USDL 04-817
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 8:30 A.M. EDT,
THURSDAY, MAY 6, 2004.

Internet address:       http://www.bls.gov/lpc/
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  information:          (202) 691-5606    dprweb@bls.gov
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                           PRODUCTIVITY AND COSTS
                       First Quarter 2004, preliminary
                                      
                                      
     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 first quarter of 2004.  The seasonally adjusted annual rates
of productivity change in the first quarter were:

               4.5 percent in the business sector and
               3.5 percent in the nonfarm business sector.

     In both the business and nonfarm business sectors, productivity and
output increased more in the first quarter than they had in the fourth
quarter of 2003 (as revised) while the hours of all persons grew more slowly.

     In manufacturing, productivity changes in the first quarter were:

               3.1 percent in manufacturing,
               5.9 percent in durable goods manufacturing, and
               0.1 percent in nondurable goods manufacturing.

     Productivity growth in manufacturing in the first quarter of 2004
reflected increases in both output and hours; output rose 5.8 percent and
hours of all persons grew 2.7 percent (seasonally adjusted annual rates).
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.  First-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: Preliminary first-quarter 2004 measures
(Seasonally adjusted annual rates)
--------------------------------------------------------------------------                                                                    
                                                         Real       
                                               Hourly    hourly     Unit 
                   Produc-                     compen-   compen-    labor
Sector             tivity    Output   Hours    sation    sation     costs
--------------------------------------------------------------------------                   
                      Percent change from preceding quarter
                      
Business             4.5       4.8      0.3      5.3       1.6        0.8
Nonfarm business     3.5       4.9      1.3      4.0       0.4        0.5
Manufacturing        3.1       5.8      2.7      5.2       1.5        2.0
  Durable            5.9       9.3      3.3      4.4       0.8       -1.4
  Nondurable         0.1       1.8      1.7      6.4       2.7        6.3
--------------------------------------------------------------------------  
                      Percent change from same quarter a year ago
                      
Business             5.5       5.8      0.2      4.2       2.3       -1.3
Nonfarm business     5.4       5.8      0.4      4.0       2.1       -1.3
Manufacturing        5.3       3.1     -2.0      4.9       3.0       -0.4
  Durable            7.4       5.7     -1.6      4.8       2.9       -2.4
  Nondurable         3.0       0.2     -2.7      5.0       3.0        1.9
--------------------------------------------------------------------------


Business

     Productivity in the business sector rose 4.5 percent in the first
quarter 2004, as output grew 4.8 percent and hours of all persons engaged in
the sector increased 0.3 percent (seasonally adjusted annual rates).  Revised
data for the fourth quarter of 2003 show that output per hour increased 1.8
percent, reflecting a 3.9-percent rise in output and a 2.0-percent increase
in hours at work.  (See table 1.)

     Hourly compensation increased 5.3 percent during the first quarter of
2004.  This measure includes wages and salaries, supplements, employer
contributions to employee benefit plans, and taxes. Hourly compensation had
risen 2.1 percent in the previous quarter.  Real hourly compensation, which
takes into account changes in consumer prices, increased 1.6 percent in the
first quarter of 2004, growing slightly faster than in the fourth quarter of
2003, when it rose 1.3 percent.

     Unit labor costs rose 0.8 percent in the first quarter of 2004, more
rapidly than the 0.2-percent increase in the fourth quarter.  Growth in unit
labor costs is roughly equivalent to the change in hourly compensation less
the change in output per hour.

     The implicit price deflator for the business sector, which reflects
changes in both unit labor costs and unit nonlabor payments, rose 2.1 percent
in the first quarter.  This was the largest increase in the implicit price
deflator since the second quarter of 2001, when it grew by 3.1 percent.


Nonfarm business

     Productivity rose 3.5 percent in the nonfarm business sector in first-
quarter 2004, as output increased 4.9 percent and hours of all persons
increased 1.3 percent (seasonally adjusted annual rates).  In the fourth
quarter of 2003, productivity had risen 2.5 percent, reflecting increases in
output and hours of 4.2 and 1.6 percent, respectively.  (See table 2.)

     Hourly compensation increased at a 4.0 percent annual rate in the first
quarter of 2004, more rapidly than the 2.5-percent increase in the fourth
quarter.  When the rise in consumer prices was taken into account, real
hourly compensation grew by 0.4 percent in the first quarter; it had
increased 1.7 percent in the fourth quarter of 2003.

     Unit labor costs grew 0.5 percent in the first quarter of 2004; they
were unchanged in the fourth quarter of 2003.  The implicit price deflator
for nonfarm business output rose 1.9 percent in the first quarter and 0.6
percent one quarter earlier.


Manufacturing

     Productivity increased 3.1 percent in manufacturing in the first quarter
of 2004, as output increased 5.8 percent and hours of all persons grew 2.7
percent (seasonally adjusted annual rates).  Productivity rose 5.9 percent in
durable goods manufacturing, reflecting a 9.3 percent growth in output and a
3.3 percent increase in all person hours.  In contrast, all of these measures
grew much more slowly in nondurable goods manufacturing, where productivity
rose 0.1 percent and output and hours grew 1.8 percent and 1.7 percent,
respectively.

     The hourly compensation of all manufacturing workers rose 5.2 percent
during the first quarter, and real hourly compensation increased 1.5 percent.
The 5.2-percent hourly compensation increase reflects a change of 4.4 percent
in durable goods and 6.4 percent in nondurable goods.

     Because the hourly compensation of manufacturing workers rose more
rapidly than output per hour, unit labor costs increased in the first
quarter, by 2.0 percent.  This increase followed two quarters of decreases.
Total manufacturing unit labor costs fell 4.1 percent in the third quarter of
2003 and 1.8 percent in fourth quarter, 2003.  In durable goods
manufacturing, however, unit labor costs continued to fall in the first
quarter of 2004, dropping 1.4 percent.  All of the increase in manufacturing
unit labor costs came from the nondurable goods subsector, where unit labor
costs grew 6.3 percent.


Fourth-quarter and annual measures for nonfinancial corporations

     Fourth-quarter and annual 2003 measures of productivity and costs also
were announced today for the nonfinancial corporate sector (tables B, C, and
6).  Output per all-employee hour grew 3.3 percent from the third to the
fourth quarter of 2003, as output grew 5.0 percent and employee hours
increased 1.6 percent.  This was the first increase in hours in the sector
since a 0.2-percent rise was recorded in the second quarter of 2000.  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: Fourth-quarter 2003 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
                 
2003 IV   3.3      5.0     1.6     2.3       1.6     -1.0   12.7     1.1
----------------------------------------------------------------------------
                 Percent change from same quarter a year ago
                 
2003 IV   6.2      5.4    -0.7     4.2       2.2     -1.9   27.1     0.5
----------------------------------------------------------------------------

     Hourly compensation increased 2.3 percent in the fourth quarter, and
real hourly compensation rose 1.6 percent.  Unit labor costs fell 1.0 percent
in the fourth quarter of 2003--the third consecutive drop in these costs.
Unit labor costs have fallen in eight of the last nine quarters.  In the
fourth quarter, unit profits increased 12.7 percent after rising at a 45.0-
percent annual rate in the previous quarter.  The implicit price deflator for
nonfinancial corporate output grew 1.1 percent during the fourth quarter of
2003, just slightly more than the 0.9-percent increase in the third quarter.

     Productivity grew 5.7 percent in calendar year 2003 for nonfinancial
corporations, following an increase of 5.1 percent in the previous year.
(See table C.)  These are the largest annual productivity increases in the
history of the series, which begins in 1959.  Nonfinancial corporate output
grew 4.2 percent in 2003, and employee hours decreased 1.5 percent.  This was
the third consecutive decrease in employee hours.

