USDL 98-230
TRANSMISSION OF THIS
MATERIAL IS EMBARGOED
UNTIL 10:00 A.M. EDT
THURSDAY, JUNE 4, 1998.

Internet address:                  http://stats.bls.gov/lprhome.htm
Historical, technical information: (202) 606-5606
Current data:                      (202) 606-7828
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                           PRODUCTIVITY AND COSTS
                             First Quarter 1998


     The Bureau of Labor Statistics of the U.S. Department of Labor today
reported revised productivity data--as measured by output per hour of all
persons--for the first quarter of 1998.  The revised seasonally adjusted
annual rates of productivity change in the first quarter were:

               1.7 percent in the business sector, and
               1.1 percent in the nonfarm business sector.

In both sectors, the revised first-quarter gains in output were larger than
those reported initially, and the gains in hours were slightly lower.  The
revisions increased the first-quarter 1998 productivity gains, making them
similar to those of the fourth quarter of 1997.

     In manufacturing, productivity changes in the first quarter were:

               0.7 percent in manufacturing,
               0.4 percent in durable goods manufacturing, and
               1.2 percent in nondurable goods manufacturing.

     The revised gain in manufacturing productivity in the first quarter of
1998 was still the smallest since the third quarter of 1993, when
productivity fell 0.1 percent.  Output and hours in manufacturing, which
includes about 18 percent of U.S. business-sector employment, tend to vary
more from quarter to quarter than data for the more aggregate business and
nonfarm business sectors.  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: Revised first-quarter 1998 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            1.7       6.0      4.2     4.4       3.9       2.7
Nonfarm business    1.1       6.0      4.8     4.2       3.7       3.1
Manufacturing       0.7       2.0      1.3     2.8       2.3       2.1
  Durable           0.4       2.2      1.8     1.8       1.3       1.5
  Nondurable        1.2       1.7      0.5     4.4       3.9       3.2
-----------------------------------------------------------------------
                      Percent change from same quarter a year ago
Business            2.3       4.6      2.3     4.3       2.8       2.0
Nonfarm business    2.1       4.6      2.5     4.1       2.6       2.0
Manufacturing       4.1       5.3      1.1     3.7       2.2      -0.4
  Durable           6.0       7.6      1.6     3.4       1.9      -2.4
  Nondurable        2.1       2.4      0.4     4.2       2.7       2.0
-----------------------------------------------------------------------


Business

     From the fourth quarter of 1997 to the first quarter of 1998, business
productivity increased 1.7 percent, reflecting increases of 6.0 percent in
output and 4.2 percent in hours of all persons (seasonally adjusted annual
rates).  The increase in productivity was about the same as the 1.6 percent
rise recorded in the fourth quarter, when output rose 4.8 percent and hours
grew 3.2 percent (table 1).

     Hourly compensation increased 4.4 percent during the first quarter of
1998, considerably less than the 5.6 percent rise recorded in the fourth
quarter of 1997.  This measure of compensation includes wages and salaries,
supplements, employer contributions to employee benefit plans, and taxes.
Unit labor costs, which reflect changes in both hourly compensation and
productivity, also increased less during the first quarter, 2.7 percent, than
they had during the previous quarter, when they rose 3.9 percent.

     Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), rose at a 3.9 percent
annual rate in the first quarter; it had risen 3.4 percent in the fourth
quarter of 1997.  The first-quarter increase in real hourly compensation was
the largest recorded in the business sector since the first quarter of 1992,
when it rose 5.0 percent.

     The implicit price deflator for business output, which reflects changes
in unit labor costs and unit nonlabor payments, increased 0.4 percent in the
first quarter of 1998 and 0.9 percent during the fourth quarter of 1997.
Increases in both quarters were lower than those for unit labor costs due to
drops in unit nonlabor payments, which fell 4.3 percent in the fourth quarter
and 3.6 percent in the first quarter.


Nonfarm business

     Productivity rose 1.1 percent in nonfarm business during the first
quarter of 1998, reflecting an increase of 6.0 percent in output and a 4.8
percent rise in hours of all persons.  In the previous quarter, nonfarm
productivity had risen slightly more, 1.4 percent, as output increased 4.9
percent and the hours required to produce that output rose by 3.5 percent
(table 2).

