Productivity and Costs News Release



Transmission of material in this release is embargoed until      USDL-13-2149
8:30 a.m. (EST) Thursday, November 14, 2013

Technical information: (202) 691-5606   dprweb@bls.gov  www.bls.gov/lpc
Media contact:         (202) 691-5902   PressOffice@bls.gov




                        PRODUCTIVITY AND COSTS
                   Third Quarter 2013, Preliminary
                        
                        
Nonfarm business sector labor productivity increased at a 1.9 percent 
annual rate during the third quarter of 2013, the U.S. Bureau of 
Labor Statistics reported today. The increase in productivity 
reflects increases of 3.7 percent in output and 1.7 percent in hours 
worked. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the third quarter of 2012 to the third 
quarter of 2013, productivity was unchanged as a 1.8 percent increase 
in output was matched by a 1.8 percent increase in hours worked. (See 
table A.) 

Labor productivity, or output per hour, is calculated by dividing an 
index of real output by an index of hours worked of all persons, 
including employees, proprietors, and unpaid family workers. 

Unit labor costs in nonfarm businesses decreased 0.6 percent in the 
third quarter of 2013, while hourly compensation increased 1.3 
percent. Unit labor costs rose 1.9 percent over the last four 
quarters. (See table A.) 

BLS defines unit labor costs as the ratio of hourly compensation to 
labor productivity; increases in hourly compensation tend to increase 
unit labor costs and increases in output per hour tend to reduce 
them.

Manufacturing sector productivity rose 0.4 percent in the third 
quarter of 2013, as output and hours worked increased 1.3 percent and 
0.8 percent, respectively. Productivity increased 1.2 percent in the 
durable goods sector and decreased 0.1 percent in the nondurable 
goods sector. Over the last four quarters, manufacturing productivity 
increased 2.3 percent, as output increased 2.3 percent and hours 
edged up 0.1 percent. Unit labor costs in manufacturing rose 1.3 
percent in the third quarter of 2013 and were unchanged from the same 
quarter a year ago. (See tables A and 3.) 

The concepts, sources, and methods used for the manufacturing and 
nonfinancial corporate output series differ from those used in the 
business and nonfarm business output series; these output measures 
are not directly comparable. See Technical Notes for a more detailed 
explanation. 

Revised measures

Output and related measures, including productivity, in the business 
and nonfarm business sectors were revised historically to incorporate 
the correction to National Income and Product Accounts data announced 
on November 1, 2013 by the Bureau of Economic Analysis of the U.S. 
Department of Commerce. No other sectors were affected. Full 
historical annual and quarterly measures can be found on the 
productivity and costs homepage http://www.bls.gov/lpc/#data. 

Revised and previous measures for the second quarter of 2013 are shown 
in tables B and C and cover the following major sectors: nonfarm 
business, business, manufacturing and nonfinancial corporations.

In the second quarter of 2013, nonfarm business productivity 
increased 1.8 percent, rather than 2.3 percent as reported September 
5. The revised figure reflects a downward revision to output. Unit 
labor costs increased 0.5 percent, an upward revision due to the 
downward revision to productivity. In the manufacturing sector, 
productivity growth was revised up to 2.7 percent due to both the 
upward revision to output and a small downward revision to hours. 
Unit labor costs increased 1.5 percent, a smaller increase than 
previously reported.

Second-quarter 2013 measures of productivity and costs were revised 
for the nonfinancial corporate sector. Productivity increased 2.4 
percent rather than the 3.2 percent preliminary estimate. (See table 
C.)     
______________







The revised Productivity and Costs press release for third-quarter 
2013 is scheduled to be released on Monday, December 16, 2013 at 8:30 
a.m. (EST). This release was originally scheduled for Wednesday, 
December 4, 2013, but was rescheduled because of the recent partial 
Federal government shutdown. 






