Productivity and Costs News Release



Transmission of material in this release is embargoed until        USDL 15-0837      
8:30 a.m. (EDT) Wednesday, May 6, 2015

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




                                PRODUCTIVITY AND COSTS
                           First Quarter 2015, Preliminary
                          
                          

Nonfarm business sector labor productivity decreased at a 1.9 percent annual 
rate during the first quarter of 2015, the U.S. Bureau of Labor Statistics 
reported today, as output declined 0.2 percent and hours worked increased 
1.7 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.)  The decline in productivity follows a decline of 
2.1 percent in the fourth quarter of 2014. From the first quarter of 2014 to 
the first quarter of 2015, productivity increased 0.6 percent, reflecting 
increases in output and hours worked of 3.5 percent and 2.9 percent, 
respectively. (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 the nonfarm business sector increased 5.0 percent in the 
first quarter of 2015, reflecting a 3.1 percent increase in hourly 
compensation and a 1.9 percent decline in productivity. Unit labor costs 
increased 1.1 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 decreased 1.1 percent in the first quarter 
of 2015, as output decreased 1.2 percent and hours worked edged down 0.1 
percent. Productivity decreased 2.3 percent in the durable manufacturing 
sector and was unchanged in the nondurable manufacturing sector. (See tables 
A, 3, 4, and 5.) Over the last four quarters, manufacturing productivity 
increased 1.4 percent, as output increased 3.8 percent and hours increased 
2.3 percent. Unit labor costs in manufacturing increased 2.7 percent in the 
first quarter of 2015 and decreased 0.7 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. 

Preliminary fourth quarter and annual 2014 measures were announced today for 
the nonfinancial corporate sector. Productivity increased 2.5 percent in the 
fourth quarter of 2014 and increased 1.5 percent over the last four quarters.
Annual average productivity increased 0.4 percent from 2013 to 2014. (See 
tables C and 6.) 

Revised measures

Measures of real hourly compensation for all sectors were subject to revision
from 1978 forward due to  incorporation of new and revised data from the BLS
Office of Prices and Living Conditions. 

In the fourth quarter of 2014, nonfarm business sector productivity decreased
2.1 percent, a slightly smaller decline than reported March 5. Unit labor 
costs increased 4.2 percent in the fourth quarter of 2014, a slightly larger
increase than previously reported. Total manufacturing sector productivity 
and unit labor costs were unrevised in the fourth quarter. There were 
revisions to measures for the durable and nondurable manufacturing sectors.
(See table B.) 

2014 Annual Average measures for productivity and unit labor costs were 
unrevised in the nonfarm business sector and total manufacturing sector. 
(See table B.)
______________  







The revised Productivity and Costs news release for first-quarter 2015 is 
scheduled to be released on Thursday, June 4, 2015 at 8:30 a.m. (EDT).






======================================================================================================
Table A. Preliminary first-quarter 2015 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      0.6    -1.9     0.5    -1.1     1.4    -2.3     1.4     0.0     1.8
Output                 -0.2      3.5     0.1     3.7    -1.2     3.8    -2.7     4.3     0.5     3.1
Hours                   1.7      2.9     2.1     3.2    -0.1     2.3    -0.4     2.9     0.5     1.3
Hourly 
 compensation           3.1      1.7     2.8     1.4     1.5     0.8     1.3     0.3     2.0     1.5
Real hourly 
 compensation           6.2      1.8     6.0     1.4     4.6     0.8     4.4     0.4     5.2     1.6
Unit labor 
 costs                  5.0      1.1     4.8     0.9     2.7    -0.7     3.7    -1.1     2.0    -0.3
======================================================================================================
Table B. Revised and previous measures: fourth quarter and annual averages 2014

