Productivity and Costs News Release


Transmission of material in this release is embargoed until       USDL 15-0157         
8:30 a.m. (EST) Thursday, February 5, 2015

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



                                
                                PRODUCTIVITY AND COSTS
                Fourth Quarter and Annual Averages 2014, Preliminary



Nonfarm business sector labor productivity decreased at a 1.8 percent annual 
rate during the fourth quarter of 2014, the U.S. Bureau of Labor Statistics 
reported today, as output increased 3.2 percent and hours worked increased 
5.1 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) The increase in hours worked is the largest increase 
in this series since a gain of 5.7 percent in the fourth quarter of 1998. 
From the fourth quarter of 2013 to the fourth quarter of 2014, productivity 
was unchanged as output and hours worked both increased 3.1 percent. (See 
table A.) Annual average productivity increased 0.8 percent from 2013 to 
2014. (See table C.)

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 the nonfarm business sector increased 2.7 percent in the 
fourth quarter of 2014, reflecting a 0.9 percent increase in hourly 
compensation and a 1.8 percent decline in productivity. Unit labor costs 
increased 1.9 percent over the last four quarters. (See tables A and 2.) 

BLS calculates 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 increased 1.3 percent in the fourth quarter
of 2014, as output increased 5.7 percent and hours worked increased 4.3 
percent. Productivity increased 1.5 percent in the durable manufacturing 
sector and increased 0.2 percent in the nondurable manufacturing sector. 
(See tables A, 3, 4, and 5.) Over the last four quarters, manufacturing 
productivity increased 2.8 percent, as output increased 4.8 percent and hours 
increased 1.9 percent. Unit labor costs in manufacturing increased 0.2 
percent in the fourth quarter of 2014 and decreased 0.4 percent from the 
same quarter a year ago. (See tables A and 3.) 

The concepts, sources, and methods used for the manufacturing 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. 

Table C presents annual averages for the most recent five years for the 
nonfarm business sector and the total manufacturing sector. Nonfarm business 
sector productivity grew 0.8 percent in 2014, as output and hours increased 
3.1 percent and 2.2 percent, respectively. This increase in productivity is 
similar to the increases of 0.9 percent in 2013 and 1.0 percent in 2012. 
These rates are slower than the long-term average annual rate of 
productivity growth since 1947 (2.2 percent), and reflect steady growth in 
both output and hours.

Unit labor costs rose 1.5 percent in 2014, as hourly compensation grew faster
than productivity. Real hourly compensation, which takes into account changes
in consumer prices, increased 0.7 percent in 2014.

In the manufacturing sector, productivity increased 2.5 percent from 2013 to 
2014, and unit labor costs were unchanged.  Real hourly compensation in 
manufacturing increased 0.8 percent--the first annual increase in the series 
since 2009 (3.8 percent).

Revised measures

Revised and previous measures for the third quarter of 2014 are shown in 
tables B and D and cover the following major sectors: nonfarm business, 
business, manufacturing, and nonfinancial corporations.

In the third quarter of 2014, nonfarm business productivity was revised up 
1.4 percentage points, to an increase of 3.7 percent; this is due solely to 
an upward revision to output, as hours worked were unrevised. (See table B.) 
Unit labor costs for the nonfarm business sector fell 2.3 percent in the 
third quarter--rather than falling 1.0 percent as previously reported--due 
solely to the upward revision to productivity.

In the manufacturing sector, productivity was revised up 0.3 percentage 
points, to an increase of 3.2 percent. Manufacturing unit labor costs were 
revised down, to a decline of 1.7 percent. 

In the nonfinancial corporate sector, productivity increased 1.7 percent,
after a 0.6 percentage point upward revision which was due solely to an 
upward revision to output. (See table D.)

Quarterly and annual data for all sectors from 2012 to 2014 appear in 
tables 1-6. Full historical measures can be found on the Productivity and 
Costs home page: www.bls.gov/lpc/#data.
______________  







The revised Productivity and Costs news release for fourth-quarter 2014 
is scheduled to be released on Thursday, March 5, 2015 at 8:30 a.m. (EST).