======================================================================================================
Table A. Preliminary third-quarter 2013 measures: percent change from previous quarter, at annual rate 
(Q to Q) and from same quarter a year ago (Y to Y)

Sector                    Nonfarm                                        Durable         Nondurable
                          Business         Business      Manufacturing   Manufacturing   Manufacturing
                       Q to Q   Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y  Q to Q  Y to Y
------------------------------------------------------------------------------------------------------ 
Productivity            1.9      0.0     1.7     0.5     0.4     2.3     1.2     3.1     -0.1     1.6
Output                  3.7      1.8     3.9     2.2     1.3     2.3     2.7     3.5     -0.3     1.0
Hours                   1.7      1.8     2.1     1.7     0.8     0.1     1.5     0.4     -0.2    -0.6
Hourly 
 compensation           1.3      1.9     0.9     2.1     1.7     2.3     0.8     2.1      3.3     2.8
Real hourly
 compensation          -1.3      0.3    -1.7     0.5    -0.9     0.7    -1.8     0.5      0.7     1.2
Unit labor
 costs                 -0.6      1.9    -0.8     1.5     1.3     0.0    -0.4    -1.0      3.4     1.1
======================================================================================================
Table B. Revised and previous measures: second quarter 2013 

Sector
                  Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------           
                                        Percent change, annual rate
                                        
Productivity     1.8     2.3      2.0      2.1       2.7      1.9      4.3      3.3      0.7      0.2
Output           3.3     3.7      3.4      3.4       0.1     -0.6      1.3      0.5     -1.3     -1.9
Hours            1.4     1.4      1.3      1.3      -2.5     -2.4     -2.8     -2.7     -2.1     -2.1
Hourly 
 compensation    2.3     2.3      2.4      2.4       4.2      4.2      4.7      4.6      3.4      3.4
Real hourly 
 compensation    2.3     2.3      2.4      2.5       4.3      4.2      4.7      4.7      3.5      3.4
Unit labor 
 costs           0.5     0.0      0.4      0.4       1.5      2.3      0.4      1.3      2.7      3.2
======================================================================================================
Table C. Nonfinancial corporations: revised and previous second-quarter 2013 measures

        
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------  
                                        Percent change, annual rate
Revised         2.4      4.1        1.6     2.2          2.2         -0.2           8.9          -0.3
Previous        3.2      4.8        1.5     2.3          2.3         -0.9          12.7          -0.2
======================================================================================================





			
			
			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)
ofthe 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 75 
percent of the value of GDP in 2012. Nonfarm business, which excludes 
farming, accounted for about 74 percent of GDP in 2012.
     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 49 percent of the value of GDP in 2012.
     
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: The measure includes accrued wages and salaries, 
supplements, employer contributions to employee benefit plans, and taxes.
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 percent changes from the previous quarter presented at a 
compound annual rate, as percent changes from the corresponding quarter of
the previous year, and as index number series where 2009=100. 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, 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
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 III       1.7         3.9        2.1        0.9       -1.7       -0.8        5.6        2.0  
     II        2.0 r       3.4        1.3        2.4        2.4 r      0.4        0.2 r      0.3 r
     I         0.4         1.4        1.0       -4.6       -6.0       -4.9       11.4        1.8  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV       -1.9         0.2        2.1       10.2        7.8       12.2      -11.5        1.2  
     III       2.1         3.6        1.4        0.8       -1.2       -1.3        7.4        2.5  
     II        1.3         1.6        0.3        1.9        0.9        0.6        3.9        2.0  
     I         1.3         4.9        3.5        8.8        6.3        7.4       -5.4        1.6  

2011 ANNUAL    0.4         2.4        2.0        2.4       -0.7        2.0        2.3        2.1  

2011 IV        3.3         6.4        2.9       -4.5       -5.9       -7.6       12.4        0.7  
     III      -0.1         1.8        1.9        2.6       -0.3        2.8        3.0        2.9  
     II        1.6         4.1        2.4       -0.7       -5.1       -2.3        9.8        2.7  
     I        -3.3        -1.9        1.4        6.3        1.8       10.0       -8.4        1.6 r
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 III       0.5         2.2        1.7        2.1        0.5        1.5        1.1        1.3  
     II        0.6 r       2.1        1.5        2.1        0.6        1.4        1.5 r      1.5  
     I         0.5         1.7        1.2        1.9        0.2        1.5        2.4        1.9  

2012 ANNUAL    1.4         3.6        2.2        2.6        0.5        1.2        2.6        1.8  

2012 IV        0.7         2.6        1.8        5.3        3.4        4.6       -1.7        1.8  
     III       2.0         4.1        2.0        1.6       -0.1       -0.4        4.4        1.7  
     II        1.4         3.6        2.2        2.1        0.2        0.6        3.3        1.8  
     I         1.5         4.3        2.7        1.4       -1.4       -0.1        4.7        2.0  

