5    143.1    113.4

        ANNUAL    138.7    163.8     118.1    153.5     116.4     110.7    110.5    110.6    138.0    113.1

  2005       I    143.2    170.3     118.9    160.3     119.4     111.9    108.2    110.9    145.6    114.0
            II   r144.8   r173.3     119.7   r160.6    r118.4    r110.9   r107.3    110.0   r159.5    114.4
           III    145.9    175.0     119.9    162.4     118.3     111.3    108.8    110.6    158.4    114.9
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2003       I      1.1     -1.8      -2.8      3.9      -0.3       2.9      6.7      3.9    -11.6      2.4
            II      7.3      5.5      -1.7      6.9       6.4      -0.4     -3.1     -1.1     23.8      0.9
           III      7.3      6.9      -0.3      5.2       2.9      -1.9      1.3     -1.1     23.9      1.0
            IV      2.4      4.5       2.1      2.4       1.5       0.0     -0.3     -0.1     17.2      1.5

        ANNUAL      4.1      2.7      -1.4      3.9       1.6      -0.2      0.1     -0.1     19.0      1.4

  2004       I      0.8      3.4       2.6      1.5      -2.3       0.7      2.1      1.1     18.6      2.7
            II      2.3      3.3       1.0      3.7      -0.7       1.3      0.3      1.1     28.2      3.7
           III      7.4      9.4       1.9      6.3       4.6      -1.0     -4.2     -1.9      3.4     -1.3
            IV      8.5      9.9       1.3     10.6       6.8       1.9     -5.2      0.0     10.0      1.1

        ANNUAL      3.9      5.3       1.4      4.0       1.3       0.2     -0.4      0.0     18.3      1.7

  2005       I      2.7      3.3       0.5      5.9       3.5       3.1     -2.5      1.6      7.1      2.2
            II     r4.3     r7.1       2.6     r0.8     r-3.2     r-3.4    r-3.1    r-3.3    r44.3      1.4
           III      3.2      4.0       0.8      4.5      -0.6       1.3      5.5      2.4     -2.9      1.7
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2003       I      3.5      2.0      -1.5      3.2       0.3      -0.3     -1.4     -0.6     25.6      1.2
            II      3.8      2.0      -1.8      3.6       1.4     r-0.2     -0.1     -0.1     20.4      1.4
           III      4.6      3.1      -1.5      4.3       2.1      -0.3      0.8      0.0     19.6      1.6
            IV      4.5      3.7      -0.7      4.6       2.6       0.1      1.1      0.4     12.3      1.5

        ANNUAL      4.1      2.7      -1.4      3.9       1.6      -0.2      0.1     -0.1     19.0      1.4

  2004       I      4.4      5.1       0.7      4.0       2.1      -0.4      0.0     -0.3     20.8      1.5
            II      3.2      4.6       1.3      3.2       0.3       0.0      0.8      0.2     21.9      2.2
           III      3.2      5.2       1.9      3.5       0.7       0.3     -0.6      0.0     16.5      1.6
            IV      4.7      6.5       1.7      5.5       2.0       0.7     -1.8      0.1     14.7      1.5

        ANNUAL      3.9      5.3       1.4      4.0       1.3       0.2     -0.4      0.0     18.3      1.7

  2005       I      5.2      6.4       1.2      6.6       3.5       1.3     -2.9      0.2     11.8      1.4
            II     r5.7     r7.4       1.6     r5.9      r2.8      r0.1    r-3.7     -0.9    r15.1      0.8
           III      4.7      6.0       1.3      5.4       1.5       0.7     -1.4      0.1     13.3      1.6
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        December 6, 2005
  r=revised                                                               Source: Bureau of Labor Statistics


 Appendix table 1. Manufacturing sector: Revised 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
  2000       I         r132.9        r138.3        104.1        133.2          112.1        r100.3
            II         r134.1        r139.6        104.1        132.5          110.7         r98.8
           III         r133.8        r138.9        103.8        135.9          112.4        r101.5
            IV         r135.1        r137.8        102.0        136.7          112.3        r101.2

        ANNUAL          134.1         138.6        103.4        134.7          112.0         100.5

  2001       I         r134.8        r135.1        100.2        138.1          112.4        r102.5
            II         r135.9        r133.2         98.0        137.3          110.9        r101.0
           III         r136.9        r131.2         95.8        137.0          110.4        r100.1
            IV         r140.4        r129.8         92.5        139.0          112.2         r99.0

        ANNUAL          136.9         132.3         96.6        137.8          111.5         100.7

  2002       I          144.4        r131.0         90.8        144.7          116.3         100.2
            II         r147.1        r133.0         90.4        147.6          117.7        r100.4
           III         r149.3        r133.7         89.6        149.0          118.3         r99.8
            IV         r150.6        r133.0         88.4        150.2          118.6         r99.8