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                Percent change, annual rate, fourth quarter 2014
Productivity    -2.1    -2.2     -2.3     -2.3     -0.1     -0.1      0.1      0.5     -0.9     -1.5
Output           2.6     2.6      2.8      2.7      4.3      4.3      3.4      3.4      5.3      5.4
Hours            4.9     4.9      5.2      5.2      4.4      4.4      3.3      3.0      6.3      7.0
Hourly
 compensation    1.9     1.9      1.6      1.6      1.4      1.4      1.2      1.8      1.9      1.1
Real hourly 
 compensation    2.8     3.1      2.5      2.8      2.2      2.7      2.0      3.0      2.7      2.4
Unit labor 
 costs           4.2     4.1      4.0      4.0      1.5      1.5      1.1      1.3      2.9      2.7
------------------------------------------------------------------------------------------------------ 
                                      Percent change, annual average 2014
Productivity     0.7     0.7      0.5      0.5      2.2      2.2      3.0      3.0      1.7      1.6
Output           3.0     3.0      2.9      2.9      3.8      3.8      5.3      5.3      2.1      2.2
Hours            2.3     2.3      2.4      2.4      1.6      1.6      2.3      2.3      0.5      0.5
Hourly
 compensation    2.5     2.5      2.3      2.3      2.3      2.3      1.9      1.9      2.9      2.8
Real hourly 
 compensation    0.8     0.8      0.7      0.7      0.6      0.6      0.2      0.3      1.2      1.2
Unit labor 
 costs           1.8     1.8      1.8      1.8      0.1      0.1     -1.1     -1.0      1.2      1.1
======================================================================================================
Table C.  Nonfinancial corporations: preliminary fourth-quarter and annual averages 2014 measures
        
                                                        Real 
                                           Hourly       hourly        Unit                    Implicit
             Produc-                       compen-      compen-       labor       Unit        price
             tivity    Output     Hours    sation       sation        costs       profits     deflator
------------------------------------------------------------------------------------------------------ 
                                Percent change, annual rate, fourth quarter 2014
Q to Q         2.5      6.6        3.9       1.6          2.4         -0.9        -0.8          -1.5
Y to Y         1.5      4.8        3.3       2.2          0.9          0.7         2.9           0.3

                                     Percent change, annual average 2014                        
2014           0.4      3.2        2.8       1.8          0.2          1.4        -0.4           0.6
====================================================================================================== 




			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 2014. Nonfarm business, which 
excludes farming, accounted for about 75 percent of GDP in 2014.
     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 2014.
     
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)

2015 I        -1.9         0.1        2.1        2.8        6.0        4.8       -7.9       -0.9  

2014 ANNUAL    0.5         2.9        2.4        2.3        0.7        1.8        0.6        1.3  

2014 IV       -2.3         2.8 r      5.2        1.6        2.5 r      4.0       -5.9 r     -0.5  
     III       3.3         6.4        2.9        2.1        0.9 r     -1.2        4.2        1.1  
     II        2.9         5.7        2.7       -1.0       -3.4 r     -3.9       11.1        2.4  
     I        -5.2        -3.3        2.0        6.6        4.4 r     12.4      -11.5        1.3  

2013 ANNUAL    1.2         2.7        1.5        1.3       -0.1        0.2        3.1        1.4  

2013 IV        2.9         4.6        1.7        1.4        0.0 r     -1.4        4.0        1.0  
     III       3.3         5.9        2.6        0.1       -2.2 r     -3.1        7.9        1.6  
     II        1.1         2.1        1.0        4.3        4.5 r      3.1       -1.7        1.0  
     I         2.0         3.2        1.3       -5.8       -7.1 r     -7.6       14.6        1.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 I         0.5         3.7        3.2        1.4        1.4        0.9        0.1        0.5  

2014 ANNUAL    0.5         2.9        2.4        2.3        0.7        1.8        0.6        1.3  

2014 IV       -0.4         2.8        3.2        2.3        1.1        2.7       -0.9 r      1.1  
     III       0.9         3.3        2.3        2.2        0.5 r      1.3        1.6        1.4  
     II        0.9         3.2        2.2        1.7       -0.3        0.8        2.5        1.5  
     I         0.5         2.3        1.8        3.1        1.6        2.6       -0.6        1.2  

2013 ANNUAL    1.2         2.7        1.5        1.3       -0.1        0.2        3.1        1.4  

2013 IV        2.3         4.0        1.6       -0.1       -1.3       -2.3        6.0        1.2  
     III       1.0         2.8        1.7        2.1        0.5        1.1        1.6        1.3  
     II        0.6         2.1        1.5        2.1        0.7        1.5        1.3        1.4  
     I         0.8         2.1        1.3        1.3       -0.4        0.5        3.3        1.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 I       105.6       116.7      110.5      112.3      102.4      106.3      110.6      108.1  