2011 ANNUAL    0.4         2.4        2.0        2.4       -0.7        2.0        2.3        2.1  

2011 IV        0.4 r       2.5        2.2        0.8       -2.4        0.5        3.9        2.0  
     III      -0.1         1.9        1.9        2.5       -1.2        2.5        2.3        2.4  
     II        0.6         2.5        1.9        2.5       -0.9        1.8        2.6        2.2  
     I         0.6         2.7        2.1        3.8        1.7        3.2        0.1        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 III     106.2       112.4      105.9      109.0      100.0      102.6      112.9      106.9  
     II      105.7 r     111.4 r    105.4 r    108.7 r    100.5 r    102.8 r    111.3 r    106.4 r
     I       105.2 r     110.5 r    105.0      108.1       99.9      102.7 r    111.3 r    106.3 r

2012 ANNUAL  105.1 r     109.5 r    104.1      107.2      100.1      102.0 r    109.6 r    105.1 r

2012 IV      105.1 r     110.1 r    104.7      109.4      101.4      104.0 r    108.3 r    105.8 r
     III     105.6 r     110.0 r    104.2      106.7       99.5      101.1 r    111.7 r    105.5 r
     II      105.0 r     109.1 r    103.8      106.5       99.9      101.4 r    109.7 r    104.9 r
     I       104.7 r     108.6 r    103.7      106.0       99.6      101.3 r    108.6 r    104.4 r

2011 ANNUAL  103.6 r     105.6 r    101.9      104.4       99.6      100.8 r    106.8 r    103.3 r

2011 IV      104.4 r     107.3 r    102.9      103.8       98.1       99.5 r    110.2 r    103.9 r
     III     103.5 r     105.7 r    102.1      105.0       99.6      101.5 r    107.0 r    103.8 r
     II      103.6 r     105.2 r    101.6      104.4       99.7      100.8 r    106.2 r    103.0 r
     I       103.1 r     104.2 r    101.0      104.5      101.0      101.4 r    103.7 r    102.4 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  November 14, 2013
r=revised                                                        Source: Bureau of Labor Statistics





Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices,
seasonally adjusted
                                                          Real
             Output                            Compen-    compen-               Unit       Implicit
 Year        per hour               Hours      sation     sation      Unit      nonlabor   price
 and         of all                 of all     per hour   per hour    labor     payments   deflator
 quarter     persons     Output     persons      (1)        (2)       costs       (3)        (4)
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 III       1.9         3.7        1.7        1.3       -1.3       -0.6        6.2        2.3  
     II        1.8 r       3.3 r      1.4        2.3        2.3        0.5 r      1.3 r      0.8 r
     I        -1.7        -0.3        1.5       -5.2       -6.6       -3.5        6.8        0.7  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV       -1.7         0.7        2.4        9.9        7.5       11.8      -12.1 r      0.8  
     III       2.5         4.2 r      1.6        0.7       -1.3       -1.8        7.7        2.2  
     II        1.2         1.6        0.4        1.9        0.9        0.7        4.0        2.1  
     I         1.5         5.0        3.4        9.0        6.5        7.4       -5.5        1.5 r

2011 ANNUAL    0.5         2.5        2.0        2.5       -0.7        2.0        1.4        1.7  

2011 IV        2.9         5.9        2.9       -4.6       -5.9       -7.3       13.3        1.1  
     III       0.0         1.7        1.7        3.0        0.0        3.0        2.3        2.7  
     II        1.9         4.7        2.8       -1.1       -5.4       -2.9       10.1        2.4  
     I        -3.2        -2.1        1.2        6.6        2.1       10.2      -10.3        0.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 III       0.0         1.8        1.8        1.9        0.3        1.9        0.3        1.2  
     II        0.2 r       1.9 r      1.7        1.8        0.3        1.6 r      0.6 r      1.2  
     I         0.0         1.5        1.5        1.7        0.0        1.6        1.3        1.5  

2012 ANNUAL    1.5         3.7        2.2        2.6        0.5        1.2        2.7        1.8  

2012 IV        0.9         2.8        1.9        5.3        3.3        4.4       -1.8        1.7  
     III       2.0         4.1        2.1        1.6        0.0       -0.4        4.6        1.7 r
     II        1.4         3.5        2.1        2.2        0.3        0.8        3.3        1.9  
     I         1.6         4.3        2.7        1.5       -1.3       -0.1        4.8        1.9  

