Full text of Productivity and Costs : Revised First-Quarter [1987] Measures for Business, Nonfarm Business, and Manufacturing and Preliminary Measures for Nonfinancial Corporations

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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 87-213

For Release: 10:00 AM EDT
Tuesday/ June 2/ 1987

PRODUCMYITy AND COSTS

Revised First-Quarter Measures for
Business/ Nonfarm Business, and Manufacturing and
Preliminary Measures for Nonfinancial Corporations
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 first quarter of 1987.
Based on information now available/
the seasonally-adjusted annual rates of productivity change in the first
quarter were:
0.6
0.5
2.1
2.6
1.3

percent
percent
percent
percent
percent

in
in
in
in
in

the business sector/
the nonfarm business sector/
manufacturing/
durable goods rranufacturing, and
nondurable goods manufacturing.

First-quarter measures are summarized in table A and appear in detail in
tables 1 through 5. Productivity rose in all the above sectors in the first
quarter and/ combined with declines or very small gains in hourly compensation/
contributed to falling unit labor costs.
In nonfinancial corporations/
however/ productivity was unchanged in the first quarter/ as output and hours
both rose 5.5 percent (tables B and 6).
For business and nonfarm business/ the revised output measures show
somewhat smaller increases than had been reported on May 4, based on
preliminary information then available. Manufacturing output increased more
than was earlier reported.
Hours of labor input also have been revised
upwards (table D).
Business
Productivity increased at an 0.6 percent annual rate during the first
quarter of 1987 in the business sector, as output rose 4.1 percent and hours of
all persons engaged in the sector increased 3.4 percent (seasonally adjusted
annual rates). During the fourth quarter of 1986/ productivity declined 2.O
percent/ as output grew more slowly than hours (table 1).
Hourly compensation increased at a 0.3 percent annual rate during the
first quarter of 1987/ the smallest quarterly gain in this series since the
1960 (when it declined in the second and third quarters).
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, declined at a 0.3 percent annual rate during the
first quarter, the first decline in a year. During the fourth quarter of 1986,
these costs rose at a 4.2 percent annual rate.



-2Table A. Prcx3uctivity and costs: Revised first-quarter 1987 measures
(Seasonally adjusted annual rates)

Sector

Productivity

Output

Hours

Hourly
compensation

Real
hourly
compensation

Unit
labor
costs

Percent change from preceding quarter
Business
Nonfarm business
Manufacturing
Durable
Nondurable

0.6
0.5
2.1
2.6
1.3

4.1
4.3
3.7
3.5
4.1

3.4
3.8
1.6
0.8
2.7

0.3
0.0
-1.1
-2.3

1.3

-4.7
-5.0
-6.0
-7.2
-3.7

-0.3
-0.5
-3.1
-4.8

-O.2
-0.4
-0.7
-0.8
-0.3

2.3
2.0

0.0

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

-0.3
-0.2

2.7
3.0
2.3

2.2
2.6
2.9
2.2
4.0

2.5
2.8
0.2
-0.8

1.7

2.0
1.8
1.5
1.5
1.9

-1.1
-1.5
-0.4

Real hourly compensation/ which takes into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U)/ declined at a 4.7 percent annual
rate in the first quarter/ compared with a 0.6 percent decline in the fourth
quarter of 1986. The first-quarter decline was the largest since 1974 (when a
4.8 percent decline was recorded in the first quarter).
The implicit price deflator for business output/ which reflects changes in
unit labor costs and unit nonlabor payments/ increased 4.0 percent in the first
quarter/ the largest rise in 3 years.
Nonfarm business
Productivity increased 0.5 percent in the nonfarm business sector during
the first quarter of 1987/ as output rose 4.3 percent and hours of all persons
—-employees/ proprietors/ and unpaid family workers—increased 3.8 percent.
During the fourth quarter of 1986/ nonfarm productivity declined 1.5 percent
(table 2).
Hourly compensation was unchanged in the first quarter/ but fell 5.0
percent when the change in the CPI-U is taken into account. This was the
greatest decline since 1951 (when a 6.1 percent decline occurred in the first
quarter). Unit labor costs declined 0.5 percent/ compared with a 4.2 percent
rise during the fourth quarter of 1986. In the past year/ this was the first
quarter during which these costs declined.




