Full text of Productivity and Costs : First Quarter 1988 [Preliminary]

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News

Bureau of Labor Statistics

United States
Department
of Labor
Washington, D.C. 20212

Historical, technical
information: (202) 523-9261
Current data : (202) 523-1221 or 1208
Media contact: (202) 523-1913

USDL 88-224
For Release: 10:00 AM EDT
Monday, May 2, 1988

PRODUCTIVITY AND COSTS
First Quarter 1988
The Bureau of Labor Statistics of the U.S. Department of Labor today reported productivity results —as measured by output per hour of all persons-for the f i r s t quarter of 1988.
Based on preliminary data, the seasonally
adjusted annual rates of productivity change in the f i r s t quarter were:
0.8 percent in the business sector,
0.9 percent in the nonfarm business sector,
2.9 percent in manufacturing,
2.6 percent in durable goods manufacturing, and
3.7 percent in nondurable goods manufacturing.
First-quarter measures are summarized in table A and appear in detail in
tables 1 through 5, Productivity rose in a l l sectors in the f i r s t quarter, but
gains were strongest in manufacturing.
Business

Productivity increased at a 0.8 percent annual rate during the first
quarter of 1988 in the business sector, as output rose 2.5 percent and hours of
all persons engaged in the sector increased 1.7 percent (seasonally adjusted
annual rates). During the fourth quarter of 1987, productivity had declined 1.5
percent, as output grew 4.0 percent and hours increased 5.6 percent (table 1).
Compared with the first quarter of 1987, productivity rose 1.3 percent.
Hourly compensation increased 3.5 percent during the first quarter of 1988,
compared with a 3.2 percent rise In the fourth quarter of 1987. This measure
includes wages and salaries, supplements, employer contributions to employeebenefit plans, and taxes. Unit labor costs, which reflect changes in hourly
compensation and productivity, Increased at a 2.7 percent annual rate during the
first quarter, compared with a 4.7 percent increase in the fourth quarter of
last year.
Real hourly compensation, which takes into account changes In the Consumer
Price Index for All Urban Consumers (CPl-U), Increased at a 0.1 percent annual
rate in the first quarter, compared with a 0.5 percent decline in the fourth
quarter of 1987. No Increases were recorded in this measure in 1987.




- 2 -

Table A. Productivity and costs: Preliminary f i r s t quarter 1988 measures
(Seasonally adjusted annual rates)

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

0.1
0.0
0.5
1.5
-1.0

2.7
2.4
1.0
2.3
-1.3

Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable

0.8
0.9
2.9
2.6
3.7

2.5
2.7
4.3
3.1
6.5

1.7
1.7
1.3
0.4
2.6

3.5
3.4
3.9
5.0
2.4

Percent change from same quarter a year ago
Business
Nonfarm business
Manufacturing
Durable
Nondurable

1.3
1.4
3.4
3.4
3.4

3.9
4.1
6.0
5.7
6.6

2.6
2.6
2.5
2.2
3.0

3.4
3.4
2.3
2.5
2.2

-0.5
-0.5
-1.6
-1.4
-1.7

2.1
2.0
-1.1
-0.9
> -1.3

The implicit price deflator for the business sector, which reflects changes
in unit labor costs and unit nonlabor payments, increased a modest 1.2 percent
in the f i r s t quarter.
Nonfarm business

Productivity increased 0.9 percent in the nonfarm business sector during
the f i r s t quarter of 1988, as output rose 2.7 percent and hours of all persons
increased 1.7 percent. As in the more comprehensive business sector reported
above, the first-quarter Increase in productivity followed a quarter of decline.
(During the fourth quarter of 1987, productivity f e l l 1.0 percent in
this sector (table 2}.) Over the past 4 quarters, productivity increased 1.4
percent.
Hourly compensation increased 3.4 percent in the f i r s t quarter, but was
unchanged when the rise in the CPNU was taken Into account. Unit labor costs
rose 2.4 percent, compared with a 4*.5 percent rise during the fourth quarter of
1987.
The implicit price deflator for the nonfarm business sector rose 1.1 percent in the f i r s t quarter, compared with a 1.9 percent rise one quarter earlier.