2014 ANNUAL  106.0 r     114.8 r    108.3 r    110.9 r    100.5 r    104.7      112.9 r    108.1 r

2014 IV      106.2 r     116.7 r    109.9 r    111.5 r    100.9 r    105.0 r    112.9 r    108.3 r
     III     106.8       115.9      108.5      111.0      100.3 r    104.0      114.7      108.5  
     II      105.9       114.1      107.7      110.5      100.1 r    104.3      113.5      108.2  
     I       105.1       112.5      107.0      110.8      101.0 r    105.3      110.6      107.5  

2013 ANNUAL  105.5       111.6      105.8      108.4       99.9 r    102.8      112.2      106.7  

2013 IV      106.6       113.5      106.5      109.0       99.9 r    102.3      114.0      107.2  
     III     105.8       112.2      106.0      108.6       99.9 r    102.7      112.9      106.9  
     II      105.0       110.6      105.4      108.6      100.4 r    103.5      110.7      106.5  
     I       104.7       110.0      105.1      107.5       99.3 r    102.7      111.2      106.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        May 6, 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)

2015 I        -1.9        -0.2        1.7        3.1        6.2        5.0       -6.6       -0.1  

2014 ANNUAL    0.7         3.0        2.3        2.5        0.8        1.8        0.9        1.4  

2014 IV       -2.1 r       2.6        4.9        1.9        2.8 r      4.2 r     -5.8       -0.3  
     III       3.9         6.3        2.4        2.8        1.7       -1.0        5.3        1.7  
     II        2.9         5.5        2.5       -0.9       -3.3 r     -3.7       10.0        2.0  
     I        -4.7        -2.4        2.4        6.3        4.2 r     11.5      -11.7        0.8  

2013 ANNUAL    0.9         2.6        1.7        1.1       -0.3        0.2        2.9        1.4  

2013 IV        3.0         4.7        1.7        1.7        0.2 r     -1.3        5.0        1.4  
     III       3.4         5.6        2.1        0.4       -1.8 r     -2.9        8.5        1.9  
     II        0.9         2.0        1.1        4.2        4.4 r      3.2       -0.8        1.5  
     I         0.6         2.4        1.8       -6.5       -7.8 r     -7.1       12.8        0.9  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 I         0.6         3.5        2.9        1.7        1.8        1.1        0.5        0.8  

2014 ANNUAL    0.7         3.0        2.3        2.5        0.8        1.8        0.9        1.4  

2014 IV       -0.1         2.9        3.0        2.5        1.3        2.6       -0.9        1.1 r
     III       1.2         3.5        2.2        2.4        0.7 r      1.2        1.8        1.5  
     II        1.1         3.3        2.2        1.8       -0.2        0.7        2.6        1.5  
     I         0.6         2.4        1.8        3.1        1.7        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       -1.4 r     -2.1        6.3        1.4  
     III       0.6         2.5        1.8        1.9        0.4        1.2        1.4        1.3  
     II        0.2         2.0        1.8        1.8        0.3        1.5        1.0        1.3  
     I         0.5         2.1        1.6        0.9       -0.7        0.4        2.9        1.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 I       105.9       116.8      110.3      112.5      102.6      106.2      110.1      107.8  

2014 ANNUAL  106.2 r     115.1 r    108.4 r    110.9 r    100.5 r    104.5 r    111.9 r    107.6 r

2014 IV      106.4 r     116.9 r    109.8 r    111.6 r    101.1 r    104.9 r    112.0 r    107.9 r
     III     107.0       116.1      108.5      111.1      100.4 r    103.9      113.7      107.9  
     II      106.0       114.4      107.9      110.3      100.0 r    104.1      112.2      107.5  
     I       105.2       112.9      107.2      110.6      100.8 r    105.1      109.5      106.9  

2013 ANNUAL  105.4       111.7      105.9      108.2       99.7 r    102.7      110.9      106.1  

2013 IV      106.5       113.5      106.6      108.9       99.8 r    102.3      113.0      106.7  
     III     105.7       112.2      106.2      108.5       99.7 r    102.6      111.6      106.4  
     II      104.8       110.7      105.6      108.3      100.2 r    103.4      109.4      105.9  
     I       104.6       110.2      105.3      107.2       99.1 r    102.5      109.6      105.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        May 6, 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)

2015 I            -1.1           -1.2           -0.1            1.5            4.6            2.7  

2014 ANNUAL        2.2            3.8            1.6            2.3            0.6            0.1  

2014 IV           -0.1            4.3            4.4            1.4            2.2 r          1.5  
     III           3.4 r          4.9            1.4            2.1            1.0           -1.3  
     II            3.7            7.3            3.4           -1.9           -4.2 r         -5.4  
     I             2.6            1.6           -1.0            8.3            6.1 r          5.5  

