TEXT Table 1. Business sector: Productivity, hourly compensation, unit labor costs, 9 Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, 11 Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, 13 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 15 Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, 17 Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, 19 20 Footnotes, Tables 1-6 Historical, technical USDL 95-341 information:(202) 606-5606 Transmission of this Current data: (202) 606-7828 material is embargoed Media contact:(202) 606-5902 until 10:00 A.M. EDT Thursday, September 7, 1995. PRODUCTIVITY AND COSTS Second Quarter 1995 The Bureau of Labor Statistics of the U.S. Department of Labor today reported revised productivity data-as measured by output per hour of all persons-for the second quarter of 1995. The revised seasonally-adjusted annual rates of productivity change in the second quarter were: 4.7 percent in the business sector, and 4.8 percent in the nonfarm business sector. In both sectors, productivity rose from the first to the second quarter as output grew while hours of all persons employed fell. In manufacturing, the revised productivity changes in the second quarter were: 2.6 percent in manufacturing, 0.7 percent in durable goods manufacturing, and 5.3 percent in nondurable goods manufacturing. The productivity advance in manufacturing reflected a decrease in output combined with a larger decrease in the hours of all persons. Output and hours in manufacturing, which includes about 20 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than in the more aggregate business and nonfarm business sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5; the differences between these measures and the preliminary second-quarter figures issued on August 8 are shown in table C. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the Federal Reserve System. See Technical Notes for further information on data sources (page 6). 2 Table A. Productivity and costs: Revised second-quarter 1995 measures (Seasonally adjusted annual rates) Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs Percent change from preceding quarter Business 4.7 2.1 -2.4 3.7 0.3 -1.0 Nonfarm business 4.8 2.3 -2.3 3.5 0.1 -1.2 Manufacturing 2.6 -3.4 -5.9 0.4 -2.9 -2.1 Durable 0.7 -3.7 -4.3 -2.6 -5.8 -3.3 Nondurable 5.3 -3.1 -8.0 5.2 1.7 -0.2 Percent change from same quarter a year ago Business 3.6 4.7 1.1 3.6 0.5 0.0 Nonfarm business 3.6 4.7 1.1 3.6 0.5 0.0 Manufacturing 3.3 3.8 0.5 2.8 -0.3 -0.5 Durable 3.4 5.0 1.6 2.2 -0.8 -1.1 Nondurable 3.0 1.9 -1.1 3.6 0.5 0.5 Business From the first quarter to the second quarter of 1995, business sector productivity increased at a 4.7 percent annual rate. Business sector output rose 2.1 percent, and hours of all persons engaged in the sector fell 2.4 percent, reflecting a 0.2 percent increase in employment and a 2.7 percent drop in average weekly hours at work. During the first quarter of 1995, productivity had risen 2.1 percent, as output and hours of all persons employed rose 4.3 and 2.2 percent, respectively (table 1). Hourly compensation increased 3.7 percent during the second quarter of 1995, about the same as the 3.8 percent rise in the first quarter. This measure