----------------------------------------------------------------------------
Table C. Nonfinancial corporations: Annual changes in productivity and
related measures, 1994-2003
----------------------------------------------------------------------------
Measure              1994  1995  1996 1997  1998 1999  2000  2001  2002 2003
----------------------------------------------------------------------------
Productivity          2.0   0.8   3.6  2.5   2.8  3.2   3.6   1.8   5.1  5.7  
Output                6.3   4.4   5.6  6.4   5.4  5.8   5.2  -0.7   2.0  4.2  
Hours                 4.2   3.5   2.0  3.8   2.5  2.6   1.6  -2.4  -3.0 -1.5  
Hourly compensation   1.8   1.8   2.8  3.0   5.6  4.6   6.8   4.0   2.3  4.2  
Real hourly
  compensation       -0.3  -0.6   0.1  0.9   4.1  2.5   3.3   1.2   0.7  1.8  
Unit labor costs     -0.2   1.0  -0.7  0.5   2.7  1.4   3.1   2.2  -2.7 -1.5  
Unit nonlabor costs   0.8   0.8  -1.3 -0.1   0.1  1.1   3.8   5.1   1.2 -2.8  
Total unit cost       0.1   0.9  -0.9  0.3   2.0  1.3   3.3   3.0  -1.6 -1.8  
Unit profits         15.3   4.2   9.5  3.0 -10.9 -5.6 -15.8 -16.4  21.9 20.5  
Implicit price 
  deflator            1.6   1.3   0.3  0.7   0.3  0.5   1.2   1.2   0.1  0.2  
----------------------------------------------------------------------------
     
     
     Hourly compensation grew 4.2 percent in 2003, and real hourly
compensation increased 1.8 percent.  Total unit costs declined 1.8 percent,
reflecting a 1.5-percent decrease in unit labor costs and a 2.8-percent drop
in unit nonlabor costs.  Unit profits rose 20.5 percent in 2003.  The
implicit price deflator, which reflects both the unit costs and unit profits
measures, rose 0.2 percent in 2003.


Revised measures

     Current and previous measures for the third and fourth quarters and
annual average of 2003 in the business, nonfarm business, and manufacturing
sectors are compared in table D.  Some of the quarterly movements differ from
those reported on March 4.  Productivity was revised down slightly in the
fourth quarter for the business and nonfarm business sectors, reflecting
upward revisions to hours of all persons.  In manufacturing, the upward
revision to hours was matched by an upward revision to output so growth in
productivity was unchanged.

     In both the third and fourth quarters of 2003, hourly compensation and
unit labor costs were revised up in the business and nonfarm business
sectors.  In the third quarter of 2003, unit labor costs in both the business
and nonfarm business sectors continue to show a decline--although by less
than previously reported.  In the fourth quarter, however, unit labor costs
in the business and nonfarm business sectors no longer show the slight
declines reported on March 4.  In the business sector, unit labor costs now
show a small increase, 0.2 percent, in the fourth quarter and those in the
nonfarm business sector are now unchanged.  The combination of the upward
quarterly revisions to hourly compensation and unit labor costs in both
quarters was enough to change the annual average for these two sectors but
unit labor costs still show a decline in 2003.

------------------------------------------------------------------------
Table D. 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
------------------------------------------------------------------------                                                                  
                             Fourth quarter 2003
Business:                                                         
  Previous          2.0       3.9      1.9      1.8      1.0       -0.2
  Current           1.8       3.9      2.0      2.1      1.3        0.2
Nonfarm business:                                                 
  Previous          2.6       4.1      1.5      2.2      1.4       -0.4
  Current           2.5       4.2      1.6      2.5      1.7        0.0
Manufacturing:                                                    
  Previous          4.8       6.1      1.3      2.7      2.0       -2.0
  Current           4.8       6.2      1.4      2.9      2.1       -1.8
  
                             Third quarter 2003
Business:                                                         
  Previous          8.7      10.3      1.5      2.7      0.3       -5.5
  Current           8.7      10.3      1.5      4.1      1.6       -4.3
Nonfarm business:                                                 
  Previous          9.5      10.4      0.9      3.3      1.0       -5.6
  Current           9.5      10.4      0.9      4.7      2.3       -4.3
Manufacturing:                                                    
  Previous         10.1       4.3     -5.3      5.1      2.7       -4.6
  Current          10.1       4.3     -5.3      5.6      3.1       -4.1
  
                             Annual average 2003
Business:                                                         
  Previous          4.5       3.7     -0.8      3.3      1.0       -1.1
  Current           4.5       3.7     -0.8      3.5      1.2       -0.9
Nonfarm business:                                                 
  Previous          4.4       3.7     -0.7      3.2      0.9       -1.2
  Current           4.4       3.7     -0.7      3.4      1.1       -1.0
Manufacturing:                                                    
  Previous          5.1       0.1     -4.8      5.5      3.2        0.4
  Current           5.1       0.1     -4.8      5.6      3.2        0.4
------------------------------------------------------------------------     
     
     Hourly compensation also was revised up in manufacturing in both the
third and fourth quarters of 2003.  In the third quarter, hourly compensation
was revised up by 0.5 percentage point, to 5.6 percent.  Unit labor costs
were revised up by the same amount, and now show a decline of 4.1 percent for
the quarter.  The upward revisions to hourly compensation in the fourth
quarter were smaller, 0.2 percentage point.  In the fourth quarter, hourly
compensation rose 2.9 percent and unit labor costs declined 1.8 percent.  For
the entire year 2003, hourly compensation in manufacturing rose 5.6 percent
and unit labor costs increased 0.4 percent.

     The Consumer Price Index Research Series has been updated and new
seasonal factors applied to it.  Real hourly compensation measures are
revised beginning with 1999.  (See appendix tables 1-6.)

Revised measures: Nonfinancial Corporations
     
     Productivity and cost measures for nonfinancial corporations for the
third quarter of 2003 also were revised to incorporate more recent
information than was available on March 4.  Productivity and output in this
sector were revised up for the third quarter of 2003.  Productivity grew at
an annual rate of 9.5 percent, compared with the increase of 8.6 percent
published March 4.  Hourly compensation was revised up more than output per
hour, so unit labor costs decreased less than reported in March.  (See tables
E and 6.)

----------------------------------------------------------------------------
Table E.  Nonfinancial corporations: Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
----------------------------------------------------------------------------                                                                    
                                            Real                    
                                   Hourly   hourly  Unit            Implicit
           Produc-                 compen-  compen- labor  Unit     price
           tivity   Output  Hours  sation   sation  costs  profits  deflator
----------------------------------------------------------------------------                                                                    
                            Third quarter 2003
                            
Previous    8.6      8.5     -0.1    3.6      1.2    -4.6   46.2     0.9
Current     9.5      9.4     -0.1    4.9      2.4    -4.2   45.0     0.9
----------------------------------------------------------------------------                                      
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 AM EDT,
Thursday, June 3, 2004.  First-quarter measures for nonfinancial corporations
and revised first and fourth quarter measures for business, nonfarm business,
and manufacturing will be released at that time.

Current and upcoming changes to productivity and cost data

     Effective with the next release of productivity and costs, BLS will
begin to issue revised measures for hourly compensation and unit labor costs
for the previous quarter along with revisions to the current quarterly
estimates.  Previously, revisions to the previous quarter had been reported
two months later in the next quarter's preliminary estimates.  This change is
in accordance with the announcement by the Bureau of Economic Analysis of
their new revision schedule for wage and salary data.  See "Gross Domestic
Product: First Quarter 2004 (Advance)" (BEA 04-18), released April 29.

