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UNTIL 8:30 A.M. EST,
THURSDAY, FEBRUARY 6, 2003


Internet address:       http://www.bls.gov/lpc/
Historical, technical   
  information:          (202) 691-5606
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                           PRODUCTIVITY AND COSTS
                       Preliminary Fourth Quarter and
                          Annual Averages for 2002
                                      
                                      
     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported preliminary productivity data--as measured by output per hour of all
persons--for the fourth quarter and for the full year 2002.  The seasonally
adjusted annual rates of productivity change in the fourth quarter and the
annual average changes were:

                                  Fourth  Annual averages
                                 quarter     2001-2002

     Business sector               -0.7          4.7
     Nonfarm business sector       -0.2          4.7
     
     In the fourth quarter, productivity dipped 0.7 percent in the business
sector as output increased 0.9 percent but hours at work increased more, 1.5
percent (seasonally adjusted annual rates).  A similar pattern of growth
occurred in the nonfarm business sector where output rose 0.8 percent, hours
increased by 1.0 percent, and productivity fell 0.2 percent.  On an annual
average basis, productivity in both the business and nonfarm business sectors
rose 4.7 percent in 2002.  Fourth-quarter productivity and related measures
are summarized in table A and annual average data in table B.  Detailed
information is presented in tables 1 through 5.

     In the manufacturing sector, increases in productivity were:

                                       Fourth  Annual averages
                                       quarter     2001-2002

     Manufacturing sector                0.7          4.6
       Durable goods manufacturing       3.4          5.7
       Nondurable goods manufacturing   -2.5          2.8
     
     Manufacturing productivity grew 0.7 percent in the fourth quarter,
reflecting a drop in output of 2.4 percent and a larger decline, 3.0 percent,
in hours of all persons.  On an annual average basis, output per hour in the
manufacturing sector posted a 4.6-percent increase in 2002.  Output and hours
in manufacturing, which includes about 15 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.

----------------------------------------------------------------------------     
Table A. Productivity and costs:  Preliminary fourth-quarter 2002
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           -0.7       0.9      1.5     4.3       1.8       5.0
Nonfarm business   -0.2       0.8      1.0     4.6       2.2       4.8
Manufacturing       0.7      -2.4     -3.0     5.3       2.9       4.6
  Durable           3.4      -1.6     -4.8     6.2       3.7       2.7
  Nondurable       -2.5      -2.9     -0.4     4.3       1.9       7.0
----------------------------------------------------------------------------
                      Percent change from same quarter a year ago

Business            3.8       3.1     -0.6     4.3       2.0       0.5
Nonfarm business    3.8       3.3     -0.6     4.2       1.9       0.3
Manufacturing       4.5       1.3     -3.1     4.9       2.6       0.4
  Durable           6.8       2.3     -4.2     5.4       3.1      -1.3
  Nondurable        1.7       0.4     -1.3     4.4       2.0       2.6
----------------------------------------------------------------------------       
     
     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.


                    THIRD-TO-FOURTH QUARTER CHANGES, 2002
                                      
Business

     Productivity in the business sector declined by 0.7 percent in the
fourth quarter of 2002, reflecting modest increases of 0.9 percent in output
and 1.5 percent in hours of all persons (seasonally adjusted annual rates).
Although business sector output has increased for five consecutive quarters,
this was the first increase in hours since the first quarter of 2001, when
they rose 0.4 percent.  Revised data for the third quarter of 2002 show that
output per hour rose 5.8 percent, reflecting an output increase of 5.3
percent and a decline of 0.5 percent in hours.

     Hourly compensation increased 4.3 percent in the fourth quarter of 2002,
following a 5.7-percent increase one quarter earlier. This measure includes
wages and salaries, supplements, employer contributions to employee-benefit
plans, and taxes.  Real hourly compensation, which takes into account changes
in consumer prices, grew at an annual rate of 1.8 percent during the fourth
quarter of 2002.  This measure rose 3.8 percent in the third quarter.

     The unit labor cost measure, which relates hourly compensation to
output, rose 5.0 percent in the fourth quarter.  During the third quarter of
2002, unit labor costs were unchanged.  The implicit price deflator for
business output, which reflects changes in both unit labor costs and unit
nonlabor payments, increased 1.5 percent in fourth quarter 2002.

Nonfarm business

     In the nonfarm business sector, productivity declined by 0.2 percent in
the fourth quarter of 2002.  Output grew 0.8 percent and hours of all persons
grew slightly faster, 1.0 percent (seasonally adjusted annual rates).
Productivity increased 5.5 percent in the third quarter of 2002 (as revised),
when output increased 5.2 percent and hours dropped 0.2 percent (table 2).

     Hourly compensation in the nonfarm business sector rose 4.6 percent in
the fourth quarter of 2002, down somewhat from the 5.4-percent rise of the
third quarter.  When the changes in consumer prices were taken into account,
real hourly compensation increased 2.2 percent during the fourth quarter of
2002 and 3.4 percent one quarter earlier.

     Unit labor costs rose 4.8 percent in the fourth quarter, after falling
0.1 percent in the third quarter of 2002.  The implicit price deflator for
nonfarm business output increased 1.3 percent in the fourth quarter of 2002,
after increasing 0.1 percent one quarter earlier.

Manufacturing

     Manufacturing productivity grew 0.7 percent (seasonally adjusted annual
rate) in the fourth quarter of 2002 as output fell 2.4 percent and hours fell
further, 3.0 percent (table 3).  This was the first drop in manufacturing
output in a year.  Hours of all persons in manufacturing fell in each of the
last 10 quarters and have dropped in 16 quarters over the past five years.
In the third quarter, total manufacturing productivity increased 5.5 percent
(as revised), reflecting a 3.0-percent rise in output and a 2.4-percent
decrease in hours.  In durable goods manufacturing, productivity rose 3.4
percent in the fourth quarter as output fell 1.6 percent and hours dropped
4.8 percent (table 4).  Among nondurable goods manufacturers, productivity
dropped 2.5 percent in the fourth quarter as output declined 2.9 percent but
hours at work in the sector fell only 0.4 percent (table 5).