     The first-quarter increase in hourly compensation, 4.2 percent, was
smaller than that reported for the fourth quarter, when it increased 5.2
percent.  However, when the rise in the CPI-U is taken into account, first-
quarter gains in real hourly compensation in the first quarter (3.7 percent)
were larger than those of the previous quarter (3.1 percent).  The first-
quarter gain in real hourly compensation in the nonfarm business sector was
the largest since a 4.8-percent gain occurred in the first quarter of 1992.

     The increase in unit labor costs in nonfarm business, 3.1 percent in the
first quarter, was less than the 3.8-percent rise in the fourth quarter of
1997.  Labor costs account for about two-thirds of all costs, but decreases
in unit nonlabor payments in both quarters held down growth in the implicit
price deflator, which rose 0.8 percent in the first quarter and 1.0 percent
one quarter earlier.

Manufacturing

     First-quarter 1998 gains in productivity, output, and hours in
manufacturing were considerably lower than those recorded in the fourth
quarter of 1997.  Productivity increased 0.7 percent in manufacturing in the
first quarter, as output rose 2.0 percent and hours of all persons increased
1.3 percent (seasonally adjusted annual rates).  In the previous quarter,
productivity had risen 4.3 percent, reflecting gains in output and hours of
8.2 percent and 3.8 percent, respectively. The first quarter productivity
gain in durable goods industries, 0.4 percent, was down sharply from the 6.7
percent gain in the fourth quarter.  Productivity gains in nondurable goods
industries, however, were the same in the first and fourth quarters, 1.2
percent (tables 3, 4, and 5).

     Hourly compensation of all manufacturing workers rose 2.8 percent during
the first quarter, after having risen 6.1 percent in the previous quarter.
Real hourly compensation, which takes account of changes in consumer prices,
rose 2.3 percent in the first quarter, compared with a 4.0 percent rise one
quarter earlier.  The first-quarter increase in hourly compensation in
durable goods industries, 1.8 percent, was smaller than that in nondurable
goods industries, where it rose 4.4 percent.

     Unit labor costs rose 2.1 percent in manufacturing in the first quarter
of 1998 and 1.8 percent in the fourth quarter of 1997.  This is the first
time since 1993--when unit labor costs rose 4.6 percent in the second quarter
and 3.6 percent in the third quarter--that unit labor costs in manufacturing
have risen in two consecutive quarters.  Unit labor costs in durable goods
manufacturing rose 1.5 percent in the first quarter, and those in nondurable
goods manufacturing rose 3.2 percent.

Nonfinancial corporations

     Preliminary first-quarter 1998 measures of productivity and costs for
nonfinancial corporations also were announced today (tables B and 6).
Productivity rose 2.6 percent in the first quarter, as output increased
7.2 percent and employee-hours grew 4.5 percent (seasonally adjusted annual
rates).  In the fourth quarter of 1997, productivity had increased only 0.6
percent as output and hours grew 4.9 and 4.3 percent, respectively.
Nonfinancial corporations include all corporations doing business in the
United States, except banks, stock and commodity brokers, and finance and
insurance agencies.


-------------------------------------------------------------------------
Table B.  Nonfinancial corporations: Preliminary first-quarter 1998
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
1998 I   2.6      7.2     4.5    4.2      3.7     1.6    -6.3     -0.2
-------------------------------------------------------------------------
                 Percent change from same quarter a year ago
1998 I   2.9      6.2     3.2    4.1      2.6     1.1    -0.4      0.4
-------------------------------------------------------------------------


     Hourly compensation increased 4.2 percent during the first quarter, and
real hourly compensation rose 3.7 percent when the rise in the CPI-U is taken
into account.  In the fourth quarter, hourly compensation rose 4.7 percent,
and real hourly compensation grew 2.6 percent.

     Unit labor costs for nonfinancial corporations increased 1.6 percent in
the first quarter, considerably less than the 4.1 percent increase recorded
in the fourth quarter of 1997.  Unit nonlabor costs fell in both quarters,
1.7 percent in the first quarter and 2.9 percent in the fourth quarter.  Unit
profits also dropped in the first quarter, by 6.3 percent.  The implicit
price deflator for nonfinancial corporate output fell 0.2 percent in the
first quarter after having risen 0.4 percent one quarter earlier.