2013 ANNUAL        1.9            2.7            0.8            0.5           -0.9           -1.4  

2013 IV            0.8            4.7            3.9            0.3           -1.1 r         -0.5  
     III           0.2            1.7            1.5            0.2           -2.1 r          0.0  
     II            3.9            1.5           -2.3            3.0            3.2 r         -0.9  
     I             2.4            4.8            2.3           -2.9           -4.3 r         -5.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 I             1.4            3.8            2.3            0.8            0.8           -0.7  

2014 ANNUAL        2.2            3.8            1.6            2.3            0.6            0.1  

2014 IV            2.4            4.5            2.0            2.4            1.2            0.0  
     III           2.6            4.6            1.9            2.1            0.4 r         -0.5  
     II            1.8            3.8            2.0            1.6           -0.4           -0.2  
     I             1.9            2.4            0.5            2.9            1.5            1.0  

2013 ANNUAL        1.9            2.7            0.8            0.5           -0.9           -1.4  

2013 IV            1.8            3.2            1.3            0.1           -1.1           -1.7  
     III           2.2            2.6            0.4            1.2           -0.3           -1.0  
     II            2.3            2.4            0.2            0.8           -0.6 r         -1.5  
     I             1.5            2.7            1.2            0.0           -1.7 r         -1.5  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 I           112.9          122.1          108.1          108.6           99.0           96.1  

2014 ANNUAL      112.6 r        120.3 r        106.9          107.8 r         97.7 r         95.7 r

2014 IV          113.3 r        122.5 r        108.2 r        108.2 r         97.9 r         95.5 r
     III         113.3 r        121.2 r        107.0          107.8           97.4 r         95.2 r
     II          112.4          119.8          106.6          107.3           97.2 r         95.5  
     I           111.3          117.7          105.7          107.8           98.2 r         96.8  

2013 ANNUAL      110.2          115.9          105.2          105.4           97.1 r         95.6  

2013 IV          110.6          117.2          106.0          105.6           96.8 r         95.5  
     III         110.4          115.9          105.0          105.6           97.1 r         95.6  
     II          110.4          115.4          104.6          105.5           97.6 r         95.6  
     I           109.3          115.0          105.2          104.7           96.8 r         95.8  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        May 6, 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)

2015 I            -2.3           -2.7           -0.4            1.3            4.4            3.7  

2014 ANNUAL        3.0            5.3            2.3            1.9            0.2 r         -1.1 r

2014 IV            0.1 r          3.4            3.3 r          1.2 r          2.0 r          1.1 r
     III           3.6 r          6.7            3.1            1.7            0.5 r         -1.8  
     II            4.4           10.2            5.5           -2.7           -5.1 r         -6.9  
     I             2.9            1.8           -1.1            9.4            7.2 r          6.3  

2013 ANNUAL        3.0            4.2            1.1            0.0           -1.4           -3.0  

2013 IV            2.0            6.9            4.8           -2.3           -3.6 r         -4.2  
     III           1.9            3.6            1.7            0.9           -1.4 r         -0.9  
     II            5.7            2.9           -2.6            3.1            3.3 r         -2.5  
     I             2.3            6.4            3.9           -4.4           -5.7 r         -6.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 I             1.4            4.3            2.9            0.3            0.4           -1.1  

2014 ANNUAL        3.0            5.3            2.3            1.9            0.2 r         -1.1 r

2014 IV            2.7 r          5.5            2.7 r          2.3 r          1.1 r         -0.5 r
     III           3.2            6.4 r          3.0            1.4           -0.4           -1.8  
     II            2.8            5.6            2.7            1.2           -0.8           -1.6  
     I             3.1            3.8            0.7            2.7            1.3           -0.4  

2013 ANNUAL        3.0            4.2            1.1            0.0           -1.4           -3.0  

2013 IV            3.0            4.9            1.9           -0.7           -1.9           -3.6  
     III           3.4            4.1            0.7            1.2           -0.3           -2.1  
     II            3.2            3.5            0.3            0.3           -1.1           -2.8  
     I             2.6            4.1            1.5           -0.8           -2.5           -3.3  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 I           123.2          137.5          111.6          107.2           97.7           87.0  

