## Productivity and Costs News Release

Internet address: http://www.bls.gov/lpc/ USDL 08-1123 Historical, technical TRANSMISSION OF THIS information: (202) 691-5606 MATERIAL IS EMBARGOED Current data: (202) 691-5200 UNTIL 8:30 A.M. EDT, Media contact: (202) 691-5902 FRIDAY, AUG. 8, 2008 PRODUCTIVITY AND COSTS Second Quarter 2008, Preliminary The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the second quarter of 2008. The seasonally adjusted annual rates of productivity change in the second quarter were: 2.3 percent in the business sector and 2.2 percent in the nonfarm business sector. Productivity gains in both sectors reflected output increases and small declines in hours worked. In manufacturing, the preliminary productivity changes in the second quarter were: -1.4 percent in manufacturing, -3.5 percent in durable goods manufacturing, and 0.7 percent in nondurable goods manufacturing. Productivity in the total manufacturing sector fell 1.4 percent in the second quarter of 2008, as both output and hours worked decreased. The decline in productivity was concentrated in the durable goods subsector. Output and hours in manufacturing, which includes about 12 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. Second-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. ============================================================================== Data in this release reflect the regular multi-year revision to the national income and product accounts released by the Bureau of Economic Analysis of the U.S. Department of Commerce on July 31. See Revised Measures. ============================================================================== ------------------------------------------------------------------------------ Table A. Productivity and costs: Preliminary second-quarter 2008 measures (Seasonally adjusted annual rates) ------------------------------------------------------------------------------ Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ------------------------------------------------------------------------------ Percent change from preceding quarter Business 2.3 1.5 -0.7 3.8 -1.2 1.5 Nonfarm business 2.2 1.7 -0.5 3.6 -1.4 1.3 Manufacturing -1.4 -3.5 -2.0 4.6 -0.4 6.1 Durable -3.5 -5.5 -2.1 5.0 0.0 8.8 Nondurable 0.7 -1.3 -2.0 3.8 -1.2 3.0 ------------------------------------------------------------------------------ Percent change from same quarter a year ago Business 2.7 1.7 -0.9 4.2 -0.1 1.5 Nonfarm business 2.8 1.8 -1.0 4.3 0.1 1.5 Manufacturing 2.6 -0.1 -2.7 4.6 0.3 1.9 Durable 2.7 0.2 -2.5 4.3 0.0 1.6 Nondurable 2.6 -0.5 -3.1 5.0 0.7 2.3 ------------------------------------------------------------------------------ Business Business sector output per hour increased 2.3 percent from the first quarter to the second quarter of 2008, as output increased 1.5 percent and hours of all persons engaged in the sector--employees, proprietors, and unpaid family workers--fell 0.7 percent (seasonally adjusted annual rates). The increase in output was greater and the decline in hours was smaller than in the first quarter, when productivity rose 2.2 percent, as revised (tables A, B, and 1). Historically, from 2000 through 2007, business sector productivity had grown at an average annual rate of 2.5 percent. Hourly compensation increased 3.8 percent in the second quarter of 2008, less than the 5.0 percent gain in the first quarter. This measure of compensation includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, fell 1.2 percent during the second quarter of 2008 as consumer prices increased 5.0 percent (seasonally adjusted annual rates). Unit labor costs, which reflect changes in both hourly compensation and productivity, increased at an annual rate of 1.5 percent during the second quarter of 2008. The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, increased 0.6 percent in the second quarter of 2008 and 2.0 percent one quarter earlier. Nonfarm Business Productivity increased 2.2 percent in the nonfarm business sector during the second quarter of 2008 as output grew 1.7 percent and hours at work declined 0.5 percent. Revised results for first-quarter 2008 show that productivity increased 2.6 percent, output rose 0.9 percent, and hours fell 1.6 percent (tables A, B and 2). Nonfarm business output per hour had increased at an average annual rate of 2.5 percent from 2000 through 2007. Hourly compensation in the nonfarm business sector increased 3.6 percent in the second quarter of 2008, compared to a 5.2 percent rise one quarter earlier. When the 5.0 percent annual rate of increase in consumer prices is taken into account, real hourly compensation fell 1.4 percent in the second quarter of 2008. This measure rose 0.8 percent in the first quarter. Unit labor costs increased 1.3 percent in the second quarter of 2008 and 1.5 percent over the last four quarters. The implicit price deflator for nonfarm business output rose 0.5 percent in the second quarter of 2008 and 2.1 percent in the first quarter. Manufacturing Productivity decreased 1.4 percent in manufacturing in the second quarter, as output fell 3.5 percent and hours of all persons declined 2.0 percent. In durable goods industries, productivity fell 3.5 percent--the largest drop since fourth-quarter 1990, when output per hour fell 4.6 percent. In nondurable goods industries, productivity grew 0.7 percent in the second quarter as hours fell faster than output (tables A, 3, 4, 5). In total manufacturing, output per hour increased 2.6 percent from the second quarter of 2007 to the second quarter of 2008; output declined slightly over the four quarters, 0.1 percent, whereas hours fell by 2.7 percent. For the entire 2000-2007 period manufacturing productivity increased at a 3.7 percent annual rate. During the second quarter of 2008, hourly compensation grew 4.6 percent in total manufacturing, 5.0 percent in durable manufacturing and 3.8 percent in nondurable manufacturing (seasonally adjusted annual rates). Manufacturing hourly compensation also increased 4.6 percent