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Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 96-76 TRANSMISSION OF THIS MATERIAL IS EMBARGOED UNTIL 10:00 A.M. EST WEDNESDAY, MARCH 6, 1996. PRODUCTIVITY AND COSTS Preliminary Fourth-Quarter Measures and Annual Averages, 1995 The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary fourth-quarter seasonally adjusted annual rates of change in productivity--as measured by output per hour of all persons--and changes for the full year 1995. In the fourth quarter, productivity was unchanged in the business sector as output and hours worked both rose a moderate 1.2 percent. In the nonfarm business sector, productivity dropped as hours rose 1.6 percent, somewhat more than the 1.1 percent increase in output. Percent changes in business and nonfarm business productivity were: Fourth quarter Business sector ........... Nonfarm business sector ... 0.0 -0.5 Annual averages 1994-1995 0.9 1.1 For the year 1995, productivity showed modest improvements over 1994 levels in both the business and nonfarm business sectors. Fourth-quarter productivity and related measures are summarized in table A and appear in detail in tables 1 through 5. Annual data are summarized in table B. -----------------------------------------------------------------------------NOTE: On February 8, 1996, BLS switched to annual-weighted output indexes for computations underlying its regular Productivity and Costs news releases. In addition, the base year for the indexes was changed to 1992=100. Information on these changes can be obtained by calling the Division of Productivity Research, Office of Productivity and Technology, at 202--606-5606. ------------------------------------------------------------------------------ 2 -----------------------------------------------------------------------------Table A. Productivity and costs: Preliminary fourth-quarter 1995 measures (Seasonally adjusted annual rates) -----------------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compen- labor Sector tivity Output Hours sation sation costs -----------------------------------------------------------------------------Percent change from preceding quarter Business Nonfarm business Manufacturing Durable Nondurable 0.0 -0.5 2.7 3.8 1.4 1.2 1.1 1.3 3.6 -1.6 1.2 1.6 -1.4 -0.2 -3.0 3.3 3.0 2.3 1.2 3.9 0.9 0.6 -0.1 -1.2 1.5 3.3 3.5 -0.4 -2.5 2.5 -----------------------------------------------------------------------------Percent change from same quarter a year ago Business 0.7 1.6 0.9 4.1 1.4 3.4 Nonfarm business 0.8 1.8 1.0 4.1 1.4 3.3 Manufacturing 3.6 1.4 -2.2 3.0 0.3 -0.7 Durable 4.4 3.4 -1.0 2.2 -0.4 -2.1 Nondurable 3.0 -1.0 -3.8 3.9 1.2 0.9 ------------------------------------------------------------------------------ In the manufacturing sector, increases in productivity were: Fourth Annual averages quarter 1994-1995 Manufacturing sector ...... 2.7 Durable goods manufacturing 3.8 Nondurable goods manufacturing 1.4 3.7 4.5 2.9 Manufacturing productivity grew at a 2.7 percent annual rate in the fourth quarter as output increased 1.3 percent and hours of all persons fell 1.4 percent. Productivity grew faster in durable goods manufacturing than in nondurable goods manufacturing (table A). On an annual basis, manufacturing productivity increased 3.7 percent, slightly less than the 4.2 percent gain registered in 1994. (Output and hours in manufacturing, which includes about 19 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the more aggregate business and nonfarm business sectors.) 3 The data sources and methods used in the preparation of the manufacturing series differ from those used in preparing the business and nonfarm business series, and these measures are not directly comparable. 