     New estimates of average weekly hours at work for nonproduction and
supervisory workers will be introduced into the BLS major sector productivity
and cost measures beginning with the August 10, 2004, release.  An article
discussing these new measures and the effects of this change will be
published in the April 2004 issue of Monthly Labor Review.  A technical note
describing the methodology will be available this summer.

     In addition, on Aug. 10, BLS will begin using concurrent seasonal
adjustment when measuring employment and hours for the farm sector, nonfarm
self-employed, and nonfarm unpaid family workers and hours for employees of
government enterprises in the productivity and cost measures.  In addition,
late in 2004 or early in 2005, BLS intends to improve the way it uses these
series from the Current Population Survey, adjusting them to account for the
effects of multiple jobholding.  Further information on this change will be
announced later this year.



                                      
                               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.   The
Office of Productivity and Technology estimates average weekly paid hours  of
nonproduction  and supervisory workers.  Weekly paid hours were  adjusted  to
hours at work using the BLS Hours at Work survey, conducted for this purpose.
Data from the National Compensation Survey are used for recent years.
     Data  from  the  BLS Current Population Survey (CPS) are used  for  farm
labor, nonfarm proprietors, and nonfarm unpaid family workers.  Estimates  of
labor input for government enterprises 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  in  the  finance  and  insurance  sector.
Nonfinancial corporations accounted for about 54 percent of the value of  GDP
in 2000.

Productivity:  These productivity measures describe the relationship  between
real  output  and the labor time involved in its production.  They  show  the
changes  from  period to period in the amount of goods and services  produced
per  hour.  Although these measures relate output to hours  at  work  of  all
persons engaged in a sector, they do not measure the specific contribution of
labor,  capital, or any other factor of production. Rather, they reflect  the
joint  effects  of many influences, including changes in technology;  capital
investment; level of output; utilization of capacity, energy, and  materials;
the organization of production; managerial skill; and the characteristics and
effort of the work force.
     Information  in  this release will be made available to sensory-impaired
individuals  upon request. Voice phone: 202-691-5606; Federal  Relay  Service
number:                                                        1-800-877-8339


  Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally
  adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2002       I     122.8      142.6     116.1     141.8       114.1      115.5       115.0      115.3
            II     123.3      143.1     116.1     142.6      r113.8      115.7       115.8      115.7
           III     124.7      144.6     115.9     143.1       113.5      114.7       117.9      115.9
            IV     125.4      145.1     115.8     143.8       113.5      114.7       119.3      116.5

        ANNUAL     124.0      143.8     116.0     142.8       113.7      115.2       117.0      115.8

  2003       I     126.4      145.8     115.4     145.5       113.8      115.1       120.0      116.9
            II     128.6      147.3     114.5     147.4       115.1      114.6       121.5      117.2
           III     131.3      151.0     115.0    r148.9      r115.6     r113.4      r124.6      117.6
            IV    r131.9      152.4     115.5    r149.7      r115.9     r113.4      r125.5     r118.0

        ANNUAL     129.6      149.1     115.1    r147.9      r115.1     r114.1      r123.0      117.4

  2004       I     133.4      154.2     115.6     151.6       116.4      113.6       126.8      118.6
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2002       I       8.4        5.6      -2.6       0.9        -0.4       -6.9        11.0       -0.7
            II       1.5        1.4      -0.1       2.3       r-1.1        0.9         3.0        1.6
           III       4.9        4.3      -0.5       1.3       r-1.0       -3.4         7.4        0.5
            IV       2.0        1.6      -0.5       2.2        r0.3        0.1         4.9        1.9

        ANNUAL       4.9        2.3      -2.5       2.2         0.6       -2.5         6.8        0.8

  2003       I       3.5        1.9      -1.5       4.8        r1.0        1.3         2.3        1.6
            II       7.2        4.2      -2.8       5.3        r4.6       -1.7         5.2        0.9
           III       8.7       10.3       1.5      r4.1        r1.6      r-4.3       r10.6        1.3
            IV      r1.8        3.9      r2.0      r2.1        r1.3       r0.2        r3.0       r1.3

        ANNUAL       4.5        3.7      -0.8      r3.5        r1.2      r-0.9        r5.1        1.4

  2004       I       4.5        4.8       0.3       5.3         1.6        0.8         4.1        2.1
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2002       I       5.1        1.0      -3.9       2.6         1.4       -2.3         7.4        1.1
            II       4.7        1.6      -2.9       2.5         1.2       -2.1         5.7        0.7
           III       5.5        3.4      -2.1       2.1         0.5       -3.3         7.7        0.6
            IV       4.2        3.2      -0.9       1.7        -0.6       -2.4         6.5        0.8

        ANNUAL       4.9        2.3      -2.5       2.2         0.6       -2.5         6.8        0.8

  2003       I       3.0        2.3      -0.6       2.6        -0.2       -0.3         4.4        1.4
            II       4.4        3.0      -1.3       3.4         1.2       -1.0         4.9        1.2
           III       5.3        4.4      -0.8      r4.1        r1.9      r-1.2        r5.7        1.4
            IV       5.3        5.0     r-0.2      r4.0        r2.1      r-1.1        r5.2        1.3

        ANNUAL       4.5        3.7      -0.8      r3.5        r1.2      r-0.9        r5.1        1.4

  2004       I       5.5        5.8       0.2       4.2         2.3       -1.3         5.7        1.4
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 6, 2004
  r=revised                                                              Source: Bureau of Labor Statistics




  Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
  seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  2002       I     122.6      143.1     116.7     141.1       113.5      115.1       116.9      115.8
            II     122.8      143.4     116.8     141.9       113.2      115.6       117.6      116.3
           III     124.2      144.8     116.6     142.4       112.9      114.6       119.9      116.6
            IV     124.9      145.4     116.4     143.2       113.0      114.6       121.3      117.1

        ANNUAL     123.6      144.2     116.6     142.1       113.2      115.0       119.0      116.4

  2003       I     126.0      146.3     116.1     144.6       113.1      114.8       122.2      117.5
            II     127.9      147.6     115.4     146.3       114.2      114.4       123.4      117.7
           III     130.8      151.3     115.7    r148.0      r114.9     r113.2      r126.5      118.1
            IV     131.6     r152.9    r116.2    r148.9      r115.4     r113.2      r126.9      118.2

        ANNUAL     129.1      149.5    r115.9    r147.0      r114.4     r113.9      r124.8      117.9

  2004       I     132.7      154.7     116.5     150.4       115.5      113.3       128.2      118.8
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2002       I       9.8        6.7      -2.9       1.2       r-0.1       -7.8        13.0       -0.7
            II       0.7        0.8       0.1       2.3       r-1.1        1.6         2.3        1.9
           III       4.5        4.0      -0.5       1.3       r-1.0       -3.1         8.2        1.0
            IV       2.3        1.6      -0.7       2.2        r0.3       -0.1         4.8        1.7

        ANNUAL       5.0        2.3      -2.6       2.3         0.7       -2.5         7.1        0.9

  2003       I       3.4        2.4      -1.0       4.0         0.2        0.6         3.0        1.5
            II       6.2        3.8      -2.3       4.9         4.2       -1.3         4.0        0.7
           III       9.5       10.4       0.9      r4.7        r2.3      r-4.3       r10.2        1.1
            IV      r2.5       r4.2      r1.6      r2.5        r1.7       r0.0        r1.5       r0.6