over the last four quarters. When the increase in consumer prices is taken into account, the real hourly compensation of all manufacturing workers fell 0.4 percent in the second quarter. Unit labor costs in manufacturing jumped 6.1 percent in the second quarter of 2008. The growth in unit labor costs from the second quarter of 2007 was 1.9 percent, reversing the 0.8 percent decline from the first quarter of 2007 to the first quarter of 2008. The 2000-2007 long-term average annual rate of growth for unit labor costs is 0.3 percent. Revised Measures Output data for the business and nonfarm business sectors, and the compensation series for all sectors, incorporate the revised national income and product accounts (NIPA) data released by the Bureau of Economic Analysis, U.S. Department of Commerce, on July 31. Revisions for these sectors go back to the first quarter of 2005. Table B presents previous and revised productivity and related measures for the major sectors: business, nonfarm business and manufacturing, for the first quarter of 2008 and for the years 2007 through 2005. In the first quarter of 2008, output and hours were revised up in all three sectors. In both the business and manufacturing sectors the revisions to hours were greater than to output, resulting in downward revisions to productivity. In nonfarm business the revision to hours offset the revision to output, and productivity increased at the same 2.6 percent rate reported June 4. In business and nonfarm business there were small upward revisions to hourly compensation and unit labor costs. In manufacturing, hourly compensation growth was revised down much more than productivity; the downward revision to unit labor costs was due solely to the downward revision to hourly compensation. Growth in output and output per hour were revised down in the business and nonfarm business sectors in 2007 and 2005, and were little changed in 2006. In both sectors, the average annual rate of productivity growth from 2004 to 2007 was 1.4 percent, compared to 3.3 percent from 2000 to 2004. Manufacturing sector output per hour was not revised historically. For the year 2007, hourly compensation was revised down in all three sectors, leading to downward revisions to unit labor costs. For 2006, manufacturing hourly compensation and unit labor costs were revised up; for 2005 these same measures were revised down. Revised quarterly series appear in tables 1-5 and appendix tables 1-5. The full historical revisions including the quarterly measures can be found on the productivity and costs home page http://www.bls.gov/lpc/#data. ------------------------------------------------------------------------------ Table B. Previous and revised productivity and related measures Percent changes at annual rates ------------------------------------------------------------------------------ Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs ------------------------------------------------------------------------------ First Quarter 2008 Business: Previous 2.4 0.6 -1.7 4.8 0.4 2.3 Revised 2.2 0.7 -1.5 5.0 0.6 2.7 Nonfarm business: Previous 2.6 0.7 -1.8 4.9 0.6 2.2 Revised 2.6 0.9 -1.6 5.2 0.8 2.5 Manufacturing: Previous 3.6 -1.2 -4.7 7.9 3.5 4.2 Revised 3.4 -0.8 -4.0 6.2 1.8 2.8 Annual average 2007 Business: Previous 1.9 2.3 0.4 5.1 2.2 3.2 Revised 1.5 2.0 0.5 4.2 1.3 2.6 Nonfarm business: Previous 1.8 2.3 0.5 5.1 2.2 3.2 Revised 1.4 2.0 0.5 4.1 1.3 2.7 Manufacturing: Previous 3.4 1.6 -1.7 5.6 2.7 2.1 Revised 3.4 1.6 -1.7 3.5 0.7 0.1 Annual average 2006 Business: Previous 1.0 3.1 2.1 4.0 0.7 2.9 Revised 0.9 3.0 2.1 3.8 0.5 2.9 Nonfarm business: Previous 1.0 3.2 2.2 3.9 0.6 2.9 Revised 1.0 3.2 2.2 3.8 0.5 2.8 Manufacturing: Previous 1.1 1.8 0.8 2.8 -0.5 1.7 Revised 1.1 1.8 0.8 4.1 0.8 3.0 Annual average 2005 Business: Previous 2.0 3.6 1.6 4.0 0.6 2.0 Revised 1.8 3.5 1.6 4.0 0.6 2.1 Nonfarm business: Previous 1.9 3.6 1.7 4.0 0.6 2.1 Revised 1.7 3.4 1.7 4.0 0.6 2.2 Manufacturing: Previous 4.9 3.7 -1.2 4.2 0.9 -0.6 Revised 4.9 3.7 -1.2 1.9 -1.4 -2.8 ------------------------------------------------------------------------------ Revised Measures: Nonfinancial Corporations Output, based on the income side of the NIPA for nonfinancial corporations, was revised down sharply in the first quarter to -0.1 percent, leading to a corresponding downward revision to productivity (table C). Unit labor costs were revised up as the revision to productivity was greater than a downward revision to hourly compensation. Unit profits fell 14.7 percent, rather than 1.5 percent as reported June 4. From the first quarter of 2007 through the first quarter of 2008, productivity increased 2.1 percent (table 6). Productivity had increased at an average annual rate of 2.7 percent from 2000 through 2007. ------------------------------------------------------------------------------ Table C. Nonfinancial corporations: Previous and revised productivity and cost measures Percent changes at annual rates ------------------------------------------------------------------------------ Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price tivity Output Hours sation sation costs profits deflator ------------------------------------------------------------------------------ First quarter 2008 Previous 4.6 3.2 -1.4 5.9 1.5 1.2 -1.5 0.5 Revised 1.0 -0.1 -1.1 4.9 0.6 3.9 -14.7 0.5 Annual average 2007 Previous 1.5 2.2 0.7 4.8 1.9 3.2 -5.8 1.6 Revised 0.9 1.6 0.7 4.1 1.3 3.2 -9.0 1.5 Annual average 2006 Previous 0.7 3.0 2.2 3.5 0.2 2.8 5.5 2.8 Revised 2.1 4.4 2.2 3.6 0.3 1.5 12.2 2.8 Annual average 2005 Previous 1.4 3.1 1.7 3.8 0.4 2.4 6.6 2.9 Revised 2.6 4.3 1.7 3.7 0.4 1.1 12.7 2.9 ------------------------------------------------------------------------------ Next release date The next release of Productivity and Costs is scheduled for 8:30 a.m. EDT, Thursday, Sept. 4, 2008. Revised second-quarter measures for business, nonfarm business, and manufacturing will be released at that time, along with preliminary measures for nonfinancial corporations.