-3-

The implicit price deflator for nonfarm business output rose 4.2 percent
in the first quarter/ compared with a 0.3 percent decline one quarter earlier.
This was the largest increase in this series since the 5.7 percent rise during
the third quarter of 1932.
Manufacturing
Productivity increased at a 2.1 percent seasonally adjusted annual rate in
manufacturing in the first quarter of 1987/ as output rose 3.7 percent and
hours of all persons increased 1.6 percent. During the fourth quarter of 1986,
productivity rose 0.2 percent as output and hours rose 3.6 percent and 3.4
percent/ respectively (table 3).
Hourly compensation of manufacturing workers declined 1.1 percent during
the first quarter/ and fell 6.0 percent when the increasse in consumer prices is
taken into account. The decline in hourly compensation was the first since
1983.
Real hourly compensation has declined for 2 quarters/ and the drop in
the first quarter of 1987 was the largest since 1951 (when it declined 6.8
percent in the first quarter). Unit labor costs fell at a 3.1 percent annual
rate/ compared with a 1.9 percent increase during the fourth quarter of 1986.
Manufacturing unit labor costs have declined in 4 of the past 5 quarters.
Both durable and nondurable goods industries experienced productivity
increases in the first quarter (tables 4 and 5). Output increased in both
subsectors; hours of all persons increased more rapidly in nondurables than in
durable goods manufacturing.
Nonfinancial corporations
Preliminary first-quarter 1987 measures of productivity and costs also
were announced today for nonfinancial corporations (tables B and 6). Output
per all-employee hour was unchanged from the fourth quarter of 1986 to the
first quarter of 1987/ as output and hours both increased 5.5 percent/ at
Table B. Nonfinancial corporations: Preliminary first-quarter productivity and
cost measures
Quarterly percent change at seasonally adjusted annual rates
Real
hourly
Unit
Implicit
compen- labor Unit
price
sation
costs profits deflator

Productivity

Output

Hours

Hourly
compensation

1986 IV to
1987 I

0.0

5.5

5.5

-0.6

-5.6

-0.6

36.4

2.9

1986 I to
1987 I

0.3

2.4

2.1

1.3

-0.9

0.9

12.2

1.8

Period




-Biannual rates (table 6). 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 more rapidly than in the more
comprehensive nonfann business sector reported above.
Hourly compensation declined 0.6 percent (the first decline since the
first quarter of 1965), and droppped 5.6 percent when the rise in the CPI-U is
taken into account.
Real hourly compensation has declined in the past 3
quarters, and the first-quarter decline was the largest in this series, which
begins with data for 1958. Unit labor costs fell .0.6 percent, unit nonlabor
costs increased 0.1 percent, and unit profits rose 36.4 percent (table 6).
This was the largest profits gain since the 40.1 percent rise during the third
quarter of 1985. The implicit deflator for nonfinancial corporate output
increased 2.9 percent 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 price
reflect changes in total unit costs and unit profits. Total unit costs consist
of unit labor costs and unit nonlabor costs.

Table C. Price, costs, and profits in nonfinancial corporations
Index, 1977 * 100

Period

Implicit
price
deflator

Total
unit
costs

Unit
labor
costs

Unit
nonlabor
costs

Unit
profits

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
158.1
161.8
164.9

159.5
159.5
161.5
165.8
169.1

153.8
154.5
157.0
161.2
165.0

176.4
174.3
174.6
179.1
181.2

78.5
110.9
133.4
133.1
134tl

1986 I
II
III
IV

164.0
164.3
165.7
165.7

168.3
168.6
169.8
169.6

164.0
164.8
165.4
165.8

181.1
179.9
182.6
180.9

131.7
132.3
135.8
136.8

1987 I

166.9

169.5

165.6

181.0

147,8




Revised measures
Preliminary and revised productivity and cost measures for the first
quarter are compared in table D for business/ nonfarm business/ and
manufacturing.
In manufacturing! n«* preliminary annual output levels for 1986 published
by the Bureau of Economic Analysis of the U.S. Department of Commerce on May 15
are introduced with this release. As a result/ quarterly productivity changes
since 1981 were revised somewhat.
Appendix tables 1-3 contains revised
productivity and cost indexes for manufacturing and the durable and nondurable
subsectors for 1981 to 1985.