- 3 -

Manufacturing
Productivity increased at a 2.9 percent seasonally adjusted annual rate in
manufacturing in the first quarter of 1988, as output rose 4.3 percent and hours
of all persons increased 1.3 percent (seasonally adjusted annual rates). Manufacturing productivity increased 3.4 percent between the first quarters of 1987
and 1988.
As in the business sector, manufacturing productivity growth was greater in
the first quarter of 1988 than in the fourth quarter of 1987 (table 3). Productivity, output, and hours of labor input all advanced faster in the nondurable
goods industries than in durable goods (tables 4 and 5). While output increased
in both subsectors, the increase in. hours occurred mainly in nondurables.
Hourly compensation of all manufacturing workers increased 3.9 percent
during the first quarter, with faster gains recorded for producers of durable
goods than of nondurables. Real hourly compensation for the whole sector rose
0.5 percent when the increase in consumer prices was taken into account. Unit
labor costs increased at a 1.0 percent annual rate, compared with a 1.4 percent
increase during the fourth quarter of 1987.
Fourth quarter measures for nonfinancial corporations
Fourth-quarter 1987 measures of productivity and costs also were announced
today for the nonfinancial corporate sector, together with revised annual movements (tables B and C ) . Output per all-employee hour declined 1.0 percent from
the third to the fourth quarter of 1987, as output increased 3.5 percent and
all-employee hours increased 4.6 percent (seasonally adjusted annual rates).
Productivity declined for the first and last quarters of 1987, but rose, during
the second and third quarters (table 6 ) .
Table B. Productivity and costs for nonfinancial corporations:
Fourth quarter 1987
(Seasonally adjusted annual rates)

Period

Real
Hourly hourly
Produccompen- compentivity Output Hours sation sation

1987 IV

-1.0

1987 IV

0.0




Unit
Implicit
labor Unit
price
costs profits deflator

Percent change from preceding quarter
3.5
4.6
3.3
-0.4
4.3 -13.4

1.7

Percent change from preceding year
3.4
3.4
2.1
-2.3
2.1

2.7

7.3

~ 4 -

Table C. Nonfinancial corporations:
in productivity and related measures
(Percent change)

Measure
Previous
Revised

Productivity Output
0.4
0.3

2.7
2.6

Hours
2.3
2.3

Previous and revised 1987 annual change

Hourly
compensation
2.1
2.1

Real
hourly
compensation
-1.5
-1.5

Unit
labor
costs

Unit
profits

Implicit
price
deflator

1.7
1.8

6.5
5.2

2.3
2.3

Hourly compensation increased 3,3 percent in the fourth quarter, but
declined 0.4 percent when the rise in the CPI-U was taken into account. (Real
hourly compensation declined in all quarters of 1987.) Unit labor costs rose
4.3 percent, unit nonlabor costs increased 1.6 percent, and unit profits f e l l at
a 13.4 percent annual rate. The implicit deflator for nonfinancial corporate
output rose 1.7 percent during the fourth quarter.
Next release date
The next release of Productivity and Costs is scheduled for 10:00 AM EOT,
Monday, June 6, 1988, Released at that time w i l l be first-quarter measures for
nonfinancial corporations and revised measures for business, nonfarm business,
and manufacturing.