     Average hourly compensation of manufacturing workers increased 5.3
percent in the fourth quarter of 2002, reflecting increases in hourly
compensation of 6.2 percent in durable goods manufacturing and 4.3 percent in
nondurable goods manufacturing.  When the increase in consumer prices was
taken into account, real hourly compensation in total manufacturing rose 2.9
percent.

     Unit labor costs for the manufacturing sector rose 4.6 percent in fourth
quarter 2002.  In durable goods manufacturing, unit labor costs rose 2.7
percent.  By contrast, unit labor costs of nondurable goods manufacturers
rose 7.0 percent in the fourth quarter of 2002.


                      ANNUAL AVERAGE CHANGES, 2001-2002
                                      
Business

     Business sector productivity increased 4.7 percent when the annual
average for 2002 was compared with the annual average for 2001 (table B).
Output increased 2.6 percent and hours of all persons engaged in the sector
dropped 2.0 percent.  Productivity had increased 1.1 percent in 2001, when
output fell 0.2 percent and hours fell 1.3 percent.  The 4.7-percent increase
in 2002 is larger than the sharp increases of 1992 (3.9 percent) and 1983
(3.6 percent)--each two years following the last two business cycle peaks,
when labor productivity frequently shows a rapid rise.  In fact, the 4.7-
percent increase in 2002 was the largest since 1950, when productivity rose
8.5 percent.

----------------------------------------------------------------------
 Table B. Annual average changes in productivity and related 
 measures, 1993-2002
----------------------------------------------------------------------
        Measure    1993 1994 1995 1996 1997 1998 1999 2000  2001 2002
----------------------------------------------------------------------                                                               
 Business:                                                          
  Productivity      0.5  1.3  0.7  2.8  2.3  2.6  2.6  3.0   1.1  4.7
  Output            3.1  4.9  3.1  4.4  5.2  4.9  4.7  4.1  -0.2  2.6
  Hours             2.6  3.5  2.4  1.6  2.9  2.2  2.0  1.0  -1.3 -2.0
  Hourly            2.5  2.0  2.1  3.2  3.1  5.5  4.6  6.8   2.9  2.9
compensation
  Real hourly       0.0 -0.1 -0.3  0.5  0.9  4.0  2.4  3.4   0.2  1.3
compensation
  Unit labor costs  1.9  0.7  1.4  0.4  0.8  2.8  1.9  3.7   1.8 -1.7
----------------------------------------------------------------------
 Nonfarm Business:                                                  
  Productivity      0.5  1.3  0.9  2.5  2.0  2.6  2.4  2.9   1.1  4.7
  Output            3.3  4.7  3.4  4.3  5.1  5.0  4.6  4.0  -0.1  2.7
  Hours             2.9  3.3  2.4  1.7  3.1  2.4  2.2  1.0  -1.2 -2.0
  Hourly            2.2  2.1  2.1  3.1  3.0  5.4  4.4  7.0   2.7  2.8
compensation
  Real hourly      -0.3  0.0 -0.3  0.4  0.8  3.9  2.2  3.5  -0.1  1.2
compensation         
  Unit labor costs  1.7  0.8  1.2  0.5  0.9  2.7  2.0  3.9   1.6 -1.8
----------------------------------------------------------------------
 Manufacturing:                                                     
  Productivity      1.9  3.0  3.8  3.5  4.2  4.9  5.1  4.1   0.8  4.6
  Output            3.3  5.3  4.3  3.1  6.0  4.7  4.3  2.5  -4.9 -1.0
  Hours             1.4  2.2  0.4 -0.4  1.7 -0.2 -0.8 -1.5  -5.6 -5.4
  Hourly            2.7  2.8  2.1  1.4  1.9  5.3  4.0  7.4   1.5  3.8
compensation
  Real hourly       0.2  0.7 -0.3 -1.3 -0.2  3.9  1.8  3.9  -1.2  2.1
compensation                                                
  Unit labor costs  0.8 -0.2 -1.7 -2.1 -2.2  0.4 -1.1  3.2   0.8 -0.7
----------------------------------------------------------------------

     Hourly compensation in the business sector increased 2.9 percent in
2002, the same as the increase in 2001.  However, because consumer prices
rose less in 2002 than they had in the previous year, real hourly
compensation increased more in 2002, 1.3 percent, than it had in 2001, when
it rose 0.2 percent.  Unit labor costs in the business sector fell 1.7
percent in 2002, the first annual decline in these costs since the early
1960s.  (Unit labor costs fell 0.2 percent in 1963, and 0.1 percent in 1962.)
The implicit price deflator for the business sector rose 0.4 percent in 2002
and 2.0 percent in 2001.

Nonfarm business

     Productivity increased 4.7 percent in the nonfarm business sector during
2002, reflecting a 2.7-percent rise in output and a 2.0-percent decline in
hours.  During 2001, productivity had increased 1.1 percent in nonfarm
business, as output dropped 0.1 percent and hours of all persons fell 1.2 per
cent.  As in the larger business sector, the 2002 productivity increase was
the largest since 1950, when productivity rose 6.9 percent.  It also was
higher than the increases of 1992, when nonfarm business productivity rose
3.7 percent, and 1983, when nonfarm business productivity rose 4.5 percent.

     In 2002, hourly compensation increased 2.8 percent, similar to the 2.7-
percent rise in 2001. When the increase in consumer prices was taken into
account, real hourly compensation rose 1.2 percent in 2002 and declined 0.1
percent in the previous year.