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. Weekly paid hours are adjusted to hours at work using data from the National Compensation Survey (NCS). The BLS Hours at Work survey, conducted for this purpose, was used for earlier years. The Office of Productivity and Technology estimates average weekly hours at work for nonproduction and supervisory workers using information from the Current Population Survey (CPS), the CES, and the NCS. Data from the CPS are used for farm labor, nonfarm proprietors, and nonfarm unpaid family workers. Estimates of labor input for government enterprises are derived from the CPS, the CES, and the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce. The CES measures jobs, counting a person who is employed by two or more establishments at each place of employment. In contrast, the CPS features measures of employment that count each person only once and classify each person according to his or her primary job; hours worked at all jobs by that person accrue to his or her primary job. However, the CPS also collects more detailed information on employment and hours worked at primary jobs and all other jobs, separately. The BLS productivity measures use the more detailed information on employment and hours to assign all hours worked to the correct industrial sector and avoid duplicating hours data from the CES. Output: Business sector output is a chain-type, current-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: general government, nonprofit institutions, and private households (including owner-occupied housing). Corresponding exclusions also are made in labor inputs. Business output accounted for about 78 percent of the value of GDP in 2000. Nonfarm business, which excludes farming, accounted for about 77 percent of GDP in 2000. Annual indexes for manufacturing and its durable and nondurable goods components are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BLS. These deflators are based on data from the BLS producer price program and other sources. The industry shipments are aggregated using annual weights, and intrasector transactions are removed. Quarterly manufacturing output measures are based on the index of industrial production prepared monthly by the Board of Governors of the Federal Reserve System, adjusted to be consistent with annual indexes of manufacturing sector output prepared by BLS. Durables include the following 3-digit NAICS industries: wood product manufacturing; nonmetallic mineral product manufacturing; primary metal manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer and electronic product manufacturing; electrical equipment and appliance manufacturing; transportation equipment manufacturing; furniture and related product manufacturing; and miscellaneous manufacturing. Nondurables include: food manufacturing; beverage and tobacco product manufacturing; textile mills; textile product mills; apparel manufacturing; leather and allied product manufacturing; paper manufacturing; printing and related support activities; petroleum and coal products manufacturing; chemical manufacturing; and plastics and rubber products manufacturing. Nonfinancial corporate output is a chain-type, current-weighted index calculated on the basis of the costs incurred and the incomes earned from production. The output measure excludes the following outputs from GDP: general government; nonprofit institutions; private households; unincorporated business; and those corporations classified as offices of bank holding companies, offices of other holding companies, or offices in the finance and insurance sector. Nonfinancial corporations accounted for about 54 percent of the value of GDP in 2000. Productivity: These productivity measures describe the relationship between real output and the labor time involved in its production. They show the changes from period to period in the amount of goods and services produced per hour. Although these measures relate output to hours at work of all persons engaged in a sector, they do not measure the specific contribution of labor, capital, or any other factor of production. Rather, they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy, and materials; the organization of production; managerial skill; and the characteristics and effort of the work force. Labor Compensation: Estimates of labor compensation by major sector, required for measures of hourly compensation and unit labor costs, are based primarily on employee compensation data from the NIPA, prepared by the BEA. The compensation of employees in general government, nonprofit institutions and private households are subtracted from compensation of domestic employees to derive employee compensation for the business sector. The labor compensation of proprietors cannot be explicitly identified and must be estimated. This is done by assuming that proprietors have the same hourly compensation as employees in the same sector. The quarterly labor productivity and cost measures do not contain estimates of compensation for unpaid family workers. Unit Labor Costs: The measures of unit labor costs in this release describe the relationship between compensation per hour and productivity, or real output per hour, and can be used as an indicator of inflationary pressure on producers. Increases in hourly compensation increase unit labor costs; labor productivity increases offset compensation increases and lower unit labor costs. Presentation of the data: The quarterly data in this release are presented in three ways; as index number series where 1992=100, as percent changes from the corresponding quarter of the previous year, and as percent changes from the previous quarter presented at a compound annual rate. Annual data are presented both as index number series and percent changes from the previous year. The index numbers and rates of change reported in the productivity and costs news release are rounded to one decimal place. All percent changes in this release and on the BLS web site are calculated using index numbers to three decimal places. These index numbers are available at the BLS web site, http://www.bls.gov/data/home.htm, or by contacting the BLS Division of Major Sector Productivity. (Telephone 202-691-5606 or email DPRWEB@BLS.GOV) Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-691-5606; Federal Relay Service number: 1-800-877-8339.

Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2006 I r136.1 r162.8 r119.7 r168.0 r120.6 r123.5 r133.4 r127.2 II r136.6 r164.0 r120.1 r168.1 r119.6 r123.1 r136.2 r128.0 III r135.9 r164.1 r120.8 r168.9 r119.1 r124.3 r136.2 r128.8 IV r135.9 r164.8 r121.2 r172.6 r122.1 r127.0 r133.4 r129.4 ANNUAL r136.1 r163.9 r120.4 r169.4 r120.3 r124.5 r134.8 r128.3 2007 I r135.9 r164.5 r121.0 r174.7 r122.4 r128.5 r134.3 r130.7 II r137.6 r166.8 r121.2 r175.5 r121.7 r127.5 r137.4 r131.2 III r139.7 r169.0 r121.0 r177.1 r121.9 r126.8 r139.7 r131.6 IV r139.7 r168.8 r120.8 r179.0 r121.7 r128.1 r139.2 r132.2 ANNUAL r138.2 r167.3 r121.0 r176.5 r121.9 r127.7 r137.7 r131.4 2008 I r140.5 r169.1 r120.3 r181.2 r121.9 r128.9 r139.5 r132.9 II 141.3 169.7 120.1 182.9 121.6 129.4 139.2 133.1 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I r2.6 r5.6 3.0 r5.5 r3.6 r2.8 r3.1 r3.0 II r1.4 r2.9 1.5 r0.2 r-3.3 r-1.2 r8.6 r2.6 III r-2.0 r0.3 r2.4 r2.0 r-1.9 r4.1 r-0.1 r2.4 IV r0.2 r1.7 r1.5 r9.0 r10.7 r8.8 r-8.0 r1.9 ANNUAL r0.9 r3.0 2.1 r3.8 r0.5 2.9 r3.3 r3.0 2007 I r0.0 r-0.7 r-0.7 r4.8 r1.1 r4.8 r2.8 r4.0 II r5.0 r5.6 r0.6 r1.9 r-2.6 r-2.9 r9.6 r1.7 III r6.2 r5.5 -0.7 r3.6 r0.8 r-2.4 r6.9 r1.1 IV r0.1 r-0.6 -0.7 r4.4 r-0.6 r4.3 r-1.6 r2.0 ANNUAL r1.5 r2.0 r0.5 r4.2 r1.3 r2.6 r2.1 r2.4 2008 I r2.2 r0.7 r-1.5 r5.0 r0.6 r2.7 r1.0 2.0 II 2.3 1.5 -0.7 3.8 -1.2 1.5 -0.8 0.6 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I r1.3 r3.6 2.3 4.2 0.5 r2.9 r3.9 r3.3 II r1.7 r3.5 1.8 4.0 r0.1 r2.3 5.2 r3.4 III 0.2 2.4 2.2 r2.9 r-0.4 r2.7 3.5 3.0 IV r0.5 r2.6 2.1 r4.1 r2.1 r3.6 r0.7 r2.5 ANNUAL r0.9 r3.0 2.1 r3.8 r0.5 2.9 r3.3 r3.0 2007 I r-0.1 r1.0 r1.2 r3.9 r1.5 r4.1 r0.7 r2.7 II r0.8 r1.7 0.9 r4.4 r1.7 r3.6 r0.9 r2.5 III r2.8 r3.0 r0.2 r4.8 r2.4 r1.9 r2.6 r2.2 IV r2.8 r2.4 -0.4 r3.7 r-0.3 r0.9 r4.3 r2.2 ANNUAL r1.5 r2.0 r0.5 r4.2 r1.3 r2.6 r2.1 r2.4 2008 I 3.4 r2.8 r-0.6 r3.7 r-0.4 r0.4 r3.9 r1.7 II 2.7 1.7 -0.9 4.2 -0.1 1.5 1.3 1.4 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 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 2006 I r135.1 r163.2 r120.8 r166.8 r119.7 r123.5 r135.5 r127.9 II r135.7 r164.3 r121.1 r167.1 r118.9 r123.1 r138.6 r128.8 III r134.9 r164.4 r121.9 r167.9 r118.3 r124.4 r138.3 r129.5 IV r135.0 r165.0 r122.2 r171.7 r121.4 r127.1 r134.9 r130.0 ANNUAL r135.2 r164.2 r121.5 r168.3 r119.6 r124.5 r136.8 r129.1 2007 I r135.0 r164.7 r122.0 r173.7 r121.8 r128.7 r135.2 r131.1 II r136.4 r167.0 r122.4 r174.1 r120.7 r127.7 r138.2 r131.5 III r138.3 r169.2 r122.3 r175.5 r120.9 r126.9 r140.3 r131.8 IV r138.6 r168.9 r121.9 r177.8 r121.0 r128.3 r139.8 r132.5 ANNUAL r137.1 r167.5 r122.2 r175.3 r121.1 r127.9 r138.4 r131.7 2008 I r139.5 r169.3 r121.4 r180.1 r121.2 r129.1 r140.3 r133.2 II 140.3 170.0 121.2 181.7 120.8 129.5 140.0 133.4 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I r2.5 r6.0 r3.3 r5.2 r3.3 r2.6 r3.9 r3.1 II r1.8 r2.9 1.1 r0.7 r-2.8 r-1.1 r9.4 r2.9 III r-2.1 r0.3 2.4 r2.0 r-2.0 r4.1 r-0.9 r2.1 IV r0.2 r1.4 r1.2 r9.4 r11.0 r9.1 r-9.5 r1.5 ANNUAL 1.0 3.2 2.2 r3.8 r0.5 r2.8 r3.6 r3.1 2007 I r0.0 r-0.9 -0.9 r4.9 r1.2 r4.9 r0.9 r3.4 II r4.1 r5.8 r1.6 r0.8 r-3.6 r-3.2 r9.4 r1.5 III r5.8 r5.5 r-0.3 3.3 r0.5 r-2.4 r6.3 r0.9 IV r0.8 r-0.7 -1.6 r5.4 r0.4 r4.5 r-1.6 r2.1 ANNUAL r1.4 r2.0 0.5 r4.1 r1.3 r2.7 r1.2 r2.1 2008 I 2.6 r0.9 r-1.6 r5.2 r0.8 r2.5 r1.5 r2.1 II 2.2 1.7 -0.5 3.6 -1.4 1.3 -0.9 0.5 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I r1.3 r3.7 2.4 4.2 r0.5 r2.9 r4.3 r3.4 II r1.7 r3.7 2.0 r3.9 r0.0 2.2 r5.9 r3.6 III r0.3 r2.6 2.3 r2.9 r-0.5 2.6 r3.8 r3.1 IV r0.6 r2.6 2.0 r4.3 r2.2 r3.6 r0.5 r2.4 ANNUAL 1.0 3.2 2.2 r3.8 r0.5 r2.8 r3.6 r3.1 2007 I