- 5 -

TECHNICAL NOTES
Business sector output is equal to gross national product in constant 1982
dollars, less the rest-of-the-worid sector, general government, output of
nonprofit institutions, output of paid employees of private households, rental
value of owner-occupied dwellings, and the statistical, discrepancy in
computing the national income accounts. Corresponding exclusions are also
made in labor inputs. Business output accounted for 80 percent of gross
national product in 1987. The nonfarm business sector, which also excludes
farming, accounted for about 78 percent of gross national product in 1987.
Total manufacturing measures are computed by summing series prepared for the
durable and nondurables goods sectors.
The durable sector includes the following 2-digit SIC industries: Primary
metals; fabricated metal products; nonelectrical machinery; electrical
machinery; transportation equipment; instruments; lumber and lumber products;
furniture and fixtures; stone, clay, and glass products; and miscellaneous
manufactures. The nondurable sector includes these 2-digit SIC industries:
Textile mill products, apparel products, leather and leather products,
printing and publishing, chemical and chemical products, petroleum products,
rubber and plastic products, food, and tobacco products.
Manufacturing output accounted for about 22 percent of gross national product
in 1987.
Nonfinancial corporate output is equal to gross national product in constant
1982 dollars, less the rest-of-the-world sector, general government, unincorporated business, output of nonprofit institutions, output of paid
employees of private households, rental value of owner-occupied dwellings, the
output of corporations engaged in banking, finance, stock and commodity
trading, and credit and insurance agencies, and the statistical discrepancy in
computing the national income accounts.
Nonfinancial corporate output
accounted for about 59 percent of gross national product in 1987.
The productivity and associated cost measures in this news release describe
the relationship between output in real terms and the labor time involved in
its production. They show the changes from period to period in the amount of
goods and services produced per hour. Although these measures relate output
to hours of all persons engaged in a sector, they do not measure the specific
contribution of labor, capital, or any other factor of production. Rather,
they reflect the joint effects of many influences, including changes in technology; capital investment; level of output; utilization of capacity, energy,
and materials; the organization of production; mangerial skill; and the
characteristics and effort of the work force.




- 6 Table 1 . Business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Unit nonlabor payments^)

Implicit
price
deflator(4)

Indexes 1977=100
1987

I
II
III
IV

109.7
110.1
111.3
rll0.9

130.2
131.1
133.1
rl34.4

118.7
119.1
119.6
121.2

185.8
187.3
189.1
rl90.6

100.7
100.3
100.3
100.2

169.4
170.2
169.8
rl71.8

166.0
168.6
172.2
rl70.8

168.2
169.6
170.7
rl71.4

ANNUAL

rll0.5

rl32.2

119.7

188.2

100.4

rl70.3

rl69.4

170.0

111.1

135.3

121.7

192.2

100.2

173.0

170.2

172.0

I

1988

Percent change from previous quarter at annual i-ate(5)
1987

I
II
III
IV

0.5
1.4
4.7
r-1.5

3.5
3.0
6.3
r4.0

3.0
1.6
1.5
5.6

1.4
3.3
3.8
r3.2

-3.8
-1.5
0.0
-0.5

0.9
1.8
-0.9
r4.7

9.0
6.4
8.8
r-3.2

3.7
3.4
2.5
rl.8

ANNUAL

r0.9

r3.3

2.4

2.9

-0.7

r2.0

r3.4

2.5

0.8

2.5

1.7

3.5

0.1

2.7

-1.4

1.2

I

1988

Percent change from corresponding quarter of previous year
1987

I
II
III
IV

0.2
0.4
1.6
rl.3

2.3
2.8
3.9
r4.2

2.1
2.5
2.3
2.9

2.8
2.8
3.0
2.9

0.6
-1.0
-1.1
-1.5

2.7
2.4
1.4
rl.6

1.8
2.8
3.9
r5.1

2.3
2.6
2.3
r2.8

ANNUAL

r0.9

r3.3

2.4

2.9

-0.7

r2.0

r3.4

2.5

1.3

3.9

2.6

3.4

-0.5

2.1

2.5

2.2

1988

I

See footnotes following table 6,
r= revised




May 2, 1988
Source: Bureau of Labor Statistics

- 7

Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Unit nonlabor payments^)

Implicit
price
def1ator(4)