     Unit labor costs in the nonfarm business sector dropped 1.8 percent in
2002, compared with a 1.6-percent increase in 2001.  The last time annual
unit labor costs fell in the nonfarm business sector was in 1983, when they
dropped 0.2 percent.  The implicit price deflator for nonfarm business rose
0.5 percent in 2002, less than it had in 2001, when it rose 1.9 percent.

Manufacturing

     In manufacturing, labor productivity rose 4.6 percent in 2002, faster
than it had grown in 2001, when it rose 0.8 percent.  The 2002 increase
occurred as output fell 1.0 percent and hours of all persons fell more
sharply, 5.4 percent (table B).  There was a 5.7-percent increase in durable
goods manufacturing productivity, where output fell 1.4 percent and hours
fell 6.6 percent.  Nondurable goods manufacturing posted a more modest
increase in productivity, 2.8 percent, as output decreased 0.6 percent and
hours fell 3.4 percent.

     Hourly compensation of manufacturing workers increased 3.8 percent in
2002, more than it increased in 2001, when hourly compensation rose 1.5
percent.  In 2002, hourly compensation rose 4.1 percent in durable goods
manufacturing and 3.5 percent in nondurable good manufacturing.  Taking into
account the rise in consumer prices, real hourly compensation in
manufacturing rose 2.1 percent in 2002 after falling 1.2 percent one year
earlier.

     Unit labor costs in manufacturing fell in 2002, by 0.7 percent.  This
was the first annual drop in unit labor costs since 1999, when they decreased
1.1 percent.  Unit labor costs in durable goods manufacturing declined 1.5
percent in 2002, compared with a 0.6-percent rise in unit labor costs in
nondurable goods manufacturing.

Revised Measures

     Current and previous measures for the third and second quarters of 2002
for the business, nonfarm business, and manufacturing sectors are compared in
table C.  In the business and nonfarm business sectors, productivity growth
in the third quarter was higher than reported on Dec. 4, due to small upward
revisions in output and slightly larger downward revisions to hours.  In both
sectors, hourly compensation in the third quarter grew more than reported in
December.  The upward revisions to productivity and hourly compensation
nearly offset each other, and movements in unit labor costs were similar to
those reported two months ago.  In the second quarter of 2002, hourly
compensation measures in the business and nonfarm business sectors were
revised up by 0.1 percentage-point; unit labor costs in nonfarm businesses
were revised up by the same amount.

----------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
----------------------------------------------------------------------                                                               
                                                     Real      
                                            Hourly   hourly    Unit
                   Produc-                  compen-  compen-   labor
Sector             tivity   Output   Hours  sation   sation    costs
----------------------------------------------------------------------                                                               
                         Third quarter 2002
Business:                                                      
  Previous          5.4      5.2      -0.2    5.3      3.4      -0.1
  Current           5.8      5.3      -0.5    5.7      3.8       0.0
Nonfarm business:                                              
  Previous          5.1      5.1       0.0    4.9      3.0      -0.2
  Current           5.5      5.2      -0.2    5.4      3.4      -0.1
Manufacturing:                                                 
  Previous          5.5      3.2      -2.2    4.4      2.5      -1.0
  Current           5.5      3.0      -2.4    5.6      3.7       0.1

                         Second quarter 2002
Business:                                                      
  Previous          1.8      0.6      -1.2    4.2      0.8       2.4
  Current           1.8      0.6      -1.2    4.3      0.8       2.4
Nonfarm business:                                              
  Previous          1.7      0.9      -0.7    3.9      0.5       2.2
  Current           1.7      0.9      -0.7    4.0      0.5       2.3
Manufacturing:                                                 
  Previous          4.2      3.5      -0.7    3.2     -0.2      -1.0
  Current           4.2      3.5      -0.7    5.0      1.5       0.7
----------------------------------------------------------------------


     In addition, corrections made to average weekly hours in the BLS Current
Employment Statistics (CES) have caused some small revisions to the
productivity and hourly compensation series beginning with the first quarter
of 2000.  (See http://stats.bls.gov/web/cesspec.htm for details of the CES
corrections.)

     Third-quarter productivity growth in the manufacturing sector was the
same as reported on Dec. 4, as downward revisions to output and hours were
the same.  Hourly compensation grew 5.6 percent in the third quarter, more
than the 4.4-percent figure reported in December.  As a result, unit labor
costs in the manufacturing sector grew 0.1 percent in the third quarter
rather than falling 1.0 percent.  A larger upward revision to second-quarter
hourly compensation also changed the direction of the unit labor cost measure
for that quarter.  Manufacturing unit labor costs for the second quarter now
show an increase of 0.7 percent.

     In addition, quarterly measures of productivity, output, and unit labor
costs for manufacturing were revised back to first quarter 2001 due to the
incorporation of revised indexes of industrial production.  The annual
measures for 2001 also were affected; annual average productivity was revised
to show an increase of 0.8 percent for the year, down from the 0.9-percent
figure previously published.  The output measures, based on those published
by the Board of Governors of the Federal Reserve System, were changed to
incorporate additional and revised source data, updated information on
seasonal trends, and some improvements in measurement of real output.  (See
Federal Reserve statistical release G.17 (419), "Industrial Production and
Capacity Utilization," Dec. 5, 2002.)

     Although the Federal Reserve has revised and reclassified its indexes of
industrial production (IIP) back to 1972, the Bureau of Labor Statistics has
not yet incorporated these changes into its historical quarterly measures for
years before 2001.  Later in 2003, the BLS intends to adopt the 2002 North
American Industry Classification System (NAICS) for its major sector
productivity measures.  At that time, the updated information from the IIP
will be incorporated into the quarterly measures.  Persons wishing
information on the methods used to extend the output measures on the 1987
Standard Industrial Classification (SIC) basis beginning with first quarter
2001 may contact the Division of Major Sector Productivity at 202-691-5606 or
email their question to dprweb@bls.gov.