r0.0 r0.9 0.9 r4.2 r1.7 r4.2 r-0.2 r2.5 II r0.5 r1.6 r1.1 r4.2 r1.5 r3.7 r-0.2 r2.1 III r2.5 r2.9 r0.4 r4.6 r2.2 r2.0 r1.5 r1.8 IV r2.7 r2.4 r-0.3 r3.6 r-0.4 r0.9 r3.7 r2.0 ANNUAL r1.4 r2.0 0.5 r4.1 r1.3 r2.7 r1.2 r2.1 2008 I 3.3 r2.8 r-0.5 r3.6 r-0.5 r0.3 r3.8 r1.6 II 2.8 1.8 -1.0 4.3 0.1 1.5 1.3 1.4 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 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 2006 I 172.6 147.2 85.3 r170.9 r122.7 r99.0 II 172.7 147.4 85.4 r169.5 r120.7 r98.2 III 174.5 148.0 84.8 r170.3 r120.0 r97.6 IV 175.4 147.4 84.0 r174.6 r123.5 r99.5 ANNUAL 173.8 147.5 84.9 r171.3 r121.7 r98.6 2007 I 177.0 147.8 83.5 r176.9 r124.0 r100.0 II 178.7 149.6 83.7 r176.4 r122.3 r98.7 III 180.6 151.2 83.7 r176.4 r121.4 r97.6 IV r182.5 r151.0 82.8 r179.7 r122.2 r98.5 ANNUAL r179.7 r149.9 83.4 r177.3 r122.5 r98.7 2008 I r184.0 r150.7 r81.9 r182.4 r122.8 r99.1 II 183.3 149.4 81.5 184.5 122.7 100.6 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I -0.6 1.8 2.4 r14.3 r12.3 r15.0 II 0.2 0.6 0.4 r-3.1 r-6.5 r-3.3 III 4.3 1.6 -2.5 r1.8 r-2.1 r-2.3 IV 2.2 -1.7 -3.8 r10.4 r12.1 r8.0 ANNUAL 1.1 1.8 0.8 r4.1 r0.8 r3.0 2007 I 3.6 1.2 -2.3 r5.5 r1.8 r1.8 II 3.8 4.9 1.0 r-1.1 r-5.5 r-4.8 III 4.5 4.3 -0.2 r-0.1 r-2.8 r-4.4 IV 4.2 -0.4 -4.4 r7.8 r2.7 r3.4 ANNUAL 3.4 1.6 -1.7 r3.5 r0.7 r0.1 2008 I r3.4 r-0.8 r-4.0 r6.2 r1.8 r2.8 II -1.4 -3.5 -2.0 4.6 -0.4 6.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I 1.5 2.4 0.9 r5.4 r1.6 r3.8 II 0.4 2.1 1.7 r3.3 r-0.6 r2.9 III 0.9 2.3 1.4 r2.3 r-1.0 r1.4 IV 1.5 0.6 -0.9 r5.6 r3.6 r4.1 ANNUAL 1.1 1.8 0.8 r4.1 r0.8 r3.0 2007 I 2.6 0.4 -2.1 r3.5 r1.1 r0.9 II 3.5 1.5 -1.9 r4.1 r1.4 r0.6 III 3.5 2.1 -1.3 r3.6 r1.2 r0.0 IV 4.0 2.5 -1.5 r2.9 r-1.0 r-1.1 ANNUAL 3.4 1.6 -1.7 r3.5 r0.7 r0.1 2008 I 4.0 r2.0 r-1.9 r3.1 r-1.0 r-0.8 II 2.6 -0.1 -2.7 4.6 0.3 1.9 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 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 2006 I 198.8 179.6 90.3 r166.0 r119.2 r83.5 II 198.9 180.5 90.7 r164.6 r117.1 r82.7 III 201.7 181.1 89.8 r165.3 r116.5 r81.9 IV 202.4 180.1 89.0 r170.2 r120.4 r84.1 ANNUAL 200.4 180.3 90.0 r166.5 r118.3 r83.1 2007 I 204.4 180.3 88.2 r173.0 r121.3 r84.7 II 207.9 183.9 88.4 r172.5 r119.6 r83.0 III 210.9 186.9 88.6 r172.2 r118.6 r81.7 IV r214.3 r187.0 87.3 r175.5 r119.4 r81.9 ANNUAL r209.4 r184.5 88.1 r173.3 r119.7 r82.8 2008 I r215.4 r186.8 r86.7 r177.8 r119.7 r82.5 II 213.5 184.2 86.3 180.0 119.7 84.3 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I -1.8 0.4 2.3 r13.7 r11.7 r15.9 II 0.3 2.1 1.8 r-3.3 r-6.6 r-3.6 III 5.7 1.2 -4.3 r1.6 r-2.3 r-3.9 IV 1.4 -2.1 -3.4 r12.6 r14.4 r11.1 ANNUAL 2.2 3.3 1.1 r3.9 r0.6 r1.7 2007 I 3.9 0.4 -3.4 r6.7 r3.0 r2.7 II 7.1 8.2 1.0 r-1.2 r-5.5 r-7.7 III 6.0 6.8 0.8 r-0.7 r-3.3 r-6.2 IV 6.6 0.3 -6.0 r7.9 r2.8 r1.2 ANNUAL 4.5 2.3 -2.0 r4.1 r1.3 r-0.3 2008 I r2.1 r-0.4 r-2.5 r5.2 r0.9 r3.0 II -3.5 -5.5 -2.1 5.0 0.0 8.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I 3.2 4.8 1.6 r4.9 r1.1 r1.6 II 2.0 4.6 2.5 r3.1 r-0.8 r1.1 III 2.2 3.6 1.4 r1.9 r-1.5 r-0.4 IV 1.4 0.4 -1.0 r5.9 r3.9 r4.5 ANNUAL 2.2 3.3 1.1 r3.9 r0.6 r1.7 2007 I 2.8 0.4 -2.4 r4.3 r1.8 r1.4 II 4.5 1.8 -2.5 r4.8 r2.1 r0.3 III 4.6 3.2 -1.3 r4.2 r1.8 r-0.3 IV 5.9 3.9 -1.9 r3.1 r-0.8 r-2.6 ANNUAL 4.5 2.3 -2.0 r4.1 r1.3 r-0.3 2008 I r5.4 r3.6 r-1.7 r2.7 r-1.4 r-2.5 II 2.7 0.2 -2.5 4.3 0.0 1.6 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 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 2006 I 148.0 115.0 77.7 r178.0 r127.8 r120.2 II 148.4 114.8 77.3 r176.6 r125.7 r119.0 III 149.0 115.4 77.4 r177.8 r125.3 r119.3 IV 150.3 115.1 76.6 r180.4 r127.6 r120.0 ANNUAL 148.9 115.1 77.2 r178.2 r126.6 r119.6 2007 I 151.2 115.6 76.5 r181.9 r127.5 r120.3 II 151.4 116.0 76.6 r181.4 r125.8 r119.9 III 152.7 116.4 76.3 r181.8 r125.2 r119.1 IV r152.9 r116.1 75.9 r185.3 r126.0 r121.2 ANNUAL r152.0 r116.0 76.3 r182.6 r126.1 r120.1 2008 I r155.1 r115.8 r74.6 r188.8 r127.1 r121.8 II 155.4 115.4 74.3 190.6 126.7 122.