2011 ANNUAL    0.5         2.5        2.0        2.5       -0.7        2.0        1.4        1.7  

2011 IV        0.4         2.5        2.1        0.9       -2.4        0.5        3.4        1.8  
     III       0.2         2.1        1.9        2.6       -1.1        2.4        1.4        2.0  
     II        0.7         2.7        1.9        2.4       -0.9        1.7        1.7        1.7  
     I         0.6         2.7        2.1        4.0        1.8        3.3       -0.9        1.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 III     105.9       112.3      106.1      109.0      100.1      103.0      110.7      106.2  
     II      105.4 r     111.3 r    105.6 r    108.6 r    100.4 r    103.1 r    109.1 r    105.6 r
     I       104.9 r     110.4 r    105.2      108.0       99.8      103.0 r    108.7 r    105.4 r

2012 ANNUAL  105.3 r     109.7 r    104.1      107.4      100.3      102.0 r    108.3 r    104.6 r

2012 IV      105.4 r     110.5 r    104.8      109.5      101.5      103.9 r    106.9 r    105.2 r
     III     105.8 r     110.3 r    104.2      106.9       99.7      101.1 r    110.4 r    105.0 r
     II      105.2 r     109.2 r    103.8      106.8      100.1      101.5 r    108.4 r    104.4 r
     I       104.8 r     108.7 r    103.7      106.3       99.8      101.3 r    107.3 r    103.8 r

2011 ANNUAL  103.8 r     105.7 r    101.9      104.6       99.7      100.8 r    105.5 r    102.7 r

2011 IV      104.5 r     107.4 r    102.8      104.0       98.3       99.6 r    108.9 r    103.4 r
     III     103.7 r     105.9 r    102.1      105.2       99.8      101.5 r    105.5 r    103.2 r
     II      103.7 r     105.4 r    101.7      104.4       99.8      100.7 r    105.0 r    102.5 r
     I       103.2 r     104.2 r    101.0      104.7      101.2      101.5 r    102.5 r    101.9 r
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  November 14, 2013
r=revised                                                        Source: Bureau of Labor Statistics





Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 III           0.4            1.3            0.8            1.7           -0.9            1.3  
     II            2.7 r          0.1 r         -2.5 r          4.2            4.3 r          1.5 r
     I             3.8            5.4            1.6           -0.7           -2.1           -4.3 r

2012 ANNUAL        1.8            4.1            2.3            1.9           -0.2            0.1  

2012 IV            2.3            2.7            0.4            4.1            1.9            1.8  
     III          -0.3            0.1            0.4           -1.8           -3.8           -1.5  
     II            1.0            2.1            1.1            0.8           -0.1           -0.2  
     I             4.3            8.4            3.9           10.4            7.9            5.9  

2011 ANNUAL        1.0            3.1            2.1            1.3           -1.8            0.4  

2011 IV            0.2            5.2            4.9           -4.8           -6.1           -5.0  
     III           5.0            4.7           -0.3            2.2           -0.7           -2.7  
     II           -3.5           -0.7            2.9           -2.3           -6.6            1.3  
     I             0.7            3.0            2.4            1.2           -3.0            0.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 III           2.3            2.3            0.1            2.3            0.7            0.0  
     II            2.1 r          2.0 r         -0.1 r          1.4            0.0           -0.7 r
     I             1.7            2.6            0.9            0.6           -1.1           -1.1  

2012 ANNUAL        1.8            4.1            2.3            1.9           -0.2            0.1  

2012 IV            1.8            3.3            1.4            3.3            1.4            1.5  
     III           1.3            3.9            2.6            1.0           -0.7           -0.3  
     II            2.6            5.1            2.4            2.0            0.1           -0.6  
     I             1.4            4.3            2.8            1.2           -1.6           -0.2  

2011 ANNUAL        1.0            3.1            2.1            1.3           -1.8            0.4  

2011 IV            0.6            3.0            2.5           -0.9           -4.1           -1.5  
     III           0.8            2.1            1.2            1.4           -2.3            0.6  
     II           -0.2            2.1            2.3            1.3           -2.0            1.4  
     I             2.6            5.1            2.4            3.6            1.5            1.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 III         111.6          116.7          104.6          107.7           98.9           96.5  
     II          111.5 r        116.3 r        104.3 r        107.3 r         99.1 r         96.2 r
     I           110.8 r        116.3 r        105.0          106.1           98.1           95.8 r