Revised measures: Nonfinancial Corporations

     Revised productivity and output measures for the third and second
quarters for nonfinancial corporations also were announced today.  In the
third quarter, output and productivity increased less and hours fell more
than reported on Dec. 4.  Hourly compensation was revised up.  This, combined
with the downward revision to productivity, led to a rise in unit labor costs
(table D).   There was a small upward revision to hourly compensation data in
the second quarter 2002.

-----------------------------------------------------------------------------
Table D.  Nonfinancial corporations:  Previous and revised productivity and
cost measures
Quarterly percent changes at seasonally adjusted annual rates
-----------------------------------------------------------------------------                                                                     
                                             Real                    
                                    Hourly   hourly  Unit            Implicit
            Produc-                 compen-  compen- labor  Unit     price
            tivity   Output  Hours  sation   sation  costs  profits  deflator
-----------------------------------------------------------------------------                                                                     
                              Third quarter 2002

Previous    5.7      4.3     -1.3    5.7      3.7     0.0   -10.4     -0.6
Current     5.5      3.8     -1.6    6.1      4.2     0.6   -13.0     -0.5

                             Second quarter 2002

Previous    5.8      5.2     -0.5    4.4      1.0    -1.3     0.9     -0.3
Current     5.8      5.3     -0.5    4.5      1.0    -1.3     0.9     -0.3
-----------------------------------------------------------------------------
                                      
                              Next release date

     The next release of Productivity and Costs is scheduled for 8:30 A.M.
EST, Thursday, March 6, 2003.  Revised fourth-quarter and annual average
measures for business, nonfarm business, and manufacturing will be released
at that time.

Upcoming change to productivity and cost data

     The Bureau of Labor Statistics discontinued the Hours at Work Survey
(HWS), used to adjust the paid hours of wage and salary employees to their
hours at the workplace, following the 2000 survey.  The survey will be
replaced with a comparable set of measures derived from information on
scheduled hours of work and paid leave collected from employers participating
in the National Compensation Survey.

     The new ratios of hours worked to hours paid will be incorporated into
the measures of employee hours beginning with the release of the second
quarter 2003 data on Aug. 7.  These ratios will be adjusted to levels from
the HWS and will cover the period following 2000.







                               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
employment 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  are  adjusted  to
hours at work using the BLS Hours at Work survey, conducted for this purpose.
    Data  from  the  BLS Current Population Survey (CPS) are  used  for  farm
labor; in the nonfarm sector, the National Income and Product Accounts (NIPA)
prepared  by  the  Bureau of Economic Analysis (BEA)  of  the  Department  of
Commerce  and  the  CPS  are  used  to measure  labor  input  for  government
enterprises, proprietors, and unpaid family workers.

Output: Business sector output is an annual-weighted index constructed  after
excluding  from  gross domestic product (GDP) the following outputs:  General
government, nonprofit institutions, paid employees of private households, and
the  rental value of owner-occupied dwellings. Corresponding exclusions  also
are  made in labor inputs. Business output accounted for about 77 percent  of
the  value  of  GDP  in 1996. Nonfarm business, which also excludes  farming,
accounted for about 76 percent of GDP in 1996.
    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 2-digit SIC industries: Primary  metal
industries;  fabricated metal products; nonelectrical  machinery;  industrial
and  commercial  machinery  and  computer  equipment;  electronic  and  other
electrical  equipment;  transportation  equipment;  instruments;  lumber  and
lumber  products; furniture and fixtures; stone, clay, and glass and concrete
products;  and  miscellaneous  manufactures. Nondurables  include:  Food  and
kindred  products, tobacco products, textile mill products, apparel products,
paper  and  allied products, printing and publishing, chemicals and  chemical
products,  petroleum  refining  and related industries,  rubber  and  plastic
products, and leather and leather products.
   Nonfinancial  corporate output is an annual-weighted index  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; employees of private households; the rental value  of
owner-occupied  dwellings; unincorporated business;  and  those  corporations
which  are depository institutions, nondepository institutions, security  and
commodity  brokers, insurance carriers, regulated investment  offices,  small
business  investment offices, and real estate investment trusts. Nonfinancial
corporations accounted for about 53 percent of the value of GDP in 1996.

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: 202-691-5200; 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

  2000       I     115.3      138.4     120.1     131.4       110.5      114.0       110.7      112.8
            II     117.2      140.3     119.7     132.4       110.5      113.0       114.1      113.4
           III     117.3      140.4     119.7     135.0       111.7      115.1       111.2      113.7
            IV     117.9      140.7     119.4     136.3       111.9      115.6       112.0      114.3

        ANNUAL     116.9      140.0     119.7     133.8       111.2      114.4       112.0      113.5

  2001       I     117.5      140.4     119.5     137.3       111.8      116.9       112.3      115.2
            II     117.4      139.4     118.7     137.5       111.0      117.1       113.6      115.8
           III     117.9      139.1     117.9     137.8       111.1      116.8       115.5      116.4
            IV     120.1      140.3     116.8     138.3       111.6      115.1       117.2      115.9

        ANNUAL     118.2      139.8     118.2     137.7       111.4      116.5       114.7      115.8

  2002       I     122.5      142.3     116.1     139.3       112.0      113.7       119.9      116.0
            II     123.1      142.5     115.8     140.8       112.2      114.4       119.3      116.2
           III    r124.8     r144.4    r115.6    r142.7      r113.3      114.3       119.7      116.3
            IV     124.6      144.7     116.1     144.2       113.8      115.7       118.5      116.7

        ANNUAL     123.8      143.5     115.9     141.8       112.8      114.5       119.4      116.3

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I       0.3        2.2       1.9      14.7        10.3       14.4       -15.1        2.4
            II       6.7        5.4      -1.2       3.0        r0.1       -3.5        12.9        2.2
           III       0.4        0.4       0.0       8.3         4.6        7.8        -9.6        1.1
            IV       2.1        0.9      -1.2       3.7         0.7        1.6         2.6        1.9

