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Bureau of Labor Statistics
United States
Department
of Labor
Washington, D.C. 20212
DEPOSITORY LIBRARY
Historical, technical
information: (2U2) 623-9261
Current data : (202) 523-1221 or 1208
Media contact: (202) 623-1913
"
USOL 89-267
Wire embargo until 10:00 AM EOT
Thursday, June 1, 1989
PRODUCTIVITY AND COSTS
First Quarter 1989
Business, Nonfarm Business, Manufacturing, and
Nonfinancial Corporations
The Bureau of Labor Statistics of the U.S. Department of Labor today
reported productivity results--as measured by output per hour of al 1
persons—for the first quarter of 1989. Based on revised information now
available, the seasonally-adjusted annual rates of productivity change in
the first quarter were:
1.7 percent in the business sector,
-1.1 percent in the nonfarm business sector,
2.1 percent in manufacturing,
1.6 percent in durable goods manufacturing, ; (i .
3.1 percent in nondurable goods manufacturing.
First-quarter measures are summarized in table A and appear in detail
in tables 1 through 5. In the business and manufacturing sectors, nroductivity rose more rapidly than in the previous quarter; these gains contributed to a less rapid growth of unit labor costs. In the nonfarm business
sector, the increase in unit labor costs was greater, partly reflecting
the decline in productivity.
In nonfinancial corporations, productivity fell 1.3 percent in the
first quarter, as output and hours rose 1.4 percent and 2.7 percent, respectively (tables B and 6).
For business and manufacturing, the revised productivity and output
measures show smaller increases than had been reported on May 3, based on
preliminary information then available (table D). For nonfarm business,
the revised productivity measure shows a decrease. The revisions mainly
reflect lowered measures of output growth during the first 3 months of
1989.
- 2-
Table A, Productivity and costs; First-quarter 1989 measures
(Seasonally adjusted annual rates)
Tear "
Hourly hourly Unit
compen- compen- labor
Productivity Output Hours sation sation costs
Sector
Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable
1.7
-1.1
2.1
1.6
3.1
5.1
2.2
2.8
1.8
4.4
3.4
3.4
0.7
0.3
1.3
5.4
5.4
4.1
4.4
3.6
0.0
0.0
-1.3
-0.9
-1.7
3.6
6.6
2.0
2.8
0,5
Percent change from same quarter a year ago
Business
Nonfarm business
Manufacturing
Durable
Nondurable
-0.3
-0.2
3.1
2.7
3.7
3.4
3.6
5.2
5.4
4.9
3 .7
3.8
2.0
2.6
1 .1
5.2
5.1
4.2
4.0
4.5
0.4
0.3
-0 .5
-0 .8
-0 .2
5.5
5.3
1.0
1.2
0.8
Business
Productivity increased at a 1.7 percent annual rate during the first
quarter of 1989 in the business sector, as output rose 5.1 percent and
hours of all persons engaged in the sector increased 3.4 percent (seasonally adjusted annual rates). The increase in productivity partly reflected a very large increase in farm productivity, which in turn resulted from
a substantial increase in output over the drought-lowered levels of 1988.
During the fourth quarter of 1988, business productivity had declined 1.0
perent, as output grew more slowly than hours (table 1).
Hourly compensation increased at a 5.4 percent annual rate during the
first quarter of 1989, compared with a 4.3 percent increase during the
fourth quarter of 1988. This measure includes wages and salaries, supplements, employer contributions to employee-benefit plans, and taxes. Unit
labor costs, which reflect changes in hourly compensation and productivity, increased at a 3.6 percent annual rate during the first quarter,
compared with a 5.4 percent increase one quarter earlier.
- 3Real hourly compensation, which takes into account changes in the
Consumer Price Index for All Urban Consumers (CPI-U), was unchanged in the
first quarter, compared with a 0.2 percent decline in the fourth quarter
of 1988.
