Productivity and Costs News Release



Transmission of material in this release is embargoed until        USDL 15-1695
8:30 a.m. (EDT) Wednesday, September 2, 2015

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




                            PRODUCTIVITY AND COSTS
                         Second Quarter 2015, Revised




Nonfarm business sector labor productivity increased at a 3.3-percent annual 
rate during the second quarter of 2015, the U.S. Bureau of Labor Statistics 
reported today, as output increased 4.7 percent and hours worked increased 
1.4 percent. (All quarterly percent changes in this release are seasonally 
adjusted annual rates.) From the second quarter of 2014 to the second quarter 
of 2015, productivity increased 0.7 percent, reflecting increases in output 
and hours worked of 3.3 percent and 2.6 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. The measures released today are based 
on more recent source data than were available for the preliminary report.

Unit labor costs in the nonfarm business sector decreased 1.4 percent in the 
second quarter of 2015, reflecting a 1.8-percent increase in hourly 
compensation and a 3.3-percent increase in productivity. Unit labor costs 
increased 1.7 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 labor productivity increased 2.3 percent in the second 
quarter of 2015, as output increased 1.3 percent, and hours worked decreased 
0.9 percent. Productivity increased 2.8 percent in the durable manufacturing 
sector and 1.2 percent in the nondurable goods sector. (See tables A, 3, 4, 
and 5.) Over the last four quarters, manufacturing productivity increased 1.0 
percent, as output increased 2.3 percent, and hours increased 1.2 percent. 
Unit labor costs in manufacturing decreased 2.2 percent in the second quarter 
of 2015 and increased 0.2 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 second quarter 2015 measures of productivity and costs were 
announced for the nonfinancial corporate sector. Productivity decreased 0.6 
percent in the second quarter of 2015, as output decreased 0.2 percent, and 
hours worked increased 0.3 percent. Unit labor costs increased 2.8 percent, 
reflecting both a 2.2 percent increase in hourly compensation and a 0.6 
percent decrease in productivity. (See tables C and 6.)

Revised measures

The measures released today are based on more recent source data than were 
available for the preliminary report. Table B presents previous and revised 
productivity and related measures for the major sectors: nonfarm business, 
business, and manufacturing. 

In the second quarter of 2015, nonfarm business productivity growth was 
revised up to 3.3 percent from 1.3 percent, mainly due to a 1.9-percentage 
point upward revision to output; hours were revised down slightly. The 3.3-
percent increase in labor productivity reverses the declines in the measure 
during the previous two quarters, restoring the index of output per hour to 
its third quarter 2014 level. Unit labor costs declined 1.4 percent rather 
than increasing 0.5 percent as reported August 11, due to an upward 
revision to productivity; hourly compensation was not revised. In the 
manufacturing sector, productivity growth was revised down slightly to 2.3 
percent from the preliminary estimate of 2.5 percent. Unit labor costs 
decreased at a 2.2-percent rate, a slightly smaller decline than was 
previously reported.

In the first quarter of 2015, nonfarm business productivity decreased at the 
same 1.1-percent rate reported in the preliminary estimate. Hourly 
compensation, and therefore unit labor costs, increased more than previously 
reported. Manufacturing sector productivity was also unrevised, decreasing 
0.6 percent. Hourly compensation and unit labor costs were revised downward.

In the nonfinancial corporate sector, first quarter 2015 productivity was not 
revised. (See table C.)

Full historical annual and quarterly measures can be found on the 
productivity and costs home page: www.bls.gov/lpc/#data.
______________







The preliminary Productivity and Costs news release for third quarter 2015 is 
scheduled to be released on Thursday, November 5, 2015 at 8:30 a.m. (EST).