        ANNUAL       3.0        4.1       1.0       6.8         3.4        3.7        -1.7        1.7

  2001       I      -1.5       -1.0       0.4       3.1        -0.6        4.7         1.1        3.4
            II      -0.2       -2.8      -2.6       0.5        -2.6        0.7         4.9        2.2
           III       1.8       -0.9      -2.6       0.9         0.2       -0.9         6.8        1.8
            IV       7.6        3.5     r-3.8       1.4         1.7       -5.8         6.1       -1.6

        ANNUAL       1.1       -0.2      -1.3       2.9         0.2        1.8         2.4        2.0

  2002       I       8.3        5.9      -2.2       3.0         1.6       -4.9        r9.5        0.3
            II       1.8        0.6      -1.2      r4.3         0.8        2.4       r-2.1        0.7
           III      r5.8       r5.3     r-0.5      r5.7        r3.8       r0.0         1.3       r0.5
            IV      -0.7        0.9       1.5       4.3         1.8        5.0        -4.0        1.5

        ANNUAL       4.7        2.6      -2.0       2.9         1.3       -1.7         4.1        0.4

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I       2.3        4.6       2.3       5.9         2.5        3.5        -2.0        1.4
            II       4.1        5.4       1.3       6.5         3.1        2.3         0.8        1.7
           III       3.3        4.1       0.7       7.7         4.1        4.3        -2.5        1.7
            IV       2.4        2.2      -0.1       7.3         3.8        4.9        -2.9        1.9

        ANNUAL       3.0        4.1       1.0       6.8         3.4        3.7        -1.7        1.7

  2001       I       1.9        1.4      -0.5       4.5         1.2        2.6         1.4        2.2
            II       0.2       -0.7      -0.9       3.9         0.5        3.6        -0.4        2.1
           III       0.5       -1.0      -1.5       2.0        -0.6        1.5         3.8        2.3
            IV       1.9       -0.3      -2.2       1.5        -0.3       -0.4         4.7        1.4

        ANNUAL       1.1       -0.2      -1.3       2.9         0.2        1.8         2.4        2.0

  2002       I       4.3        1.4      -2.8       1.4         0.2       -2.8         6.8        0.7
            II       4.8        2.3      -2.5       2.4         1.1      r-2.3         5.0        0.3
           III      r5.9        3.8      -1.9      r3.6        r2.0      r-2.1         3.6        0.0
            IV       3.8        3.1      -0.6       4.3         2.0        0.5         1.1        0.7

        ANNUAL       4.7        2.6      -2.0       2.9         1.3       -1.7         4.1        0.4

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 6, 2003
  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

  2000       I     114.7      138.7     120.9     130.8       110.0      114.0       112.3      113.4
            II     116.4      140.5     120.7     131.5       109.8      113.0       115.6      113.9
           III     116.6      140.6     120.6     134.3       111.1      115.2       112.8      114.3
            IV     117.1      141.0     120.4     135.3       111.2      115.6       113.4      114.8

        ANNUAL     116.2      140.2     120.6     133.0       110.6      114.4       113.5      114.1

  2001       I     116.7      140.7     120.6     136.3       110.9      116.8       113.8      115.7
            II     116.6      139.7     119.8     136.3       110.1      116.9       115.3      116.3
           III     117.2      139.4     118.9     136.7       110.2      116.6       117.2      116.8
            IV     119.3      140.4     117.7     137.2       110.7      115.0       119.2      116.5

        ANNUAL     117.5      140.1     119.2     136.6       110.5      116.3       116.4      116.3

  2002       I     121.8      142.5     117.0    r138.1       111.1      113.4       121.7      116.4
            II     122.3      142.9     116.8     139.5       111.2     r114.1       121.7      116.8
           III    r123.9      144.7     116.8    r141.3      r112.2      114.0      r121.8      116.9
            IV     123.9      145.0     117.0     142.9       112.8      115.4       120.6      117.3

        ANNUAL     123.0      143.8     116.9     140.5       111.8      114.2       121.5      116.9

  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  2000       I       0.2        1.9       1.7      15.2        10.7       14.9       -15.3        2.7
            II       6.0        5.4      -0.6       2.2        -0.7       -3.6        12.2        1.9
           III       0.6        0.2      -0.4       8.7         4.9        8.0        -9.1        1.4
            IV       1.7        1.1      -0.6       3.1         0.2        1.4         2.1        1.6

        ANNUAL       2.9        4.0       1.0       7.0         3.5        3.9        -1.7        1.8

  2001       I     r-1.4       -0.9       0.5       2.8        -0.9        4.3         1.5        3.3
            II      -0.1       -2.7      -2.6       0.1        -2.9        0.3         5.1        2.0
           III       2.1       -0.8      -2.9       1.0         0.3       -1.1         6.8        1.7
            IV      r7.2        2.9     r-4.0       1.5         1.8       -5.4         6.9       -1.0

        ANNUAL       1.1       -0.1      -1.2       2.7        -0.1        1.6         2.5        1.9

  2002       I       8.6        6.2     r-2.3       2.9        r1.5       -5.3         8.8       -0.2
            II       1.7        0.9      -0.7      r4.0         0.5       r2.3         0.1        1.4
           III      r5.5       r5.2     r-0.2      r5.4        r3.4      r-0.1         0.4        0.1
            IV      -0.2        0.8       1.0       4.6         2.2        4.8        -4.1        1.3

        ANNUAL       4.7        2.7      -2.0       2.8         1.2       -1.8         4.4        0.5

  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  2000       I       2.3        4.5       2.1       6.2         2.8        3.7        -1.8        1.7
            II       4.0        5.4       1.3       6.6         3.2        2.5         0.7        1.8
           III       3.3        3.9      r0.7       7.9         4.3        4.5        -2.6        1.8
            IV       2.1        2.2       0.0       7.2         3.7        4.9        -3.1        1.9