2012 ANNUAL      109.2          114.1          104.4          105.7           98.7           96.8  

2012 IV          109.7          114.8          104.6          106.3           98.6           96.9  
     III         109.1          114.0          104.5          105.3           98.2           96.5  
     II          109.2          114.0          104.4          105.7           99.1           96.8  
     I           108.9          113.4          104.1          105.5           99.1           96.9  

2011 ANNUAL      107.3          109.5          102.1          103.8           98.9           96.7  

2011 IV          107.8          111.2          103.1          102.9           97.3           95.5  
     III         107.7          109.8          101.9          104.2           98.8           96.7  
     II          106.4          108.5          102.0          103.6           99.0           97.4  
     I           107.4          108.7          101.2          104.2          100.7           97.1  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  November 14, 2013
r=revised                                                        Source: Bureau of Labor Statistics





Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 III           1.2            2.7            1.5            0.8           -1.8           -0.4  
     II            4.3 r          1.3 r         -2.8 r          4.7 r          4.7            0.4 r
     I             3.7            6.4            2.6           -1.2           -2.7           -4.8 r

2012 ANNUAL        4.0            7.0            2.9            1.5           -0.5           -2.3  

2012 IV            3.2            3.8            0.5            4.1            1.9            0.9  
     III           0.3            0.0           -0.3           -2.4           -4.4           -2.7  
     II            3.7            5.0            1.3           -0.6           -1.5           -4.1  
     I             8.5           13.0            4.2           11.6            9.1            2.9  

2011 ANNUAL        2.4            6.3            3.8            0.9           -2.2           -1.5  

2011 IV            1.6            9.5            7.8           -6.3           -7.6           -7.8  
     III           8.1            7.5           -0.6            3.5            0.5           -4.3  
     II           -4.9           -0.2            5.0           -4.2           -8.4            0.8  
     I             2.0            6.9            4.9            0.7           -3.6           -1.3  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 III           3.1            3.5            0.4            2.1            0.5           -1.0  
     II            2.9 r          2.9 r          0.0            1.2           -0.2           -1.6 r
     I             2.7            3.8            1.0           -0.1           -1.7           -2.7  

2012 ANNUAL        4.0            7.0            2.9            1.5           -0.5           -2.3  

2012 IV            3.9            5.3            1.4            3.0            1.1           -0.8  
     III           3.5            6.8            3.2            0.4           -1.3           -3.0  
     II            5.4            8.7            3.1            1.8           -0.1           -3.4  
     I             3.2            7.3            4.1            0.9           -1.9           -2.2  

2011 ANNUAL        2.4            6.3            3.8            0.9           -2.2           -1.5  

2011 IV            1.6            5.9            4.2           -1.7           -4.8           -3.2  
     III           1.8            4.5            2.6            1.2           -2.5           -0.6  
     II            0.5            5.1            4.5            0.1           -3.2           -0.5  
     I             5.7            9.9            3.9            4.1            1.9           -1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 III         121.0          129.7          107.1          106.5           97.8           88.0  
     II          120.7 r        128.8 r        106.7 r        106.3 r         98.2 r         88.1 r
     I           119.4 r        128.4 r        107.5          105.1           97.1           88.0 r

2012 ANNUAL      117.3          125.1          106.7          105.0           98.1           89.5  

2012 IV          118.3          126.4          106.8          105.4           97.8           89.1  
     III         117.4          125.2          106.7          104.3           97.3           88.9  
     II          117.3          125.2          106.7          105.0           98.4           89.5  
     I           116.3          123.7          106.4          105.1           98.8           90.4  

2011 ANNUAL      112.8          116.9          103.6          103.4           98.6           91.6  

2011 IV          113.9          120.0          105.3          102.3           96.7           89.8  
     III         113.5          117.3          103.4          104.0           98.6           91.6  
     II          111.3          115.2          103.5          103.1           98.5           92.6  
     I           112.7          115.2          102.3          104.2          100.7           92.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  November 14, 2013
r=revised                                                        Source: Bureau of Labor Statistics





Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs,
seasonally adjusted
                                                                              Real
                 Output                                        Compen-        compen-
 Year            per hour                      Hours           sation         sation         Unit
 and             of all                        of all          per hour       per hour       labor
 quarter         persons        Output         persons           (1)            (2)          costs
---------------------------------------------------------------------------------------------------
                      Percent change from previous quarter at annual rate(5)

2013 III          -0.1           -0.3           -0.2            3.3            0.7            3.4  
     II            0.7 r         -1.3 r         -2.1            3.4            3.5 r          2.7 r
     I             4.4            4.3           -0.2            0.2           -1.3           -4.0  

2012 ANNUAL       -0.1            1.1            1.3            2.4            0.3            2.5  

2012 IV            1.4            1.5            0.2            4.1            1.8            2.7  
     III          -1.4            0.2            1.6           -0.4           -2.4            1.0  
     II           -1.9           -1.1            0.8            3.6            2.6            5.5  
     I             0.0            3.4            3.4            8.1            5.6            8.1  

2011 ANNUAL        1.2            0.5           -0.6            1.7           -1.4            0.6  

2011 IV            0.5            0.8            0.3           -2.4           -3.8           -2.9  
     III           2.0            2.2            0.2           -0.1           -2.9           -2.1  
     II           -0.4           -0.8           -0.4            0.9           -3.6            1.3  
     I             1.4           -0.2           -1.6            1.8           -2.5            0.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2013 III           1.6            1.0           -0.6            2.8            1.2            1.1  
     II            1.3 r          1.1 r         -0.1            1.8            0.4            0.5 r
     I             0.6            1.2            0.6            1.8            0.1            1.2  

2012 ANNUAL       -0.1            1.1            1.3            2.4            0.3            2.5  

2012 IV           -0.5            1.0            1.5            3.8            1.8            4.3  
     III          -0.7            0.8            1.5            2.1            0.4            2.8  
     II            0.2            1.3            1.2            2.2            0.3            2.0  
     I             0.6            1.4            0.9            1.5           -1.2            1.0  

2011 ANNUAL        1.2            0.5           -0.6            1.7           -1.4            0.6  

2011 IV            0.9            0.5           -0.4            0.0           -3.2           -0.8  
     III           1.3            0.2           -1.0            1.5           -2.2            0.3  
     II            1.1           -0.1           -1.2            3.0           -0.4            1.8  
     I             1.4            1.4            0.1            2.5            0.3            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2013 III         105.4          105.9          100.5          109.4          100.5          103.8  
     II          105.4 r        106.0 r        100.5 r        108.5 r        100.3 r        102.9 r
     I           105.3          106.4          101.0          107.6           99.5          102.3  

2012 ANNUAL      104.2          105.0          100.8          106.6           99.6          102.3  

2012 IV          104.1          105.2          101.1          107.6           99.8          103.3  
     III         103.8          104.8          101.0          106.5           99.3          102.6  
     II          104.1          104.8          100.6          106.6           99.9          102.4  
     I           104.6          105.1          100.4          105.7           99.3          101.0  

2011 ANNUAL      104.3          103.8           99.6          104.1           99.3           99.8  

2011 IV          104.6          104.2           99.6          103.7           98.0           99.1  
     III         104.5          104.0           99.5          104.3           98.9           99.8  
     II          103.9          103.4           99.5          104.3           99.6          100.4  
     I           104.0          103.6           99.6          104.1          100.6          100.0  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  November 14, 2013
r=revised                                                        Source: Bureau of Labor Statistics





Table 6. Nonfinancial corporate sector: Productivity, hourly compensation, unit labor costs, unit profits,
and prices, seasonally adjusted
                                                     Real               Unit
              Output                       Hourly    hourly             non-      Total   Unit   Implicit
 Year         per all-                     compen-   compen-   Unit     labor     unit    pro-   price
 and          employee          Employee   sation    sation    labor    costs     cost    fits   deflator
 quarter      hour     Output   hours       (1)       (2)      costs     (6)      (7)     (8)      (4)
---------------------------------------------------------------------------------------------------------
                         Percent change from previous quarter at annual rate(5)