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 8). THIRD-TO-FOURTH QUARTER CHANGES, 1995 Business Productivity was unchanged in the fourth quarter of 1995 as both output and hours of all persons engaged in the sector rose 1.2 percent. In the third quarter, productivity had risen 1.6 percent (as revised), as output grew 4.4 percent and hours 2.8 percent (seasonally adjusted annual rates). Hourly compensation increased at a 3.3 percent annual rate in the fourth quarter of 1995, following 4.3 percent growth during the third quarter. 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 3.3 percent annual rate during the fourth quarter, up from the 2.7 percent increase one quarter earlier. Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), rose at a 0.9 percent annual rate for persons in the business sector. This measure had risen 2.3 percent during the third quarter. The implicit price deflator for business output, which reflects changes in unit labor costs and unit nonlabor payments, increased at an annual rate of 0.9 percent in the fourth quarter, the smallest increase since a 0.6 percent rise in the first quarter of 1967. In the third quarter, prices of the goods and services which comprise business output had increased at a 2.1 percent annual rate. Nonfarm business In the nonfarm business sector, productivity fell 0.5 percent in the fourth quarter, as output rose 1.1 percent and hours of all persons--employees, proprietors, and unpaid family workers--rose 1.6 percent (seasonally adjusted annual rates). During the third quarter, nonfarm productivity had increased at a 1.7 percent annual rate, as output grew 4.7 percent and hours increased 2.9 percent (table 2). Hourly compensation rose 3.0 percent in the fourth quarter, and real hourly compensation increased 0.6 percent when the increase in the CPI-U was taken into account. During the third quarter, hourly compensation had increased by 4.3 percent, and real hourly compensation had risen 2.2 percent. Unit labor costs increased 3.5 percent in the fourth quarter, compared with 2.5 percent in the previous quarter. 4 The implicit price deflator for nonfarm business output rose 0.9 percent in the fourth quarter, down from the 1.8 percent increase posted in the third quarter. The 0.9 percent increase recorded in the fourth quarter of 1995 was the smallest increase since a similar one in the first quarter of 1966. Manufacturing Manufacturing productivity grew at a 2.7 percent seasonally adjusted annual rate in the fourth quarter of 1995, compared with a 5.7 percent increase in the third quarter (table 3). Output rose 1.3 percent in the fourth quarter, and hours of all persons fell 1.4 percent. In the third quarter, output had risen 2.6 percent, and hours fell 2.9 percent. Both durable and nondurable goods industries experienced productivity increases in the fourth quarter, 3.8 and 1.4 percent, respectively. The increase in durable manufacturing productivity was the result of a 3.6 percent increase in output combined with a 0.2 percent drop in hours. In nondurable manufacturing, output fell 1.6 percent, and hours dropped 3.0 percent (tables 4 and 5). Hourly compensation of all manufacturing workers increased 2.3 percent in the fourth quarter, resulting in a drop of 0.1 percent when the increase in consumer prices was taken into account. Unit labor costs fell 0.4 percent in the fourth quarter. These costs have now fallen in every quarter since the third quarter of 1994 (when they rose 0.6 percent) and have decreased in eight of the last nine quarters. ANNUAL AVERAGE CHANGES, 1994-1995 Business Business productivity increased 0.9 percent when the annual average for 1995 is compared with the annual average for 1994 (table B). This increase was the largest since a 3.4 percent increase was posted in 1992. Output grew 2.5 percent in 1995, and hours of all persons engaged in the business sector increased 1.6 percent. In 1994, business sector productivity had grown 0.7 percent as output increased 4.2 percent and hours