REVISED MEASURES

     Current and previous measures for the first quarter of 1998 for
business, nonfarm business, and manufacturing are compared in table C.
Productivity and output increased more rapidly--and hours rose more slowly--
in the business and nonfarm business sectors than originally reported on
May 7, based on information then available.  In manufacturing, productivity
and output also grew more rapidly than originally reported.


---------------------------------------------------------------------
Table C. Previous and revised productivity and related measures
Quarterly percent change at seasonally adjusted annual rate
---------------------------------------------------------------------
                                                      Real
                                             Hourly   hourly    Unit
                   Produc-                   compen-  compen-   labor
Sector             tivity   Output   Hours   sation   sation    costs
---------------------------------------------------------------------
                             First quarter 1998
Business:
  Previous          0.8      5.3      4.4     4.2      3.7       3.4
  Current           1.7      6.0      4.2     4.4      3.9       2.7
Nonfarm business:
  Previous          0.2      5.3      5.0     4.1      3.5       3.8
  Current           1.1      6.0      4.8     4.2      3.7       3.1
Manufacturing:
  Previous          0.5      1.8      1.3     2.8      2.3       2.3
  Current           0.7      2.0      1.3     2.8      2.3       2.1
---------------------------------------------------------------------



                              Next release date

     The next release of Productivity and Costs is scheduled for 10:00 AM
EDT, Tuesday, August 11, 1998.  Preliminary second-quarter measures for
business, nonfarm business, and manufacturing will be released at that time.
This release will incorporate the annual benchmark revision to the BLS
establishment survey data and refinements to the hours series to correct for
distortions related to the method of accounting for the varying length of
payroll periods across months.  All employment and hours series will
incorporate new information on seasonal patterns.  The release also will
incorporate the annual three-year revision of the National Income and Product
Accounts.


                                TECHNICAL NOTES
                                      
                                      
                                      
 Labor  Hours:  The primary source of hours and employment  data  is  the  BLS
 Current  Employment Statistics (CES) program, which provides  monthly  survey
 data on total employment and average weekly paid hours of production and non-
 supervisory  workers  in  nonagricultural establishments.  Jobs  rather  than
 persons  are counted. 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 Com-
 merce 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 76 percent  of
 the  value  of  GDP  in 1992. Nonfarm business, which also excludes  farming,
 accounted for about 75 percent of GDP in 1992.
      Annual manufacturing indexes 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;  non-
 electrical  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 constructed by
 excluding  from  GDP  the  following outputs: General  government;  nonprofit
 institutions; employees of private households; the rental value  of owner-oc-
 cupied  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 52 percent of the value of GDP in 1992.
 
 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: 202-606-STAT; TDD phone: 202-606-5897;
 TDD message referral phone number: 1-800-326-2577.
 
 
Table 1. Business sector:   Productivity, hourly compensation, unit labor costs,
  and prices, seasonally adjusted
                                                             Real
     Year       Output per             Hours     Compensa-   compensa-   Unit     Unit non-   Implicit
     and        hour of                of all    tion per    tion per    labor    labor pay-  price
     quarter    all persons  Output    persons   hour (1)    hour (2)    costs    ments (3)   deflator (4)
  ---------------------------------------------------------------------------------------------------------
                                           Indexes 1992=100

  1996       I     102.0      111.4     109.2     109.3        98.9      107.2       110.5      108.4
            II     102.8      113.2     110.1     110.8        99.3      107.8       111.0      108.9
           III     102.6      113.5     110.6     111.8        99.6      108.9       110.7      109.6
            IV     103.1      115.0     111.5     112.7        99.6      109.3       111.3      110.0

        ANNUAL     102.6      113.3     110.4     111.1        99.3      108.3       110.9      109.2

  1997       I     103.5      116.6     112.7     113.8       100.1      110.0       111.6      110.6
            II     104.1      117.8     113.1     114.7       100.5      110.2       112.4      111.0
           III     105.0      118.8     113.1     115.9       101.1      110.4       112.9      111.3
            IV     105.4      120.2     114.0     117.5       101.9      111.5       111.6      111.5

        ANNUAL     104.5      118.3     113.3     115.4       100.9      110.5       112.1      111.1

  1998       I    r105.9     r122.0    r115.2    r118.8      r102.9     r112.2      r110.6      111.6
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I       3.1        2.8      -0.3       3.7         0.6        0.7         5.1        2.3
            II       3.1        6.6       3.4       5.5         1.7        2.3         1.8        2.1
           III      -0.7        0.9       1.6       3.6         1.2        4.4        -1.1        2.4
            IV       2.0        5.4       3.3       3.4         0.0        1.4         2.2        1.7