Table D. Preliminary and revised productivity and related measures/ firstquarter 1987
Percent change from previous quarter
(Seasonally adjusted annual rates)

Sector

Productivity

Output

Hours

Hourly
compensation

Real
Unit
hourly
compen- " labor
costs
sation

Business:
Preliminary
Revised

1.8
0.6

5.1
4.1

3.2
3.4

0.4
0.3

-4.6
-4.7

-1.4
-0.3

Nonfarm business:
Preliminary
Revised

1.7
0.5

5.4
4.3

3.6
3.8

0.1
0.0

-4.9
-5.0

-1.6
-0.5

Manufacturing :
Preliminary
Revised

1.4
2.1

2.8
3.7

1.3
1.6

-0.9
-1.1

-5.9
-6.0

-2.3
-3.1

Next release date
The next issue of Productivity and Cost is scheduled for release at 10:00
AH EDI/ Monday/ August 3, 1987/ and will contain preliminary second-quarter
measures for the business/ nonfarm business/ and manufacturing.




-6TECHNICAL 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, Cental
value of owner-occupied dwellings/ and the statistical discrepancy in commuting
the national income accounts. Corresponding exclusions are also made in labor
inputs. Business output has accounted for about 77 percent of gross national
product in recent years.
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 miscel!4neous
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 has accounted for about 24 percent of gross national
product in recent years.
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 dwelling/ 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 has
accounted for about 59 percent of gross national product in recent years.
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.




-7-

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 nonImplicit
labor payprice
ments(3)
deflator(4)

Indexes 1977=100
1986

I
II
III
IV
ANNUAL

1987

I

107.3
107.4
107.3
106.8

125.3
125.4
126.0
126.8

116.8
116.7
117.4
118.7

179.1
180.4
181.7
182.6

99.2
100.2
100.4
100.2

167.0
168.0
169.3
171.0

162.2
161.9
163.4
159.7

165.3
165.8
167.2
167.0

107.1

125.9

117.5

180.9

100.0

168.8

161.8

166.3

r!06.9

r!28.0

rl!9.8

r!82.7

99.0

r!70.9

r!64.6

r!68.7

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

1987

I
II
III
IV

3.3
0.5
-0.4
-2.0

4.7
0.3
2.0
2.4

1.4
-0.2
2.4
4.6

2.5
2.8
2.9
2.0

0.9
4.2
0.4
-0.6

-0.7
2.3
3.3
4.2

6.6
-0.7
3.7
-8.6

1.8
1.2
3.4
-0.4

ANNUAL

0.7

2.6

1.9

3.2

1.2

2.5

1.3

2.1

I

rO.6

r4.1

r3.4

rO.3

r-4.7

r-0.3

r!2.7

r4.0

Percent change from corresponding quarter of previous year
1936

1987

1.5
' 1.0
0.0
0.3

3.3
2.5
2.0
2.4

1.8
1.6
2.0
2.0

3.9
3.4
3.0
2.6

0.8
1.7
1.3
1.2

2.4
2.4
3.0
2.2

2.5
1.2
1.2
0.1

2.4
2.0
2.4
1.5

ANNUAL

0.7

2.6

1.9

3.2

1.2

" 2.5

1.3

2.1

I

r-0.3

r2.2

2.5

2.0

-0.2

r2.3

rl.5

r2.0

I
II
III
IV

See footnotes following table 6.
r=revised
p^preliminary




June 2, 1987
Source: Bureau of Labor Statistics

-8Table 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 pay->
ments(3)

Implicit
price
deflator(4)

167.1
167.5
169.0
168.9

Indexes 1977=100
1986

1987

IV

105.6
105.7
105.7
105.3

125.1
125.3
126.1
127.0

118.5
118.5
119,4
120.6

178.3
179.3
180.4
181.6

98.8
99.7
99.6
99.6

168.8
169.6
170.7
172.5

163.9
163.7
165.9
162.2

ANNUAL

105.5

125.9

119.3

179.8

99.4

170.4

163.9

r!05.4

r!28.3

121.7

181.6

98.4

r!72.2

r!67.5

r!70.6

I
II
III

I

-

168.1

Percent change from previous quarter at annual rate (5)