        ANNUAL       4.4        3.7      -0.7      r3.4        r1.1      r-1.0        r4.9        1.2

  2004       I       3.5        4.9       1.3       4.0         0.4        0.5         4.1        1.9
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2002       I       5.3        1.1      -4.0       2.7         1.4       -2.5         7.6        1.0
            II       4.7        1.6      -3.0       2.6        r1.3       -2.0         5.7        0.7
           III       5.5        3.2      -2.1       2.2         0.6       -3.1         8.0        0.8
            IV       4.3        3.2      -1.0       1.8        -0.5       -2.4         7.0        1.0

        ANNUAL       5.0        2.3      -2.6       2.3         0.7       -2.5         7.1        0.9

  2003       I       2.7        2.2      -0.5       2.5        -0.4       -0.3         4.5        1.5
            II       4.1        2.9      -1.1       3.1         0.9       -1.0         5.0        1.2
           III       5.3        4.5      -0.8      r4.0        r1.7      r-1.3        r5.4        1.3
            IV       5.4        5.1     r-0.2      r4.0        r2.1      r-1.3        r4.6       r1.0

        ANNUAL       4.4        3.7      -0.7      r3.4        r1.1      r-1.0        r4.9        1.2

  2004       I       5.4        5.8       0.4       4.0         2.1       -1.3         4.9        1.1
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 6, 2004
  r=revised                                                              Source: Bureau of Labor Statistics




  Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100


  2002       I            144.0        130.5         90.6        141.1          113.5          98.0
            II            146.3        131.8         90.1        143.3          114.3          97.9
           III            148.5        132.4         89.2        144.6          114.7          97.4
            IV            149.5        131.3         87.8        146.5          115.7          98.0

        ANNUAL            147.1        131.5         89.4        143.8          114.5          97.8

  2003       I            151.4        131.3         86.7        149.0          116.5          98.4
            II            152.6        130.1         85.3        151.2          118.0          99.0
           III            156.4        131.5         84.1       r153.2         r118.9         r98.0
            IV            158.2        133.5         84.4       r154.3         r119.6         r97.6

        ANNUAL            154.6        131.6         85.1       r151.9          118.2          98.2

  2004       I            159.4        135.4         85.0        156.3          120.0          98.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I             10.2          2.5         -7.0          4.2           r2.8          -5.5
            II              6.5          4.0         -2.3          6.2           r2.7          -0.2
           III              6.0          1.7         -4.1          3.7           r1.4          -2.2
            IV              3.0         -3.1         -5.9          5.5           r3.6           2.5

        ANNUAL              7.2         -0.6         -7.3          4.0            2.4          -3.0

  2003       I              5.1          0.1         -4.8          6.9           r3.0           1.7
            II              3.3         -3.6         -6.6          5.9           r5.2           2.6
           III             10.1          4.3         -5.3         r5.6           r3.1         r-4.1
            IV              4.8         r6.2         r1.4         r2.9           r2.1         r-1.8

        ANNUAL              5.1          0.1         -4.8         r5.6            3.2           0.4

  2004       I              3.1          5.8          2.7          5.2            1.5           2.0
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I              6.7         -3.4         -9.5          1.8           r0.5          -4.6
            II              7.6         -1.1         -8.1          4.3            3.0          -3.1
           III              8.1          0.9         -6.6          5.2            3.5          -2.7
            IV              6.4          1.2         -4.9          4.9            2.6          -1.4

        ANNUAL              7.2         -0.6         -7.3          4.0            2.4          -3.0

  2003       I              5.1          0.6         -4.3          5.6            2.6           0.4
            II              4.3         -1.3         -5.4          5.5            3.3           1.1
           III              5.3         -0.6         -5.7         r6.0           r3.7          r0.6
            IV              5.8         r1.7         -3.9         r5.3           r3.4         r-0.4

        ANNUAL              5.1          0.1         -4.8         r5.6            3.2           0.4

  2004       I              5.3          3.1         -2.0          4.9            3.0          -0.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs
  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2002       I            161.2        152.6         94.7        140.0          112.6          86.8
            II            164.4        154.7         94.1        142.4          113.5          86.6
           III            167.4        155.9         93.1        143.5          113.8          85.7
            IV            171.0        156.1         91.3        145.7          115.0          85.2

        ANNUAL            166.0        154.8         93.3        142.9          113.7          86.1

  2003       I            173.8        156.6         90.1        147.8          115.6          85.0
            II            175.5        155.1         88.4        150.1          117.2          85.5
           III            181.6        158.3         87.2       r152.5         r118.4         r84.0
            IV           r184.1       r161.9         87.9       r153.2         r118.7         r83.2

        ANNUAL           r178.7        158.0         88.4       r150.9         r117.4         r84.4

  2004       I            186.7        165.5         88.6        154.9          118.9          82.9
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I             11.9          2.8        r-8.1          1.7            0.4          -9.1
            II              8.0          5.5         -2.3          7.0           r3.4          -0.9
           III              7.7          3.3         -4.1          3.3           r0.9          -4.1
            IV              8.9          0.4         -7.8          6.1           r4.1          -2.6

        ANNUAL              8.5         -0.7         -8.5          3.8            2.1          -4.4

  2003       I              6.7          1.4         -5.0          6.0           r2.2          -0.7
            II              4.0         -3.9         -7.5          6.5           r5.8           2.4
           III             14.5          8.4         -5.3         r6.5           r4.0         r-7.0
            IV             r5.6         r9.4         r3.5         r1.8           r1.0         r-3.7

        ANNUAL              7.7          2.0         -5.3         r5.6           r3.3         r-1.9

  2004       I              5.9          9.3          3.3          4.4            0.8          -1.4
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I              6.9         -4.9        -11.0          1.5            0.3          -5.0
            II              8.4         -1.8         -9.4          4.1            2.8          -4.0
           III              9.4          1.2         -7.5          5.0            3.3          -4.1
            IV              9.1          3.0         -5.6          4.5            2.2          -4.2

        ANNUAL              8.5         -0.7         -8.5          3.8            2.1          -4.4

  2003       I              7.8          2.6         -4.8          5.6            2.6          -2.1
            II              6.8          0.3         -6.1          5.5           r3.2          -1.2
           III              8.5          1.5         -6.4         r6.3           r4.0         r-2.0
            IV             r7.6          3.7         -3.7         r5.2           r3.2         r-2.3

        ANNUAL              7.7          2.0         -5.3         r5.6           r3.3         r-1.9

  2004       I              7.4          5.7         -1.6          4.8            2.9          -2.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  r=revised                                                       Source: Bureau of Labor Statistics



  Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
  seasonally adjusted
                                                                              Real
       Year           Output per                  Hours       Compensa-       compensa-      Unit 
       and            hour of                     of all      tion per        tion per       labor
       quarter        all persons     Output      persons     hour (1)        hour (2)       costs

  --------------------------------------------------------------------------------------------------
                                             Indexes 1992=100

  2002       I            126.6        107.2         84.7        141.6          113.9         111.8
            II            128.1        107.8         84.1        143.3          114.3         111.9
           III            129.4        107.7         83.3        144.9          114.9         112.0
            IV            127.9        105.7         82.7        146.7          115.8         114.7

        ANNUAL            128.0        107.1         83.7        144.1          114.7         112.6

  2003       I            128.8        105.3         81.8        149.7          117.1         116.3
            II            129.4        104.4         80.7        151.6          118.4         117.1
           III            131.1        104.3         79.6       r153.1         r118.8        r116.8
            IV           r132.6       r105.0         79.2       r154.7         r119.9        r116.7