The implicit price deflator for business output, which reflects
changes in unit labor costs and unit nonlabor payments, increased 3.6 percent in the first quarter.
Nonfarm business
Productivity declined 1.1 percent in the nonfarm business sector
during the first quarter of 1989, as output rose 2.2 percent and hours of
all persons --employees, proprietors, and unpaid family workers—
increased 3.4 percent. During the fourth quarter of 1988, productivity
had increased 1.0 percent (table 2).
Hourly compensation increased 5.4 percent in the first quarter, but
was unchanged when the rise in the CPI-U was taken into account. Unit
labor costs increased 6.6 percent, compared with a 4.1 percent rise during
the fourth quarter of 1988.
The implicit price deflator for the nonfarm business sector rose 3.2
percent in the first quarter, compared with a 6.0 percent rise one quarter
earlier.
Manufacturing
Manufacturing productivity increased more rapidly than in *he more
comprehensive business sectors reported above, growing at a 2,1 percent
seasonally adjusted annual rate in the first quarter of 1989. Output rose
2.8 percent and hours of all persons increased 0.7 percent. During the
fourth quarter of 1988, productivity rose 1.6 perent, but output and hours
rose much more rapidly~5.1 percent and 3.5 percent, respectively (table
3).
Hourly compensation of all manufacturing workers increased 4.1 percent during the first quarter, or -1.3 percent when the increase in
consumer prices was taken into account. Unit labor costs increased at a.
2.0 percent annual rate, compared with a 3.5 percent increase during
fourth quarter of 1988.
Both durable and nondurable goods industries experienced productivity
increases in the first quarter (tables 4 and 5). Productivity, output,
and hours of all persons increased more rapidly in nondurable than in durable goods manufacturing.
Nonfinancial corporations
Preliminary first-quarter 1989 measures of productivity and costs
also were announced today for nonflnancial corporations (tables B and 6).
Output per all-employee hour declined 1.3 percent from the fourth quarter
of 1988 to the first quarter of 1989, as output and -hours increased 1.4
percent and 2.1 percent, respectively, at annual rates. The sector includes all corporations doing business in the United States, except banks,
stock and commodity brokers, and finance and insurance agencies. Output
and hours grew less rapidly than in the more comprehensive nonfarm business sector reported above.
Table B. Nonfinancial corporations: Preliminary first-quarter
productivity and cost measures
Seasonally adjusted annual rates
Period
Productivity Output
Real
Hourly hourly
compen- compenHours sation sation
Implicit
Unit
price
1 abor Unit
costs profits deflator
1989 I
-1.3
Percent change from preceding quarter
1,4
2.7
5.2
-0.2
6.5 -27.8 3.0
1989 I
-0.9
2.8
Percent change from preceding year
3.7
4.9
0.1
5.8
-6.9 4.4
Hourly compensation increased 5.2 percent but declined 0.,2 percent
when the rise in the CPI-U was taken into account (table 6). Unit labor
costs rose 6.5 percent in the first quarter (the largest quarterly gain in
this series since 1982), unit nonlabor costs rose 6.8 percent (their
largest increase since 1986), and unit profits fell 27.8 percent (their
largest decline since 1982). The implicit deflator for nonfinancial corporate output rose 3.0 in the first quarter.
Table C shows indexes of the implicit price deflator for nonfinancial
corporate output and related series from 1977 forward. Changes in the
prices of goods and services produced by nonfinancial corporations reflect
changes in their costs and profits. Total unit costs consist of labor
costs and nonlabor costs per unit of output.