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I 1.0 3.6 2.6 r15.5 r13.4 r14.4 II 1.1 -0.9 -1.9 r-3.1 r-6.5 r-4.1 III 1.5 2.2 0.6 r2.6 r-1.4 1.1 IV 3.5 -1.1 -4.4 r6.1 r7.7 r2.5 ANNUAL 0.2 0.3 0.1 r4.5 r1.1 r4.3 2007 I 2.5 2.0 -0.5 r3.3 r-0.3 r0.8 II 0.4 1.3 0.9 r-1.0 r-5.3 r-1.4 III 3.5 1.6 -1.9 r0.7 r-2.0 r-2.7 IV 0.6 -1.1 -1.7 r7.9 r2.8 r7.3 ANNUAL 2.1 0.9 -1.2 r2.5 r-0.3 r0.4 2008 I r5.9 r-1.2 r-6.7 r7.9 r3.5 r1.9 II 0.7 -1.3 -2.0 3.8 -1.2 3.0 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I 0.2 -0.1 -0.3 r6.2 r2.4 r6.0 II -0.7 -0.6 0.1 r3.5 r-0.4 r4.2 III -0.4 1.0 1.4 r3.1 r-0.2 r3.6 IV 1.8 0.9 -0.8 r5.1 r3.0 r3.2 ANNUAL 0.2 0.3 0.1 r4.5 r1.1 r4.3 2007 I 2.1 0.5 -1.6 r2.2 r-0.2 r0.0 II 2.0 1.1 -0.9 r2.7 r0.1 r0.7 III 2.5 0.9 -1.5 r2.3 r-0.1 r-0.2 IV 1.7 0.9 -0.8 r2.7 r-1.2 r1.0 ANNUAL 2.1 0.9 -1.2 r2.5 r-0.3 r0.4 2008 I r2.6 r0.1 -2.4 r3.8 r-0.3 r1.2 II 2.6 -0.5 -3.1 5.0 0.7 2.3 -------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Table 6. Nonfinancial corporate sector: 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 2006 I r146.3 r176.2 r120.4 r164.5 r118.1 r112.4 r112.9 r112.5 r182.5 r118.8 II r146.0 r176.5 r120.9 r164.5 r117.0 r112.6 r114.4 r113.1 r183.1 r119.4 III r147.0 r178.5 r121.5 r165.1 r116.3 r112.3 r114.2 r112.8 r193.0 r120.0 IV r146.0 r177.8 r121.8 r167.8 r118.7 r114.9 r116.2 r115.3 r173.9 r120.5 ANNUAL r146.3 r177.3 r121.1 r165.5 r117.5 r113.1 r114.4 r113.4 r183.1 r119.7 2007 I r146.2 r177.8 r121.7 r170.3 r119.4 r116.5 r117.2 r116.7 r171.8 r121.6 II r147.4 r179.7 r121.9 r171.3 r118.7 r116.2 r117.4 r116.5 r172.5 r121.5 III r148.1 r180.9 r122.1 r172.5 r118.7 r116.5 r117.8 r116.8 r166.8 r121.3 IV r148.8 r181.7 r122.1 r175.0 r119.0 r117.6 r118.9 r117.9 r155.9 r121.3 ANNUAL r147.6 r180.0 r122.0 r172.3 r119.0 r116.7 r117.9 r117.0 r166.7 r121.4 2008 I r149.2 r181.7 r121.8 r177.1 r119.2 r118.7 r118.7 r118.7 r149.8 r121.5 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2006 I r4.4 r7.0 2.4 r8.3 r6.3 r3.7 r-0.6 r2.5 r12.1 r3.7 II r-0.9 r0.8 1.7 r0.0 r-3.5 r0.9 r5.3 r2.1 r1.4 r2.0 III r2.7 r4.7 1.9 r1.5 r-2.5 r-1.2 r-0.5 r-1.0 r23.3 r2.1 IV r-2.6 r-1.6 r1.0 r6.9 r8.5 r9.7 r6.9 r9.0 r-34.1 r1.7 ANNUAL r2.1 r4.4 2.2 r3.6 r0.3 r1.5 1.4 r1.4 r12.2 2.8 2007 I r0.4 r0.0 -0.3 r6.1 r2.4 r5.7 r3.6 r5.1 r-4.7 r3.8 II r3.4 r4.3 0.8 r2.2 -2.3 r-1.2 r0.8 r-0.7 r1.7 r-0.4 III r1.8 r2.6 0.7 2.8 0.1 r1.0 r1.3 r1.0 r-12.5 r-0.8 IV r1.9 r1.9 0.0 5.9 r0.9 r3.9 r3.9 r3.9 r-23.7 r0.2 ANNUAL r0.9 r1.6 0.7 r4.1 r1.3 3.2 r3.0 r3.2 r-9.0 r1.5 2008 I r1.0 r-0.1 r-1.1 r4.9 r0.6 r3.9 r-0.9 r2.6 r-14.7 0.5 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2006 I r3.2 r5.9 2.6 r4.1 r0.4 r0.9 r1.4 r1.0 r17.1 r3.0 II r1.6 r3.9 2.3 r3.7 r-0.2 r2.0 r2.7 r2.2 r9.8 3.2 III r2.9 r5.2 r2.2 r2.6 r-0.7 r-0.3 r-1.3 r-0.6 r26.8 r2.6 IV r0.9 r2.7 1.8 r4.1 r2.1 r3.2 r2.7 r3.1 r-2.0 2.4 ANNUAL r2.1 r4.4 2.2 r3.6 r0.3 r1.5 1.4 r1.4 r12.2 2.8 2007 I r-0.1 r1.0 1.1 r3.6 r1.1 r3.7 r3.8 r3.7 r-5.9 r2.4 II r1.0 r1.8 r0.8 r4.1 r1.4 r3.1 r2.7 r3.0 r-5.8 r1.8 III r0.7 r1.3 0.6 r4.5 r2.1 3.7 r3.1 r3.6 r-13.6 1.1 IV r1.9 r2.2 0.3 r4.3 r0.3 r2.3 r2.4 r2.3 r-10.3 r0.7 ANNUAL r0.9 r1.6 0.7 r4.1 r1.3 3.2 r3.0 r3.2 r-9.0 r1.5 2008 I r2.1 r2.2 r0.1 r4.0 r-0.2 r1.9 r1.3 r1.7 r-12.8 r-0.1 ---------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 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 +1.3 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 first quarter of 2008. 