=======================================================================================================
Table A. Preliminary fourth-quarter 2014 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           -1.8      0.0    -2.0    -0.3     1.3     2.8     1.5     3.1     0.2     2.9
Output                  3.2      3.1     3.3     2.9     5.7     4.8     4.5     5.8     7.0     3.7
Hours                   5.1      3.1     5.3     3.2     4.3     1.9     3.0     2.5     6.8     0.9
Hourly 
 compensation           0.9      1.9     0.6     1.7     1.5     2.4     1.3     2.1     2.2     2.8
Real  hourly
 compensation           2.1      0.7     1.8     0.5     2.8     1.2     2.5     0.9     3.4     1.6
Unit labor 
 costs                  2.7      1.9     2.6     2.0     0.2    -0.4    -0.2    -1.0     2.0     0.0
=======================================================================================================
Table B. Revised and previous measures: third quarter 2014 

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
-------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, third quarter 2014
Productivity    3.7      2.3      3.2      1.8      3.2      2.9      3.5      3.2      3.8      3.5
Output          6.3      4.9      6.4      4.9      4.8      4.2      6.7      6.3      2.7      2.0
Hours           2.5      2.5      3.1      3.0      1.5      1.3      3.1      3.0     -1.1     -1.5
Hourly 
 compensation   1.3      1.3      0.6      0.6      1.4      1.6      0.7      0.8      2.6      2.7
Real  hourly
 compensation   0.2      0.2     -0.5     -0.5      0.3      0.5     -0.4     -0.3      1.5      1.6
Unit labor 
 costs         -2.3     -1.0     -2.5     -1.2     -1.7     -1.3     -2.6     -2.3     -1.2     -0.7
=======================================================================================================
Table C. Annual average changes in productivity and related measures: 2010-2014

Sector                            Nonfarm Business                         Manufacturing
                        2010    2011    2012    2013    2014  |  2010    2011    2012    2013     2014
--------------------------------------------------------------|----------------------------------------
Productivity             3.3     0.1     1.0     0.9     0.8  |   6.2     0.8     1.0     2.0      2.5
Output                   3.2     2.2     3.2     2.6     3.1  |   6.2     2.9     3.3     2.7      3.9
Hours                   -0.1     2.1     2.2     1.7     2.2  |   0.0     2.1     2.3     0.7      1.3
Hourly                                                        |
 compensation            2.0     2.2     2.7     1.1     2.3  |   1.3     1.7     1.7     0.6      2.5
Real hourly                                                   |
 compensation            0.3    -0.9     0.6    -0.3     0.7  |  -0.4    -1.4    -0.3    -0.8      0.8
Unit labor                                                    |
 costs                  -1.3     2.1     1.7     0.2     1.5  |  -4.7     1.0     0.8    -1.4      0.0
=======================================================================================================
Table D. Nonfinancial corporations: revised and previous third-quarter 2014 productivity and cost
measures 
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------- 
                                Percent change, annual rate, third quarter 2014
                                
Revised        1.7      4.6        2.9       0.9         -0.2          -0.8        5.7           0.7
Previous       1.1      4.0        2.9       0.9         -0.2          -0.3        3.2           0.7
======================================================================================================= 




			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, counting a 
person who is employed by two or more establishments at each place of 
employment. 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) for 2001 forward and data from the BLS Hours at Work survey,
conducted for this purpose, 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 to estimate hours worked for farm labor, 
nonfarm proprietors, and nonfarm unpaid family workers. Using CPS 
information on employment and hours worked at primary jobs and all other
jobs, separately, the BLS productivity measures assign all hours worked 
to the correct industrial sector. Hours for government enterprises are
derived from the CPS, the CES, and the National Income and Product
Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the
Department of Commerce.

Output: Business sector output is 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 76 percent of the value of GDP in 2013. Nonfarm business, which
excludes farming, accounted for about 74 percent of GDP in 2013.
     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 indexes 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. 
     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 2013.
     
Labor Productivity: The measure describes the relationship between real 
output and the labor time involved in its production. Measures of labor 
productivity growth show the changes from period to period in the amount 
of goods and services produced per hour worked. 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: These measures describe the relationship between 
compensation per hour and labor 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).