- 5-
Table C. Nonfinanclal corporations: Prices, costs, and profits
Index, 1977 = 100
Period
Implicit
price
deflator
Total
unit
costs
Unit
labor
costs
Unit
nonlabor Unit
profits
costs
1977
1978
1979
1980
1981
100.0
106.6
115.4
127.6
141.7
100.0
107.3
118.2
133.4
147.7
100.0
107.8
119.0
132.3
143.8
100.0
105.7
115.8
136.7
159.1
100.0
102.0
94.5
85.2
98.1
1982
1983
1984
1985
1986
149.8
153.7
157.9
160.4
163.2
159.5
159.5
160.8
164.1
167.3
153.8
154.5
156.5
160.2
163.6
176.4
174.3
173.6
175.8
178.4
78.5
110.9
136.5
133.0
132.4
1987
1988
165.8
169.9
170.6
175.0
166.6
171.1
182.5
186.5
130.8
132.2
1988 I
II
III
IV
166.9
168.8
170.8
172.9
171.5
173.8
176.4
178.3
167.5
170.0
172.6
174.4
183.4
185.1
187.8
189.6
132.5
132 •'"
129,' 5
133.9
1989 I
174.2
181.1
177.2
192.7
123.4
Revised measures
Previous and revised productivity and cost measures for the first
quarter are compared in table 0 for business, nonfarm business, and manufacturing. Business sector productivity and cost revisions are larger
than usual, reflecting a substantial revision in sector output measures-which are based on revised Gross National Product measures published by
the Bureau of Economic Analysis—and smaller changes in measures of labor
input.
- 6 -
TaMe D. Previous and revised productivity and related measures,
first-quarter 1989
Quarterly percent change at seasonally adjusted annual rate
Sector
Productivity
Output
Hours
Real
Hourly hourly
compen- compensation sation
Business:
Previous
Revised
3.5
1.7
6v7
5.1
3.1
3,4
5.7
5.4
0.3
0.0
2.1
3.6
Nonfarm business:
^reviolus
0.5
Revised
-1.1
3.6
2.2
3.1
3.4
5.7
5.4
0.3
0.0
5.2
6.6
Manufacturing:
Previous
3.8
Revised
2.1
4.6
2.8
0.8
0.7
4.1
4.1
-1.2
-1.3
Unit
Tabor
costs
0.4
2.0
Next release date
The next Issue of Productivity and Costs 1s scheduled for release at
10:00 AM EOT, Thursday, August 3. 1989,and will contain second-quarter
measures for business, nonfarm business, and manufacturing.
NOTE: Beginning In August, the hours measures used 1n the productivity
and oust series will be hours at work rather than hours paid. Until this
time, hours paid have been used. The difference between hours paid and
hours at work 1s paid leave. The new = series will reflect more precisely
labor Inputs to the production of goods and services.
TECHNICAL NOTES
Business sector output is equal to gross national product in constant 1982
dollars, less the rest-of-the-world 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 81 percent of gross national product in
1988
The nonfarm business, sector, which also excludes farming, accounted for
about 79 percent of gross national product in 1988.
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: Texti1"
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 n . " i o n , ;
product in .1988.
Nonfinancial corporate output is equal to gross national prfvM»ct 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
60 percent of gross national product in 1988.
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.
_ r\ .
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(3)
Implicit
price
<leflator(4)
Indexes 1977=100
I
11
III
IV
1989
112.8
111.8
112.3
112.0
138.0
138.8
139.8
140.9
122.3
124.1
124.5
125.8
195.8
198.1
201.1
203.2
101.9
102.0
102.4
102.3
173.5
177.1
179.0
161.4
170.0
170.4
172.7
174.6
172.3
174J7
176.8
179.0
ANNUAL
1988;
112.2
139.4
124.3
199.4
102.1
177.8
172.0
175.7
112. 5r
142. 7r
126.8
205. 9r
102. 3r
183. Or
176. lr
180. 5r
I
Percent change from previous quarter at annual rate(5)
1988
ANNUAL
1989
I
II
III
IV
I
1.7
-1.0
5.5
2.4
2.8
3.3
1.9
6.0
1.1
4.3
3.7
4.8
6.2
4.3
0.0
0.3
1.4
-0.2
0.2
8.5
4.4
5.4
2.5
1.0
5.3
4.7
1.0
5.8
4.7
5.1
1.1
4.6
3.5
4.8
0.6
3.7
1.9
3.1
1.7r
5.1r
3.4r
5.4r
O.Or
3.6r
3.4r
3.6r
3.5
-3.4
Percent change from corresponding quarter of previous year
1989
I
11
III
IV
2.7
1.1
0.6
0.2
5.8
5.0
4.1
3.5
3.0
3.9
3.5
3.3
4.5
4.8
5.2
4.7-
0.5
0.9
1.0
0.4
1.8
3.7
4.6
4.6
2.7
1.0
0.7
3.4
2.1
2.7
3.2
4.1
ANNUAL
1988
1.1
4.6
3.5
4.8
0.6
3.7
1.9
3.1
-0.3r
3.4r
3.7r
5.2
0.4
5.5r
3.6r
4.8r
I
See footnotes following table 6.