        ANNUAL       2.9        4.0       1.0       7.0         3.5        3.9        -1.7        1.8

  2001       I       1.7        1.4      -0.3       4.2         0.9        2.4         1.4        2.1
            II       0.2       -0.6      -0.8      r3.7         0.3        3.5        -0.3        2.1
           III      r0.6       -0.8      -1.4       1.8        -0.8        1.2        r3.8        2.2
            IV       1.9       -0.4      -2.3       1.4        -0.4       -0.5         5.1        1.5

        ANNUAL       1.1       -0.1      -1.2       2.7        -0.1        1.6         2.5        1.9

  2002       I       4.4        1.3      -2.9       1.4         0.1       -2.9         6.9        0.6
            II       4.9        2.3      -2.5       2.3         1.0       -2.4         5.6        0.5
           III      r5.7        3.8      -1.8      r3.4        r1.8       -2.2         4.0        0.1
            IV       3.8        3.3      -0.6       4.2         1.9        0.3         1.2        0.7

        ANNUAL       4.7        2.7      -2.0       2.8         1.2       -1.8         4.4        0.5

  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       February 6, 2003
  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

  2000       I            133.6        138.3        103.5        131.4          110.5          98.4
            II            134.9        139.8        103.6        129.3          107.9          95.9
           III            135.4        139.3        102.9        132.2          109.4          97.7
            IV            135.9        137.6        101.3        131.5          108.0          96.7

        ANNUAL            134.9        138.7        102.8        131.1          109.0          97.2

  2001       I           r135.2       r134.9         99.8        132.0          107.4         r97.6
            II           r135.2       r132.8         98.2        133.0          107.4         r98.4
           III           r136.2       r131.1         96.3        133.3          107.5         r97.9
            IV           r137.5       r129.1         93.9        134.3          108.3         r97.7

        ANNUAL           r136.0       r132.0         97.1        133.1          107.7         r97.9

  2002       I           r140.1       r129.5         92.4        135.6          109.0         r96.8
            II           r141.5       r130.6         92.3       r137.2         r109.4         r96.9
           III           r143.4       r131.6        r91.7       r139.1         r110.4         r97.0
            IV            143.7        130.8         91.0        140.9          111.2          98.1

        ANNUAL            142.2        130.6         91.9        138.2          110.0          97.2

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I              4.5          2.7         -1.7         25.3           20.5          19.9
            II              3.8          4.4          0.5         -6.3           -9.0          -9.7
           III              1.6         -1.3         -2.8          9.5            5.8           7.8
            IV              1.6         -4.8         -6.3         -2.3           -5.1          -3.8

        ANNUAL              4.1          2.5         -1.5          7.4            3.9           3.2

  2001       I            r-2.1        r-7.6         -5.6          1.6           -2.1          r3.7
            II              0.0         -6.2         -6.2          3.1           -0.1           3.1
           III             r3.0         -4.9         -7.6          1.0            0.3          -1.9
            IV             r3.9        r-6.1         -9.7          2.9            3.2         r-1.0

        ANNUAL             r0.8        r-4.9         -5.6          1.5           -1.2          r0.8

  2002       I             r7.8         r1.2         -6.1          3.8            2.4         r-3.7
            II              4.2          3.5         -0.7         r5.0           r1.5          r0.7
           III              5.5         r3.0        r-2.4         r5.6           r3.7          r0.1
            IV              0.7         -2.4         -3.0          5.3            2.9           4.6

        ANNUAL              4.6         -1.0         -5.4          3.8            2.1          -0.7

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              4.4          3.6         -0.8          8.9            5.5           4.3
            II              4.7          3.8         -0.8          6.9            3.5           2.1
           III              4.3          2.6         -1.7          7.9            4.3           3.4
            IV              2.9          0.2         -2.6          5.9            2.4           2.9

        ANNUAL              4.1          2.5         -1.5          7.4            3.9           3.2

  2001       I             r1.2        r-2.4         -3.6          0.5           -2.7         r-0.7
            II             r0.2        r-5.0         -5.2          2.9           -0.5          r2.6
           III             r0.6        r-5.9         -6.4          0.8           -1.8          r0.2
            IV             r1.2        r-6.2         -7.3          2.1            0.3          r1.0

        ANNUAL             r0.8        r-4.9         -5.6          1.5           -1.2          r0.8

  2002       I             r3.6        r-4.0         -7.4          2.7            1.4         r-0.9
            II             r4.7        r-1.7         -6.1         r3.2           r1.8         r-1.5
           III             r5.3         r0.3        r-4.8         r4.3           r2.7         r-1.0
            IV              4.5          1.3         -3.1          4.9            2.6           0.4

        ANNUAL              4.6         -1.0         -5.4          3.8            2.1          -0.7

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2003
  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

  2000       I            148.6        162.9        109.7        130.8          109.9          88.0
            II            150.0        165.2        110.2        127.5          106.4          85.0
           III            150.3        164.6        109.5        130.6          108.0          86.9
            IV            150.1        162.0        107.9        128.4          105.5          85.5

        ANNUAL            149.7        163.7        109.3        129.3          107.5          86.4

  2001       I           r149.3       r158.3        106.0        129.4          105.3         r86.7
            II           r148.8       r154.9        104.1        130.5          105.4         r87.7
           III           r149.6       r151.8        101.4        130.2          105.0         r87.0
            IV           r151.0        148.6         98.5        131.8          106.3          87.3

        ANNUAL           r149.6       r153.4        102.5        130.4          105.5         r87.2

  2002       I           r154.7       r149.4         96.5        132.7          106.7         r85.8
            II           r156.8       r151.2         96.4       r134.8         r107.5         r86.0
           III           r159.8       r152.6         95.5       r136.9         r108.6         r85.6
            IV            161.2        152.0         94.3        138.9          109.6          86.2