includes wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), increased at a 0.3 percent annual rate in the second quarter; it had risen 0.7 percent in the first quarter of 1995. Unit labor costs, which reflect changes in hourly compensation and productivity, fell at a 1.0 percent annual rate during the second quarter and have fallen in three of the last four quarters. The implicit price deflator for the business sector, which incorporates changes in both unit labor costs and unit nonlabor payments, increased 1.2 percent in the second quarter and 1.4 percent during the first quarter of 1995. 3 Nonfarm business Productivity rose 4.8 percent in the nonfarm business sector during the second quarter of 1995, the largest increase since a 7.0 percent increase was posted in the first quarter of 1986. Output increased at a 2.3 percent rate in the second quarter, and hours of all persons fell 2.3 percent. This drop in hours of all persons reflected a 0.3 percent increase in employment and a 2.6 percent decline in average weekly hours. During the first quarter of 1995, productivity had increased 2.5 percent in the nonfarm business sector, reflecting gains of 4.5 percent in output and 2.0 percent in hours (table 2). Hourly compensation increased at a 3.5 percent annual rate in the second quarter, compared with a 4.1 percent increase one quarter earlier. When the rise in the CPI-U is taken into account, real hourly compensation rose 0.1 percent in the second quarter. Unit labor costs fell 1.2 percent, compared with a 1.6 percent rise during the first quarter of 1995. The implicit price deflator for nonfarm business output rose 1.1 percent in the second quarter and 1.3 percent one quarter earlier. Manufacturing Productivity increased at a 2.6 percent seasonally adjusted annual rate in manufacturing in the second quarter of 1995, as output fell 3.4 percent and hours of all persons decreased 5.9 percent (seasonally adjusted annual rates). Productivity grew strongly in the nondurable goods industries, 5.3 percent, while posting a smaller gain among durable goods producers, 0.7 percent. In both the durable and nondurable goods subsectors, productivity increases occurred because the hours of persons engaged in the sector fell more than output (tables 4 and 5). Hourly compensation of all manufacturing workers increased 0.4 percent during the second quarter, compared with a 4.7 percent gain during the January- March period. In durable goods industries, hourly compensation fell 2.6 percent; a 5.2 percent increase occurred in nondurable goods industries. Real hourly compensation in the manufacturing sector fell 2.9 percent in the second quarter when the increase in consumer prices is taken into account. During the first quarter, real hourly compensation had gone up 1.6 percent (seasonally adjusted annual rates). Unit labor costs fell at a 2.1 percent annual rate in the second quarter of 1995, the seventh decline in the last 10 quarters. Unit labor costs fell 3.3 percent in durable goods industries but only 0.2 percent in nondurable goods industries. 