For a more detailed explanation of methodology see "Technical Information
About the Major Sector Productivity and Costs Methods" at 
www.bls.gov/lpc/lpcmethods.pdf.
      
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)

2014 ANNUAL    0.6         2.9        2.3        2.2        0.5        1.6        0.9        1.3  

2014 IV       -2.0         3.3        5.3        0.6        1.8        2.6       -4.9       -0.8  
     III       3.2 r       6.4 r      3.1 r      0.6       -0.5       -2.5 r      5.9 r      1.1 r
     II        2.9         5.7        2.7       -1.1       -4.0       -3.9       11.1        2.4  
     I        -5.0        -3.3        1.8        6.9        4.9       12.5      -11.5        1.3  

2013 ANNUAL    1.2         2.7        1.5        1.4       -0.1        0.2        3.1        1.4  

2013 IV        3.1         4.6        1.5        1.7        0.5       -1.4        4.0        1.0  
     III       3.5         5.9        2.4        0.3       -1.7       -3.1        7.9        1.6  
     II        0.7         2.1        1.4        3.8        3.4        3.1       -1.7        1.0  
     I         2.1         3.2        1.1       -5.6       -6.7       -7.6       14.6        1.4  

2012 ANNUAL    0.9         3.1        2.2        2.8        0.7        1.9        1.7        1.8  

2012 IV       -2.0        -0.1        1.9       10.8        8.1       13.0      -12.3        1.3  
     III       1.3         3.1        1.8        0.0       -1.6       -1.3        6.5        2.0  
     II        1.8         2.3        0.4        0.8       -0.5       -1.0        6.5        2.2  
     I        -0.1         3.1        3.3       11.6        9.2       11.7      -10.0        1.7  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 ANNUAL    0.6         2.9        2.3        2.2        0.5        1.6        0.9        1.3  

2014 IV       -0.3         2.9        3.2        1.7        0.5        2.0       -0.3        1.0  
     III       1.0 r       3.3 r      2.3 r      2.0        0.2        1.0 r      2.0 r      1.4  
     II        1.1         3.2        2.1        1.9       -0.1        0.8        2.5        1.5  
     I         0.5         2.3        1.7        3.1        1.7        2.6       -0.6        1.2  

2013 ANNUAL    1.2         2.7        1.5        1.4       -0.1        0.2        3.1        1.4  

2013 IV        2.4         4.0        1.6        0.0       -1.2       -2.3        6.0        1.2  
     III       1.1         2.8        1.7        2.1        0.6        1.1        1.6        1.3  
     II        0.5         2.1        1.5        2.1        0.6        1.5        1.3        1.4  
     I         0.8         2.1        1.3        1.3       -0.3        0.5        3.3        1.7  

2012 ANNUAL    0.9         3.1        2.2        2.8        0.7        1.9        1.7        1.8  

2012 IV        0.3         2.1        1.8        5.7        3.7        5.4       -2.7        1.8  
     III       1.6         3.6        2.0        1.8        0.1        0.2        3.6        1.7  
     II        1.0         3.1        2.1        2.3        0.4        1.3        2.6        1.8  
     I         0.8         3.5        2.7        1.6       -1.2        0.8        3.8        2.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 ANNUAL  106.1       114.8      108.2      110.8      100.4      104.4      113.2      108.1  

2014 IV      106.3       116.8      109.9      111.0      100.5      104.3      113.7      108.3  
     III     106.9 r     115.9 r    108.4 r    110.8 r    100.0 r    103.7 r    115.1 r    108.5 r
     II      106.0       114.1      107.6      110.6      100.1      104.3      113.5      108.2  
     I       105.3       112.5      106.9      110.9      101.1      105.4      110.6      107.5  

2013 ANNUAL  105.5       111.6      105.7      108.5       99.9      102.8      112.2      106.7  

2013 IV      106.6       113.5      106.4      109.1       99.9      102.3      114.0      107.2  
     III     105.8       112.2      106.0      108.6       99.8      102.7      112.9      106.9  
     II      104.9       110.6      105.4      108.6      100.3      103.5      110.7      106.5  
     I       104.7       110.0      105.1      107.5       99.4      102.7      111.2      106.3  