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.6        5.9       4.2       4.1         1.9        2.5         1.2        2.0
            II       2.2        3.9       1.6       3.1         1.8        0.9         2.7        1.5
           III       3.5        3.6       0.1       4.2         2.2        0.7         1.8        1.1
            IV       1.6        4.8       3.2       5.6         3.4        3.9        -4.3        0.9

        ANNUAL       1.8        4.5       2.6       3.9         1.6        2.0         1.1        1.7

  1998       I      r1.7       r6.0      r4.2      r4.4        r3.9       r2.7       r-3.6       r0.4
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       1.9        2.5       0.6       3.5         0.7        1.5         2.0        1.7
            II       2.5        4.2       1.7       4.0         1.1        1.5         2.4        1.8
           III       2.0        3.3       1.3       4.2         1.2        2.1         1.8        2.0
            IV       1.8        3.9       2.0       4.0         0.9        2.2         2.0        2.1

        ANNUAL       2.0        3.5       1.4       3.9         0.9        1.8         2.0        1.9

  1997       I       1.5        4.7       3.1       4.1         1.2        2.6         1.0        2.0
            II       1.3        4.0       2.7       3.6         1.2        2.3         1.2        1.9
           III       2.3        4.7       2.3       3.7         1.5        1.3         2.0        1.6
            IV       2.2        4.5       2.3       4.3         2.3        2.0         0.3        1.4

        ANNUAL       1.8        4.5       2.6       3.9         1.6        2.0         1.1        1.7

  1998       I      r2.3       r4.6       2.3       4.3         2.8       r2.0       r-0.9        1.0
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 4, 1998 
  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

  1996       I     102.1      111.7     109.4     109.1        98.7      106.9       111.0      108.4
            II     102.8      113.5     110.4     110.5        99.1      107.5       111.3      108.8
           III     102.6      113.8     110.9     111.4        99.3      108.6       110.9      109.4
            IV     103.1      115.3     111.9     112.3        99.3      109.0       111.4      109.8

        ANNUAL     102.6      113.6     110.7     110.8        99.1      108.0       111.2      109.1

  1997       I     103.4      116.9     113.1     113.5        99.8      109.8       111.7      110.5
            II     104.0      118.0     113.5     114.4       100.2      110.0       112.4      110.9
           III     104.9      119.1     113.5     115.5       100.7      110.1       113.2      111.2
            IV     105.3      120.5     114.5     117.0       101.4      111.1       112.1      111.5

        ANNUAL     104.3      118.6     113.7     115.0       100.6      110.3       112.3      111.0

  1998       I    r105.6     r122.3     115.9    r118.2      r102.4     r112.0      r111.2      111.7
  ---------------------------------------------------------------------------------------------------------
                       Percent change from previous quarter at annual rate(5)

  1996       I       2.8        2.6      -0.3       3.9         0.7        1.0         4.6        2.3
            II       2.9        6.8       3.8       5.1         1.3        2.2         0.9        1.7
           III      -0.7        1.0       1.7       3.3         0.8        4.0        -1.4        2.0
            IV       1.9        5.4       3.5       3.4         0.0        1.5         2.0        1.7

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.1        5.6       4.5       4.3         2.0        3.1         1.1        2.4
            II       2.3        3.8       1.5       3.2         1.8        0.9         2.3        1.4
           III       3.6        3.7       0.1       3.8         1.8        0.2         2.9        1.2
            IV       1.4        4.9       3.5       5.2         3.1        3.8        -3.9        1.0

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.1        1.7

  1998       I      r1.1       r6.0      r4.8      r4.2        r3.7       r3.1       r-3.2       r0.8
  ---------------------------------------------------------------------------------------------------------
                      Percent change from corresponding quarter of previous year

  1996       I       1.8        2.6       0.7       3.5         0.6        1.6         1.3        1.5
            II       2.3        4.2       1.8       3.9         1.0        1.6         1.5        1.6
           III       1.8        3.3       1.5       4.0         1.0        2.1         1.0        1.7
            IV       1.7        3.9       2.2       3.9         0.7        2.2         1.5        1.9