        ANNUAL           r130.5       r104.8         80.3       r152.3         r118.5        r116.7

  2004       I            132.6        105.5         79.5        157.1          120.7         118.5
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2002       I              7.5          2.0         -5.1          9.5            8.1           1.8
            II              4.8          2.2         -2.5          4.9            1.3           0.1
           III              4.1         -0.2         -4.1          4.6           r2.2           0.5
            IV             -4.7         -7.3         -2.8          5.0           r3.0          10.1

        ANNUAL              5.1         -0.6         -5.4          4.9            3.2          -0.2

  2003       I              2.9         -1.5         -4.3          8.6           r4.7           5.5
            II              2.0         -3.2         -5.2          5.1            4.5           3.1
           III              5.2         -0.4         -5.3         r3.9           r1.4         r-1.3
            IV             r4.7         r2.6        r-1.9         r4.4           r3.6         r-0.2

        ANNUAL              1.9         -2.2         -4.0         r5.7           r3.3          r3.7

  2004       I              0.1          1.8          1.7          6.4            2.7           6.3
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2002       I              5.5         -1.7         -6.9          2.8            1.6          -2.6
            II              5.8         -0.4         -5.8          5.0            3.7          -0.7
           III              6.0          0.5         -5.2          5.8           r4.1          -0.2
            IV              2.8         -0.9         -3.6          6.0            3.6           3.0

        ANNUAL              5.1         -0.6         -5.4          4.9            3.2          -0.2

  2003       I              1.7         -1.8         -3.4          5.8            2.8           4.0
            II              1.0         -3.1         -4.1          5.8            3.6           4.7
           III              1.3         -3.1         -4.4         r5.6           r3.4          r4.3
            IV             r3.7        r-0.7         -4.2         r5.5           r3.5          r1.7

        ANNUAL              1.9         -2.2         -4.0         r5.7           r3.3          r3.7

  2004       I              3.0          0.2         -2.7          5.0            3.0           1.9
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  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

  2001       I    121.3    150.7     124.2    135.0    r110.0     111.3    108.2    110.5     90.9    108.7
            II    121.9    149.7     122.8    136.2    r110.1     111.8    109.8    111.3     91.2    109.5
           III    122.7    148.8     121.2    137.7     111.0     112.2    111.3    112.0     87.2    109.8
            IV    125.0    149.3     119.5    139.0    r112.2     111.2    111.4    111.3     96.4    109.9

        ANNUAL    122.7    149.6     121.9    137.0     110.8     111.6    110.2    111.2     91.4    109.5

  2002       I    126.4    150.2     118.8    138.1     111.1     109.3    111.9    110.0    105.3    109.5
            II    128.3    152.2     118.7    139.6    r111.4     108.8    111.5    109.6    112.3    109.8
           III    129.8    153.4     118.2    140.6    r111.5     108.3    111.5    109.2    111.8    109.4
            IV    131.4    154.5     117.6    142.0     112.1     108.1    111.3    109.0    116.2    109.6

        ANNUAL    128.9    152.6     118.3    140.1     111.5     108.6    111.5    109.4    111.4    109.6

  2003       I    132.2    154.7     117.0    143.3     112.1     108.4    110.7    109.0    114.0    109.5
            II    135.3    157.3     116.3    145.3     113.5     107.4    108.0    107.6    130.7    109.6
           III   r138.4   r160.9     116.3   r147.1    r114.1    r106.3   r107.4    106.6   r143.4    109.9
            IV    139.5    162.8     116.7    147.9     114.6     106.0    107.7    106.5    147.8    110.2

        ANNUAL    136.3    158.9     116.6    145.9     113.5     107.0    108.4    107.4    134.2    109.8

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2001       I      0.2     -2.1      -2.3      2.7     r-0.9       2.5      4.1      3.0    -24.6      0.5
            II      1.7     -2.7      -4.3      3.6       0.3       1.8      6.0      2.9      1.0      2.8
           III      2.9     -2.3      -5.0      4.4       3.4       1.4      5.7      2.6    -16.1      1.1
            IV      7.6      1.4      -5.8      3.7       4.3      -3.6      0.4     -2.5     48.8      0.6

        ANNUAL      1.8     -0.7      -2.4      4.0       1.2       2.2      5.1      3.0    -16.4      1.2

  2002       I      4.6      2.3      -2.2     -2.5      -3.7      -6.7      1.5     -4.6     42.4     -1.4
            II      6.0      5.6      -0.4      4.4       0.9      -1.5     -1.4     -1.5     29.5      0.9
           III      4.9      3.2      -1.6      3.0      r0.7      -1.8      0.0     -1.3     -1.7     -1.4
            IV      4.9      2.8      -2.0      3.9      r2.0      -0.9     -0.4     -0.8     16.7      0.7

        ANNUAL      5.1      2.0      -3.0      2.3       0.7      -2.7      1.2     -1.6     21.9      0.1

  2003       I      2.4      0.5      -1.9      3.8      r0.0       1.3     -2.4      0.3     -7.4     -0.5
            II      9.7      7.1      -2.4      5.7      r5.0      -3.7     -9.3     -5.2     72.6      0.6
           III     r9.5     r9.4      -0.1     r4.9      r2.4     r-4.2    r-2.1    r-3.6    r45.0      0.9
            IV      3.3      5.0       1.6      2.3       1.6      -1.0      1.2     -0.4     12.7      1.1

        ANNUAL      5.7      4.2      -1.5      4.2       1.8      -1.5     -2.8     -1.8     20.5      0.2

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2001       I      1.6      0.9      -0.7      4.4      r1.0       2.7      5.6      3.5    -21.1      1.1
            II      1.5     -0.4      -1.8      4.7       1.3       3.2      5.4      3.8    -21.8      1.3
           III      1.3     -1.8      -3.1      3.7       1.0       2.4      5.6      3.2    -19.2      1.2
            IV      3.1     -1.4      -4.4      3.6       1.8       0.5      4.0      1.5     -1.2      1.2

        ANNUAL      1.8     -0.7      -2.4      4.0       1.2       2.2      5.1      3.0    -16.4      1.2

  2002       I      4.2     -0.3      -4.3      2.3      r1.0      -1.8      3.4     -0.5     15.8      0.8
            II      5.2      1.7      -3.4      2.5       1.2      -2.6      1.5     -1.5     23.2      0.3
           III      5.8      3.1      -2.5      2.1       0.5      -3.4      0.1     -2.5     28.2     -0.3
            IV      5.1      3.5      -1.6      2.2      -0.1      -2.8     -0.1     -2.1     20.6     -0.3

        ANNUAL      5.1      2.0      -3.0      2.3       0.7      -2.7      1.2     -1.6     21.9      0.1

  2003       I      4.6      3.0      -1.5      3.8       0.9      -0.7     -1.1     -0.8      8.3     -0.1
            II      5.5      3.4      -2.0      4.1       1.9      -1.3     -3.1     -1.8     16.4     -0.1
           III     r6.6     r4.9      -1.6     r4.6      r2.3     r-1.9    r-3.6     -2.4    r28.3      0.4
            IV      6.2      5.4      -0.7      4.2       2.2      -1.9     -3.2     -2.3     27.1      0.5

        ANNUAL      5.7      4.2      -1.5      4.2       1.8      -1.5     -2.8     -1.8     20.5      0.2

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 6, 2004
  r=revised                                                               Source: Bureau of Labor Statistics



Appendix table 1.
  Business sector: Revised 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