2012 ANNUAL  104.3       108.6      104.2      107.0       99.9      102.6      108.9      105.2  

2012 IV      104.2       109.1      104.8      109.1      101.2      104.7      107.5      105.9  
     III     104.7       109.2      104.3      106.4       99.2      101.6      111.1      105.6  
     II      104.3       108.3      103.8      106.3       99.6      101.9      109.3      105.0  
     I       103.9       107.7      103.7      106.1       99.8      102.2      107.6      104.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 5, 2015
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)

2014 ANNUAL    0.8         3.1        2.2        2.3        0.7        1.5        1.1        1.3  

2014 IV       -1.8         3.2        5.1        0.9        2.1        2.7       -4.8       -0.7  
     III       3.7 r       6.3 r      2.5        1.3        0.2       -2.3 r      7.1 r      1.7 r
     II        2.9         5.5        2.5       -0.9       -3.8       -3.7       10.1        2.0  
     I        -4.5        -2.4        2.1        6.6        4.6       11.6      -11.7        0.8  

2013 ANNUAL    0.9         2.6        1.7        1.1       -0.3        0.2        2.9        1.4  

2013 IV        3.3         4.7        1.4        1.9        0.7       -1.3        5.0        1.4  
     III       3.6         5.6        1.9        0.7       -1.4       -2.9        8.5        1.9  
     II        0.5         2.0        1.5        3.7        3.2        3.2       -0.7        1.5  
     I         0.8         2.4        1.6       -6.3       -7.4       -7.0       12.7        0.9  

2012 ANNUAL    1.0         3.2        2.2        2.7        0.6        1.7        2.0        1.8  

2012 IV       -2.0         0.1        2.2       10.4        7.8       12.7      -12.8        1.0  
     III       1.7         3.7        2.0       -0.2       -1.8       -1.8        6.7        1.8  
     II        1.8         2.3        0.5        0.7       -0.7       -1.2        7.0        2.3  
     I         0.2         3.3        3.2       11.6        9.3       11.4       -9.9        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 ANNUAL    0.8         3.1        2.2        2.3        0.7        1.5        1.1        1.3  

2014 IV        0.0         3.1        3.1        1.9        0.7        1.9       -0.2        1.0  
     III       1.3 r       3.5 r      2.2 r      2.2        0.4        0.9 r      2.2 r      1.5  
     II        1.3         3.3        2.0        2.0        0.0        0.7        2.6        1.5  
     I         0.7         2.4        1.7        3.2        1.8        2.5        0.0        1.4  

2013 ANNUAL    0.9         2.6        1.7        1.1       -0.3        0.2        2.9        1.4  

2013 IV        2.0         3.7        1.6       -0.1       -1.3       -2.1        6.2        1.4  
     III       0.7         2.5        1.8        1.9        0.4        1.2        1.4        1.3  
     II        0.2         2.0        1.8        1.7        0.3        1.5        1.0        1.3  
     I         0.6         2.1        1.5        1.0       -0.7        0.4        2.9        1.5  

2012 ANNUAL    1.0         3.2        2.2        2.7        0.6        1.7        2.0        1.8  

2012 IV        0.4         2.3        1.9        5.5        3.5        5.1       -2.7        1.6  
     III       1.7         3.8        2.0        1.6        0.0       -0.1        4.1        1.7  
     II        1.1         3.1        2.0        2.3        0.4        1.2        2.8        1.9  
     I         0.9         3.7        2.7        1.5       -1.2        0.6        4.0        2.0  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 ANNUAL  106.3       115.1      108.3      110.8      100.4      104.2      112.1      107.5  

2014 IV      106.6       117.0      109.8      111.1      100.6      104.2      112.7      107.8  
     III     107.1 r     116.1 r    108.5 r    110.8 r    100.1 r    103.5 r    114.1 r    107.9 r
     II      106.1       114.4      107.8      110.5      100.0      104.1      112.2      107.5  
     I       105.4       112.9      107.1      110.7      101.0      105.1      109.5      106.9  