======================================================================================================
Table A. Revised second-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
------------------------------------------------------------------------------------------------------
Labor productivity       3.3      0.7     3.5     0.6     2.3     1.0     2.8     1.0     1.2     1.0
Output                   4.7      3.3     4.6     3.3     1.3     2.3     1.2     2.2     1.4     2.3
Hours worked             1.4      2.6     1.1     2.8    -0.9     1.2    -1.6     1.2     0.2     1.3
Hourly compensation      1.8      2.5     2.1     2.2     0.1     1.2    -0.1     0.9     0.5     1.7
Real hourly 
 compensation           -1.1      2.4    -0.8     2.2    -2.8     1.1    -3.0     0.8    -2.4     1.7
Unit labor costs        -1.4      1.7    -1.3     1.7    -2.2     0.2    -2.9    -0.1    -0.7     0.7
======================================================================================================
Table B. Revised and previous measures: second quarter and first quarter 2015

Sector            Nonfarm                                             Durable           Nondurable
                  Business         Business         Manufacturing     Manufacturing     Manufacturing
              Revised Previous  Revised Previous  Revised Previous  Revised Previous  Revised Previous
------------------------------------------------------------------------------------------------------
                                   Percent change, annual rate, second quarter 2015
Labor 
 productivity    3.3     1.3      3.5      1.7      2.3      2.5      2.8      3.4      1.2      1.2
Output           4.7     2.8      4.6      2.8      1.3      1.5      1.2      1.7      1.4      1.3
Hours worked     1.4     1.5      1.1      1.1     -0.9     -1.0     -1.6     -1.6      0.2      0.1
Hourly
 compensation    1.8     1.8      2.1      2.1      0.1      0.2     -0.1      0.0      0.5      0.5
Real hourly
 compensation   -1.1    -1.1     -0.8     -0.8     -2.8     -2.7     -3.0     -2.9     -2.4     -2.4
Unit labor
 costs          -1.4     0.5     -1.3      0.5     -2.2     -2.3     -2.9     -3.3     -0.7     -0.6
------------------------------------------------------------------------------------------------------
                                  Percent change, annual rate, first quarter 2015                     
Labor
 productivity   -1.1    -1.1     -1.3     -1.3     -0.6     -0.6     -2.3     -2.2      1.2      1.2
Output           0.5     0.5      0.6      0.6     -0.5     -0.5     -2.4     -2.3      1.7      1.6
Hours worked     1.6     1.6      1.9      1.9      0.1      0.1     -0.1     -0.1      0.4      0.4
Hourly
 compensation    1.5     1.1      1.3      0.9     -2.2     -1.7     -3.4     -2.9      0.2      0.5
Real hourly
 compensation    4.6     4.2      4.4      4.0      0.8      1.3     -0.4      0.1      3.2      3.6
Unit labor
 costs           2.6     2.3      2.6      2.3     -1.6     -1.1     -1.1     -0.6     -1.1     -0.6
======================================================================================================
Table C. Nonfinancial corporations: preliminary second-quarter and revised first-quarter 2015 
productivity and cost measures

                                                          Real 
               Labor                         Hourly       hourly       Unit                   Implicit
               produc-             Hours     compen-      compen-      labor      Unit        price
               tivity    Output    worked    sation       sation       costs      profits     deflator
------------------------------------------------------------------------------------------------------
                                    Percent change, annual rate, second quarter 2015
                                    
Q to Q          -0.6      -0.2      0.3        2.2        -0.7          2.8         5.6         2.3
Y to Y           0.8       3.0      2.2        1.4         1.4          0.7        -1.7        -0.2
                                    
                                    Percent change, annual rate, first quarter 2015
                                    
Q to Q Revised  -2.1      -0.3      1.8        0.5         3.6          2.6       -19.3        -0.8
Q to Q Previous -2.1      -0.4      1.8        0.4         3.5          2.6       -19.3        -0.8
======================================================================================================