increased 3.4 percent. Hourly compensation increased 3.5 percent in 1995, compared with an increase of 2.2 percent in 1994. Real hourly compensation increased 0.6 percent in 1995 after falling 0.4 percent in both 1993 and 1994. Unit labor costs rose 2.5 percent in 1995, compared with a 1.4 percent increase in the previous year. The implicit price deflator rose 2.2 percent in both 1994 and 1995. Nonfarm business Productivity increased 1.1 percent in the nonfarm business sector during 1995, as output rose 2.7 percent and hours of all persons increased 1.6 percent. As in the larger business sector, the 1995 productivity increase was the largest since 1992 (when it increased 3.2 percent). In 1994, productivity had risen 0.5 percent, as output and hours rose 4.0 and 3.4 percent, respectively. 5 -----------------------------------------------------------------------------Table B. Annual changes in productivity and related measures, 1986-1995 -----------------------------------------------------------------------------Measure 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 -----------------------------------------------------------------------------Business: Productivity ... 2.6 -0.1 0.5 0.8 0.8 0.5 3.4 0.2 0.7 0.9 0utput ......... 3.2 2.9 3.8 3.4 0.9 -1.8 3.2 2.6 4.2 2.5 Hours .......... 0.6 3.0 3.3 2.5 0.1 -2.3 -0.3 2.4 3.4 1.6 Hourly comp. 5.2 3.9 4.5 2.8 5.8 4.8 5.2 2.6 2.2 3.5 Real hourly comp. 3.3 0.2 0.4 -1.9 0.4 0.5 2.1 -0.4 -0.4 0.6 Unit labor costs 2.6 4.0 4.0 1.9 4.9 4.2 1.7 2.4 1.4 2.5 -----------------------------------------------------------------------------Nonfarm Business: Productivity ... 2.7 -0.2 0.6 0.5 0.5 0.7 3.2 0.2 0.5 1.1 Output ......... 3.4 3.0 4.1 3.2 0.7 -1.8 3.0 2.9 4.0 2.7 Hours .......... 0.7 3.2 3.5 2.6 0.2 -2.4 -0.2 2.7 3.4 1.6 Hourly comp. 5.2 3.7 4.3 2.7 5.5 4.9 5.2 2.3 2.2 3.6 Real hourly comp. 3.3 0.1 0.1 -2.1 0.1 0.7 2.1 -0.7 -0.4 0.7 Unit labor costs 2.5 4.0 3.7 2.1 5.0 4.3 1.9 2.1 1.6 2.5 -----------------------------------------------------------------------------Manufacturing: Productivity ... 4.5 2.7 1.3 1.8 1.8 2.5 3.6 2.1 4.2 3.7 Output ......... 3.0 3.4 4.2 2.1 -0.4 -1.7 3.0 3.5 6.5 3.5 Hours .......... -1.5 0.7 2.9 0.4 -2.2 -4.1 -0.6 1.4 2.2 -0.1 Hourly comp. 4.5 2.8 3.9 3.3 4.8 5.2 4.5 2.4 2.8 3.1 Real hourly comp. 2.6 -0.8 -0.3 -1.5 -0.5 1.0 1.5 -0.6 0.3 0.2 Unit labor costs 0.0 0.1 2.6 1.5 3.0 2.7 0.9 0.3 -1.3 -0.6 ------------------------------------------------------------------------------ Hourly compensation rose 3.6 percent in 1995 following a 2.2 percent increase in 1994. Real hourly compensation increased 0.7 percent in 1995, compared with a 0.4 percent drop in 1994. Unit labor costs in the nonfarm business sector grew 2.5 percent in 1995. In 1994, unit labor costs had increased 1.6 percent. Manufacturing Manufacturing productivity grew 3.7 percent in 1995, as output rose 3.5 percent and hours of all persons dropped 0.1 percent. Output per hour of all persons in manufacturing has now posted an increase in every year since 1979 (when it fell 0.6 percent). In durable goods manufacturing, productivity increased 4.5 percent in 1995 as output rose 5.5 percent and hours of all persons rose 0.9 percent. Productivity growth in nondurable goods manufacturing in 1995 was 2.9 percent, reflecting a modest increase in output of 1.2 percent and a decline in hours worked of 1.6 percent (table B). During 1994, total manufacturing productivity had risen 4.2 percent as output grew 6.5 percent and hours increased 2.2 percent. 