2013 II        2.4 r     4.1 r    1.6 r     2.2 r     2.2 r    -0.2 r   -4.9 r   -1.8 r    8.9 r   -0.3 r
     I        -4.1      -1.3      2.9      -6.1      -7.5      -2.1      9.1      1.5      0.3      1.3  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        4.5       6.4      1.8       7.6       5.2       3.0     -4.2      0.6      9.6      1.8  
     III      -2.9      -2.0      1.0       0.6      -1.4       3.7      3.0      3.5     -7.4      1.8  
     II        0.9       1.6      0.7       1.2       0.3       0.3      1.1      0.6      5.8      1.3  
     I         5.1       8.9      3.5      11.5       9.0       6.1     -0.6      3.8     -2.2      2.9  

2011 ANNUAL    0.3       3.0      2.8       2.1      -1.0       1.9      0.7      1.5      7.7      2.3  

2011 IV        1.8       4.5      2.7      -4.3      -5.6      -6.0     -1.3     -4.5      0.8     -3.7  
     III      -3.5      -0.7      2.8       1.4      -1.5       5.1      3.2      4.5      7.6      4.9  
     II        2.4       6.4      3.9      -1.8      -6.1      -4.1     -1.8     -3.3     54.1      3.1  
     I         4.2       6.1      1.8       8.9       4.3       4.5     -0.3      2.9    -16.9      0.0  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2013 II       -0.1 r     1.7 r    1.8       1.0      -0.5 r     1.1 r    0.6 r    0.9 r    2.6 r    1.2  
     I        -0.5       1.1      1.6       0.7      -1.0       1.2      2.1      1.5      1.9      1.6  

2012 ANNUAL    1.4       3.7      2.3       2.8       0.7       1.4      0.2      1.0      3.8      1.4  

2012 IV        1.8       3.6      1.7       5.1       3.2       3.2     -0.2      2.1      1.2      2.0  
     III       1.2       3.2      2.0       2.1       0.4       0.9      0.5      0.8     -0.9      0.5  
     II        1.0       3.5      2.4       2.3       0.4       1.3      0.6      1.0      2.9      1.3  
     I         1.4       4.7      3.2       1.6      -1.2       0.1     -0.2      0.0     13.1      1.7  

2011 ANNUAL    0.3       3.0      2.8       2.1      -1.0       1.9      0.7      1.5      7.7      2.3  

2011 IV        1.2       4.0      2.8       0.9      -2.3      -0.3     -0.1     -0.2      8.5      1.0  
     III      -0.7       2.1      2.7       2.2      -1.5       2.9      1.7      2.5      5.4      2.9  
     II        0.7       3.5      2.8       2.1      -1.2       1.4      0.4      1.0     12.8      2.6  
     I        -0.2       2.6      2.8       3.3       1.1       3.5      0.9      2.6      4.1      2.8  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2013 II      107.2 r   114.8 r  107.1 r   107.3 r    99.2 r   100.1 r   98.1 r   99.5 r  149.0 r  104.6 r
     I       106.5     113.6    106.7     106.7      98.6     100.2     99.3     99.9    145.9    104.7  

2012 ANNUAL  107.1     112.9    105.4     106.8      99.8      99.7     97.5     99.0    144.2    103.7  

2012 IV      107.6     114.0    105.9     108.4     100.6     100.7     97.2     99.5    145.8    104.4  
     III     106.5     112.2    105.4     106.5      99.3     100.0     98.2     99.4    142.5    103.9  
     II      107.3     112.8    105.2     106.3      99.6      99.1     97.5     98.6    145.3    103.4  
     I       107.0     112.4    105.0     106.0      99.6      99.0     97.2     98.4    143.2    103.1  

2011 ANNUAL  105.7     108.8    103.0     103.9      99.1      98.3     97.4     98.0    139.0    102.3  

2011 IV      105.7     110.0    104.1     103.1      97.5      97.6     97.4     97.5    144.0    102.4  
     III     105.2     108.8    103.4     104.3      98.9      99.1     97.7     98.6    143.8    103.3  
     II      106.2     109.0    102.7     103.9      99.2      97.9     96.9     97.6    141.2    102.1  
     I       105.5     107.3    101.7     104.4     100.8      98.9     97.4     98.4    126.7    101.3  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        November 14, 2013
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.
Hours and compensation 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 -1.6 and 1.5 index points approximately 95 percent of
the time.  This interval is based on the performance of this measure
between the fourth quarter of 1995 and the second quarter of 2013.

		            Table Footnotes
		      
(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 1978-2012 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 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.


Last Modified Date: November 14, 2013