                            TECHNICAL NOTES

                            
Labor Hours: Hours data for the labor productivity and cost measures include 
hours worked 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. A complete historical series of 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 II        3.5 r       4.6 r      1.1        2.1       -0.8       -1.3 r      7.1 r      2.2  
     I        -1.3         0.6        1.9        1.3 r      4.4 r      2.6 r     -3.7 r     -0.1  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -2.4         2.6        5.2        3.0        3.9        5.6       -8.2       -0.6  
     III       2.5         5.5        2.9        2.5        1.3        0.0        2.9        1.2  
     II        2.9         5.7        2.7       -0.9       -3.2       -3.7       10.6        2.3  
     I        -3.6        -1.7        2.0        5.9        3.7        9.9       -8.5        1.5  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        3.4         5.1        1.7        2.1        0.7       -1.2        4.4        1.2  
     III       1.3         3.9        2.5        0.5       -1.8       -0.9        5.3        1.7  
     II        0.6         1.6        1.0        6.3        6.5        5.7       -5.6        0.6  
     I         1.2         2.5        1.3       -8.6       -9.9       -9.7       18.8        1.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 II        0.6 r       3.3 r      2.8        2.2 r      2.2 r      1.7 r     -0.7 r      0.7  
     I         0.4         3.6        3.2        1.5 r      1.5        1.1 r      0.2 r      0.7  

2014 ANNUAL    0.6         3.0        2.4        2.6        1.0        2.0        0.6        1.4  

2014 IV       -0.2         3.0        3.2        2.6        1.4        2.8       -1.1        1.1  
     III       1.3         3.6        2.3        2.4        0.6        1.1        2.1        1.5  
     II        1.0         3.2        2.2        1.9       -0.2        0.9        2.7        1.7  
     I         0.4         2.2        1.8        3.7        2.2        3.3       -1.3        1.3  

2013 ANNUAL    0.4         2.0        1.6        1.2       -0.2        0.8        2.4        1.5  

2013 IV        1.6         3.3        1.6       -0.1       -1.3       -1.7        5.4        1.3  
     III       0.3         2.0        1.7        2.0        0.5        1.7        0.9        1.3  
     II       -0.3         1.2        1.5        2.0        0.6        2.3        0.4        1.5  
     I         0.1         1.4        1.3        1.1       -0.6        1.0        3.1        1.9  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 II      105.8 r     117.1 r    110.7 r    113.0 r    102.3 r    106.8 r    112.3 r    109.1 r
     I       104.9       115.8      110.4      112.4 r    102.5 r    107.1 r    110.4 r    108.5  

2014 ANNUAL  105.2       113.9      108.3      111.1      100.7      105.6      112.2      108.4  

2014 IV      105.2       115.6      109.9      112.0      101.4      106.5      111.4      108.5  
     III     105.9       114.8      108.5      111.2      100.4      105.0      113.9      108.7  
     II      105.2       113.3      107.7      110.5      100.1      105.0      113.1      108.4  
     I       104.5       111.8      107.0      110.7      100.9      106.0      110.2      107.8  

2013 ANNUAL  104.6       110.6      105.7      108.3       99.7      103.6      111.5      106.9  

2013 IV      105.4       112.2      106.5      109.2      100.0      103.6      112.7      107.4  
     III     104.6       110.9      106.0      108.6       99.9      103.9      111.5      107.1  
     II      104.2       109.8      105.4      108.5      100.3      104.1      110.1      106.6  
     I       104.1       109.4      105.1      106.8       98.7      102.7      111.7      106.4  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 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 II        3.3 r       4.7 r      1.4 r      1.8       -1.1       -1.4 r      7.4 r      2.2  
     I        -1.1         0.5        1.6        1.5 r      4.6 r      2.6 r     -2.2 r      0.5  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV       -2.2         2.6        4.9        3.4        4.2        5.7       -8.1       -0.5  
     III       3.1         5.5        2.3        3.2        2.0        0.1        4.1        1.8  
     II        2.8         5.4        2.5       -0.8       -3.1       -3.5        9.5        1.9  
     I        -3.5        -1.2        2.3        5.5        3.4        9.3       -8.4        1.3  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        3.5         5.2        1.7        2.3        0.9       -1.2        5.7        1.7  
     III       1.4         3.5        2.1        0.9       -1.4       -0.5        5.8        2.2  
     II        0.1         1.1        1.1        6.3        6.5        6.2       -5.0        1.2  
     I        -0.1         1.7        1.8       -9.2      -10.5       -9.1       16.8        1.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 II        0.7 r       3.3 r      2.6        2.5 r      2.4 r      1.7 r      0.1 r      1.0  
     I         0.6         3.5        2.8        1.8 r      1.9 r      1.2 r      0.6 r      0.9  