2013 ANNUAL  105.4       111.7      105.9      108.3       99.7      102.7      110.9      106.1  

2013 IV      106.6       113.5      106.5      109.0       99.9      102.3      113.0      106.7  
     III     105.7       112.2      106.2      108.5       99.7      102.6      111.6      106.4  
     II      104.8       110.7      105.7      108.3      100.0      103.4      109.4      105.9  
     I       104.7       110.2      105.3      107.3       99.2      102.5      109.6      105.5  

2012 ANNUAL  104.5       108.9      104.2      107.1      100.0      102.4      107.8      104.7  

2012 IV      104.4       109.5      104.9      109.1      101.1      104.4      106.3      105.2  
     III     105.0       109.5      104.3      106.4       99.3      101.4      110.0      105.0  
     II      104.5       108.5      103.8      106.5       99.7      101.8      108.3      104.5  
     I       104.1       107.9      103.7      106.3       99.9      102.1      106.5      103.9  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 5, 2015
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)

2014 ANNUAL        2.5            3.9            1.3            2.5            0.8            0.0  

2014 IV            1.3            5.7            4.3            1.5            2.8            0.2  
     III           3.2 r          4.8 r          1.5 r          1.4 r          0.3 r         -1.7 r
     II            3.7 r          7.3 r          3.4           -1.9           -4.8           -5.4  
     I             3.2            1.6           -1.6            8.9            6.9            5.5  

2013 ANNUAL        2.0            2.7            0.7            0.6           -0.8           -1.4  

2013 IV            1.3            4.7            3.4            0.8           -0.4           -0.5  
     III           0.5            1.7            1.1            0.6           -1.4            0.0  
     II            3.7            1.5           -2.2            2.9            2.4           -0.9  
     I             3.1            4.8            1.7           -2.3           -3.4           -5.2  

2012 ANNUAL        1.0            3.3            2.3            1.7           -0.3            0.8  

2012 IV            1.9            2.4            0.4            4.3            1.8            2.4  
     III           0.1            1.2            1.1           -2.1           -3.7           -2.1  
     II            1.0            2.4            1.3            0.4           -1.0           -0.7  
     I             2.8            6.1            3.1           10.7            8.4            7.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 ANNUAL        2.5            3.9            1.3            2.5            0.8            0.0  

2014 IV            2.8            4.8            1.9            2.4            1.2           -0.4  
     III           2.8 r          4.6 r          1.7 r          2.2 r          0.4           -0.6 r
     II            2.2            3.8            1.6            2.0            0.0           -0.2 r
     I             2.2            2.4            0.2            3.2            1.8            1.0  

2013 ANNUAL        2.0            2.7            0.7            0.6           -0.8           -1.4  

2013 IV            2.2            3.2            1.0            0.5           -0.7           -1.7  
     III           2.3            2.6            0.3            1.3           -0.2           -1.0  
     II            2.2            2.4            0.3            0.7           -0.8           -1.5  
     I             1.5            2.7            1.1            0.0           -1.6           -1.4  

2012 ANNUAL        1.0            3.3            2.3            1.7           -0.3            0.8  

2012 IV            1.5            3.0            1.5            3.2            1.3            1.7  
     III           0.6            3.2            2.6            0.9           -0.7            0.4  
     II            1.5            4.0            2.4            1.8           -0.1            0.3  
     I             0.4            3.2            2.8            1.0           -1.7            0.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 ANNUAL      113.0          120.4          106.5          108.1           97.9           95.6  

2014 IV          114.0          122.9          107.8          108.4           98.2           95.1  
     III         113.7 r        121.2 r        106.6 r        108.0 r         97.5 r         95.1 r
     II          112.8 r        119.8 r        106.2          107.7           97.4           95.5 r
     I           111.7          117.7          105.3          108.2           98.6           96.8  

2013 ANNUAL      110.3          115.9          105.1          105.5           97.1           95.6  

2013 IV          110.9          117.2          105.8          105.9           97.0           95.5  
     III         110.5          115.9          104.9          105.7           97.1           95.6  
     II          110.4          115.4          104.6          105.5           97.5           95.6  
     I           109.4          115.0          105.2          104.8           96.9           95.8  