Indexes 1977=100
1987

1988

I
II
III
IV

107.6
108.0
109.1
T108.8

129.7
130.7
132.7
rl34.1

120.6
121.1
121.7
123.2

184.9
186.3
187.9
189.5

100.2
99.7
99.7
99.6

171.8
172.5
172.2
rl74.1

167.4
169.2
173.0
rl71.8

170.3
171.4
172.5
173.3

ANNUAL

rlO8.4

rl31.8

121.6

187.1

99.8

rl72.7

rl70.4

171.9

109.1

135.0

123.7

191.1

99.7

175.2

171.3

173.8

I

Percent change from previous quarter at annual rate(5)
1987

1988

I
II
III
IV

0,4
1.4
4.2
r-1.0

3.8
3.2
6.3
r4.2

3.4
1.7
2.0
r5.2

1.1
3.0
3.6
r3.5

-4.1
-1.8
-0.3
r-0.1

0.8
1.5
-0.6
r4.5

8.8
4.6
9.3
r-2.7

3.4
2.6
2.7
1.9

ANNUAL

r0.8

r3.4

2.6

2.8

-0.8

r2.0

r3.1

2.4

0.9

2.7

1.7

3.4

0.0

2.4

-1.3

1.1

I

Percent change from corresponding quarter of previous year
1987

1988

I
II
III
IV

-0.1
0.3
1.5
rl.3

2.2
2.9
4.0
r4.4

2.3
2.6
2.5
3.1

2.7
2.7
2.9
2.8

0.4
-1.1
-1.2
-1.6

2.8
2.4
1.4
rl.5

1.6
2.4
3*6
r4.9

2.4
2.4
2.2
r2.7

ANNUAL

r0.8

r3.4

2.6

2.8

-0.8

r2.0

r3.1

2.4

1.4

4.1

2.6

3.4

-0.5

2.0

2.3

2.1

I

See footnotes following table 6.
r=revised



May 2, 1988
Source: Bureau of Labor Statistics




8 -

Table 3, Manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted

Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1987

1988

I
II
III
IV

130.8
132.9
134.1
rl34.3

128.4
129.9
132.3
rl34.7

98.1
97.7
98.7
100.3

183.9
184.8
185.4
186.3

99.6
98.9
98.3
r97.9

140.5
139.0
138.2
rl38.7

ANNUAL

rl33.1

131.3

98.7

185.1

98.7

139.1

I

135.3

136.1

100.6

188.1

98.1

139.0

Percent change from previous quarter at annual rate(5)
1987

1988

II
III
IV

3.2
6.4
3.7
r0.7

4.0
4.7
7.6
r7.5

0.8
-1.6
3.8
r6.7

-1.0
2.0
1.3
2.1

-6.1
-2.7
-2.4
-1.5

-4.1
-4.2
-2.3
rl.4

ANNUAL

3.3

4.3

rl.O

1.3

-2.2

-1.9

I

2.9

4.3

1.3

3.9

0.5

1.0

I

Percent change from corresponding quarter of previous year
1987

1988

II
III
IV

2.5
3.5
3.7
r3.5

2.5
3.7
5.0
r5.9

0.0
0.2
1.2
2.4

1.6
1.5
1.2
1.1

-0.7
-2.3
-2.9
-3.2

-1.0
-2.0
-2.4
r-2.3

ANNUAL

3.3

4.3

rl.O

1.3

-2.2

-1.9

I

3.4

6.0

2.5

2.3

-1.6

-1.1

I

See footnotes following table 6.
r=revised

May 2, 1988
Source: Bureau of Labor Statistics




Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1987

1988

I
II
III
IV

139.9
141.7
143.0
rl43.8

136.9
137.8
140.1
rl43.6

97.8