2014 ANNUAL    0.7         3.0        2.3        2.7        1.1        2.0        0.9        1.5  

2014 IV        0.0         3.0        3.0        2.8        1.6        2.8       -1.0        1.1  
     III       1.4         3.7        2.2        2.5        0.7        1.1        2.5        1.7  
     II        1.0         3.2        2.2        1.9       -0.1        0.9        2.9        1.8  
     I         0.3         2.1        1.8        3.7        2.3        3.4       -0.7        1.6  

2013 ANNUAL    0.0         1.7        1.7        1.1       -0.4        1.1        2.1        1.5  

2013 IV        1.2         2.9        1.7       -0.1       -1.3       -1.3        5.5        1.6  
     III      -0.2         1.6        1.9        1.9        0.3        2.1        0.5        1.4  
     II       -0.8         1.0        1.8        1.7        0.3        2.5       -0.1        1.4  
     I        -0.2         1.4        1.6        0.8       -0.9        1.0        2.5        1.6  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 II      105.9 r     117.1 r    110.6 r    113.1 r    102.4 r    106.8 r    111.9 r    109.0 r
     I       105.0       115.8      110.2      112.6 r    102.7 r    107.2 r    109.9 r    108.3  

2014 ANNUAL  105.2       114.0      108.4      111.1      100.7      105.7      111.1      107.9  

2014 IV      105.3       115.6      109.8      112.2      101.6      106.5      110.5      108.2  
     III     105.9       114.9      108.5      111.3      100.5      105.1      112.9      108.3  
     II      105.1       113.4      107.9      110.4      100.0      105.0      111.8      107.8  
     I       104.4       111.9      107.2      110.6      100.8      106.0      109.3      107.4  

2013 ANNUAL  104.4       110.6      105.9      108.2       99.6      103.6      110.1      106.3  

2013 IV      105.3       112.2      106.6      109.1      100.0      103.7      111.7      107.0  
     III     104.4       110.8      106.2      108.5       99.8      104.0      110.2      106.5  
     II      104.0       109.9      105.6      108.3      100.1      104.1      108.6      106.0  
     I       104.0       109.6      105.3      106.6       98.6      102.5      110.0      105.7  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 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 II            2.3 r          1.3 r         -0.9 r          0.1 r         -2.8 r         -2.2 r
     I            -0.6           -0.5            0.1           -2.2 r          0.8 r         -1.6 r

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV           -0.4            4.0            4.4            4.3            5.1            4.7  
     III           2.9            4.4            1.4            2.7            1.5           -0.2  
     II            2.8            6.3            3.4           -1.8           -4.2           -4.4  
     I             2.0            1.0           -1.0            8.7            6.5            6.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV           -0.5            3.4            3.9           -0.3           -1.6            0.2  
     III          -0.9            0.6            1.5            1.0           -1.3            1.9  
     II            2.5            0.1           -2.3            4.1            4.3            1.6  
     I             1.1            3.5            2.3           -5.4           -6.7           -6.4  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 II            1.0 r          2.3            1.2            1.2 r          1.1 r          0.2  
     I             1.2            3.5            2.3            0.7 r          0.8 r         -0.4 r