2012 ANNUAL      108.1          112.8          104.4          104.8           97.9           97.0  

2012 IV          108.5          113.6          104.7          105.4           97.7           97.1  
     III         108.0          113.0          104.6          104.3           97.3           96.6  
     II          108.0          112.7          104.3          104.8           98.2           97.1  
     I           107.7          112.0          104.0          104.7           98.5           97.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 5, 2015
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)

2014 ANNUAL        3.2            5.4            2.1            1.9            0.3           -1.2  

2014 IV            1.5            4.5            3.0            1.3            2.5           -0.2  
     III           3.5 r          6.7 r          3.1 r          0.7 r         -0.4 r         -2.6 r
     II            4.1 r         10.2 r          5.9           -3.1           -5.9           -6.9 r
     I             3.5            1.8           -1.6           10.0            7.9            6.3  

2013 ANNUAL        3.1            4.2            1.0            0.1           -1.4           -3.0  

2013 IV            2.6            6.9            4.2           -1.7           -2.9           -4.2  
     III           2.0            3.6            1.6            1.0           -1.0           -0.9  
     II            5.2            2.9           -2.1            2.6            2.1           -2.5  
     I             3.4            6.4            2.9           -3.4           -4.5           -6.5  

2012 ANNUAL        3.0            6.0            2.9            1.3           -0.7           -1.6  

2012 IV            3.3            3.6            0.3            5.1            2.6            1.7  
     III           0.5            1.1            0.6           -3.4           -5.0           -4.0  
     II            3.4            5.3            1.9           -1.0           -2.4           -4.3  
     I             7.0           10.3            3.1           11.9            9.6            4.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 ANNUAL        3.2            5.4            2.1            1.9            0.3           -1.2  

2014 IV            3.1            5.8            2.5            2.1            0.9           -1.0  
     III           3.4 r          6.3 r          2.8            1.4           -0.4           -2.0 r
     II            3.0            5.6            2.5            1.4           -0.6           -1.5  
     I             3.3            3.8            0.5            2.9            1.5           -0.4  

2013 ANNUAL        3.1            4.2            1.0            0.1           -1.4           -3.0  

2013 IV            3.3            4.9            1.6           -0.4           -1.6           -3.5  
     III           3.5            4.1            0.6            1.3           -0.2           -2.1  
     II            3.1            3.5            0.4            0.1           -1.3           -2.9  
     I             2.6            4.1            1.4           -0.7           -2.4           -3.3  

2012 ANNUAL        3.0            6.0            2.9            1.3           -0.7           -1.6  

2012 IV            3.5            5.1            1.5            3.0            1.0           -0.5  
     III           2.5            5.8            3.2            0.2           -1.5           -2.3  
     II            4.1            7.3            3.2            1.6           -0.3           -2.4  
     I             1.8            5.9            4.0            0.7           -2.1           -1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 ANNUAL      123.4          135.7          110.0          106.7           96.7           86.4  

2014 IV          124.6          138.8          111.4          106.8           96.7           85.7  
     III         124.2 r        137.3 r        110.6 r        106.5 r         96.1 r         85.8 r
     II          123.1 r        135.1 r        109.7          106.3           96.2           86.4 r
     I           121.9          131.8          108.2          107.1           97.7           87.9  

2013 ANNUAL      119.6          128.8          107.7          104.7           96.4           87.5  

2013 IV          120.8          131.2          108.6          104.6           95.8           86.6  
     III         120.1          129.1          107.5          105.1           96.5           87.5  
     II          119.5          127.9          107.1          104.8           96.8           87.7  
     I           118.0          127.0          107.7          104.1           96.3           88.3  

2012 ANNUAL      116.0          123.7          106.6          104.6           97.7           90.2  

2012 IV          117.0          125.1          106.9          105.0           97.4           89.8  
     III         116.1          124.0          106.8          103.7           96.8           89.4  
     II          115.9          123.6          106.6          104.6           98.0           90.3  
     I           114.9          122.0          106.2          104.9           98.6           91.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 5, 2015
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)