6 Hourly compensation of manufacturing workers increased 3.1 percent during 1995, or a gain of 0.2 percent when the increase in consumer prices is taken into account. Gains in hourly compensation in nondurable goods manufacturing, 3.8 percent, were higher than those posted in durable goods manufacturing, 2.5 percent. As a result, real hourly compensation in durable goods industries fell off slightly, 0.3 percent, while rising 0.9 percent in nondurable goods industries. Unit labor costs in manufacturing fell 0.6 percent in 1995. In 1994, unit labor costs had fallen 1.3 percent, reflecting both faster productivity growth and a smaller gain in compensation per hour than in 1995. Revised Measures Current and previous measures for the third quarter of 1995 for the business, nonfarm business, and manufacturing sectors are compared in table C. Productivity, output, and hourly compensation measures in the business and nonfarm business sectors are higher than those published on February 8, based on the information then available. Measures of real hourly compensation were revised for all sectors to reflect revisions to the Consumer Price Index for All Urban Consumers. These revisions to the CPI, which reflect updated seasonal adjustment factors, were released February 26. Measures for 1991 forward were affected. ---------------------------------------------------------------------------Table C. Previous and revised productivity and related measures Quarterly percent changes at seasonally adjusted annual rates ---------------------------------------------------------------------------Real Hourly hourly Unit Produccompen- compen- labor Sector tivity Output Hours sation sation costs ---------------------------------------------------------------------------Third quarter 1995 Business: Previous . . . . . . . . . 1.2 4.1 2.8 3.9 1.9 2.7 Current . . . . . . . . . . 1.6 4.4 2.8 4.3 2.3 2.7 Nonfarm business: Previous . . . . . . . . . Current . . . . . . . . . . 1.4 1.7 4.4 4.7 2.9 2.9 3.9 4.3 1.8 2.2 2.4 2.5 Manufacturing: Previous. . . . . . . . . 5.7 2.6 -2.9 4.0 1.9 -1.6 Current . . . . . . . . . . 5.7 2.6 -2.9 4.0 1.9 -1.6 ---------------------------------------------------------------------------- 7 Revised measures: Nonfinancial Corporations Productivity and cost measures for the third quarter for nonfinancial corporations, which were revised to incorporate the most recent information, were generally the same as the preliminary results announced on February 8, 1996. Unit profits grew at an annual rate of 41.4 percent compared with the preliminary estimate of 40.9 percent (table C). -----------------------------------------------------------------------------Table D. Nonfinancial corporations: Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rates -----------------------------------------------------------------------------Real Hourly hourly Unit Implicit Produccompen- compen- labor Unit price Period tivity Output Hours sation sation costs profits deflator -----------------------------------------------------------------------------Third quarter 1995: Previous 5.7 7.8 2.0 4.1 2.0 -1.5 40.9 1.1 Current 5.7 7.8 2.0 4.1 2.0 -1.5 41.4 1.1 ------------------------------------------------------------------------------ Next release date The next release of Productivity and Costs is scheduled for 10:00 A.M. EDT, Wednesday, April 10, 1996. Revised fourth-quarter measures for business, nonfarm business, and manufacturing will be released at that time. First quarter measures for business, nonfarm business and manufacturing are scheduled to be released on Thursday, May 16, 1996. 8 TECHNICAL NOTES Labor Hours: The primary source of hours and employment data is the BLS Current Employment Statistics (CES) program, which provides monthly survey data on total employment and average weekly paid hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly paid hours are adjusted to hours at work using the BLS Hours at Work survey, conducted for this purpose. Data from the BLS Current Population Survey (CPS) are used for farm labor; in the nonfarm sector, the National Income and Product Accounts (NIPA) prepared by the Bureau of Economic Analysis (BEA) of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors, and unpaid family