97.2
98.0
r99.8

182.2
182.9
183.4
184.4

98.7
98.0
97.3
97.0

130.2
129.1
128.3
rl28.3

ANNUAL

142.1

139.6

98.2

183.3

97.8

129.0

I

144.7

144.6

100.0

186.7-

97.3

129.0

Percent change from previous quarter at annual rate(5)
1987

1988

I
II
III
IV

4.5
5.3
3.6
r2.3

4.5
2.8
7.0
rlO.l

0.0
-2.4
3.3
7.7

-1.9
1.6
1.1
2.2

-6.9
-3.1
-2.6
-1.4

-6.1
-3.5
-2.4
r-0.1

ANNUAL

3.9

4.1

0.2

rl.O

-2.5

-2.7

I

2.6

3.1

0.4

5.0

1.5

2.3

Percent change from corresponding quarter of previous year
1987

1988

I
II
III
IV

3.4
4.2
4.0
r3.9

2.4
3.4
4.5
r6.1

-0.9
-0.7
0.5
2.1

1.3
1.2
1.0
0.7

-1.0
-2.5
-3.0
-3.5

-2.1
-2.9
-2.8
r-3.1

ANNUAL

3.9

4.1

0.2

rl.O

-2.5

-2.7

I

3.4

5.7

2.2

2.5

-1.4

-0.9

See footnotes following table 6.
r=revised

May 2, 1988
Source : Bureau of Labor Statistics

10 -

Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output
(6)

Hours
of all
persons

Compensation per
hour(l)

Real
compensation per
hour(2)

Unit
labor
cost

Indexes 1977=100
1987

1988




I
II
III
IV

117.4
119.9
121.1
rl20.4

115.8
118.1
120.6
rl21.5

98.6
98.5
99.6
100.9

186.9
188.2
189.0
189.8

101.3
100.8
100.3
99.8

159.1
156.9
156.1
rl57.6

ANNUAL

119.7

rll9.0

99.4

188.4

100.5

rl57.4

I

121.5

123.4

101.6

190.9

99.5

157.1

Percent change from previous quarter at annual rate(5)
1987

1988

I
II
III
IV

1.1
8.7
3.9
r-2.3

3.1
8.2
8.8
r3.0

1.9
-0.5
4.7
5.4

0.7
2.8
1.7
rl.6

-4.5
-1.9
-2.0
-1.9

-0.5
-5.4
-2.1
r4.0

ANNUAL

2.5

4.6

2.0

2.0

-1.6

-0.5

I

3.7

6.5

2.6

2.4

-1.0

-1.3

Percent changej from corresponding quarter of previous year
1987

1988

I
II
III
IV

1.3
2.5
3.5
r2.8

2.7
4.1
5.9
r5.7

1.4
1.6
2.3
r2.9

2.3
2.1
1.7
1.7

0.0
-1.7
-2.4
-2.6

1.0
-0.4
-1.7
r-1.0

ANNUAL

2.5

4.6

2.0

2.0

-1.6

-0.5

3.4

6.6

3.0

2.2

-1.7

-1.3

I

See footnotes following table 6.
r3revised

May 2, 1988
Source: Bureau of Labor Statistics




- 11 Table 6. Nonfinancial corporations: Product!vity, hourly compensation, unit labor cost, unit profits,
and prices, seasonally adjusted

Year
and
quarter

Output
per ailemployee
hour

Eimployee
Output

hours

Hourly
Real
compensa- hourly
compention
sation^)
(1)

Unit
labor
cost

Unit
nonlabor
cost(7)

Unit
profits
(9)

Total
unit
cost
(8)

Implicit
price
deflator
(4)