        ANNUAL         r147.8        r132.7         89.8        147.9          117.7        r100.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
  2000       I           r6.6          r4.6         -1.9         21.8           17.3         r14.3
            II           r3.7          r3.8          0.0         -2.1           -5.1         r-5.6
           III          r-0.8         r-2.1         -1.4         10.6            6.6         r11.4
            IV           r3.8         r-3.1         -6.7          2.4           -0.4         r-1.3

        ANNUAL            4.7           3.0         -1.6          9.2            5.6           4.2

  2001       I          r-0.8         r-7.5         -6.7          4.3            0.4          r5.1
            II           r3.4         r-5.4         -8.5         -2.4           -5.4         r-5.5
           III           r2.8         r-6.1         -8.6         -0.9           -1.7         r-3.6
            IV          r10.6         r-4.1        -13.3          5.9            6.5         r-4.3

        ANNUAL            2.1          -4.6         -6.5          2.3           -0.5           0.2

  2002       I          r11.9          r3.9         -7.2         17.4           15.7          r4.9
            II           r7.7          r6.0        r-1.5          8.4            5.0          r0.7
           III           r6.2          r2.2        r-3.8          4.0            1.8         r-2.1
            IV           r3.5         r-2.0         -5.3          3.2            1.1         r-0.3

        ANNUAL           r7.9          r0.3         -7.1          7.3            5.6         r-0.6
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
  2000       I           r4.8          r4.0         -0.8          9.8            6.4          r4.8
            II           r5.3          r4.3         -0.9          8.5            5.1          r3.1
           III            5.1           3.3         -1.7         10.0            6.4           4.7
            IV           r3.3          r0.7         -2.5          7.8            4.2          r4.4

        ANNUAL            4.7           3.0         -1.6          9.2            5.6           4.2

  2001       I            1.5          -2.3         -3.7          3.7            0.3           2.2
            II           r1.4         r-4.6         -5.9          3.6            0.2          r2.2
           III            2.3          -5.5         -7.6          0.8           -1.8          -1.4
            IV           r3.9         r-5.8         -9.3          1.7           -0.1         r-2.2

        ANNUAL            2.1          -4.6         -6.5          2.3           -0.5           0.2

  2002       I           r7.1         r-3.0         -9.4          4.7            3.5         r-2.2
            II           r8.2         r-0.2         -7.8          7.5            6.2         r-0.6
           III           r9.1          r1.9         -6.6          8.8            7.1         r-0.3
            IV           r7.3          r2.5         -4.5          8.1            5.7          r0.8

        ANNUAL           r7.9          r0.3         -7.1          7.3            5.6         r-0.6
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 2005
  r=revised                                                       Source: Bureau of Labor Statistics



 Appendix table 2. Durable manufacturing sector: Revised 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
  2000       I         r149.7        r165.0        110.2        133.4          112.3         r89.1
            II         r151.0        r167.0        110.7        131.9          110.1         r87.3
           III         r150.9        r166.3        110.2        135.7          112.3          89.9
            IV         r151.4        r164.5        108.6        135.4          111.3         r89.4

        ANNUAL          150.9         165.7        109.8        134.2          111.6          89.0

  2001       I         r150.8        r160.7        106.5        136.4          111.0         r90.4
            II         r151.9        r157.9        103.9        135.8         r109.7         r89.4
           III         r153.1        r154.2        100.7        135.6          109.3         r88.5
            IV         r156.2        r150.9        r96.6        137.9          111.3         r88.3

        ANNUAL          153.0         155.9        101.9        136.4          110.3          89.2

  2002       I         r161.2        r152.5         94.6        142.0          114.2          88.1
            II          164.6         155.3         94.3        145.0          115.7         r88.1
           III         r167.9        r156.8         93.4        146.0          115.9         r86.9
            IV         r171.0        r156.7        r91.7        147.4          116.4         r86.2

        ANNUAL         r166.2         155.3         93.5        145.1          115.5          87.3
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
  2000       I          r10.8          r8.9         -1.7         25.0           20.3         r12.8
            II           r3.4          r5.1          1.6         -4.5           -7.5         r-7.7
           III          r-0.1         r-1.7         -1.6         12.1            8.1         r12.2
            IV           r1.4         r-4.3         -5.6         -0.7           -3.5         r-2.0

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I          r-1.6         r-9.1         -7.6          2.7           -1.1          r4.3
            II           r2.9         r-6.8         -9.4         -1.7           -4.7         r-4.5
           III           r3.2         r-9.0        -11.8         -0.6           -1.4         r-3.6
            IV           r8.3         r-8.1        -15.2          7.1            7.7         r-1.1

        ANNUAL            1.4          -5.9         -7.2          1.6           -1.2           0.2

  2002       I          r13.4          r4.2         -8.1         12.4           10.7          -0.9
            II           r8.8          r7.7         -1.0          8.9            5.4          r0.0
           III           r8.3          r3.9         -4.0          2.8            0.7         r-5.1
            IV           r7.4         r-0.3         -7.2          3.7            1.6         r-3.5