4 Table B. Nonfinancial corporations: Preliminary second-quarter productivity and cost measures (Seasonally adjusted annual rates) Real Hourly hourly Unit Implicit Produc- compen- compen- labor Unit price Period tivity Output Hours sation sation costs profits deflator Percent change from preceding quarter 1995 II 5.4 3.5 -1.8 3.3 -0.1 -2.0 6.6 -0.1 Percent change from same quarter a year ago 1995 II 3.0 5.1 2.0 3.2 0.1 0.2 -0.4 0.4 Nonfinancial corporations Preliminary second-quarter 1995 measures of productivity and costs also were announced today for nonfinancial corporations (tables B and 6). Productivity increased 5.4 percent in the second quarter, as output rose 3.5 percent and hours decreased 1.8 percent (seasonally adjusted annual rates). The productivity increase was the largest since a 5.4 percent increase also was posted in the first quarter of 1986. A 0.9 percent employment increase, combined with a 2.6 percent decline in average weekly hours, caused nonfinancial corporate hours to drop for the first time since the first quarter of 1992 (when they declined 0.2 percent). In the first quarter of 1995, productivity had increased 1.7 percent in nonfinancial corporations, as output increased 4.4 percent and employee hours rose 2.7 percent. Nonfinancial corporations include all corporations doing business in the United States, except banks, stock and commodity brokers, and finance and insurance agencies. Hourly compensation rose 3.3 percent in the second quarter; it had risen 3.4 percent in the first quarter of 1995. When the rise in the CPI-U is taken into account, real hourly compensation in the second quarter declined 0.1 percent after increasing 0.4 percent in the previous quarter (table 6). Unit labor costs for nonfinancial corporations fell 2.0 percent in the second quarter, compared with a 1.8 percent rise in the first quarter of 1995. Unit nonlabor costs rose 2.1 percent, and unit profits rose 6.6 percent. During the first quarter, unit nonlabor costs had increased 0.5 percent while unit profits fell 10.4 percent (annual rates). The implicit price deflator for nonfinancial corporate output fell 0.1 percent in the second quarter and rose 0.1 percent in the first quarter. 5 Table C. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate Real Hourly hourly Unit Produc- compen- compen- labor Sector tivity Output Hours sation sation costs Second quarter 1995 Business: Previous... 3.0 0.4 -2.5 3.8 0.4 0.8 Current.... 4.7 2.1 -2.4 3.7 0.3 -1.0 Nonfarm business: Previous... 3.0 0.6 -2.4 3.6 0.2 0.6 Current.... 4.8 2.3 -2.3 3.5 0.1 -1.2 Manufacturing: Previous... 2.1 -3.8 -5.8 0.3 -2.9 -1.8 Current.... 2.6 -3.4 -5.9 0.4 -2.9 -2.1 Revised Measures Current and previous measures for the second quarter of 1995 for the business, nonfarm business, and manufacturing sectors are compared in table C. The quarterly movements differ from those reported on August 8 based on information then available. In the business and nonfarm business sectors, the growth in output (which is based on information from the national income and product accounts prepared by the U.S. Department of Commerce) and productivity were revised upward. Manufacturing output (which is based on information from the Federal Reserve Board) and productivity also were revised up. Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EST, Tuesday, November 7, 1995. Revised second-quarter measures for nonfinancial corporations and preliminary third-quarter measures for business, nonfarm business, and manufacturing will be released at that time. NOTE: The BLS plans to switch to annually-weighted output indexes for computations underlying its regular Productivity and Costs news releases, beginning in late 1995 or early 1996. These output indexes are designed to eliminate a source of bias in aggregate measures and to reduce the size of future historical revisions to these measures. A statement containing information about these changes can be obtained from the Division of Productivity Research (202-606-5606). 6 TECHNICAL NOTES Labor Input: The primary source of durables include: Food and kindred hours and employment data is the BLS products, tobacco products, textile Current Employment Statistics (CES) mill products apparel products, paper program, which provides monthly survey and allied products, printing and data on total employment and average publishing, chemicals and chemical weekly hours of production and non- products, petroleum refining and supervisory workers in nonagricultural related industries, rubber and plastic establishments. Jobs rather than products, leather and leather persons are counted. Weekly hours are products. Manufacturing accounted for adjusted to the hours at work about 19 percent of GDP in 1992. definition using the BLS Hours at Work Quarterly manufacturing output survey, conducted for this purpose. measures are based on the index of Data from the BLS Current industrial production prepared monthly Population Survey (CPS) are used for by the Board of Governors of the farm labor; in the nonfarm sector, the Federal Reserve System adjusted by BLS National Income and Product Accounts to annual manufacturing output levels (NIPA) prepared by the Bureau of Eco- (gross product originating) from the nomic Analysis of the Department of National Income and Product Accounts Commerce and the CPS are used to prepared by the Bureau of Economic measure labor input for government Analysis of the U.S. Department of enterprises, proprietors and unpaid Commerce. family workers. Nonfinancial corporate output is equal to GDP in constant 1987 dollars, Output: Business output is equal to less the output of nonprofit gross domestic product (GDP) in institutions, output of paid employees constant 1987 dollars, less general of private households, rental value of government, output of nonprofit owner-occupied dwellings, institutions, output of paid employees unincorporated business, the output of of private households, rental value of corporations engaged in banking, fi- owner-occupied dwellings, and the sta- nance, stock and commodity trading, tistical discrepancy in computing the and credit and insurance agencies, and NIPA. Corresponding exclusions are the statistical discrepancy in also made in labor inputs. Business computing the NIPA. Nonfinancial output was about 78 percent of GDP in corporations accounted for about 56 1992. Nonfarm business, which also ex- percent of GDP in 1992. cludes farming, was about 77 percent of GDP in 1992. Productivity: These productivity mea- Total manufacturing measures are sures describe the relationship computed by summing series prepared between real output and the labor time for the durable