2014 ANNUAL      123.1 r        135.7 r        110.2 r        106.6 r         96.6 r         86.6 r

2014 IV          123.9 r        138.4 r        111.7 r        106.8 r         96.7 r         86.2 r
     III         123.9 r        137.3 r        110.8          106.5           96.2 r         86.0 r
     II          122.8          135.1          110.0          106.1           96.1 r         86.4  
     I           121.5          131.8          108.5          106.8           97.3 r         87.9  

2013 ANNUAL      119.5          128.8          107.8          104.6           96.3 r         87.5  

2013 IV          120.6          131.2          108.8          104.4           95.7 r         86.6  
     III         120.0          129.1          107.5          105.0           96.6 r         87.5  
     II          119.5          127.9          107.1          104.8           96.9 r         87.7  
     I           117.8          127.0          107.8          104.0           96.1 r         88.3  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        May 6, 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)

2015 I             0.0            0.5            0.5            2.0            5.2            2.0  

2014 ANNUAL        1.7 r          2.1 r          0.5            2.9 r          1.2            1.2 r

2014 IV           -0.9 r          5.3 r          6.3 r          1.9 r          2.7 r          2.9 r
     III           4.3 r          2.7 r         -1.4            2.7            1.6           -1.4 r
     II            4.1            4.0            0.0           -0.6           -3.0 r         -4.5  
     I             2.3            1.4           -0.9            6.2            4.1 r          3.9  

2013 ANNUAL        1.1            1.3            0.2            1.4            0.0            0.4  

2013 IV           -0.1            2.3            2.4            5.2            3.7 r          5.3  
     III          -1.7           -0.4            1.2           -1.2           -3.5 r          0.4  
     II            1.7           -0.1           -1.8            2.9            3.1 r          1.2  
     I             3.4            3.1           -0.3           -0.5           -1.9 r         -3.8  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 I             1.8            3.1            1.3            1.5            1.6           -0.3  

2014 ANNUAL        1.7 r          2.1 r          0.5            2.9 r          1.2            1.2 r

2014 IV            2.4 r          3.3 r          0.9 r          2.5 r          1.3 r          0.1  
     III           2.6            2.6            0.0            3.4            1.6 r          0.7  
     II            1.1            1.8            0.7            2.3            0.3            1.2  
     I             0.5            0.8            0.2            3.2            1.8            2.7  

2013 ANNUAL        1.1            1.3            0.2            1.4            0.0            0.4  

2013 IV            0.8            1.2            0.4            1.5            0.3            0.7  
     III           1.1            0.9           -0.1            1.0           -0.5            0.0  
     II            1.5            1.5            0.0            1.6            0.2            0.1  
     I             0.8            1.5            0.6            1.5           -0.1            0.7  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 I           107.5          110.3          102.6          110.6          100.9          102.9  

2014 ANNUAL      106.9 r        108.5 r        101.5 r        109.4 r         99.1 r        102.3 r

2014 IV          107.5 r        110.2 r        102.5 r        110.1 r         99.6 r        102.4 r
     III         107.8 r        108.8 r        100.9          109.6           99.0 r        101.6 r
     II          106.7          108.1          101.3          108.8           98.6 r        102.0  
     I           105.6          107.0          101.3          109.0           99.3 r        103.2  

2013 ANNUAL      105.2          106.2          101.0          106.3           97.9 r        101.1  

2013 IV          105.0          106.6          101.5          107.4           98.3 r        102.2  
     III         105.1          106.0          100.9          106.0           97.4 r        100.9  
     II          105.5          106.1          100.6          106.3           98.3 r        100.8  
     I           105.0          106.2          101.1          105.6           97.6 r        100.5  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        May 6, 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 ANNUAL    0.4       3.2      2.8       1.8       0.2       1.4     -0.5      0.8     -0.4      0.6  

2014 IV        2.5       6.6      3.9       1.6       2.4      -0.9     -3.1     -1.6     -0.8     -1.5  
     III       2.6 r     5.4 r    2.7       2.4 r     1.2 r    -0.2 r    0.3 r    0.0 r    4.9 r    0.7  
     II        2.0       6.5      4.4      -1.5      -3.9 r    -3.4     -6.1     -4.3     47.3      1.7  
     I        -1.3       0.7      2.0       6.3       4.1 r     7.6      2.3      5.9    -26.9      0.5  