        ANNUAL       1.9        3.5       1.6       3.8         0.8        1.9         1.4        1.7

  1997       I       1.3        4.7       3.4       4.0         1.1        2.7         0.6        1.9
            II       1.1        4.0       2.8       3.5         1.2        2.4         1.0        1.9
           III       2.2        4.7       2.4       3.7         1.4        1.4         2.1        1.7
            IV       2.1        4.5       2.4       4.1         2.2        2.0         0.6        1.5

        ANNUAL       1.7        4.5       2.7       3.8         1.5        2.1         1.1        1.7

  1998       I      r2.1       r4.6       2.5       4.1         2.6       r2.0       r-0.5        1.1
  ---------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                       June 4, 1998
  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

  1996       I            112.7        115.8        102.7        110.8          100.2          98.3
            II            114.1        118.3        103.7        112.0          100.4          98.2
           III            115.8        119.9        103.6        112.9          100.6          97.5
            IV            116.9        121.2        103.7        113.5          100.3          97.1

        ANNUAL            114.7        118.8        103.6        112.1          100.3          97.8

  1997       I            117.8        123.0        104.4        114.7          100.8          97.3
            II            118.9        124.5        104.7        115.4          101.1          97.1
           III            121.2        126.4        104.3        116.4          101.5          96.0
            IV            122.5        128.9        105.2        118.1          102.5          96.5

        ANNUAL            120.0        125.7        104.7        116.1          101.5          96.7

  1998       I           r122.7       r129.5       r105.5        119.0          103.1          97.0
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I              5.5          2.6         -2.7          2.4           -0.7          -2.9
            II              5.0          9.0          3.8          4.7            0.9          -0.4
           III              5.9          5.4         -0.4          3.1            0.7          -2.6
            IV              3.9          4.5          0.6          1.9           -1.4          -1.9

        ANNUAL              4.7          4.2         -0.5          3.2            0.2          -1.4

  1997       I              3.3          6.2          2.8          4.4            2.2           1.0
            II              3.8          4.9          1.1          2.6            1.3          -1.1
           III              8.0          6.1         -1.7          3.4            1.5          -4.2
            IV              4.3          8.2          3.8          6.1            4.0           1.8

        ANNUAL              4.6          5.8          1.1          3.5            1.2          -1.1

  1998       I             r0.7         r2.0          1.3          2.8            2.3          r2.1
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I              4.7          2.2         -2.4          3.3            0.5          -1.3
            II              4.6          4.3         -0.3          3.5            0.7          -1.0
           III              4.8          4.7          0.0          3.4            0.4          -1.4
            IV              5.1          5.4          0.3          3.0           -0.1          -1.9

        ANNUAL              4.7          4.2         -0.5          3.2            0.2          -1.4

  1997       I              4.5          6.3          1.7          3.5            0.6          -1.0
            II              4.2          5.3          1.0          3.0            0.7          -1.1
           III              4.7          5.4          0.7          3.1            0.9          -1.6
            IV              4.8          6.3          1.4          4.1            2.2          -0.6

        ANNUAL              4.6          5.8          1.1          3.5            1.2          -1.1

  1998       I              4.1         r5.3          1.1          3.7            2.2         r-0.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 4,  1998
  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

  1996       I            119.9        126.8        105.7        109.7           99.2          91.5
            II            122.1        131.1        107.3        111.0           99.5          90.9
           III            124.2        133.2        107.3        111.7           99.5          89.9
            IV            125.3        134.6        107.5        111.8           98.8          89.3

        ANNUAL            122.7        131.4        107.1        110.9           99.1          90.4

  1997       I            126.5        137.7        108.8        113.1           99.4          89.4
            II            128.5        140.4        109.3        113.7           99.6          88.5
           III            131.9        143.8        109.1        114.4           99.7          86.7
            IV            134.0        147.4        110.0        116.5          101.0          86.9

        ANNUAL            130.1        142.3        109.4        114.3           99.9          87.9

  1998       I            134.1       r148.2        110.5        117.0         r101.4          87.2
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I              8.1          5.9         -2.1          1.4           -1.7          -6.2
            II              7.5         14.2          6.2          4.7            0.9          -2.6
           III              6.9          6.8         -0.1          2.6            0.2          -4.0
            IV              3.5          4.3          0.7          0.5           -2.8          -2.9