and nondurable goods involved in its production. They show sectors. Durables include the the changes from period to period in following 2-digit SIC industries: the amount of goods and services pro- Primary metal industries; fabricated duced per hour. Although these metal products; nonelectrical measures relate output to hours at machinery; industrial and commercial work of all persons engaged in a machinery and computer equipment; sector, they do not measure the electronic and other electrical specific contribution of labor, equipment; transportation equipment; capital, or any other factor of instruments; lumber and lumber prod- production. Rather, they reflect the ucts; furniture and fixtures; stone, joint effects of many influences, clay, and glass and concrete products; including changes in technology; and miscellaneous manufactures. Non- capital investment; level of output; 7 utilization of capacity, energy, and Information in this release will materials; the organization of produc- be made available to sensory-impaired tion; managerial skill; and the individuals upon request. Voice phone: characteristics and effort of the work 202-606-STAT; TDD phone: 202-606-5897; force. TDD message referral phone number: 1- 800-326-2577. Table 1. Business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator (4) --------------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 116.2 138.1 118.9 158.7 107.0 136.6 149.5 140.8 II 116.3 139.6 120.0 159.9 107.0 137.5 149.6 141.4 III 117.0 140.9 120.5 160.6 107.0 137.3 150.5 141.6 IV 118.4 143.9 121.5 161.3 106.6 136.2 154.0 142.1 ANNUAL 117.0 140.6 120.2 160.1 106.9 136.9 150.9 141.5 1994 I 118.9 145.8 122.6 163.3 107.4 137.3 153.4 142.6 II 118.5 147.2 124.2 163.6 106.9 138.1 155.6 143.8 III 119.5 148.8 124.6 164.9 106.8 138.0 157.8 144.5 IV 120.7 151.6 125.6 166.4 107.2 137.8 159.0 144.8 ANNUAL 119.4 148.4 124.2 164.5 107.1 137.8 156.4 143.9 1995 I 121.3 153.2 126.3 167.9 107.3 138.4 159.3 145.3 II r122.7 r154.0 125.5 169.5 107.4 r138.1 r161.3 r145.7 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.1 0.6 2.7 2.5 -0.6 4.6 -1.9 2.3 II 0.6 4.2 3.6 3.1 0.1 2.5 0.3 1.7 III 2.2 4.0 1.7 1.8 0.1 -0.4 2.4 0.6 IV 5.0 8.6 3.5 1.7 -1.5 -3.2 9.6 1.2 ANNUAL 1.3 3.8 2.4 3.4 0.4 2.0 1.8 1.9 1994 I 1.8 5.5 3.6 5.1 2.9 3.2 -1.6 1.5 II -1.4 3.7 5.2 0.9 -1.7 2.3 5.9 3.5 III 3.2 4.5 1.3 3.1 -0.4 -0.1 5.8 2.0 IV 4.3 7.8 3.3 3.6 1.3 -0.7 3.1 0.7 ANNUAL 2.1 5.5 3.4 2.8 0.2 0.7 3.6 1.7 1995 I 2.1 4.3 2.2 3.8 0.7 1.7 0.9 1.4 II r4.7 r2.1 r-2.4 r3.7 r0.3 r-1.0 r5.0 r1.2 9 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 1.5 3.3 1.8 4.3 1.1 2.7 0.7 2.0 II 1.3 3.8 2.5 3.9 0.8 2.6 0.6 1.9 III 1.0 3.6 2.6 3.0 0.2 2.0 3.2 2.4 IV 1.4 4.3 2.9 2.3 -0.5 0.8 2.5 1.4 ANNUAL 1.3 3.8 2.4 3.4 0.4 2.0 1.8 1.9 1994 I 2.4 5.6 3.1 2.9 0.4 0.5 2.6 1.2 II 1.9 5.4 3.5 2.3 -0.1 0.4 4.0 1.7 III 2.1 5.6 3.4 2.7 -0.2 0.5 4.8 2.0 IV 2.0 5.4 3.4 3.2 0.5 1.2 3.2 1.9 ANNUAL 2.1 5.5 3.4 2.8 0.2 0.7 3.6 1.7 1995 I 2.0 5.1 3.0 2.8 0.0 0.8 3.9 1.9 II r3.6 r4.7 1.1 3.6 0.5 r0.0 r3.7 r1.3 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor costs, and prices, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit Unit non- Implicit and hour of of all tion per tion per labor labor pay- price quarter all persons Output