Indexes 1977=100
19,%

1%7

I
II
III
IV

109.8
109.7
109.9
110.5

129.1
128.8
129.3
130.4

117.6
117.4
117.6
118.0

177.2
178.4
179.5
181.0

98.2
99.2
99.2
99.4

161.5
162.6
163.2
163.8

180.7
180.6
184.2
183.2

166.3
167.2
168.5
168.7

129.7
129.5
130.6
127.7

161.9
162.7
164,0
163.8

ANNUAL

109.9

129.4

117.7

178.9

98.9

162.8

182.2

167.7

129.3

163.1

I
II
III
IV

109.7
109.9
110.8
110.5

130.9
131.6
133.7
134.8

119.3
119.8
120.6
122.0

180.8
182.0
183.3
184.8

98.0
97.5
97.2
97.1

164.8
165.6
165.5
167.2

184.1
186.6
187.3
188.0

169.7
170.9
171.0
172.5

132.2
132.9
142.1
137.0

165.2
166.3
167.5
168.2

ANNUAL

rll0.2

rl32.7

120.5

182.7

97.5

r!65.8

rl86.5

rl71.0

rl36.1

166.8

Percent change from previous quarter at annual rate(5)
1986

19*7

I
II
III
IV

3.3
-0.2
0.9
2.1

4.4
-0.9
1.6
3.4

1.0
-0.6
0.7
1.3

3.5
2.6
2.5
3.5

1.8
4.0
0.1
0.7

0.1
2.9
1.5
1.3

3.0
-0.2
8.2
-2.3

0.9
2.0
3.3
0.3

3.0
-0.5
3.3
-8.5

1.1
1.8
3.3
-0.5

ANNUAL

1.6

2.6

1.0

3.5

1.6

1.9

2.2

2.0

-3.4

1.5

I
II
III
IV

-2.9
0.7
3.3
-1.0

1.5
2.2
6.4
3.5

4.6
1.6
3.0
4.6

-0.5
2.6
2.9
3.3

-5.6
-2.1
-0.9
-0.4

2.5
2.0
-0.4
4.3

2.2
5.4
1.5
1.6

2.4
2.9
0.1
3.6

14.7
2.1
30.7
-13.4

3.5
2.8
2.8
1.7

ANNUAL

r0.3

r2.6

2.3

2.1

-1.5

rl.8

r2.4

r2.0

r5.2

2.3

Percent: change from corresponding quarter of previous year
1936

1987

I
II
III
IV

2.6
1.8
0.7
1.5

4.1
2.7
1.5
2.1

1.4
0.8
0.8
0.6

4.3
3.9
3.3
3.0

1.2
2.2
1.6
1.7

1.6
2.0
2.6
1.5

1.8
1.0
3.8
2.1

1.7
1.7
2.9
1.6

-1.7
-2.1
-8.4
-0.8

1.3
1.4
1.7
1.4

ANNUAL

1.6

2.6

1.0

3.5

1.6

1.9

2.2

2.0

-3.4

1.5

I
II
III
IV

0.0
0.2
0.8
0.0

1.4
2.2
3.4
3.4

1.5
2.0
2.6
3.4

2.0
2.0
2.1
2.1

-0.2
-1.7
-2.0
-2.3

2.1
1.8
1.3
2.1

1.9
3.3
1.7
2.7

2.0
2.2
1.4
2.2

1.9
2.6
8.8
7.3

2.0
2.3
2.1
2.7

ANNUAL

r0.3

r2.6

2.3

2.1

-1.5

rl.8

r2.4

r2.0

r5.2

2.3

See footnotes following
r=revised

table 6.
May 2, 1988
Source: Bureau

of

Labor Statistics

- 12 -

SOURCE: Output data from 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 -2.0 and +2.0 index points. This interval is based on the
performance of this measure between the first quarter of 1976 and the second
quarter of 1987.
Footnotes, Tables 1*6
(1) Wages and salaries of the employees plus employers1 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 selfemployed.
(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) Quarterly manufacturing output, measures are based on the index of
industrial production prepared monthly by the Board of Governors of the
Federal Reserve adjusted by BLS to annual manufacturing output levels
(gross product originating) from the National Income and Product Accounts
prepared by the Bureau of Economic Analysis of the U.S. Department of
Commerce.
(7) 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.
(8) Total unit cost is the sum of labor and nonlabor costs.
(9) Unit profits include corporate profits with inventory valuation and
capital consumption adjustments.

*U.S. COVERNRCNT PRIMING OFFICEt 1988-202-106tB0076