  1999       I    111.5      132.7     119.0     124.1       107.8      111.3       108.5      110.3
            II    111.7      133.9     119.9     124.4       107.3      111.4       109.0      110.5
           III    112.5      135.7     120.6     125.5       107.4      111.6       109.6      110.8
            IV    114.1      138.5     121.3     127.7       108.5      111.9       109.9      111.1

        ANNUAL    112.4      135.2     120.2     125.4       107.8      111.6       109.2      110.7

  2000       I    113.8      138.6     121.8     132.1       111.2      116.1       105.3      112.1
            II    116.0      141.1     121.6     132.7       110.8      114.4       109.5      112.6
           III    115.8      140.8     121.6     135.4       112.1      116.9       106.3      112.9
            IV    116.9      141.5     121.0     136.3       112.0      116.5       107.9      113.3

        ANNUAL    115.7      140.5     121.4     134.2       111.6      116.0       107.2      112.7

  2001       I    116.9      141.2     120.8     138.2       112.5      118.2       107.1      114.1
            II    117.7      140.8     119.6     139.1       112.4      118.2       109.6      115.0
           III    118.2      139.9     118.4     140.1       112.9      118.6       109.5      115.2
            IV    120.4      140.6     116.9     141.5       114.2      117.6       112.0      115.5

        ANNUAL    118.3      140.6     118.9     139.7       113.0      118.1       109.5      114.9

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I      3.3        3.7       0.4       7.9        r6.2        4.4        -3.9        1.2
            II      0.6        3.8       3.2       0.9       r-1.9        0.3         1.5        0.8
           III      3.0        5.4       2.3       3.7         0.6        0.7         2.3        1.3
            IV      6.0        8.4       2.3       7.1         4.0        1.1         1.1        1.1

        ANNUAL      2.9        5.1       2.1       4.8         2.7        1.8        -0.6        0.9

  2000       I     -1.3        0.3       1.7      14.5        10.4       16.0       -15.8        3.4
            II      8.2        7.5      -0.7       1.8       r-1.4       -5.9        17.2        1.8
           III     -0.6       -0.8      -0.2       8.5        r4.6        9.2       -11.4        1.3
            IV      3.8        2.0      -1.7       2.5        -0.4       -1.3         6.3        1.4

        ANNUAL      2.9        3.9       1.0       7.0         3.6        4.0        -1.8        1.8

  2001       I     -0.1       -0.8      -0.7       5.8        r2.1        5.9        -3.1        2.7
            II      3.0       -1.2      -4.0       2.7        -0.6       -0.3         9.7        3.1
           III      1.5       -2.6      -4.0       3.0        r2.0        1.5        -0.4        0.8
            IV      7.6        2.2      -5.0       3.9         4.5       -3.4         9.6        1.1

        ANNUAL      2.2        0.1      -2.1       4.1         1.3        1.8         2.1        1.9

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I      2.9        4.9       1.9       5.7         4.1        2.7        -2.6        0.7
            II      2.9        5.1       2.2       4.5         2.5        1.6        -0.4        0.9
           III      2.8        5.2       2.3       4.2         1.8        1.4         0.3        1.0
            IV      3.2        5.3       2.0       4.9         2.2        1.6         0.2        1.1

        ANNUAL      2.9        5.1       2.1       4.8         2.7        1.8        -0.6        0.9

  2000       I      2.0        4.5       2.4       6.5        r3.2        4.3        -3.0        1.6
            II      3.9        5.4       1.4       6.7         3.3        2.7         0.5        1.9
           III      3.0        3.8       0.8       7.9         4.3        4.8        -3.0        1.9
            IV      2.4        2.2      -0.2       6.7         3.2        4.2        -1.8        2.0

        ANNUAL      2.9        3.9       1.0       7.0         3.6        4.0        -1.8        1.8

  2001       I      2.7        1.9      -0.8       4.6         1.2        1.8         1.7        1.8
            II      1.5       -0.2      -1.7       4.8         1.4        3.3         0.0        2.1
           III      2.0       -0.7      -2.6       3.5         0.8        1.4         3.0        2.0
            IV      2.9       -0.6      -3.5       3.8         2.0        0.9         3.8        1.9

        ANNUAL      2.2        0.1      -2.1       4.1         1.3        1.8         2.1        1.9

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 6, 2004
  r=revised                                                              Source: Bureau of Labor Statistics



Appendix table 2.
  Nonfarm business sector: Revised 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

  1999       I    111.2      133.0     119.6     123.5       107.3      111.1       109.6      110.5
            II    111.4      134.3     120.5     123.8       106.8      111.2       110.6      111.0
           III    112.2      136.1     121.3     125.0       107.0      111.4       111.3      111.3
            IV    114.0      138.9     121.8     127.3       108.2      111.7       111.7      111.7

        ANNUAL    112.2      135.6     120.8     124.9       107.3      111.3       110.8      111.1

  2000       I    113.5      138.8     122.3     131.8       110.9      116.1       106.7      112.6
            II    115.6      141.4     122.3     132.1       110.3      114.3       111.1      113.1
           III    115.5      141.1     122.2     134.9       111.7      116.9       107.8      113.5
            IV    116.4      141.8     121.8     135.6       111.4      116.5       109.5      113.9

        ANNUAL    115.3      140.8     122.1     133.7       111.2      116.0       108.8      113.3

  2001       I    116.4      141.5     121.6     137.5       111.9      118.1       108.6      114.6
            II    117.3      141.2     120.4     138.3       111.7      117.9       111.2      115.5
           III    117.8      140.3     119.1     139.3       112.3      118.3       111.0      115.6
            IV    119.8      140.8     117.6     140.7      r113.6      117.5       113.4      116.0

        ANNUAL    117.8      141.0     119.7     138.9       112.4      118.0       111.1      115.4

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1999       I      2.7        3.7       1.0       7.0        r5.4        4.2        -3.6        1.3
            II      0.6        3.7       3.1       1.0       r-1.8        0.4         3.6        1.6
           III      3.0        5.6       2.5       3.7         0.6        0.6         2.8        1.4
            IV      6.5        8.4       1.8       7.9         4.7        1.3         1.4        1.4

        ANNUAL      2.8        5.2       2.3       4.7         2.5        1.8        -0.1        1.1

  2000       I     -1.7       -0.1       1.6      14.7        10.5       16.7       -16.9        3.3
            II      7.5        7.5      -0.1       1.1       r-2.1       -6.0        17.6        1.8
           III     -0.4       -0.8      -0.4       8.8        r4.9        9.2       -11.3        1.4
            IV      3.3        2.2      -1.1       2.0        -0.9       -1.3         6.3        1.3

        ANNUAL      2.8        3.8       1.0       7.0         3.6        4.2        -1.9        1.9

  2001       I     -0.1       -0.8      -0.7       5.6        r1.9        5.7        -3.0        2.5
            II      3.1       -1.0      -4.0       2.4        -0.8       -0.7         9.9        2.9
           III      1.6       -2.5      -4.1       3.0        r2.0        1.3        -0.8        0.6
            IV      7.0        1.6      -5.1       4.0         4.6       -2.8         9.0        1.3

        ANNUAL      2.1        0.1      -2.0       3.9         1.1        1.7         2.1        1.9

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1999       I      2.8        4.9       2.1       5.5        r3.9        2.7        -2.5        0.7
            II      2.6        5.1       2.5       4.3         2.3        1.7         0.1        1.1
           III      2.6        5.2       2.6       3.9         1.6        1.3         0.9        1.2
            IV      3.2        5.4       2.1       4.9         2.2        1.6         1.0        1.4