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 1978-2007 is based on the Consumer Price Index research series (CPI-U-RS). (3) Unit nonlabor payments include profits, consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, business current transfer payments, rental income of persons, and the current surplus of government enterprises. (4) Current dollar output divided by the output index. (5) Quarterly changes: Percent change compounded at annual rate is calculated using index numbers to three decimal places. Indexes published in the news release are rounded to one decimal place for convenience. Annual changes: Percent change is calculated using annual average indexes to three decimal places. (6) Unit nonlabor costs include consumption of fixed capital, taxes on production and imports less subsidies, net interest and miscellaneous payments, and business current transfer payments. (7) Total unit costs are the sum of unit labor and nonlabor costs. (8) Unit profits include corporate profits before tax with inventory valuation and capital consumption adjustments.

Appendix table 1. Business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I r134.3 r157.1 r117.0 r161.2 r120.1 r120.0 r128.5 r123.2 II r134.2 r158.4 r118.0 r161.6 r119.5 r120.4 r129.5 r123.8 III r135.6 r160.2 r118.2 r164.1 r119.6 r121.1 r131.6 r125.0 IV r135.2 r160.6 r118.8 r165.8 r119.6 r122.6 r132.4 r126.3 ANNUAL r134.8 r159.1 r118.0 r163.2 r119.7 r121.0 r130.5 r124.6 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r2.7 3.7 0.9 r2.3 r0.5 r-0.4 r10.2 r3.6 II r-0.3 r3.2 3.5 r1.0 r-1.8 r1.3 r3.0 r2.0 III r4.1 r4.8 0.7 r6.5 r0.2 r2.3 r6.9 r4.1 IV -1.0 1.0 2.0 r4.2 r0.1 r5.2 r2.4 r4.1 ANNUAL r1.8 r3.5 1.6 4.0 0.6 r2.1 r4.7 3.1 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I r2.4 3.8 1.3 r4.7 r1.7 r2.3 r4.4 3.1 II r1.4 3.5 2.0 3.8 r0.8 2.3 r3.3 r2.7 III r2.1 r3.7 1.5 4.0 r0.3 r1.8 r5.5 r3.3 IV r1.4 r3.1 r1.7 r3.5 r-0.3 r2.1 r5.6 r3.4 ANNUAL r1.8 r3.5 1.6 4.0 0.6 r2.1 r4.7 3.1 -------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Appendix table 2. Nonfarm business sector: Revised productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I r133.3 r157.3 r118.0 r160.0 r119.2 r120.0 r129.9 r123.7 II r133.4 r158.4 r118.8 r160.8 r118.9 r120.5 r130.8 r124.3 III r134.6 r160.3 r119.1 r163.2 r118.9 r121.2 r133.2 r125.6 IV r134.2 r160.8 r119.8 r164.7 r118.8 r122.7 r134.2 r126.9 ANNUAL r133.9 r159.2 r118.9 r162.2 r118.9 r121.1 r132.0 r125.1 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r3.2 r3.7 0.5 r2.8 r1.0 r-0.5 r11.2 r3.9 II r0.3 r2.9 2.7 r1.9 r-0.9 r1.6 r3.0 r2.2 III r3.7 r4.8 1.0 r6.2 r-0.1 r2.4 r7.4 r4.3 IV r-1.1 r1.3 2.5 r3.7 r-0.4 r4.9 r3.1 r4.2 ANNUAL r1.7 r3.4 1.7 4.0 0.6 r2.2 r5.2 3.4 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I r2.3 3.8 1.4 r4.6 r1.6 r2.2 r5.0 3.3 II r1.3 r3.3 2.0 r3.8 r0.9 2.5 r3.9 r3.1 III r1.9 r3.5 1.6 4.0 0.2 r2.0 r5.9 3.5 IV r1.5 r3.2 1.7 r3.6 r-0.1 r2.1 r6.1 r3.6 ANNUAL r1.7 r3.4 1.7 4.0 0.6 r2.2 r5.2 3.4 -------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Appendix table 3. Manufacturing sector: Revised productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I 170.0 143.7 84.5 r162.2 r120.8 r95.4 II 172.0 144.5 84.0 r164.2 r121.4 r95.5 III 172.9 144.7 83.7 r166.5 r121.3 r96.3 IV 172.8 146.5 84.8 r165.3 r119.2 r95.6 ANNUAL 171.9 144.8 84.3 r164.5 r120.7 r95.