        ANNUAL              6.3          7.1          0.8          2.4           -0.5          -3.7

  1997       I              4.1          9.4          5.1          4.8            2.5           0.6
            II              6.2          8.1          1.8          2.1            0.7          -3.9
           III             11.0         10.2         -0.8          2.4            0.4          -7.8
            IV              6.7         10.3          3.4          7.6            5.4           0.9

        ANNUAL              6.0          8.3          2.2          3.1            0.8          -2.8

  1998       I              0.4         r2.2         r1.8         r1.8           r1.3          r1.5
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I              6.0          4.8         -1.1          2.4           -0.3          -3.3
            II              6.7          8.0          1.3          2.9            0.0          -3.6
           III              6.7          8.0          1.2          2.7           -0.3          -3.8
            IV              6.5          7.7          1.1          2.3           -0.8          -3.9

        ANNUAL              6.3          7.1          0.8          2.4           -0.5          -3.7

  1997       I              5.5          8.6          2.9          3.1            0.2          -2.2
            II              5.2          7.1          1.9          2.5            0.1          -2.6
           III              6.2          8.0          1.7          2.4            0.2          -3.6
            IV              7.0          9.5          2.4          4.2            2.2          -2.6

        ANNUAL              6.0          8.3          2.2          3.1            0.8          -2.8

  1998       I              6.0         r7.6          1.6          3.4            1.9         r-2.4
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 4, 1998
  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

  1996       I            105.8        104.5         98.8        111.8          101.1         105.7
            II            106.5        105.3         98.9        112.9          101.2         106.1
           III            107.7        106.3         98.6        114.1          101.6         105.9
            IV            108.9        107.5         98.7        115.3          101.9         105.9

        ANNUAL            107.1        105.9         98.9        113.4          101.4         105.9

  1997       I            109.7        108.2         98.6        116.2          102.2         106.0
            II            110.0        108.5         98.6        117.2          102.7         106.6
           III            111.3        108.9         97.8        118.7          103.4         106.6
            IV            111.6        110.3         98.8        119.8          103.9         107.3

        ANNUAL            110.6        109.0         98.5        117.9          103.0         106.6

  1998       I           r112.0       r110.8         98.9        121.1          104.9        r108.1
  --------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

  1996       I              2.5         -1.2         -3.6          4.0            0.8           1.4
            II              2.6          3.1          0.4          4.1            0.4           1.5
           III              4.8          3.8         -0.9          4.0            1.5          -0.7
            IV              4.3          4.6          0.3          4.3            1.0           0.1

        ANNUAL              2.8          0.6         -2.2          4.1            1.1           1.3

  1997       I              3.0          2.5         -0.5          3.3            1.1           0.3
            II              1.1          1.2          0.1          3.4            2.0           2.3
           III              4.8          1.5         -3.1          5.0            3.0           0.2
            IV              1.2          5.5          4.2          3.8            1.7           2.6

        ANNUAL              3.2          2.9         -0.3          4.0            1.6           0.7

  1998       I             r1.2         r1.7         r0.5         r4.4           r3.9          r3.2
  --------------------------------------------------------------------------------------------------
                     Percent change from corresponding quarter of previous year

  1996       I              3.2         -1.0         -4.1          4.5            1.6           1.2
            II              2.4         -0.1         -2.5          4.3            1.4           1.9
           III              2.7          0.8         -1.8          4.2            1.2           1.5
            IV              3.5          2.5         -1.0          4.1            0.9           0.5

        ANNUAL              2.8          0.6         -2.2          4.1            1.1           1.3

  1997       I              3.7          3.5         -0.2          3.9            1.0           0.3
            II              3.3          3.0         -0.3          3.8            1.4           0.5
           III              3.3          2.4         -0.8          4.0            1.8           0.7
            IV              2.5          2.6          0.1          3.9            2.0           1.3

        ANNUAL              3.2          2.9         -0.3          4.0            1.6           0.7

  1998       I             r2.1         r2.4         r0.4          4.2            2.7          r2.0
  --------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                June 4, 1998
  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

  1996       I    106.0    116.5     109.9    108.3      98.0     102.1     99.2    101.4    152.5    106.0
            II    107.1    118.7     110.8    109.7      98.3     102.4     98.4    101.4    154.7    106.2
           III    107.8    120.0     111.3    110.7      98.6     102.7     98.1    101.5    156.0    106.4
            IV    108.3    121.5     112.1    111.5      98.6     102.9     97.4    101.5    156.4    106.5