2014 ANNUAL        1.3            2.9            1.6            2.7            1.0            1.4  

2014 IV            1.8            3.9            2.0            3.4            2.2            1.5  
     III           1.8            3.7            1.9            2.2            0.5            0.4  
     II            0.8            2.8            2.0            1.8           -0.2            1.0  
     I             0.8            1.3            0.5            3.3            1.9            2.5  

2013 ANNUAL        0.7            1.5            0.8            0.2           -1.2           -0.5  

2013 IV            0.5            1.9            1.3           -0.2           -1.4           -0.7  
     III           1.1            1.5            0.4            0.9           -0.6           -0.2  
     II            1.0            1.2            0.2            0.4           -0.9           -0.6  
     I             0.1            1.2            1.2           -0.3           -2.0           -0.4  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 II          121.1 r        130.7 r        107.9 r        108.4 r         98.1 r         89.5 r
     I           120.4 r        130.2 r        108.2          108.4 r         98.8 r         90.0 r

2014 ANNUAL      120.0          128.3          106.9          107.9           97.8           89.9  

2014 IV          120.6          130.4          108.2          109.0           98.6           90.4  
     III         120.7          129.1          107.0          107.8           97.4           89.3  
     II          119.8          127.8          106.6          107.1           97.0           89.4  
     I           119.0          125.8          105.7          107.6           98.1           90.4  

2013 ANNUAL      118.5          124.6          105.2          105.0           96.8           88.7  

2013 IV          118.4          125.5          106.0          105.4           96.5           89.0  
     III         118.6          124.5          105.0          105.4           96.9           88.9  
     II          118.8          124.3          104.6          105.2           97.3           88.5  
     I           118.1          124.2          105.2          104.1           96.2           88.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 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 II            2.8 r          1.2 r         -1.6           -0.1 r         -3.0 r         -2.9 r
     I            -2.3 r         -2.4 r         -0.1           -3.4 r         -0.4 r         -1.1 r

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            0.5            3.9            3.3            5.0            5.9            4.5  
     III           3.2            6.4            3.1            2.3            1.1           -0.9  
     II            3.0            8.7            5.5           -2.6           -5.0           -5.5  
     I             2.6            1.5           -1.1            8.6            6.4            5.8  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.7            5.5            4.8           -2.5           -3.8           -3.1  
     III          -0.3            1.4            1.7            1.7           -0.6            2.0  
     II            2.4           -0.3           -2.6            3.5            3.7            1.0  
     I            -0.5            3.4            3.9           -6.7           -8.0           -6.2  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 II            1.0 r          2.2 r          1.2 r          0.9 r          0.8 r         -0.1  
     I             1.1            4.0 r          2.9            0.3 r          0.3 r         -0.8 r

2014 ANNUAL        1.9            4.2            2.3            2.1            0.5            0.2  

2014 IV            2.3            5.1            2.7            3.2            2.0            0.9  
     III           2.4            5.5            3.0            1.3           -0.4           -1.0  
     II            1.5            4.2            2.7            1.2           -0.9           -0.3  
     I             1.3            2.0            0.7            2.7            1.3            1.4  

2013 ANNUAL        0.7            1.8            1.1           -0.4           -1.8           -1.1  

2013 IV            0.6            2.5            1.9           -1.1           -2.3           -1.6  
     III           1.0            1.7            0.7            0.9           -0.6           -0.1  
     II            0.8            1.1            0.3           -0.1           -1.5           -0.9  
     I             0.6            2.1            1.5           -1.1           -2.8           -1.8  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 II          124.8 r        138.9 r        111.2 r        106.7 r         96.6 r         85.4 r
     I           124.0 r        138.4 r        111.7          106.7 r         97.3 r         86.1 r

2014 ANNUAL      123.9          136.5          110.2          106.5           96.5           86.0  

2014 IV          124.7          139.3          111.7          107.6           97.4           86.3  
     III         124.5          138.0          110.8          106.3           96.0           85.4  
     II          123.6          135.9          110.0          105.7           95.8           85.6  
     I           122.6          133.1          108.5          106.4           97.0           86.8  