2014 ANNUAL        2.2            2.2            0.1            3.3            1.7            1.2  

2014 IV            0.2            7.0            6.8            2.2            3.4            2.0  
     III           3.8 r          2.7 r         -1.1 r          2.6 r          1.5 r         -1.2 r
     II            4.7            4.0           -0.6           -0.1           -3.0           -4.5  
     I             2.8            1.4           -1.4            6.8            4.8            3.9  

2013 ANNUAL        1.2            1.3            0.1            1.6            0.2            0.4  

2013 IV            0.3            2.3            2.0            5.7            4.4            5.3  
     III          -0.8           -0.4            0.4           -0.4           -2.4            0.4  
     II            2.2           -0.1           -2.3            3.4            2.9            1.2  
     I             3.4            3.1           -0.3           -0.5           -1.6           -3.8  

2012 ANNUAL        0.0            1.3            1.3            2.4            0.3            2.4  

2012 IV            0.6            1.2            0.7            2.9            0.4            2.3  
     III          -0.2            1.7            1.9            0.8           -0.9            1.0  
     II           -0.5           -0.1            0.4            3.0            1.6            3.5  
     I            -0.5            2.6            3.2            8.3            6.1            8.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2014 ANNUAL        2.2            2.2            0.1            3.3            1.7            1.2  

2014 IV            2.9            3.7            0.9            2.8            1.6            0.0  
     III           2.9 r          2.6 r         -0.3 r          3.7            1.9            0.8 r
     II            1.7            1.8            0.1            2.9            0.9            1.2  
     I             1.1            0.8           -0.3            3.8            2.4            2.7  

2013 ANNUAL        1.2            1.3            0.1            1.6            0.2            0.4  

2013 IV            1.3            1.2           -0.1            2.0            0.8            0.7  
     III           1.3            0.9           -0.4            1.3           -0.2            0.0  
     II            1.5            1.5            0.0            1.6            0.2            0.1  
     I             0.8            1.5            0.7            1.5           -0.1            0.7  

2012 ANNUAL        0.0            1.3            1.3            2.4            0.3            2.4  

2012 IV           -0.2            1.4            1.5            3.7            1.8            3.9  
     III          -0.4            1.2            1.5            2.2            0.5            2.6  
     II            0.2            1.3            1.1            2.0            0.1            1.9  
     I             0.4            1.2            0.8            1.5           -1.3            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2014 ANNUAL      107.6          108.6          101.0          110.0           99.7          102.3  

2014 IV          108.4          110.6          102.0          110.8          100.3          102.2  
     III         108.4 r        108.8 r        100.4 r        110.2 r         99.5 r        101.7 r
     II          107.3          108.1          100.7          109.5           99.1          102.0  
     I           106.1          107.0          100.8          109.5           99.9          103.2  

2013 ANNUAL      105.3          106.2          100.9          106.5           98.0          101.1  

2013 IV          105.4          106.6          101.2          107.7           98.7          102.2  
     III         105.3          106.0          100.7          106.3           97.7          100.9  
     II          105.5          106.1          100.6          106.4           98.3          100.8  
     I           105.0          106.2          101.1          105.5           97.5          100.5  

2012 ANNUAL      104.0          104.9          100.8          104.8           97.9          100.7  

2012 IV          104.1          105.4          101.2          105.6           98.0          101.5  
     III         103.9          105.0          101.1          104.9           97.9          100.9  
     II          104.0          104.6          100.6          104.7           98.1          100.7  
     I           104.1          104.6          100.5          103.9           97.7           99.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                   February 5, 2015
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)

2014 III       1.7 r     4.6 r    2.9       0.9      -0.2      -0.8 r    1.1 r   -0.2 r    5.7 r    0.7  
     II        2.0       6.5      4.5      -1.5      -4.4      -3.4     -6.1     -4.3     47.3      1.7  
     I        -1.1       0.7      1.8       6.5       4.5       7.6      2.3      5.9    -26.9      0.5  