persons hour (1) hour (2) costs ments (3) deflator(4) --------------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 114.3 138.3 120.9 157.2 105.9 137.4 151.5 142.0 II 114.5 139.9 122.2 158.1 105.8 138.1 151.8 142.5 III 115.3 141.5 122.8 158.7 105.7 137.7 153.6 142.8 IV 116.5 144.3 123.8 159.3 105.3 136.8 156.3 143.1 ANNUAL 115.2 141.0 122.4 158.3 105.7 137.5 153.4 142.6 1994 I 117.0 146.1 124.9 161.2 106.0 137.8 155.5 143.5 II 116.6 147.3 126.3 161.8 105.7 138.8 158.3 145.1 III 117.3 148.8 126.8 162.9 105.5 138.8 160.9 145.9 IV 118.6 151.6 127.9 164.4 105.9 138.7 161.8 146.1 ANNUAL 117.4 148.5 126.5 162.6 105.9 138.5 159.2 145.2 1995 I 119.3 153.3 128.5 166.1 106.2 139.2 162.1 146.6 II r120.7 r154.2 127.7 r167.5 106.2 r138.8 r164.2 r147.0 --------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.2 1.0 3.2 1.9 -1.1 4.1 -1.4 2.2 II 0.4 4.7 4.2 2.4 -0.6 2.0 0.8 1.6 III 2.9 4.9 1.9 1.5 -0.2 -1.3 4.7 0.7 IV 4.2 7.9 3.5 1.6 -1.6 -2.5 7.3 0.8 ANNUAL 1.3 4.1 2.7 3.0 0.0 1.7 2.4 1.9 1994 I 1.7 5.2 3.4 4.9 2.7 3.1 -2.1 1.2 II -1.4 3.2 4.7 1.4 -1.2 2.8 7.6 4.5 III 2.7 4.3 1.6 2.7 -0.8 0.0 6.7 2.3 IV 4.3 7.7 3.3 3.8 1.5 -0.4 2.2 0.5 ANNUAL 1.9 5.3 3.3 2.7 0.1 0.8 3.8 1.8 1995 I 2.5 4.5 2.0 4.1 1.0 1.6 0.7 1.3 II r4.8 r2.3 r-2.3 r3.5 r0.1 r-1.2 r5.3 r1.1 11 --------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 1.6 3.5 1.9 4.2 1.0 2.6 1.3 2.1 II 1.1 4.0 2.9 3.5 0.4 2.4 1.0 1.9 III 1.2 4.2 2.9 2.6 -0.2 1.3 4.4 2.4 IV 1.3 4.6 3.2 1.9 -0.9 0.5 2.8 1.3 ANNUAL 1.3 4.1 2.7 3.0 0.0 1.7 2.4 1.9 1994 I 2.3 5.7 3.3 2.6 0.1 0.3 2.6 1.1 II 1.8 5.3 3.4 2.3 -0.1 0.5 4.3 1.8 III 1.8 5.2 3.3 2.6 -0.2 0.8 4.8 2.2 IV 1.8 5.1 3.3 3.2 0.6 1.4 3.5 2.1 ANNUAL 1.9 5.3 3.3 2.7 0.1 0.8 3.8 1.8 1995 I 2.0 4.9 2.9 3.0 0.1 1.0 4.3 2.1 II r3.6 r4.7 1.1 3.6 0.5 r0.0 r3.7 r1.3 --------------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 130.8 134.8 103.0 149.9 101.0 114.6 II 131.3 135.6 103.2 151.7 101.5 115.5 III 132.1 136.8 103.6 152.5 101.6 115.4 IV 133.6 139.3 104.2 153.3 101.4 114.7 ANNUAL 132.0 136.6 103.5 152.0 101.5 115.1 1994 I 135.4 141.8 104.7 154.3 101.4 113.9 II 136.8 144.3 105.4 153.6 100.3 112.2 III 138.0 146.3 106.0 154.5 100.0 111.9 IV 139.3 149.2 107.1 155.9 100.4 112.0 ANNUAL 137.4 145.4 105.8 154.5 100.6 112.5 1995 I 140.5 151.1 107.5 157.7 100.8 112.3 II r141.4 r149.7 105.9 157.9 100.1 r111.7 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 5.4 7.8 2.2 -2.1 -5.0 -7.1 II 1.5 2.3 0.8 4.9 1.8 3.3 III 2.5 3.8 1.2 2.0 0.4 -0.4 IV 4.7 7.4 2.6 2.3 -0.9 -2.3 ANNUAL 3.6 5.0 1.4 2.7 -0.3 -0.8 1994 I 5.4 7.5 2.0 2.4 0.3 -2.8 II 4.3 7.2 2.8 -1.8 -4.2 -5.8 III 3.4 5.7 2.2 2.4 -1.2 -1.0 IV 3.7 8.1 4.2 3.8 1.5 0.1 ANNUAL 4.0 6.4 2.3 1.7 -0.9 -2.3 1995 I 3.5 5.2 1.6 4.7 1.6 1.1 II r2.6 r-3.4 r-5.9 r0.4 -2.9 r-2.1 13 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 3.6 4.9 1.3 3.3 0.1 -0.3 II 3.8 4.7 0.9 3.3 0.2 -0.5 III 3.5 5.0 1.4 2.8 0.0 -0.7 IV 3.5 5.3 1.7 1.7 -1.0 -1.7 ANNUAL 3.6 5.0 1.4 2.7 -0.3 -0.8 1994 I 3.5 5.2 1.6 2.9 0.4 -0.6 II 4.2 6.4 2.1 1.2 -1.1 -2.9 III 4.5 6.9 2.4 1.3 -1.5 -3.0 IV 4.2 7.1 2.8 1.7 -0.9 -2.4 ANNUAL 4.0 6.4 2.3 1.7 -0.9 -2.3 1995 I 3.7 6.5 2.7 2.2 -0.6 -1.4 II r3.3 r3.8 0.5 2.8 -0.3 r-0.5 -------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 143.0 143.4 100.3 147.4 99.3 