workers. Output: Business sector output is an annual-weighted index constructed after excluding from gross domestic product (GDP) the following outputs: General government, nonprofit institutions, paid employees of private households, and the rental value of owner-occupied dwellings. Corresponding exclusions also are made in labor inputs. Business output accounted for about 76 percent of the value of GDP in 1992. Nonfarm business, which also excludes farming, accounted for about 75 percent of GDP in 1992. Annual manufacturing indexes are constructed by deflating current-dollar industry value of production data from the U.S. Bureau of the Census with deflators from the BEA. 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 index 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. Durables include the following 2-digit SIC industries: Primary metal industries; fabricated metal products; nonelectrical machinery; industrial and commercial machinery and computer equipment; electronic and other electrical equipment; transportation equipment; instruments; lumber and lumber products; furniture and fixtures; stone, clay, and glass and concrete products; and miscellaneous manufactures. Nondurables include: Food and kindred products, tobacco products, textile mill products, apparel products, paper and allied products, printing and publishing, chemicals and chemical products, petroleum refining and related industries, rubber and plastic products, and leather and leather products. Nonfinancial corporate output is an annual-weighted index constructed by excluding from GDP the following outputs: General government; nonprofit institutions; employees of private households; the rental value of owner-occupied dwellings; unincorporated business; and those corporations which are depository institutions, nondepository institutions, security and commodity brokers, insurance carriers, regulated investment offices, small business investment offices, and real estate investment trusts. Nonfinancial corporations accounted for about 52 percent of the value of GDP in 1992. 9 Productivity: These productivity measures describe the relationship between real output 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 at work 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; managerial skill; and the characteristics and effort of the work force. Information in this release will be made available to sensory-impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; 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 CompensacompensaUnit Unit nonImplicit 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 1992=100 1993 1994 1995 I II III IV 100.2 99.8 100.1 100.8 101.4 102.0 102.8 104.3 101.3 102.2 102.6 103.5 101.6 102.5 103.0 103.3 99.6 99.7 99.8 99.2 101.4 102.6 102.9 102.5 102.2 101.8 102.4 104.9 101.7 102.3 102.7 103.3 ANNUAL 100.2 102.6 102.4 102.6 99.6 102.4 102.8 102.5 I II III IV 100.3 100.7 101.4 101.5 104.8 106.5 107.6 108.7 104.5 105.8 106.2 107.1 104.2 104.5 104.9 105.7 99.6 99.3 98.8 r98.9 103.8 103.9 103.5 104.1 104.1 105.4 107.9 108.3 103.9 104.4 105.1 105.6 ANNUAL 101.0 106.9 105.9 104.8 99.2 103.8 106.5 104.8 I II III IV 101.1 101.9 r102.3 102.3 108.8 108.9 r110.1 110.5 107.6 106.9 107.7 108.0 106.6 108.0 r109.2 110.1 r99.1 99.6 r100.1 100.4 105.4 106.0 106.8 107.6 108.0 108.4 r108.7 107.8 106.3 106.9 r107.4 107.7 ANNUAL 101.9 109.6 107.6 108.5 99.9 106.5 108.2 107.1 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 1995 I II III IV -3.7 -1.3 1.3 2.7 -1.1 2.2 3.0 6.3 2.6 3.6 1.7 3.5 1.6 3.4 2.2 1.1 r-1.3 r0.4 r0.3 r-2.0 5.4 4.8 0.9 -1.6 -0.1 -1.5 2.2 10.1 3.4 2.5 1.4 2.4 ANNUAL 0.2 2.6 2.4 2.6 -0.4 2.4 2.8 2.5 I II III IV -1.9 1.4 2.8 0.7 1.8 6.7 4.1 4.0 3.7 5.3 1.3 3.3 3.4 1.5 1.5 2.9 r1.4 -1.0 r-2.2 0.7 5.4 0.1 -1.3 2.3 -2.8 4.9 10.0 1.5 2.4 1.8 2.6 2.0 ANNUAL 0.7 4.2 3.4 2.2 -0.4 1.4 3.5 2.2 I II III IV -1.6 3.0 r1.6 0.0 0.6 