2013 ANNUAL      121.6          131.0          107.8          104.3           96.1           85.8  

2013 IV          121.9          132.6          108.8          104.2           95.5           85.5  
     III         121.7          130.8          107.5          104.9           96.4           86.2  
     II          121.8          130.4          107.1          104.5           96.6           85.8  
     I           121.0          130.4          107.8          103.6           95.7           85.6  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 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 II            1.2            1.4 r          0.2 r          0.5           -2.4           -0.7 r
     I             1.2            1.7 r          0.4            0.2 r          3.2 r         -1.1 r

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV           -2.1            4.1            6.3            3.1            3.9            5.3  
     III           3.6            2.1           -1.4            3.2            2.1           -0.4  
     II            3.7            3.7            0.0           -0.6           -3.0           -4.2  
     I             1.4            0.4           -0.9            8.8            6.6            7.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV           -1.4            1.0            2.4            4.0            2.5            5.4  
     III          -1.6           -0.4            1.2           -0.3           -2.6            1.3  
     II            2.1            0.3           -1.8            5.3            5.5            3.1  
     I             3.6            3.3           -0.3           -3.2           -4.6           -6.6  
---------------------------------------------------------------------------------------------------
                    Percent change from corresponding quarter of previous year

2015 II            1.0            2.3            1.3            1.7 r          1.7 r          0.7 r
     I             1.6            2.9            1.3            1.5 r          1.5 r         -0.1 r

2014 ANNUAL        1.0            1.5            0.5            3.7            2.0            2.6  

2014 IV            1.6            2.6            0.9            3.6            2.4            1.9  
     III           1.8            1.8            0.0            3.8            2.0            1.9  
     II            0.5            1.2            0.7            2.9            0.8            2.4  
     I             0.1            0.4            0.2            4.4            2.9            4.3  

2013 ANNUAL        0.9            1.1            0.2            1.2           -0.2            0.3  

2013 IV            0.7            1.1            0.4            1.4            0.1            0.7  
     III           1.3            1.2           -0.1            0.9           -0.6           -0.4  
     II            1.5            1.5            0.0            1.5            0.1            0.0  
     I             0.2            0.8            0.6            1.2           -0.5            1.1  
---------------------------------------------------------------------------------------------------
                                         Indexes 2009=100

2015 II          113.3 r        116.3 r        102.6 r        111.0 r        100.5 r         97.9 r
     I           113.0 r        115.9 r        102.6          110.8 r        101.1 r         98.1 r

2014 ANNUAL      112.3          114.0          101.5          109.8           99.5           97.7  

2014 IV          112.6          115.4          102.5          110.8          100.3           98.4  
     III         113.2          114.3          100.9          109.9           99.3           97.1  
     II          112.2          113.6          101.3          109.1           98.8           97.2  
     I           111.2          112.6          101.3          109.2           99.6           98.3  

2013 ANNUAL      111.2          112.3          101.0          105.9           97.5           95.3  

2013 IV          110.8          112.5          101.5          107.0           98.0           96.5  
     III         111.2          112.2          100.9          105.9           97.4           95.3  
     II          111.6          112.3          100.6          106.0           98.0           95.0  
     I           111.0          112.2          101.1          104.7           96.7           94.2  
---------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                  September 2, 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)