103.1 II 144.2 144.8 100.4 148.8 99.6 103.2 III 145.2 146.7 101.1 149.2 99.4 102.8 IV 148.2 151.0 101.9 150.2 99.3 101.3 ANNUAL 145.3 146.5 100.8 149.0 99.5 102.6 1994 I 150.3 154.4 102.7 151.2 99.4 100.6 II 151.7 157.1 103.6 150.0 98.0 98.9 III 153.3 160.1 104.4 150.7 97.6 98.3 IV 154.9 163.9 105.8 152.4 98.2 98.4 ANNUAL 152.6 158.9 104.1 151.0 98.3 99.0 1995 I 156.5 166.6 106.4 154.3 98.6 98.6 II r156.8 r165.0 105.2 153.3 97.2 97.8 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 9.0 11.7 2.5 -4.9 -7.7 -12.7 II 3.6 4.1 0.4 4.0 0.9 0.3 III 2.7 5.4 2.7 1.1 -0.6 -1.5 IV 8.5 12.1 3.3 2.6 -0.7 -5.4 ANNUAL 5.9 7.4 1.5 2.0 -0.9 -3.6 1994 I 5.9 9.5 3.4 2.7 0.5 -3.1 II 3.6 7.1 3.4 -3.1 -5.6 -6.5 III 4.4 7.8 3.3 2.1 -1.5 -2.3 IV 4.1 9.7 5.4 4.5 2.2 0.4 ANNUAL 5.0 8.5 3.3 1.3 -1.2 -3.5 1995 I 4.4 6.8 2.3 5.1 2.0 0.7 II r0.7 r-3.7 r-4.3 -2.6 -5.8 r-3.3 15 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 5.9 7.0 1.0 3.0 -0.2 -2.7 II 6.1 7.0 0.9 2.7 -0.4 -3.2 III 5.7 7.5 1.8 2.0 -0.8 -3.5 IV 5.9 8.3 2.2 0.6 -2.0 -5.0 ANNUAL 5.9 7.4 1.5 2.0 -0.9 -3.6 1994 I 5.2 7.7 2.4 2.6 0.1 -2.5 II 5.1 8.5 3.2 0.8 -1.6 -4.2 III 5.6 9.1 3.3 1.0 -1.8 -4.3 IV 4.5 8.5 3.8 1.5 -1.1 -2.9 ANNUAL 5.0 8.5 3.3 1.3 -1.2 -3.5 1995 I 4.1 7.8 3.6 2.1 -0.8 -2.0 II r3.4 5.0 1.6 2.2 -0.8 -1.1 -------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor costs, seasonally adjusted Real Year Output per Hours Compensa- compensa- Unit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 116.2 124.2 106.9 155.1 104.5 133.5 II 115.8 124.2 107.3 157.5 105.4 136.0 III 116.4 124.6 107.1 158.7 105.8 136.4 IV 116.2 124.9 107.5 159.4 105.4 137.2 ANNUAL 116.1 124.5 107.2 157.7 105.3 135.8 1994 I 117.4 126.3 107.5 160.1 105.3 136.4 II 119.0 128.6 108.1 160.2 104.7 134.7 III 119.5 129.4 108.3 161.3 104.5 135.0 IV 120.4 131.2 109.0 162.3 104.5 134.8 ANNUAL 119.0 128.9 108.2 161.0 104.8 135.2 1995 I 121.0 132.1 109.1 163.9 104.7 135.4 II r122.6 r131.0 106.9 r165.9 r105.2 r135.4 -------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I 0.7 2.6 1.9 2.3 -0.7 1.6 II -1.3 -0.1 1.2 6.3 3.2 7.7 III 2.1 1.4 -0.7 3.2 1.5 1.1 IV -0.7 0.9 1.5 1.8 -1.5 2.5 ANNUAL 0.4 1.7 1.2 3.8 0.8 3.3 1994 I 4.4 4.6 0.1 1.8 -0.4 -2.6 II 5.4 7.4 1.9 0.3 -2.2 -4.8 III 1.8 2.5 0.7 2.6 -0.9 0.8 IV 2.9 5.6 2.6 2.5 0.3 -0.4 ANNUAL 2.5 3.5 1.0 2.0 -0.5 -0.4 1995 I 2.1 2.8 0.7 3.9 0.8 1.8 II r5.3 r-3.1 r-8.0 r5.2 r1.7 r-0.2 17 -------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 0.5 2.2 1.6 3.8 0.6 3.2 II 0.7 1.7 1.0 4.3 1.1 3.6 III 0.6 1.6 1.0 4.0 1.1 3.3 IV 0.2 1.2 1.0 3.4 0.6 3.2 ANNUAL 0.4 1.7 1.2 3.8 0.8 3.3 1994 I 1.1 1.7 0.6 3.2 0.7 2.1 II 2.8 3.5 0.7 1.7 -0.6 -1.0 III 2.7 3.8 1.1 1.6 -1.2 -1.1 IV 3.6 5.0 1.3 1.8 -0.8 -1.8 ANNUAL 2.5 3.5 1.0 2.0 -0.5 -0.4 1995 I 3.0 4.6 1.5 2.3 -0.5 -0.7 II r3.0 r1.9 r-1.1 r3.6 r0.5 r0.5 -------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics Table 6. Nonfinancial corporations: Productivity, hourly compensation, unit labor costs, unit profits, and prices, seasonally adjusted Output Hourly Real Unit Total Unit Implicit Year per all- compen- hourly Unit non- unit pro- price and employee Employee sation compen- labor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------- Indexes 1982=100 1993 I 119.9 143.3 119.5 153.9 103.7 