        ANNUAL    107.3    119.2     111.0    110.1      98.4     102.6     98.3    101.4    154.9    106.3

  1997       I    108.8    123.3     113.3    112.6      99.0     103.5     97.0    101.8    157.9    106.9
            II    109.4    124.7     114.0    113.5      99.4     103.7     97.1    102.0    159.1    107.2
           III    111.1    127.1     114.4    114.7     100.0     103.2     96.6    101.5    164.5    107.2
            IV    111.3    128.6     115.6    116.0     100.6     104.3     95.9    102.1    159.8    107.3

        ANNUAL    110.2    125.9     114.3    114.2      99.9     103.7     96.6    101.9    160.3    107.2

  1998       I    112.0    130.9     116.9    117.2     101.6     104.7     95.5    102.3    157.2    107.3
  ----------------------------------------------------------------------------------------------------------
                             Percent change from previous quarter at annual rate(5)

  1996       I      2.4      2.0      -0.3      3.1      -0.1       0.7      0.6      0.7     15.0      2.4
            II      4.1      7.6       3.4      5.1       1.4       1.1     -3.1      0.0      5.8      0.7
           III      2.7      4.3       1.6      3.8       1.4       1.1     -1.4      0.5      3.5      0.9
            IV      2.1      5.2       3.1      3.0      -0.3       0.9     -2.8      0.0      1.0      0.1

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      1.7      6.1       4.3      4.0       1.8       2.3     -1.8      1.3      3.8      1.6
            II      2.4      4.7       2.3      3.2       1.8       0.8      0.5      0.7      3.2      1.1
           III      6.3      7.8       1.5      4.3       2.3      -1.9     -1.9     -1.9     14.3      0.2
            IV      0.6      4.9       4.3      4.7       2.6       4.1     -2.9      2.4    -11.0      0.4

        ANNUAL      2.6      5.7       2.9      3.8       1.5       1.1     -1.7      0.4      3.5      0.8

  1998       I      2.6      7.2       4.5      4.2       3.7       1.6     -1.7      0.8     -6.3     -0.2
  ----------------------------------------------------------------------------------------------------------
                          Percent change from corresponding quarter of previous year

  1996       I      3.1      3.7       0.6      3.1       0.3       0.0     -0.6     -0.2     12.8      1.4
            II      3.6      5.1       1.5      3.6       0.7       0.0     -1.6     -0.4     14.6      1.3
           III      3.0      4.4       1.4      3.8       0.9       0.8     -0.9      0.4      7.2      1.2
            IV      2.8      4.8       1.9      3.8       0.6       1.0     -1.7      0.3      6.2      1.0

        ANNUAL      3.1      4.5       1.4      3.5       0.6       0.4     -1.2      0.0     10.0      1.2

  1997       I      2.6      5.8       3.1      4.0       1.0       1.3     -2.3      0.4      3.5      0.8
            II      2.2      5.1       2.8      3.5       1.2       1.3     -1.4      0.6      2.9      0.9
           III      3.1      5.9       2.8      3.6       1.4       0.5     -1.5      0.0      5.5      0.7
            IV      2.7      5.9       3.1      4.0       2.1       1.3     -1.5      0.6      2.2      0.8

        ANNUAL      2.6      5.7       2.9      3.8       1.5       1.1     -1.7      0.4      3.5      0.8

  1998       I      2.9      6.2       3.2      4.1       2.6       1.1     -1.5      0.5     -0.4      0.4
  ----------------------------------------------------------------------------------------------------------
  See footnotes following Table 6.                                        June 4, 1998
  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 30
days after the close of the reference period; revisions appear 30 days later,
and second revisions after an additional 60 days.



                            Footnotes, Tables 1-6

(1)  Wages and salaries of employees plus employers' contributions for social
     insurance and private benefit plans.  Except for nonfinancial
     corporations, where there are no self-employed, data also include an
     estimate of wages, salaries, and supplemental payments for the self-
     employed.

(2)  Compensation per hour adjusted for changes in the Consumer Price Index
     for All Urban Consumers.

(3)  Unit nonlabor payments include profits, capital consumption allowances,
     interest, rental income of persons, and indirect taxes.

(4)  Current dollar 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.