2013 ANNUAL    0.3       2.3      2.0       1.3      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV       -0.2       2.2      2.4       0.5      -0.9 r     0.8      0.7      0.7     -3.9      0.0  
     III      -2.2       0.4      2.6      -0.7      -2.9 r     1.6      2.3      1.8     -2.7      1.1  
     II        3.4       4.5      1.1       2.8       3.0 r    -0.6     -2.6     -1.3      8.5      0.1  
     I        -1.7       1.6      3.3      -2.1      -3.4 r    -0.4      2.7      0.6     -1.9      0.2  

2012 ANNUAL    1.9       4.3      2.4       2.8       0.7       0.9     -0.7      0.4      7.9      1.4  

2012 IV        3.7       5.6      1.7       7.6       4.9 r     3.7     -3.3      1.4      4.5      1.8  
     III      -3.5      -2.2      1.4      -0.1      -1.9 r     3.6      2.3      3.1     -5.7      1.8  
     II        1.8       2.4      0.6       0.5      -0.4 r    -1.3     -0.2     -0.9     15.5      1.3  
     I         6.0       9.6      3.5      13.3      10.8 r     6.9     -2.6      3.6     -1.4      2.9  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2014 ANNUAL    0.4       3.2      2.8       1.8       0.2       1.4     -0.5      0.8     -0.4      0.6  

2014 IV        1.5       4.8      3.3       2.2       0.9       0.7     -1.7     -0.1      2.9      0.3  
     III       0.8 r     3.7 r    2.9       1.9 r     0.1 r     1.1 r   -0.7 r    0.5      2.1 r    0.7  
     II       -0.4       2.4      2.9       1.1      -0.9       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       1.3      -0.1       1.1      0.1      0.8      1.4      0.9  

2013 IV       -0.2       2.2      2.4       0.1      -1.1       0.3      0.7      0.5     -0.1      0.4  
     III       0.8       3.0      2.2       1.8       0.3       1.0     -0.3      0.6      2.0      0.8  
     II        0.4       2.3      1.9       2.0       0.6 r     1.5     -0.3      0.9      1.2      1.0  
     I         0.1       1.8      1.7       1.4      -0.3 r     1.4      0.4      1.0      2.8      1.3  

2012 ANNUAL    1.9       4.3      2.4       2.8       0.7       0.9     -0.7      0.4      7.9      1.4  

2012 IV        1.9       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       0.4 r     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 ANNUAL  107.9     119.2    110.5     110.1      99.7     102.0     97.5    100.5    145.7    105.2  

2014 IV      108.9     121.9    111.9     110.6     100.1     101.6     96.6     99.9    149.7    105.1  
     III     108.2 r   120.0 r  110.9     110.2 r    99.5 r   101.8 r   97.3 r  100.3 r  150.0 r  105.5  
     II      107.5     118.4    110.1     109.5      99.2 r   101.9     97.3    100.3    148.2    105.3  
     I       107.0     116.5    108.9     109.9     100.2 r   102.8     98.8    101.4    134.6    104.9  

2013 ANNUAL  107.4     115.5    107.5     108.1      99.5 r   100.6     98.0     99.7    146.4    104.6  

2013 IV      107.3     116.3    108.4     108.3      99.2 r   100.9     98.2    100.0    145.5    104.8  
     III     107.4     115.7    107.7     108.1      99.4 r   100.7     98.1     99.8    147.0    104.8  
     II      108.0     115.6    107.1     108.3     100.1 r   100.3     97.5     99.4    148.0    104.5  
     I       107.1     114.3    106.8     107.6      99.4 r   100.5     98.2     99.7    145.0    104.4  

2012 ANNUAL  107.1     112.9    105.3     106.6      99.7 r    99.5     97.9     99.0    144.3    103.7  

2012 IV      107.5     113.9    105.9     108.1     100.3 r   100.6     97.5     99.6    145.7    104.4  
     III     106.5     112.3    105.4     106.2      99.1 r    99.7     98.3     99.2    144.1    103.9  
     II      107.5     113.0    105.1     106.2      99.6 r    98.8     97.8     98.4    146.2    103.4  
     I       107.0     112.3    104.9     106.1      99.7 r    99.1     97.8     98.7    141.1    103.1  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                              May 6, 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 1.4 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 fourth 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 1978-2014 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: May 06, 2015