r s revised
June 1, 1989
Source: Bureau of Labor Statistics
_ o Table 2. Nonfarm business sector: Productivity, hourly compensation, unit labor cost, and prices, seasonally adjusted
Year and
quarter
Output per
hour
of all persons
Real
compensation per
hour(2)
Unit
labor
cost
194.6
196.6
199.4
201.9
101.3
101.3
101.5
101.7
175.7
178.6
180.2
182.0
171.6
171.8
173.9
177.9
174.2
176.2
178.0
180.6
126.6
198.0
101.4
179.1
173.9
177.3
129. 2r
204. 6 r
101. IT
185. Or
176. 6r
182.0
Output
Hours
of all
persons
IV
110.8
110.1
110.7
110.9
137.9
139.2
140.5
142.1
124.4
126.4
126.9
128.1
ANNUAL
110.6
139.9
110. 6r
142. 9r
Compensation per
hour(l)
Unit nonlabor payments{3)
Imp! icit
price
deflator(4)
Indexes 1977=100
1988
1989
I
II
III
I
Percent change from previous quarter at annual rate{5)
4.1
1.6
0.7
4.8
9.6
0.6
4.7
4.1
6.0
0.4
3.1
2.1
2.8
1989
Q.Or
6.6r
-3. Or
3.2r
I
II
III
IV
3.4
-2.4
2.0
1.0
5.6
4.0
3.5
4.8
2.1
6.6
1.5
3.7
3.5
4.2
5.7
5.2
-O.I
-0.3
0.9
0.7
0.1
6.8
3.7
ANNUAL
1988
1.5
5.2
3.7
4.6
-l.lr
2.2r
3.4r
5.4r
I
Percent change from corresponding quarter of previous year
3.8
3.5
4.4
4.6
5.0
4.7
0.4
0.7
0.8
0.3
1.6
3.2
4.0
3.6
2.6
1.2
0.5
4.1
1.9
2.5
2.8
3. a
5.2
3.7
4.6
0.4
3.1
2.1
2.8
1989
3.6r
3.8r
5.1r
0.3r
5.3r
2.9r
4.5
I
II
III
IV
2.R
1.4
1.0
1.0
6.0
5.6
4.7
4.5
3.1
ANNUAL
1988
1.5
I
-0.2r
See footnotes following table 6,
r-revised
4.1
June 1, 1989
.Source: Bureau of Labcn S t a t i s t i c s
- 10 -
Table 3. Manufacturing sector: Productivity, hourly compensation, and unit labor cost,
seasonally adjusted
Year and
quarter
Output per
hour
of al 1 persons
Output
(6)
Hours
of all
persons
Compensation per
hour(l)
Real
compensation per
hour(2)
Unit
labor
cost
Indexes 1977=100
1989
I
II
III
IV
135.5
137.2
137.8
135.0
136; 9
139.3
141.1
100.6
101.1
101.5
102.4
190.7
192.1
194.4
196.8
99.3
99.0
99.0
99.1
142.1
141.8
141:6
142.9
ANNUAL
1988
136.2
138.1
101.4
193.5
99.1
142.1
138. 5r
142. Or
102.6
198.8
98.8
143.6r
I
134.3
Percent change from previous quarter at annual rate(5)
1988
3.2
3.7
5.2
1.6
4.6
5.8
7.1
5.1
1.3
2.0
5.4
3.0
1.8
3.5
ANNUAL
1989
I
II
III
IV
3.2
6.1
2.1r
2.8r
I
2.2
4.8
5.1
1.8
-1.5
00
.