        ANNUAL      2.8        5.2       2.3       4.7         2.5        1.8        -0.1        1.1

  2000       I      2.1        4.4       2.3       6.7         3.4        4.5        -2.7        1.9
            II      3.8        5.3       1.5       6.7         3.3        2.8         0.5        2.0
           III      2.9        3.6       0.7       8.0         4.4        5.0        -3.2        2.0
            IV      2.1        2.1       0.0       6.5         3.0        4.3        -2.0        2.0

        ANNUAL      2.8        3.8       1.0       7.0         3.6        4.2        -1.9        1.9

  2001       I      2.5        2.0      -0.6       4.3         0.9        1.7         1.9        1.8
            II      1.5       -0.1      -1.6       4.7         1.2        3.1         0.1        2.1
           III      2.0       -0.5      -2.5       3.2         0.5        1.2         3.0        1.8
            IV      2.9       -0.7      -3.5       3.8         1.9        0.8         3.6        1.8

        ANNUAL      2.1        0.1      -2.0       3.9         1.1        1.7         2.1        1.9

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       May 6, 2004
  r=revised                                                              Source: Bureau of Labor Statistics



Appendix table 3.
  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

  1999       I          126.7         132.9        104.9        121.7         r105.7          96.0
            II          127.4         133.9        105.1        122.3          105.5          96.0
           III          127.9         134.7        105.3        124.0          106.1          96.9
            IV          130.8         136.8        104.5        127.1          108.0          97.2

        ANNUAL          128.2         134.6        105.0        123.8          106.3          96.6

  2000       I          132.4         137.9        104.2        133.4          112.3         100.8
            II          133.9         139.7        104.3        132.6          110.7          99.0
           III          134.5         139.1        103.4        136.4          112.9         101.5
            IV          135.4         137.8        101.8        137.2          112.7         101.3

        ANNUAL          134.2         138.6        103.3        135.0          112.3         100.6

  2001       I          135.0         135.2        100.1        138.6          112.9         102.7
            II          136.0         133.3         98.0        137.4          111.0         101.0
           III          137.3         131.1         95.5        137.5          110.8         100.1
            IV          140.5         129.7         92.3        139.7          112.7          99.4

        ANNUAL          137.1         132.3         96.5        138.3          111.8         100.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I            4.8           1.8         -2.9          3.9           r2.3          -0.9
            II            2.1           2.9          0.8          2.1          r-0.8           0.0
           III            1.6           2.4          0.8          5.5            2.3           3.7
            IV            9.4           6.3         -2.8         10.5            7.3           1.0

        ANNUAL            3.8           2.9         -0.8          4.2            2.0           0.3

  2000       I            4.8           3.5         -1.3         21.3           16.9          15.7
            II            4.7           5.2          0.5         -2.5          r-5.6          -6.9
           III            1.7          -1.7         -3.4         12.2           r8.2          10.3
            IV            2.7          -3.6         -6.1          2.1           -0.8          -0.6

        ANNUAL            4.7           3.0         -1.6          9.1            5.6           4.2

  2001       I           -1.1          -7.5         -6.5          4.4           r0.8           5.6
            II            3.0          -5.4         -8.1         -3.6           -6.6          -6.4
           III            4.0          -6.3         -9.9          0.3          r-0.7          -3.6
            IV            9.8          -4.3        -12.8          6.5            7.1          -2.9

        ANNUAL            2.2          -4.6         -6.6          2.4           -0.4           0.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I            4.2           2.5         -1.6          4.4           r2.8           0.3
            II            3.8           2.8         -0.9          3.3            1.2          -0.5
           III            2.9           3.0          0.1          3.5            1.2           0.7
            IV            4.4           3.3         -1.1          5.4            2.7           1.0

        ANNUAL            3.8           2.9         -0.8          4.2            2.0           0.3

  2000       I            4.4           3.8         -0.7          9.6            6.2           4.9
            II            5.1           4.4         -0.7          8.4            4.9           3.1
           III            5.1           3.3         -1.8         10.1            6.4           4.7
            IV            3.5           0.8         -2.6          7.9            4.3           4.3

        ANNUAL            4.7           3.0         -1.6          9.1            5.6           4.2

  2001       I            2.0          -2.0         -3.9          3.9            0.5           1.9
            II            1.6          -4.6         -6.0          3.6            0.3           2.0
           III            2.1          -5.7         -7.7          0.8           -1.9          -1.3
            IV            3.8          -5.9         -9.4          1.8            0.0          -1.9

        ANNUAL            2.2          -4.6         -6.6          2.4           -0.4           0.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  r=revised                                                       Source: Bureau of Labor Statistics



Appendix table 4. 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

  1999       I          141.0         155.4        110.2        121.0         r105.1          85.8
            II          142.4         157.3        110.5        121.7          105.0          85.5
           III          143.2         159.6        111.4        123.6          105.8          86.3
            IV          146.0         161.6        110.7        127.3          108.2          87.2

        ANNUAL          143.1         158.5        110.7        123.4          106.0          86.2

  2000       I          149.0         164.5        110.4        134.4          113.2          90.2
            II          150.5         167.1        111.0        132.7          110.8          88.2
           III          151.2         166.7        110.2        137.0          113.4          90.6
            IV          151.6         164.6        108.6        136.8          112.4          90.3

        ANNUAL          150.7         165.7        109.9        135.4          112.5          89.8

  2001       I          150.9         160.5        106.4        137.9          112.3          91.4
            II         r151.6         157.5        103.9        136.7          110.4          90.2
           III          153.0         154.0        100.7        136.7          110.2          89.4
            IV          156.8         151.6         96.7        139.4          112.5          88.9

        ANNUAL          153.0         155.9        101.9        137.7          111.3          90.0

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I            7.4           2.5         -4.6          5.1           r3.5          -2.2
            II            3.9           4.8          0.9          2.4          r-0.5          -1.5
           III            2.4           5.9          3.4          6.4            3.2           3.9
            IV            8.0           5.2         -2.6         12.5            9.3           4.2

        ANNUAL            6.2           5.5         -0.6          4.8            2.7          -1.3

  2000       I            8.6           7.5         -1.0         24.1           19.7          14.4
            II            4.0           6.3          2.2         -5.0          r-8.0          -8.6
           III            1.8          -1.0         -2.7         13.5           r9.4          11.5
            IV            1.0          -4.7         -5.7         -0.5           -3.3          -1.6

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I           -1.8          -9.7         -8.0          3.3          r-0.3           5.2
            II            1.8          -7.3         -9.0         -3.4           -6.5          -5.1
           III            3.8          -8.5        -11.9          0.0           -0.9          -3.7
            IV          r10.3          -6.2        -14.9          8.1            8.7          -2.0

        ANNUAL            1.5          -5.9         -7.3          1.7           -1.1           0.2

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I            7.0           5.4         -1.5          4.7            3.1          -2.1
            II            7.0           6.1         -0.9          3.7            1.7          -3.1
           III            5.3           6.0          0.7          4.3            1.9          -1.0
            IV            5.4           4.6         -0.8          6.5            3.8           1.1

        ANNUAL            6.2           5.5         -0.6          4.8            2.7          -1.3

  2000       I            5.7           5.8          0.2         11.1            7.6           5.1
            II            5.7           6.2          0.5          9.0           r5.6           3.1
           III            5.6           4.5         -1.1         10.8            7.1           5.0
            IV            3.8           1.9         -1.9          7.4            3.9           3.5