0.3 r4.4 1.2 2.2 -2.5 2.8 1.2 3.4 5.6 r4.3 3.3 r0.5 2.1 r2.3 0.9 5.0 2.5 2.7 3.3 -1.0 1.2 r1.1 -3.3 2.8 2.1 r2.1 0.9 ANNUAL 0.9 2.5 1.6 3.5 0.6 2.5 1.6 2.2 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 0.9 -0.1 0.4 -0.3 2.6 2.4 3.0 2.6 1.8 2.5 2.5 2.9 3.0 3.0 2.3 2.0 r-0.2 r-0.1 -0.5 -0.7 2.2 3.1 1.9 2.3 3.0 1.8 3.8 2.6 2.5 2.6 2.6 2.4 ANNUAL 0.2 2.6 2.4 2.6 -0.4 2.4 2.8 2.5 I II III IV 0.2 0.8 1.2 0.7 3.3 4.4 4.7 4.2 3.1 3.6 3.5 3.4 2.5 2.0 1.9 2.3 0.0 -0.4 -1.0 -0.3 2.3 1.2 0.6 1.6 1.9 3.5 5.4 3.3 2.2 2.0 2.3 2.2 ANNUAL 0.7 4.2 3.4 2.2 -0.4 1.4 3.5 2.2 I II III IV 0.8 1.2 r0.9 0.7 3.8 2.3 r2.3 1.6 3.0 1.1 1.4 0.9 2.3 3.3 r4.1 4.1 -0.5 0.3 r1.4 1.4 1.5 2.1 3.1 3.4 3.8 2.9 r0.7 -0.5 2.3 2.4 r2.3 2.0 ANNUAL 0.9 2.5 1.6 3.5 0.6 2.5 1.6 2.2 --------------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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 CompensacompensaUnit Unit nonImplicit 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 1992=100 1993 1994 1995 I II III IV 100.1 99.7 100.2 100.6 101.6 102.2 103.2 104.6 101.5 102.5 103.0 103.9 101.4 102.1 102.6 102.9 99.4 99.3 99.4 98.9 101.3 102.4 102.4 102.3 102.8 102.2 103.1 105.3 101.8 102.4 102.7 103.3 ANNUAL 100.2 102.9 102.7 102.3 99.3 102.1 103.4 102.5 I II III IV 100.0 100.4 101.1 101.3 104.8 106.6 107.7 108.8 104.8 106.1 106.5 107.4 103.7 104.3 104.6 105.4 r99.2 r99.1 r98.4 98.7 103.7 103.8 103.4 104.1 104.3 105.8 108.6 108.9 103.9 104.5 105.3 105.7 ANNUAL 100.7 106.9 106.2 104.5 98.9 103.8 106.9 104.9 I II III IV 101.0 101.8 r102.2 102.1 109.0 109.1 r110.4 110.7 107.9 107.2 108.0 108.4 106.4 107.8 r108.9 109.7 98.9 r99.4 r99.9 100.1 105.3 105.9 r106.6 107.5 108.7 109.0 r109.2 108.1 106.5 107.0 r107.5 107.7 ANNUAL 101.8 109.8 107.9 108.2 99.6 106.3 108.8 107.2 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 1995 I II III IV -3.9 -1.7 2.1 1.6 -0.9 2.4 4.1 5.3 3.1 4.2 2.0 3.6 1.0 2.7 2.0 1.1 r-1.9 r-0.2 r0.1 r-2.0 5.1 4.5 -0.1 -0.5 1.5 -2.3 3.7 8.6 3.8 2.1 1.2 2.6 ANNUAL 0.2 2.9 2.7 2.3 -0.7 2.1 3.4 2.5 I II III IV -2.5 1.9 2.6 0.9 0.9 6.8 4.2 4.2 3.5 4.8 1.6 3.3 3.3 2.1 1.2 3.3 r1.2 -0.4 r-2.5 1.0 5.9 0.2 -1.4 2.4 -3.6 6.0 11.0 0.9 2.5 2.2 2.9 1.8 ANNUAL 0.5 4.0 3.4 2.2 -0.4 1.6 3.5 2.3 I II III IV -1.1 3.0 r1.7 -0.5 0.8 0.5 r4.7 1.1 1.9 -2.4 2.9 1.6 3.7 5.4 r4.3 3.0 r0.8 2.0 r2.2 0.6 4.9 2.3 r2.5 3.5 -0.5 1.1 r0.7 -3.9 2.9 1.9 r1.8 0.9 ANNUAL 1.1 2.7 1.6 3.6 0.7 2.5 1.7 2.2 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 0.9 -0.3 0.6 -0.5 2.8 2.6 3.5 2.7 1.9 2.9 2.9 3.2 2.9 2.6 1.9 1.7 r-0.3 r-0.5 -0.8 -1.0 2.0 2.8 1.4 2.2 3.6 2.2 4.8 2.8 2.6 2.6 2.6 2.4 ANNUAL 0.2 2.9 2.7 2.3 -0.7 2.1 3.4 2.5 I II III IV -0.2 0.8 0.9 0.7 3.2 4.3 4.3 4.0 3.3 3.5 3.4 3.3 2.3 2.1 1.9 2.5 r-0.2 -0.3 -0.9 -0.2 2.4 1.3 1.0 1.8 1.5 3.6 5.4 3.4 2.1 2.1 2.5 2.3 ANNUAL 0.5 4.0 3.4 2.2 -0.4 1.6 3.5 2.3 I II III IV 1.1 1.3 1.1 0.8 4.0 2.4 r2.6 1.8 2.9 1.1 1.4 1.0 2.6 3.4 r4.2 4.1 -0.3 0.3 r1.5 1.4 1.5 2.0 3.0 3.3 4.2 3.0 r0.5 -0.7 2.4 2.4 r2.1 1.9 ANNUAL 1.1 2.7 1.6 3.6 0.7 2.5 1.7 2.2 --------------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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 CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1993 1994 1995 I II III IV 101.5 101.6 102.1 102.9 102.5 102.8 103.6 105.1 101.0 101.2 101.5 102.1 101.1 102.0 102.7 103.5 99.1 99.2 r99.4 99.4 99.6 100.4 100.6 100.5 ANNUAL 102.1 103.5 101.4 102.4 99.4 100.3 I II III IV 104.7 106.1 106.9 107.8 107.3 109.5 110.9 113.0 102.5 103.2 103.8 104.8 104.3 104.7 105.6 106.4 r99.8 99.5 r99.4 99.7 99.7 98.7 98.8 98.7 ANNUAL 106.3 110.2 103.6 105.3 99.7 99.0 I II III IV 108.4 109.5 111.0 111.7 114.1 113.5 114.2 114.6 105.3 103.7 102.9 102.5 107.0 107.9 109.0 109.6 r99.5 99.5 r100.0 99.9 98.7 98.6 98.2 98.1 ANNUAL 110.3 114.1 103.5 108.5 99.9 98.4 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 1995 I II III IV 2.2 0.4 1.8 3.4 4.6 1.1 3.0 5.9 2.3 0.8 1.2 2.4 0.8 3.4 2.7 3.2 