0.6
-0.7
-0.5
3.5
2.8
3.5
-0.6
0.3
0.7r
4.1
-1.3r
2.0r
-0.7
0.3
0.5
1.1
Percent change from corresponding quarter of previous year
1989
I
II
III
IV
3.3
2.8
3.3
3.4
6.2
6.4
6.2
5.6
2.8
3.4
2.8
2.2
3.8
4.6
-1.3
-0.7
-0.3
0.2
ANNUAL
1988
3.2
6.1
2.8
3.5
-0.6
0.3
I
3.1r
5.2r
2.0
4.2
-0.5
l.Or
See footnotes following table 6.
r-revised
2.6
3.2
June 1, 1989
Source: Bureau of Labor Statistics
- 11 Table 4. Durable manufacturing sector: Productivity, hourly compensation, and unit labor
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)
cost
Unit
labor
cost
Indexes 1977=100
I
II
III
IV
1988
ANNUAL
I
1989
141.3
142.7
144.2
144.6
141.3
144.0
146.4
148.3
100.0
100.9
101.5
102.6
189.5
190.1
192.3
194.8
98.7
97.9
97.9
98.1
134.1
133.3
143.2
145.0
101.3
191.7
98.2
133.9
145. 2r
149. Or
102.6r
196. 9r
97.9
135. 7r
3.2
-2.3
0.5
4.0
133.4
134.7
Percent change from previous quarter at annual rate(5)
I
II
III
IV
3.8
3.8
4.3
1.2
4.3
7.7
6.8
5.3
0.4
3.8
2.4
4.1
4.7
5.3
3.4
-3.0
0.0
0.8
ANNUAL
3.4
6.6
3.1
3.5
-0.6
0.1
1.6r
1.8r
0.3r
4.4r
-0.9
2.8r
1988
I
1989
Percent change from corresponding
7.1
1.4
quarter of previous year
I
II
III
IV
3.4
3.3
3.6
3.3
6.0
7.3
7.2
6.0
2.5
3.8
3.4
2.7
2.5
3.1
3.8
4.6
-1.4
-0.8
ANNUAL
3.4
6.6
3.1
3.5
-0.6
0.1
2.7r
5.4r
2.6r
4.0
-0.8
1.2r
1988
1989
I
See footnotes following table 6.
r=revised
-0.3
0,3
-0.9
-0.2
0.1
1.3
June 1, 1989
Source: Bureau of Labor Statistics
- 12 -
Table 5. Nondurable manufacturing sector: Productivity, hourly compensation, ana unit labor cost,
seasonally adjusted
Year and
quarter
Output per
hour
of all persons
Output
(6)
Hours
of all
persons
Compensatlon per
hour(l)
Real
compensatlon per
hour(2)
Unit
labor
cost
Indexes 1977-100
130.3
101.4
101.3
101.5
102.2
193.2
195.7
197.9
200.2
100.6
100.8
100.8
100.8
156.0
156.8
156.0
157.0
125.8
127.8
101.6
196.8
100.8
156.5
1989
128.5r
131. 7r
102.5
202.0
100.4
157. 2r
I
II
III
IV
123.9
124.8
126.9
127.5
125.6
126.4
128.8
ANNUAL
1988
I
Percent change from previous quarter at annual rate (5)
4.8
2.7
-0.5
0.9
2.7
2.9
5.2
4.6
4.7
-0.7
0.6
-0.1
0.2
0.6
2.0
-2.0
2.6
2.9
5.2
2.3
3.5
-0.6
0.7
3.1T
4.4r
1.3r
3.6r
-1.7
0.5r
2.3
1989
I
II
III
IV
3.2
6.8
2.0
ANNUAL
1988
I
5.1
2.7
7.7
Percent change from corresponding quarter of previous year
1989
I
II
III
IV
2.0
2.7
3.5
6.4
4.9
4.6
5.0
3.2
2.9
1.8
1.4
2.8
3.2
3.7
4.3
-1.1
-0.7
-0.4
0.0
-0.3
1.1
1.0
0.8
ANNUAL
1988
2.9
5.2
2.3
3.5
-0.6
0.7
I
3.7r
4.9r
1.1
4.5
-0.2
0.8r
3.1
See footnotes following table 6.