128.3 116.8 125.0 183.7 128.7 II 121.2 145.9 120.4 154.4 103.3 127.3 115.8 124.1 199.4 128.7 III 122.2 148.1 121.2 154.8 103.1 126.7 115.8 123.6 202.5 128.5 IV 123.4 150.9 122.3 155.0 102.5 125.7 114.8 122.6 220.9 128.7 ANNUAL 121.8 147.0 120.8 154.6 103.3 127.0 115.8 123.8 201.9 128.6 1994 I 124.0 153.0 123.4 156.5 102.9 126.2 116.6 123.5 218.2 129.4 II 123.8 154.8 125.1 156.8 102.4 126.7 115.2 123.4 228.7 129.9 III 124.3 156.5 125.9 157.9 102.3 127.1 116.2 124.0 228.8 130.5 IV 125.3 159.6 127.4 159.1 102.5 127.0 115.9 123.8 230.3 130.4 ANNUAL 124.4 156.0 125.4 157.7 102.7 126.7 116.0 123.7 226.5 130.0 1995 I 125.8 161.4 128.2 160.5 102.6 127.5 116.0 124.2 224.0 130.4 II 127.5 162.8 127.7 161.8 102.6 126.9 116.6 124.0 227.6 130.4 ---------------------------------------------------------------------------------------------------------- Percent change from previous quarter at annual rate(5) 1993 I -2.2 -0.3 2.0 2.0 -1.0 4.4 3.6 4.2 -14.9 2.3 II 4.6 7.5 2.8 1.4 -1.5 -3.0 -3.3 -3.1 38.9 0.2 III 3.2 6.0 2.7 1.0 -0.7 -2.1 0.0 -1.6 6.5 -0.8 IV 3.9 7.8 3.8 0.6 -2.6 -3.1 -3.4 -3.2 41.5 0.6 ANNUAL 2.8 5.0 2.2 2.8 -0.2 0.0 -1.9 -0.5 14.0 0.8 1994 I 2.0 5.8 3.7 3.9 1.7 1.8 6.6 3.1 -4.9 2.2 II -0.8 4.8 5.6 0.6 -1.9 1.4 -4.8 -0.3 20.7 1.8 III 1.6 4.2 2.5 2.9 -0.7 1.2 3.5 1.8 0.3 1.7 IV 3.4 8.4 4.8 3.2 0.9 -0.3 -1.1 -0.5 2.5 -0.2 ANNUAL 2.2 6.1 3.8 2.0 -0.6 -0.2 0.2 -0.1 12.2 1.1 1995 I 1.7 4.4 2.7 3.4 0.4 1.8 0.5 1.4 -10.4 0.1 19 II 5.4 3.5 -1.8 3.3 -0.1 -2.0 2.1 -0.9 6.6 -0.1 ---------------------------------------------------------------------------------------------------------- Percent change from corresponding quarter of previous year 1993 I 2.7 4.4 1.6 4.2 1.0 1.4 -2.1 0.5 7.8 1.1 II 3.0 5.1 2.0 3.3 0.1 0.2 -1.8 -0.3 13.6 0.8 III 2.6 5.2 2.5 2.2 -0.6 -0.4 -2.7 -1.0 18.5 0.6 IV 2.3 5.2 2.8 1.3 -1.4 -1.0 -0.8 -1.0 15.5 0.6 ANNUAL 2.8 5.0 2.2 2.8 -0.2 0.0 -1.9 -0.5 14.0 0.8 1994 I 3.4 6.8 3.3 1.7 -0.8 -1.6 -0.1 -1.2 18.8 0.5 II 2.1 6.1 4.0 1.5 -0.9 -0.5 -0.5 -0.5 14.7 0.9 III 1.7 5.7 3.9 2.0 -0.9 0.3 0.4 0.3 13.0 1.6 IV 1.6 5.8 4.2 2.6 0.0 1.0 1.0 1.0 4.2 1.4 ANNUAL 2.2 6.1 3.8 2.0 -0.6 -0.2 0.2 -0.1 12.2 1.1 1995 I 1.5 5.4 3.9 2.5 -0.3 1.0 -0.5 0.6 2.7 0.8 II 3.0 5.1 2.0 3.2 0.1 0.2 1.2 0.5 -0.4 0.4 ---------------------------------------------------------------------------------------------------------- See footnotes following table 6. September 7, 1995 r=revised Source: Bureau of Labor Statistics 20 SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, 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 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (second revision) of a quarterly index of output per hour of all persons will differ from the initial value by between -1.8 and +2.1 index points. This interval is based on the performance of this measure between the second quarter of 1976 and the third quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self-employed. (2) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) Unit nonlabor cost includes capital consumption allowances, interest, rental income of persons, and indirect taxes. For nonfinancial corporations, rental income of persons is zero by definition. (7) Total unit cost is the sum of labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.