r-2.1 r0.5 r0.8 r0.0 -1.4 3.1 0.9 -0.2 ANNUAL 2.1 3.5 1.4 2.4 -0.6 0.3 I II III IV 6.9 5.7 3.0 3.5 8.8 8.5 5.1 7.9 1.8 2.6 2.1 4.2 3.4 1.4 3.6 3.1 r1.4 -1.1 r-0.2 0.8 -3.2 -4.0 0.6 -0.4 ANNUAL 4.2 6.5 2.2 2.8 0.3 -1.3 I II III IV 2.2 4.0 5.7 2.7 3.9 -2.1 2.6 1.3 1.6 -5.9 -2.9 -1.4 2.1 3.5 4.0 2.3 r-0.8 0.1 1.9 -0.1 -0.1 -0.5 -1.6 -0.4 ANNUAL 3.7 3.5 -0.1 3.1 0.2 -0.6 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 2.9 2.1 1.7 1.9 4.3 3.0 3.1 3.6 1.3 0.9 1.4 1.7 2.7 2.4 2.2 2.5 -0.5 r-0.7 -0.6 -0.2 -0.3 0.3 0.5 0.6 ANNUAL 2.1 3.5 1.4 2.4 -0.6 0.3 I II III IV 3.1 4.4 4.7 4.7 4.7 6.5 7.1 7.6 1.5 2.0 2.2 2.7 3.2 2.7 2.9 2.9 0.7 0.3 0.0 0.2 0.1 -1.7 -1.7 -1.8 ANNUAL 4.2 6.5 2.2 2.8 0.3 -1.3 I II III IV 3.6 3.2 3.8 3.6 6.3 3.6 3.0 1.4 2.6 0.4 -0.8 -2.2 2.5 3.1 3.2 3.0 -0.3 0.0 0.5 0.3 -1.0 -0.1 -0.7 -0.7 ANNUAL 3.7 3.5 -0.1 3.1 0.2 -0.6 -------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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 CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1993 1994 1995 I II III IV 102.3 102.8 103.0 104.9 103.3 104.0 104.8 107.5 101.0 101.1 101.7 102.5 101.0 101.8 102.4 103.3 99.0 99.0 99.2 99.3 98.7 99.0 99.4 98.5 ANNUAL 103.4 104.9 101.5 102.2 99.3 98.9 I II III IV 106.8 108.2 109.4 110.6 110.4 112.6 114.8 117.5 103.3 104.1 104.9 106.3 104.2 104.5 105.4 106.0 99.6 99.3 99.2 r99.2 97.5 96.6 96.3 95.9 ANNUAL 108.7 113.8 104.7 105.0 99.4 96.6 I II III IV 111.8 112.5 114.3 115.4 119.5 119.0 120.4 121.5 106.9 105.7 105.3 105.3 106.4 107.0 108.1 108.4 98.9 r98.7 99.1 98.8 95.2 95.1 94.5 93.9 ANNUAL 113.7 120.1 105.7 107.6 99.1 94.7 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 1995 I II III IV 3.6 2.0 0.7 7.3 6.3 2.4 3.4 10.7 2.6 0.4 2.6 3.1 0.8 3.2 2.5 3.6 r-2.1 r0.3 r0.6 r0.5 -2.7 1.2 1.7 -3.5 ANNUAL 3.4 4.9 1.5 2.2 -0.7 -1.1 I II III IV 7.6 5.2 4.5 4.3 11.0 8.6 7.8 9.9 3.1 3.2 3.2 5.4 3.4 1.2 3.4 2.4 r1.3 -1.4 r-0.4 0.2 -4.0 -3.8 -1.0 -1.8 ANNUAL 5.2 8.5 3.2 2.7 0.1 -2.3 I II III IV 4.5 2.7 6.6 3.8 7.0 -1.9 5.1 3.6 2.3 -4.4 -1.5 -0.2 1.4 2.5 4.0 1.2 r-1.5 -0.9 1.9 -1.2 -3.0 -0.2 -2.5 -2.5 ANNUAL 4.5 5.5 0.9 2.5 -0.3 -2.0 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 4.6 3.1 2.5 3.4 5.7 4.1 4.3 5.6 1.0 0.9 1.8 2.2 2.5 2.1 1.9 2.5 -0.6 -1.0 -0.9 -0.2 -2.0 -1.0 -0.6 -0.8 ANNUAL 3.4 4.9 1.5 2.2 -0.7 -1.1 I II III IV 4.4 5.2 6.2 5.4 6.8 8.4 9.5 9.3 2.3 3.0 3.2 3.7 3.2 2.7 2.9 2.6 r0.7 0.2 0.0 r-0.1 -1.2 -2.4 -3.1 -2.7 ANNUAL 5.2 8.5 3.2 2.7 0.1 -2.3 I II III IV 4.6 4.0 4.5 4.4 8.3 5.6 4.9 3.4 3.5 1.5 0.4 -1.0 2.1 2.4 2.6 2.2 -0.8 -0.6 -0.1 -0.4 -2.4 -1.5 -1.9 -2.1 ANNUAL 4.5 5.5 0.9 2.5 -0.3 -2.0 -------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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 CompensacompensaUnit and hour of of all tion per tion per labor quarter all persons Output persons hour(1) hour(2) costs -------------------------------------------------------------------------------------------------Indexes 1992=100 1993 1994 1995 I II III IV 100.8 100.5 101.4 101.2 101.8 101.8 102.5 102.7 101.0 101.3 101.1 101.5 101.3 102.3 103.0 103.6 99.3 99.5 99.8 99.6 100.5 101.8 101.6 102.4 ANNUAL 101.0 102.2 101.2 102.6 99.6 101.6 I II III IV 102.7 104.3 104.6 105.3 104.3 106.3 106.9 108.3 101.5 102.0 102.2 102.8 104.4 104.9 105.8 106.8 99.8 99.6 99.6 100.0 101.6 100.6 101.2 101.5 ANNUAL 104.2 106.5 102.2 105.5 99.8 101.2 I II III IV 105.3 106.8 108.0 108.4 108.4 107.8 107.7 107.2 103.0 100.9 99.6 98.9 107.6 108.9 109.9 111.0 r100.1 100.4 100.8 101.2 102.3 102.0 101.7 102.3 ANNUAL 107.2 107.8 100.5 109.4 100.7 102.1 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 1995 I II III IV 1.0 -1.3 3.5 -0.7 2.9 -0.1 2.8 0.7 1.9 1.2 -0.7 1.5 0.8 3.9 2.8 2.3 r-2.1 0.9 r0.9 r-0.8 -0.3 5.3 -0.6 3.1 ANNUAL 1.0 2.2 1.2 2.6 -0.4 1.6 I II III IV 6.3 6.0 1.3 2.7 6.4 8.1 2.0 5.4 0.1 1.9 0.7 2.6 3.2 1.7 3.7 3.9 r1.1 -0.9 r-0.1 1.6 -3.0 -4.1 2.3 1.2 ANNUAL 3.2 4.1 0.9 2.8 0.2 -0.4 I II III IV -0.1 5.9 4.8 1.4 0.6 -2.5 -0.3 -1.6 0.7 -7.9 -4.9 -3.0 3.1 4.8 3.7 3.9 r0.2 1.3 1.6 1.5 3.2 -1.1 -1.1 2.5 ANNUAL 2.9 1.2 -1.6 3.8 0.9 0.9 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 1.4 1.2 1.1 0.6 3.0 2.2 2.1 1.6 1.7 1.0 1.0 1.0 2.9 2.8 2.5 2.4 r-0.3 r-0.3 -0.3 -0.3 1.6 1.5 1.5 1.8 ANNUAL 1.0 2.2 1.2 2.6 -0.4 1.6 I II III IV 1.9 3.7 3.2 4.1 2.4 4.4 4.3 5.4 0.5 0.7 1.0 1.3 3.0 2.5 2.7 3.1 0.5 0.1 -0.2 r0.4 1.1 -1.2 -0.5 -0.9 ANNUAL 3.2 4.1 0.9 2.8 0.2 -0.4 I II III IV 2.5 2.4 3.3 3.0 4.0 1.3 0.7 -1.0 1.5 -1.1 -2.5 -3.8 3.1 3.9 3.9 3.9 0.2 0.8 r1.2 1.2 0.6 1.4 0.6 0.9 ANNUAL 2.9 1.2 -1.6 3.8 0.9 0.9 -------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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 allcompenhourly Unit nonunit proprice and employee Employee sation compenlabor labor cost fits deflator quarter hour Output hours (1) sation(2) costs cost(6) (7) (8) (4) ---------------------------------------------------------------------------------------------------------Indexes 1992=100 1993 1994 I II III IV 100.1 101.0 101.5 102.4 101.3 102.9 104.2 106.1 101.1 101.9 102.6 103.6 101.4 101.9 102.5 102.8 99.4 99.2 99.3 98.7 101.3 100.9 100.9 100.4 100.7 100.0 99.8 99.2 101.1 100.7 100.6 100.1 102.9 111.5 115.6 128.5 101.2 101.5 101.8 102.3 ANNUAL 101.3 103.6 102.2 102.2 99.2 100.9 99.9 100.6 114.8 101.7 I II III IV 102.4 102.6 102.6 103.2 107.2 108.9 109.6 111.6 104.7 106.2 106.9 108.1 103.3 103.8 104.2 105.2 98.8 98.6 r98.0 98.5 100.9 101.2 101.6 101.9 102.3 98.7 99.3 98.2 101.3 100.5 100.9 100.9 120.8 134.5 136.5 141.3 102.8 103.1 103.7 104.0 ANNUAL 102.7 109.3 106.4 104.2 98.6 101.4 99.6 100.9 133.4 103.4 1995 I 102.3 111.3 108.8 105.6 98.1 103.2 100.0 102.3 131.0 104.5 II 103.2 111.8 108.3 107.0 98.6 103.7 101.2 103.0 130.5 105.1 III 104.7 113.9 108.8 108.1 99.1 103.3 99.9 r102.3 r142.3 105.4 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1993 1994 I II III IV -4.8 3.6 2.1 3.2 -2.9 6.6 5.0 7.5 2.0 2.9 2.8 4.1 0.8 2.2 2.2 1.0 r-2.1 r-0.7 r0.3 r-2.1 5.8 -1.4 0.1 -2.1 7.8 -2.7 -1.0 -2.2 6.4 -1.7 -0.2 -2.2 -24.5 38.0 15.4 52.4 3.4 1.0 1.1 1.9 ANNUAL 1.3 3.6 2.2 2.2 -0.8 0.9 -0.1 0.6 14.8 1.7 I II III IV 0.1 0.9 -0.2 2.6 4.2 6.8 2.5 7.5 4.1 5.9 2.7 4.8 2.2 1.8 1.4 4.0 r0.2 -0.7 r-2.3 1.7 2.2 0.9 1.5 1.4 13.2 -13.4 2.3 -4.4 5.0 -3.2 1.7 -0.2 -21.8 53.6 6.3 14.8 2.2 1.2 2.2 1.3 ANNUAL 1.4 5.5 4.1 1.9 -0.6 0.5 -0.3 0.3 16.2 1.7 1995 I -3.5 -1.1 2.5 1.4 r-1.4 5.1 7.9 5.9 -26.1 2.1 II 3.7 1.6 -2.0 5.6 2.1 1.9 4.7 2.6 -1.6 2.2 III 5.7 7.8 2.0 4.1 2.0 -1.5 r-5.2 -2.5 r41.4 1.1 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1993 1994 1995 I II III IV 1.0 1.6 1.4 1.0 2.7 3.7 4.0 4.0 1.7 2.0 2.6 2.9 2.9 2.3 1.8 1.5 -0.3 r-0.7 -0.9 r-1.1 1.8 0.7 0.5 0.6 0.3 0.2 -1.2 0.4 1.4 0.6 0.0 0.5 5.6 13.8 23.2 16.3 1.7 1.6 1.7 1.8 ANNUAL 1.3 3.6 2.2 2.2 -0.8 0.9 -0.1 0.6 14.8 1.7 I II III IV 2.2 1.6 1.0 0.8 5.8 5.9 5.2 5.2 3.5 4.2 4.2 4.4 1.9 1.8 1.6 2.4 -0.6 -0.6 -1.2 -0.3 -0.3 0.3 0.6 1.5 1.6 -1.3 -0.5 -1.0 0.2 -0.2 0.3 0.8 17.4 20.6 18.1 10.0 1.5 1.6 1.9 1.7 ANNUAL 1.4 5.5 4.1 1.9 -0.6 0.5 -0.3 0.3 16.2 1.7 I -0.1 3.9 4.0 2.2 -0.7 2.2 -2.2 1.0 8.4 1.7 II 0.6 2.6 2.0 3.1 0.0 2.5 2.5 2.5 -3.0 1.9 III r2.0 3.9 1.8 3.8 1.1 1.7 0.6 1.4 r4.2 1.7 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. March 6, 1996 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. Compensation and hours 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 30 days after the close of the reference period; revisions appear 30 days later, and second revisions after an additional 60 days. 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 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 output divided by the output index. (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 unit labor and nonlabor costs. (8) Unit profits include corporate profits with inventory valuation and capital consumption adjustments.
@FedFRASER