r«rev1sed
June 1, 1989
Source: Bureau of Labor Statistics
- 13 Table 6. Nonfinancia! corporations: Productivity, hourly compensation, unit labor cost, unit profits,
and prices, seasonally adjusted
Year
and
quarter
Output
per allemployee
hour
Output
Employee Hourly
Real
hours compensa- hourly
tion
compen(1)
sation{2)
Unit
labor
cost
Unit
nonlabor
cost (7)
Total
unit
cost
(8)
Unit
profits
(9)
Implicit
price
deflator
(4)
Indexes 1977=100
I
II
III
IV
113.3
112.9
112.7
112.7
140.1
141.2
142.0
143.6
123.6
125.0
126.1
127.4
189.9
191.9
194.5
196.6
98.9
98.8
99.0
99.0
167.5
170.0
172.6
174.4
183.4
185.1
187.8
189.6
171.5
173.8
176.4
178.3
132.5
132.6
129.6
133.9
166.9
168.8
170.8
172.9
ANNUAL
112.8
141.7
125.6
193.1
98.9
171.1
186.5
175.0
132.2
169.9
112.4.
144.1
128.2
199.1
99.0
177.2
192.7
181.1
123.4
174.2
1988
1989
I
Percent change from previous quarter at annual rate(5)
I
II
III
IV
4.3
-1.6
-0.8
0.2
7.2
3.0
2.5
4.5
2.8
4.7
3.3
4.2
3.0
4.2
5.5
4.6
-0.6
-0.3
0.8
0.1
-1.2
5,9
6,4
4.3
-0,3
3.7
6.1
3,8
-1.0
5.3
6.3
4.2
13.8
0.3
-8.9
14.1
0.3
4.8
4.8
5.0
ANNUAL
1.3
5.3
3.9
4.1
0.0
2.7
2.2
2.6
1.1
2.5
I
-1.3
1.4
2.7
5.2
-0.2
6.5
6.8
6.6
1988
1989
-27.8
3.0
Percent change from corresponding quarter of previous year
1988
IV
3.0
1.8
0.4
0.5
6.7
5.9
4.3
4.3
3.6
4.1
3.9
3.7
3.8
4.1
4.5
4.3
-0.2
0.2
0.3
0.0
0.8
2.3
4.0
3.8
1.5
1.4
2.7
3.3
ANNUAL
1.3
5.3
3.9
4.1
O.Q
2.7
2.8
3.7
4.9
0.1
5.8
I
II
III
1989
I
-0.9
See footnotes following table 6.
r=revised
1.0
2.1
3.7
3.7
3.1
2.2
-5.0
4.3
1,2
2.1
2.8
3,7
2.2
2.6
1.1
2.5
5.1
5.6
-6.9
4.4
June 1, 1989
Source: Bureau of Labor Statistics
^ ll* 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 1!n1t1al
value by between -1.8 and +2.1 Index points. This Interval 1s based ^)n the
performance of this measure between the first quarter of 1976 and the 'second
quarter of 1988.
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 1n the Consumer Price Ind^x 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 1nd^x of
Industrial production prepared' monthly by the Board of Governors 6f 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 1s 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.
@FedFRASER