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I 7.1 5.7 -1.4 r-8.3 r-9.9 r-14.4 II 4.7 2.0 -2.5 r5.0 r2.1 r0.3 III 2.2 0.6 -1.5 5.8 r-0.5 r3.5 IV -0.2 5.3 5.5 r-2.9 r-6.7 r-2.8 ANNUAL 4.9 3.7 -1.2 r1.9 r-1.4 r-2.8 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 5.2 3.9 -1.3 r3.4 r0.4 r-1.7 II 5.6 4.0 -1.5 r2.7 r-0.2 r-2.7 III 5.3 3.4 -1.8 r1.8 r-1.9 r-3.4 IV 3.4 3.4 0.0 r-0.3 r-3.9 r-3.6 ANNUAL 4.9 3.7 -1.2 r1.9 r-1.4 r-2.8 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Appendix table 4. Durable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I 192.6 171.4 88.9 r158.3 r117.9 r82.1 II 195.0 172.6 88.5 r159.7 r118.1 r81.9 III 197.3 174.7 88.5 r162.2 r118.2 r82.2 IV 199.7 179.4 89.8 r160.7 r115.9 r80.5 ANNUAL 196.2 174.5 89.0 r160.2 r117.5 r81.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I 7.1 7.1 -0.1 r-7.1 r-8.7 r-13.2 II 5.1 3.0 -2.0 r3.7 r0.8 r-1.4 III 4.8 4.9 0.1 r6.6 r0.3 r1.7 IV 4.9 11.2 6.0 r-3.7 r-7.4 r-8.2 ANNUAL 5.4 5.2 -0.2 r1.9 r-1.4 r-3.3 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 4.4 4.1 -0.3 r3.9 r0.9 r-0.5 II 5.4 4.9 -0.6 r2.6 r-0.3 r-2.7 III 6.1 5.2 -0.9 r1.6 r-2.1 r-4.3 IV 5.5 6.5 1.0 r-0.3 r-3.9 r-5.4 ANNUAL 5.4 5.2 -0.2 r1.9 r-1.4 r-3.3 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Appendix table 5. Nondurable manufacturing sector: Revised productivity, hourly compensation, and unit labor costs seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour (1) hour (2) costs -------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I 147.8 115.1 77.9 r167.6 r124.9 r113.4 II 149.5 115.4 77.2 r170.7 r126.3 r114.2 III 149.6 114.3 76.4 r172.3 r125.5 r115.2 IV 147.7 114.0 77.2 r171.7 r123.9 r116.3 ANNUAL 148.7 114.7 77.2 r170.6 r125.1 r114.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I 7.8 4.0 -3.6 r-10.8 r-12.4 r-17.3 II 4.6 0.9 -3.5 r7.5 r4.5 r2.8 III 0.4 -3.9 -4.3 r3.9 r-2.2 r3.4 IV -5.1 -0.8 4.5 r-1.5 r-5.3 r3.9 ANNUAL 4.9 2.0 -2.8 r1.6 r-1.6 r-3.1 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I 6.8 3.8 -2.9 r2.4 r-0.5 r-4.1 II 6.3 3.0 -3.1 r2.8 r-0.1 r-3.3 III 5.0 1.4 -3.4 r1.9 r-1.8 r-2.9 IV 1.8 0.0 -1.8 r-0.5 r-4.0 r-2.2 ANNUAL 4.9 2.0 -2.8 r1.6 r-1.6 r-3.1 ------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

Appendix table 6. Nonfinancial corporate sector: Revised productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor costs fits deflator quarter hour Output hours (1) sation(2) costs costs(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1992=100 2005 I r141.8 r166.4 r117.3 r158.0 r117.7 r111.4 r111.3 r111.4 r155.9 r115.3 II r143.7 r169.9 r118.2 r158.6 r117.3 r110.4 r111.4 r110.6 r166.8 r115.7 III r142.8 r169.7 r118.8 r160.8 r117.2 r112.6 r115.7 r113.5 r152.2 r116.9 IV r144.8 r173.2 r119.7 r161.2 r116.3 r111.4 r113.1 r111.8 r177.4 r117.7 ANNUAL r143.3 r169.8 r118.5 r159.7 r117.1 r111.4 r112.9 r111.8 r163.2 116.4 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 2005 I r3.0 r3.2 0.2 r2.5 r0.7 r-0.4 r7.6 r1.7 r23.6 4.0 II r5.5 r8.7 3.0 r1.7 r-1.1 r-3.6 r0.1 r-2.6 r31.1 r1.1 III r-2.5 r-0.5 r2.0 r5.6 r-0.6 r8.4 r16.7 r10.6 r-30.6 r4.4 IV r5.6 r8.7 3.0 r1.0 r-2.9 r-4.3 r-8.9 r-5.6 r84.3 r2.7 ANNUAL r2.6 r4.3 1.7 r3.7 0.4 r1.1 r3.3 r1.7 r12.7 2.9 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 2005 I r3.2 r4.4 1.1 4.7 r1.6 r1.4 r1.6 r1.5 r15.3 3.0 II r3.4 r5.1 1.7 r3.8 r0.9 r0.4 r1.9 r0.8 r14.5 r2.4 III r1.2 r3.0 1.7 3.8 0.0 r2.5 r6.2 r3.5 r1.3 3.2 IV r2.8 r4.9 2.1 r2.7 r-1.0 r-0.1 r3.4 r0.8 r20.0 r3.1 ANNUAL r2.6 r4.3 1.7 r3.7 0.4 r1.1 r3.3 r1.7 r12.7 2.9 --------------------------------------------------------------------------------------------------------- See footnotes following Table 6. August 8, 2008 r=revised Source: Bureau of Labor Statistics

**Last Modified Date:**August 08, 2008