        ANNUAL            158.1        151.3         95.7        135.8          108.1          85.9

  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I              7.6          6.3         -1.2         29.7           24.6          20.5
            II              3.9          5.8          1.8         -9.6          -12.1         -13.0
           III              0.8         -1.6         -2.3          9.9            6.1           9.1
            IV             -0.6         -6.2         -5.7         -6.5           -9.2          -6.0

        ANNUAL              4.4          3.6         -0.7          7.7            4.2           3.2

  2001       I            r-2.1        r-8.9         -6.9          3.1           -0.6          r5.3
            II            r-1.4        r-8.2         -6.9          3.6            0.4          r5.1
           III             r2.4        r-7.9        -10.0         -1.0           -1.7         r-3.3
            IV             r3.5        r-8.0        -11.2          5.0            5.4          r1.5

        ANNUAL            r-0.1        r-6.3         -6.2          0.9           -1.9          r0.9

  2002       I            r10.4         r2.1         -7.5          2.8            1.3         r-6.9
            II             r5.5         r4.9         -0.5         r6.7           r3.1          r1.1
           III             r7.9         r3.8        r-3.8         r6.1           r4.2         r-1.7
            IV              3.4         -1.6         -4.8          6.2            3.7           2.7

        ANNUAL              5.7         -1.4         -6.6          4.1            2.5          -1.5

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              5.2          5.1         -0.1         10.5            7.0           5.0
            II              5.1          5.3          0.2          7.4            4.0           2.2
           III              4.3          3.2         -1.1          8.1            4.5           3.6
            IV              2.9          1.0         -1.9          4.8            1.4           1.8

        ANNUAL              4.4          3.6         -0.7          7.7            4.2           3.2

  2001       I             r0.5        r-2.9         -3.3         -1.1           -4.2         r-1.6
            II            r-0.8        r-6.3         -5.5          2.3           -1.0          r3.2
           III            r-0.4        r-7.8         -7.4         -0.3           -2.8          r0.1
            IV              0.6         -8.2         -8.8          2.6            0.8           2.1

        ANNUAL            r-0.1        r-6.3         -6.2          0.9           -1.9          r0.9

  2002       I             r3.6        r-5.6         -8.9          2.6            1.3         r-1.0
            II             r5.4        r-2.4         -7.4         r3.3           r2.0         r-2.0
           III             r6.8         r0.5        r-5.9         r5.1           r3.5         r-1.6
            IV              6.8          2.3         -4.2          5.4            3.1          -1.3

        ANNUAL              5.7         -1.4         -6.6          4.1            2.5          -1.5

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2003
  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

  2000       I            120.6        114.9         95.3        130.6          109.8         108.3
            II            121.8        115.6         95.0        130.4          108.9         107.1
           III            122.6        115.4         94.1        133.2          110.2         108.7
            IV            123.9        114.5         92.4        135.0          110.9         108.9

        ANNUAL            122.2        115.1         94.2        132.3          110.0         108.3

  2001       I           r123.1       r112.7         91.6        134.7          109.7        r109.4
            II            123.6        111.7         90.4        135.5          109.4        r109.7
           III           r124.3        111.3         89.5        137.2          110.6         110.3
            IV           r125.5       r110.1         87.8        137.1          110.6        r109.2

        ANNUAL           r124.1       r111.5         89.8        136.1          110.1        r109.7

  2002       I           r126.8       r110.2         86.9        139.1          111.8        r109.7
            II           r127.7       r110.8         86.7       r139.8         r111.5         109.5
           III           r128.4       r111.4         86.7       r141.5         r112.3        r110.2
            IV            127.6        110.6         86.6        143.0          112.8         112.1

        ANNUAL            127.6        110.7         86.8        140.8          112.1         110.3


  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  2000       I              0.8         -1.8         -2.5         17.8           13.3          17.0
            II              3.8          2.4         -1.4         -0.5           -3.4          -4.2
           III              2.6         -0.9         -3.5          8.7            4.9           5.9
            IV              4.6         -3.0         -7.2          5.6            2.5           0.9

        ANNUAL              3.8          1.1         -2.6          6.7            3.3           2.9

  2001       I            r-2.5        r-6.0         -3.6         -0.8           -4.4          r1.8
            II             r1.3        r-3.8         -5.0          2.3           -0.8          r0.9
           III             r2.6        r-1.4         -3.8          5.1            4.4          r2.4
            IV             r3.6        r-4.0         -7.4         -0.3            0.0         r-3.8

        ANNUAL             r1.6        r-3.2         -4.7          2.9            0.1          r1.3

  2002       I             r4.3         r0.3         -3.9          6.0            4.5          r1.6
            II             r2.9         r1.9         -0.9         r2.2          r-1.2         r-0.7
           III             r2.4         r2.3         -0.1         r5.0           r3.1          r2.6
            IV             -2.5         -2.9         -0.4          4.3            1.9           7.0

        ANNUAL              2.8         -0.6         -3.4          3.5            1.8           0.6

  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  2000       I              3.4          1.6         -1.8          6.1            2.8           2.6
            II              4.4          1.8         -2.5          5.8            2.5           1.4
           III              4.4          1.7         -2.5          7.4            3.8           2.9
            IV              2.9         -0.8         -3.7          7.7            4.2           4.6

        ANNUAL              3.8          1.1         -2.6          6.7            3.3           2.9

  2001       I             r2.1        r-1.9         -3.9          3.1           -0.1          r1.0
            II              1.5         -3.4         -4.8          3.9            0.5          r2.4
           III              1.5         -3.5         -4.9          3.0            0.4           1.5
            IV             r1.2        r-3.8         -5.0          1.5           -0.3          r0.3

        ANNUAL             r1.6        r-3.2         -4.7          2.9            0.1          r1.3