        ANNUAL            5.3           4.6         -0.7          9.7            6.1           4.2

  2001       I            1.2          -2.4         -3.6          2.6           -0.8           1.3
            II            0.7          -5.7         -6.4          3.0           -0.4           2.3
           III            1.2          -7.6         -8.7         -0.2           -2.8          -1.4
            IV            3.4          -7.9        -11.0          1.9            0.1          -1.5

        ANNUAL            1.5          -5.9         -7.3          1.7           -1.1           0.2

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  r=revised                                                       Source: Bureau of Labor Statistics



Appendix table 5. 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

  1999       I          113.4         110.0         97.0        121.4          105.5         107.0
            II          113.4         110.1         97.2        121.8          105.1         107.5
           III          113.8         109.5         96.3        122.7          105.0         107.8
            IV          116.9         111.6         95.5        124.6          105.8         106.6

        ANNUAL          114.3         110.3         96.5        122.6          105.3         107.2

  2000       I          116.8         111.0         95.0        129.2          108.7         110.6
            II          118.4         111.9         94.5        129.9         r108.5         109.7
           III          118.9         111.1         93.4        132.8          109.9         111.7
            IV          120.3         110.4         91.8        135.3          111.2         112.5

        ANNUAL          118.8         111.1         93.5        132.0          109.7         111.1

  2001       I          120.0         109.0         90.9        137.7         r112.2         114.8
            II          121.1         108.2         89.3        136.5          110.2         112.7
           III          122.0         107.2         87.9        137.0          110.4         112.2
            IV          124.3         106.7         85.8        138.4          111.7         111.3

        ANNUAL          121.8         107.8         88.5        137.4          111.1         112.8

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1999       I            1.3           1.4          0.1          2.3           r0.7           1.0
            II           -0.3           0.4          0.7          1.4          r-1.5           1.7
           III            1.4          -2.3         -3.6          2.8           -0.3           1.4
            IV           11.4           7.8         -3.3          6.4            3.3          -4.5

        ANNUAL            0.9          -0.3         -1.2          2.8            0.7           1.9

  2000       I           -0.3          -2.2         -1.8         15.6           11.4          15.9
            II            5.8           3.5         -2.2          2.3          r-1.0          -3.4
           III            1.5          -3.1         -4.5          9.4           r5.5           7.8
            IV            4.9          -2.3         -6.9          7.7            4.6           2.7

        ANNUAL            3.9           0.7         -3.1          7.6            4.2           3.6

  2001       I           -1.2          -4.9         -3.8          7.3           r3.6           8.6
            II            4.0          -3.0         -6.7         -3.6           -6.7          -7.3
           III            3.0          -3.7         -6.5          1.5           r0.5          -1.5
            IV            7.8          -2.0         -9.1          4.3            4.9          -3.2

        ANNUAL            2.6          -3.0         -5.4          4.1            1.3           1.5

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1999       I            0.7          -1.0         -1.7          3.9            2.3           3.2
            II           -0.2          -1.1         -0.9          2.4            0.4           2.6
           III            0.0          -0.8         -0.7          1.9           -0.4           2.0
            IV            3.3           1.8         -1.5          3.2            0.5          -0.2

        ANNUAL            0.9          -0.3         -1.2          2.8            0.7           1.9

  2000       I            2.9           0.9         -2.0          6.4            3.1           3.4
            II            4.5           1.6         -2.7          6.6            3.2           2.0
           III            4.5           1.4         -3.0          8.3            4.7           3.6
            IV            2.9          -1.1         -3.9          8.6            5.0           5.5

        ANNUAL            3.9           0.7         -3.1          7.6            4.2           3.6

  2001       I            2.7          -1.8         -4.4          6.6           r3.2           3.8
            II            2.3          -3.3         -5.5          5.1            1.6           2.7
           III            2.6          -3.5         -5.9          3.1            0.4           0.4
            IV            3.4          -3.4         -6.5          2.3            0.5          -1.0

        ANNUAL            2.6          -3.0         -5.4          4.1            1.3           1.5

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                May 6, 2004 
  r=revised                                                       Source: Bureau of Labor Statistics




Appendix table 6. Nonfinancial corporations:  Revised 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

  1999      I    115.8    140.8     121.6    122.5    r106.4     105.8     99.7    104.2    134.1    106.8
           II    116.2    142.4     122.5    122.6     105.7     105.5    100.3    104.1    134.4    106.8
          III    116.2    143.5     123.5    123.3     105.5     106.1    101.6    104.9    126.9    106.9
           IV    117.3    146.0     124.4    124.8     106.1     106.4    102.2    105.2    124.1    106.9

       ANNUAL    116.4    143.2     123.0    123.3     105.9     106.0    101.0    104.6    129.8    106.9

  2000      I    119.4    149.4     125.0    129.4     108.9     108.3    102.5    106.8    115.3    107.5
           II    120.1    150.2     125.1    130.1     108.6     108.3    104.1    107.2    116.6    108.0
          III    121.1    151.5     125.1    132.8     109.9     109.6    105.4    108.5    108.0    108.4
           IV    121.3    151.5     124.9    134.1     110.2     110.6    107.1    109.7     97.6    108.6

       ANNUAL    120.6    150.7     124.9    131.7     109.5     109.2    104.8    108.0    109.3    108.1

  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1999      I      6.8      8.6       1.7      9.8      r8.1       2.8     -5.2      0.7      3.7      1.0
           II      1.3      4.5       3.1      0.2     r-2.6      -1.1      2.5     -0.2      0.9      0.0
          III      0.1      3.1       3.0      2.4      -0.7       2.3      5.3      3.0    -20.3      0.2
           IV      4.0      7.2       3.1      5.0       2.0       1.0      2.2      1.3     -8.6      0.2

       ANNUAL      3.2      5.8       2.6      4.6       2.5       1.4      1.1      1.3     -5.6      0.5

  2000      I      7.4      9.6       2.1     15.4      11.2       7.5      1.3      5.8    -25.6      2.2
           II      2.2      2.4       0.2      2.2     r-1.0       0.1      6.5      1.7      4.6      2.0
          III      3.5      3.5      -0.1      8.5      r4.6       4.8      5.0      4.8    -26.3      1.5
           IV      0.5     -0.1      -0.6      4.2       1.3       3.7      6.6      4.4    -33.4      0.5

       ANNUAL      3.6      5.2       1.6      6.8       3.3       3.1      3.8      3.3    -15.8      1.2

  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1999      I      4.0      6.2       2.2      5.7      r4.1       1.7      0.3      1.3     -4.2      0.7
           II      3.3      6.0       2.6      4.5       2.4       1.1      0.9      1.0     -2.0      0.7
          III      2.3      5.1       2.8      4.0       1.6       1.6      2.1      1.7     -9.5      0.4
           IV      3.0      5.8       2.7      4.3       1.6       1.2      1.1      1.2     -6.6      0.3

       ANNUAL      3.2      5.8       2.6      4.6       2.5       1.4      1.1      1.3     -5.6      0.5

  2000      I      3.1      6.1       2.8      5.6       2.3       2.4      2.8      2.5    -14.0      0.6
           II      3.4      5.5       2.1      6.1      r2.8       2.7      3.8      3.0    -13.2      1.1
          III      4.2      5.6       1.3      7.7       4.1       3.3      3.7      3.4    -14.9      1.5
           IV      3.4      3.8       0.4      7.4       3.9       4.0      4.8      4.2    -21.4      1.5

       ANNUAL      3.6      5.2       1.6      6.8       3.3       3.1      3.8      3.3    -15.8      1.2

  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        May 6, 2004
  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 +1.5 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 fourth quarter of 2003.



                            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 1978-2002 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.