        ANNUAL            8.6          -0.4         -8.3          6.4            4.7          -2.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
  2000       I            5.9          r6.1          0.2         11.2            7.7           5.0
            II           r5.6          r6.1          0.6          8.9            5.5          r3.2
           III           r5.5          r4.3         -1.2         10.9            7.2          r5.0
            IV           r3.8          r1.9         -1.8          7.4            3.8          r3.4

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I           r0.8         r-2.6         -3.4          2.2           -1.1          r1.4
            II           r0.6         r-5.5         -6.1          3.0           -0.4          r2.3
           III           r1.5         r-7.3         -8.7         -0.1           -2.7         r-1.5
            IV           r3.2         r-8.3        -11.1          1.8            0.0         r-1.3

        ANNUAL            1.4          -5.9         -7.2          1.6           -1.2           0.2

  2002       I           r6.9         r-5.1        -11.2          4.1            2.9         r-2.6
            II           r8.4         r-1.6         -9.2          6.8            5.5         r-1.4
           III           r9.7          r1.7         -7.2          7.7            6.1         r-1.8
            IV           r9.5          r3.8         -5.1          6.9            4.5         r-2.4

        ANNUAL            8.6          -0.4         -8.3          6.4            4.7          -2.1
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 2005
  r=revised                                                       Source: Bureau of Labor Statistics


Appendix table 3. Nondurable manufacturing sector: Revised 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
  2000       I         r117.2        r111.3         95.0        130.5          109.8        r111.4
            II         r118.4        r111.8         94.4        131.4          109.7        r110.9
           III         r117.8        r110.9         94.1        133.7          110.7        r113.5
            IV          119.9         110.4         92.0        136.6          112.2         113.9

        ANNUAL          118.5         111.1         93.7        133.2          110.8         112.4

  2001       I         r119.8        r108.8         90.8        139.2          113.3        r116.2
            II         r120.7         107.8         89.2        138.0          111.5         114.3
           III          120.9         107.1         88.6        137.8          111.1         114.0
            IV         r124.5        r107.4         86.3        139.3          112.4         111.9

        ANNUAL          121.5         107.8         88.7        138.6          112.1         114.1
 
  2002       I         r127.4        r108.4         85.0        148.1          119.1        r116.3
            II         r129.4        r109.4         84.5        150.8          120.3        r116.5
           III         r130.5        r109.4         83.8        153.1          121.5        r117.3
            IV         r129.8        r108.3         83.4        154.2          121.7        r118.8

        ANNUAL         r129.3        r108.9         84.2        151.5          120.6        r117.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)
  2000       I           r0.8         r-1.5         -2.2         15.4           11.1         r14.4
            II           r4.5          r1.5         -2.8          2.7           -0.4         r-1.7
           III          r-2.1         r-3.0         -1.0          7.4            3.5          r9.6
            IV           r7.3         r-1.9         -8.5          8.9            5.9          r1.5

        ANNUAL            4.0           0.7         -3.2          7.8            4.3           3.6

  2001       I          r-0.4         r-5.5         -5.1          7.8            3.8          r8.3
            II            3.2          -3.8         -6.8         -3.4           -6.3         r-6.4
           III           r0.6         r-2.3         -2.9         -0.6           -1.4         r-1.1
            IV          r12.4          r1.0        -10.1          4.3            4.9         r-7.2

        ANNUAL            2.5          -3.0         -5.3          4.0            1.2           1.5

  2002       I           r9.6          r3.6         -5.5         28.0           26.2         r16.7
            II           r6.5          r3.9         -2.4          7.4            4.0          r0.9
           III           r3.5          r0.2         -3.2          6.3            4.1          r2.7
            IV          r-2.2         r-4.1         -2.0          2.8            0.7          r5.0

        ANNUAL           r6.4          r1.0         -5.1          9.4            7.6          r2.7
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year
  2000       I           r3.6          r1.0         -2.5          6.7            3.4          r3.1
            II           r5.2          r1.5         -3.5          7.3            3.9          r2.0
           III           r4.3          r1.6         -2.6          8.2            4.6          r3.7
            IV           r2.6         r-1.2         -3.7          8.5            4.9          r5.8

        ANNUAL            4.0           0.7         -3.2          7.8            4.3           3.6

  2001       I           r2.2         r-2.3         -4.4          6.7            3.2          r4.3
            II           r1.9         r-3.6         -5.4          5.1            1.6          r3.1
           III           r2.6         r-3.4         -5.9          3.1            0.4          r0.4
            IV            3.8          -2.7         -6.3          1.9            0.1          -1.8

        ANNUAL            2.5          -3.0         -5.3          4.0            1.2           1.5

  2002       I           r6.4         r-0.4         -6.4          6.4            5.1          r0.1
            II           r7.2          r1.5         -5.3          9.3            7.9          r1.9
           III           r8.0          r2.2         -5.4         11.1            9.4          r2.9
            IV           r4.3          r0.8         -3.3         10.7            8.3          r6.2

        ANNUAL           r6.4          r1.0         -5.1          9.4            7.6          r2.7
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                December 6, 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 second quarter of 2005.
                                      
                                      
                                      
                            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 1978-2004 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.