  2002       I             r3.0        r-2.2         -5.0          3.2            2.0          r0.2
            II             r3.4        r-0.8         -4.0         r3.2           r1.9         r-0.2
           III             r3.3         r0.1         -3.1         r3.2           r1.6         r-0.1
            IV              1.7          0.4         -1.3          4.4            2.0           2.6

        ANNUAL              2.8         -0.6         -3.4          3.5            1.8           0.6

  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                February 6, 2003
  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

  2000       I   r117.7    147.3     125.1    126.9     106.7     107.8    104.5    106.9    119.5    108.0
            II    118.3    147.9     125.0    127.8     106.6     108.0    106.3    107.5    118.8    108.5
           III    119.5    149.4     125.0    130.4     107.9     109.1    107.1    108.6    109.5    108.6
            IV    119.5    149.2     124.8    131.7     108.2     110.2    108.9    109.8     98.6    108.9

        ANNUAL    118.8    148.4     125.0    129.2     107.4     108.8    106.7    108.2    111.6    108.5

  2001       I    118.8    147.9     124.6    131.3     106.9     110.6    111.6    110.8     93.1    109.3
            II    119.4    147.8     123.7    131.9     106.5     110.4    113.5    111.3     95.4    109.9
           III    120.4    147.7     122.7    132.7     107.0     110.3    115.5    111.7     97.9    110.5
            IV    123.5    149.6     121.2    133.6     107.8     108.2    114.1    109.8    107.6    109.6

        ANNUAL    120.5    148.2     123.0    132.4     107.0     109.9    113.7    110.9     98.5    109.8

  2002       I    124.9    150.8     120.8    134.7     108.3     107.9    114.0    109.5    107.6    109.4
            II    126.7    152.8     120.6    136.2     108.6     107.5    114.5    109.4    107.8    109.3
           III    128.4   r154.2    r120.1   r138.2    r109.7    r107.7    114.8   r109.6   r104.1    109.1
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  2000       I      7.1      9.5       2.3     14.2       9.8       6.7     -0.4      4.7    -19.0      2.2
            II      2.0      1.6      -0.4      2.8      -0.1       0.8      7.0      2.4     -2.2      2.0
           III     r4.0      4.0       0.0      8.5       4.7       4.2      3.0      3.9    -27.8      0.6
            IV      0.1     -0.4      -0.5      4.1       1.1       4.0      6.9      4.8    -34.5      0.8

        ANNUAL      3.5      5.0       1.5      6.7       3.2       3.1      3.3      3.1    -15.2      1.2

  2001       I     -2.6     -3.3      -0.7     -1.2      -4.8       1.4     10.1      3.7    -20.2      1.7
            II      2.2     -0.5      -2.7      1.8      -1.3      -0.4      7.1      1.6     10.0      2.2
           III      3.2     -0.3      -3.4      2.5       1.9      -0.6      7.2      1.5     10.8      2.2
            IV    r10.7      5.4      -4.8     r2.6      r2.9      -7.3     -4.9     -6.7     46.1     -3.3

        ANNUAL      1.4     -0.1      -1.5      2.5      -0.3       1.0      6.5      2.5    -11.7      1.2

  2002       I     r4.7      3.3      -1.3     r3.5       2.0      -1.2     -0.2     -0.9     -0.2     -0.8
            II      5.8     r5.3      -0.5     r4.5       1.0      -1.3      1.7     -0.5      0.9     -0.3
           III     r5.5     r3.8     r-1.6     r6.1      r4.2      r0.6     r1.0     r0.7   r-13.0    r-0.5
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  2000       I      3.0      5.7       2.6      5.6       2.3       2.5      2.9      2.6    -12.9      0.9
            II      3.5      5.4       1.9     r6.1       2.8       2.6      3.5      2.8    -12.4      1.2
           III      4.2      5.4       1.2      7.6       4.0       3.3      2.5      3.1    -14.2      1.3
            IV      3.3      3.6       0.3      7.3       3.8       3.9      4.1      4.0    -21.8      1.4

        ANNUAL      3.5      5.0       1.5      6.7       3.2       3.1      3.3      3.1    -15.2      1.2

  2001       I      0.9      0.4      -0.4      3.5       0.2       2.6      6.7      3.7    -22.0      1.3
            II      0.9     -0.1      -1.0      3.2      -0.1       2.3      6.8      3.5    -19.7      1.3
           III      0.7     -1.1      -1.8      1.8      -0.8       1.1      7.8      2.9    -10.6      1.7
            IV      3.3      0.3      -2.9      1.4      -0.4      -1.8      4.7      0.0      9.2      0.7

        ANNUAL      1.4     -0.1      -1.5      2.5      -0.3       1.0      6.5      2.5    -11.7      1.2

  2002       I      5.2      1.9     r-3.0      2.6       1.4      -2.4      2.2     -1.2     15.5      0.0
            II      6.1      3.4      -2.5      3.3       1.9      -2.6      0.9     -1.7     13.0     -0.6
           III      6.7     r4.4     r-2.1     r4.2      r2.5     r-2.3     -0.6    r-1.9     r6.4     -1.3
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        February 6, 2003
  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
-1.5 and +1.7 index points approximately 95 percent of the time.  This
interval is based on the performance of this measure between the fourth
quarter of 1995 and the third quarter of 2002.



                            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 1978-2001 is based on the
     Consumer Price Index research series (CPI-U-RS).

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar output divided by the output index.

(5)  Quarterly changes:  Percent change compounded at annual rate from the
     original data rather than index numbers.  Annual changes:  Percent
     change between annual average levels.

(6)  Unit nonlabor costs include capital consumption allowances, interest,
     rental income of persons, and indirect taxes.  For nonfinancial
     corporations, rental income of persons is zero by definition.

(7)  Total unit costs are the sum of unit labor and nonlabor costs.

(8)  Unit profits include corporate profits with inventory valuation and
     capital consumption adjustments.