2013 ANNUAL    0.3       2.3      2.0       1.4      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV        0.1       2.2      2.1       0.8      -0.4       0.8      0.7      0.7     -3.9      0.0  
     III      -2.0       0.4      2.4      -0.5      -2.5       1.6      2.3      1.8     -2.7      1.1  
     II        2.9       4.5      1.6       2.2       1.7      -0.6     -2.6     -1.3      8.5      0.1  
     I        -1.4       1.6      3.1      -1.8      -2.9      -0.4      2.7      0.6     -1.9      0.2  

2012 ANNUAL    1.9       4.3      2.3       2.9       0.8       0.9     -0.7      0.4      7.9      1.4  

2012 IV        4.0       5.6      1.5       7.9       5.3       3.7     -3.3      1.4      4.5      1.8  
     III      -3.6      -2.2      1.5      -0.2      -1.9       3.6      2.3      3.1     -5.7      1.8  
     II        1.6       2.4      0.8       0.3      -1.1      -1.3     -0.2     -0.9     15.5      1.3  
     I         6.1       9.6      3.3      13.5      11.1       6.9     -2.6      3.6     -1.4      2.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2014 III       0.6 r     3.5 r    2.8       1.6      -0.2       1.0 r   -0.6 r    0.5 r    2.3 r    0.7  
     II       -0.3       2.4      2.7       1.3      -0.8       1.6     -0.3      1.0      0.2      0.8  
     I        -0.1       1.9      2.0       2.2       0.8       2.3      0.7      1.7     -7.2      0.4  

2013 ANNUAL    0.3       2.3      2.0       1.4      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV       -0.1       2.2      2.3       0.2      -1.0       0.3      0.7      0.5     -0.1      0.4  
     III       0.8       3.0      2.1       1.9       0.4       1.0     -0.3      0.6      2.0      0.8  
     II        0.4       2.3      1.9       2.0       0.5       1.5     -0.3      0.9      1.2      1.0  
     I         0.1       1.8      1.7       1.5      -0.2       1.4      0.4      1.0      2.8      1.3  

2012 ANNUAL    1.9       4.3      2.3       2.9       0.8       0.9     -0.7      0.4      7.9      1.4  

2012 IV        2.0       3.8      1.8       5.2       3.2       3.2     -1.0      1.8      2.9      2.0  
     III       1.8       3.8      2.0       2.1       0.5       0.3     -0.7      0.0      4.1      0.5  
     II        2.0       4.4      2.4       2.4       0.5       0.4     -0.5      0.1      8.8      1.3  
     I         2.0       5.3      3.2       1.7      -1.1      -0.4     -0.7     -0.5     17.3      1.7  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2014 III     108.1 r   119.7 r  110.8 r   109.9 r    99.2 r   101.7 r   97.5 r  100.3 r  150.3 r  105.5 r
     II      107.6     118.4    110.0     109.6      99.2     101.9     97.3    100.3    148.2    105.3  
     I       107.1     116.5    108.8     110.1     100.4     102.8     98.8    101.4    134.6    104.9  

2013 ANNUAL  107.5     115.5    107.5     108.1      99.5     100.6     98.0     99.7    146.4    104.6  

2013 IV      107.4     116.3    108.3     108.3      99.3     100.9     98.2    100.0    145.5    104.8  
     III     107.4     115.7    107.8     108.1      99.3     100.7     98.1     99.8    147.0    104.8  
     II      107.9     115.6    107.1     108.2     100.0     100.3     97.5     99.4    148.0    104.5  
     I       107.2     114.3    106.7     107.7      99.5     100.5     98.2     99.7    145.0    104.4  

2012 ANNUAL  107.1     112.9    105.4     106.6      99.6      99.5     97.9     99.0    144.3    103.7  

2012 IV      107.5     113.9    105.9     108.2     100.3     100.6     97.5     99.6    145.7    104.4  
     III     106.5     112.3    105.5     106.1      99.0      99.7     98.3     99.2    144.1    103.9  
     II      107.5     113.0    105.1     106.2      99.5      98.8     97.8     98.4    146.2    103.4  
     I       107.1     112.3    104.9     106.1      99.7      99.1     97.8     98.7    141.1    103.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                         February 5, 2015
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 third quarter of 2014.

			      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 1978-2013 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: February 05, 2015