2015 II       -0.6      -0.2      0.3       2.2      -0.7       2.8     -0.3      1.8      5.6      2.3  
     I        -2.1      -0.3 r    1.8       0.5 r     3.6 r     2.6      3.2 r    2.8    -19.3     -0.8  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        3.4       7.4      3.9       1.5       2.3      -1.8     -6.4     -3.3     -6.5     -3.8  
     III       2.4       5.2      2.7       1.6       0.4      -0.8     -1.1     -0.9     17.2      1.6  
     II        1.7       6.2      4.4      -1.7      -4.1      -3.3     -3.4     -3.4     27.4      0.5  
     I        -1.7       0.2      2.0       8.4       6.2      10.3     -0.8      6.5    -22.0      1.9  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV       -0.2       2.3      2.4       0.9      -0.5       1.1      0.8      1.0      0.9      1.0  
     III      -2.0       0.5      2.6      -0.3      -2.6       1.7      1.2      1.6     -7.5      0.2  
     II        4.8       6.0      1.1       4.4       4.6      -0.5     -4.0     -1.6      6.9     -0.4  
     I        -0.5       2.8      3.3      -4.2      -5.6      -3.7      1.8     -1.9     14.6      0.3  
---------------------------------------------------------------------------------------------------------
                       Percent change from corresponding quarter of previous year

2015 II        0.8       3.0      2.2       1.4       1.4       0.7     -1.2      0.1     -1.7     -0.2  
     I         1.3       4.6      3.2       0.5 r     0.5      -0.9     -2.0 r   -1.2      3.0     -0.6  

2014 ANNUAL    0.4       3.2      2.8       2.4       0.8       2.0     -1.4      0.9     -0.4      0.7  

2014 IV        1.4       4.7      3.3       2.4       1.1       0.9     -2.9     -0.3      2.1      0.0  
     III       0.5       3.4      2.9       2.2       0.4       1.7     -1.1      0.8      4.1      1.3  
     II       -0.6       2.3      2.9       1.7      -0.3       2.3     -0.6      1.4     -1.9      0.9  
     I         0.2       2.2      2.0       3.3       1.9       3.1     -0.7      1.8     -6.1      0.7  

2013 ANNUAL    1.0       3.0      2.0       1.3      -0.2       0.3     -0.2      0.1      4.4      0.8  

2013 IV        0.5       2.9      2.4       0.1      -1.1      -0.4     -0.1     -0.3      3.4      0.3  
     III       2.0       4.2      2.2       1.8       0.3      -0.2     -1.2     -0.5      4.3      0.2  
     II        1.2       3.1      1.9       1.9       0.5       0.7     -0.4      0.3      4.8      1.0  
     I         0.1       1.9      1.8       1.3      -0.4       1.1      0.9      1.0      5.2      1.6  
---------------------------------------------------------------------------------------------------------
                                            Indexes 2009=100

2015 II      108.7     122.3    112.5     111.8     101.2     102.8     95.8    100.5    145.2    105.2  
     I       108.8 r   122.4 r  112.4     111.2 r   101.4 r   102.1 r   95.9 r  100.0 r  143.2 r  104.6  

2014 ANNUAL  108.3     119.6    110.5     110.6     100.2     102.1     96.6    100.3    148.0    105.3  

2014 IV      109.4     122.5    111.9     111.0     100.5     101.5     95.1     99.4    151.1    104.8  
     III     108.5     120.3    110.9     110.6      99.9     101.9     96.7    100.2    153.7    105.8  
     II      107.9     118.8    110.1     110.2      99.8     102.1     97.0    100.4    147.7    105.4  
     I       107.4     117.0    108.9     110.7     100.9     103.0     97.8    101.3    139.0    105.2  

2013 ANNUAL  107.9     116.0    107.5     108.0      99.5     100.1     98.0     99.4    148.5    104.6  

2013 IV      107.9     117.0    108.4     108.5      99.4     100.5     98.0     99.7    148.0    104.7  
     III     107.9     116.3    107.7     108.2      99.5     100.2     97.8     99.4    147.6    104.5  
     II      108.5     116.1    107.1     108.3     100.1      99.8     97.5     99.1    150.5    104.4  
     I       107.2     114.5    106.8     107.1      99.0      99.9     98.5     99.5    148.0    104.5  
---------------------------------------------------------------------------------------------------------
See footnotes following Table 6.                                                        September 2, 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 first quarter of 2015.
                    
                             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: September 02, 2015