1986

1987

I
II
III
IV

4.3
0.5
-0.3
-1.5

5.1
0.6
2.6
2.7

0.8
0.1
2.9
4.3

3.1
2.3
2.3
2.7

1.5
3.6
-0.1
0.0

-1.2
1.8
2.6
4.2

9.3
-0.6
5.5
-8.6

2.3
1.0
3.6
-0.3

ANNUAL

0.7

2.8

2.0

3.0

1.1

2.3

2.0

2.2

I

rO.5

r4.3

r3.8

rO.O

r-5.0

r-0.5

r!3,9

r4.2

Percent change from corresponding quarter of previous year
1986

1987

1.2
0.8
0.2
0.7

3.3
2.7
2.3
2.8

2.1
1.8
2.1
2.0

3.6
3.1
2.8
2.6

0.5
1.4
1.2
1.2

2.5
2.2
2.6
, 1-8

3.1
1.8
1.7
1.2

2.7
2.1
2.3
1.6

ANNUAL

0.7

2.8

2.0

3.0

1.1

2.3

2.0

2.2

I

r-0.2

r2.6

r2.8

1.8

-0.4

I
II
III
IV

,

See footnotes following table 6.
r=revised
p=preliminary




r2.0

r2.2

r2.1

June 2/ 1987
Source: Bureau of Labor Statistics

-9-

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
1986

1987

I
II
III
IV

r!24.4
r!25.7
r!27.0
r!27.1

r!23.5
r!23.6
r!24.7
r!25.9

99.3
98.4
98.2
99.0

180.2
181.4
182.5
183.5

99.8
100.8
100.8
100.7

r!44.9
r!44.3
r!43.7
r!44.4

ANNUAL

r!26.0

r!24.4

98.7

181.9.

100.5

r!44.3

I

r!27.7

r!27.0

99.4

183.0

r99.1

r!43.3

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

1987

I
II
III
IV

r4.0
r4.3
r4.3
rO.2

r4.5
rO.6
r3.6
r3.6

0.4
-3.5
-0.6
3.4

2.1
2.7
2.4
2.1

0.5
4.1
0.0
-0.6

r-1.9
r-1.5
r-1.8
rl.9

ANNUAL

r3.5

f3.3

-0.2

2.9

1.0

r-0.6

I

r2.1

r3.7

rl.6

r-1.1

r-6.0

r-3.1

Percent change from corresponding quarter of previous year
1986

1987

I
II
III
IV

r4.4
r3.2
r3.3
r3.2

r4.1
r3.1
r3.0
r3.1

-0.3
-0.2
-0.3
-0.1

3.7
3.3
2.5
2.3

0.6
1.6
0.8
1.0

r-0.7
rO.l
r-0.8
r-0.8

ANNUAL

r3.5

r3.3

-0.2

2.9

1.0

r-0.6

I

r2.7

r2.9

rO.2

rl.5

-0.7

r-1.1

See footnotes following table 6.
r=revised
p=preliminary




June 2, 1987
Source : Bureau of Labor Statistics

-10Table 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

1986

1987

I
II
III
IV

r!28.5
r!29.6
r!31.2
r!31.6

r!28.4
r!27.8
r!28.8
r!30.1

99.9
98.7
98.2
98.8

178.9
180.2
181.3
182.6

99.1
100.1
100.1
100.2

r!39.2
r!39.1
r!38.1
r!38.8

ANNUAL

r!30.2

r!28.8

98.9

180.7

99.9

r!38.8

I

r!32.4

r!31.2

99.0

r!81.5

98.4

r!37.1

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

1987

I
II
III
IV

r5.1
r3.2
r5.2
rl.l

r4.5
r-1.7
r3.3
r3.8

-0.6
-4.8
-1.8
2.6

2.2
2.8
2.5
3.0

0.6
4.1
0.0
0.3

r-2.8
r-0.4
r-2.6
rl.8

ANNUAL

r4.5

r3.3

-1.1

3.3

1.4

r-1.1

I

r2.6

r3.5

rO.8

r-2.3

r-7.2

r-4.8

Percent change from corresponding quarter of previous year

1986

1987

I
II
III
IV

r6.2
r4.2
r4.0
r3.6

rS.l
r3.0
r2.7
r2.4

-1.1
-1.1
-1.3
-1.2

4.1
4.0
2.7
2.6

0.9
2.4
1.0
1.2

r-2.0
r-0.1
r-1.3
r-1.0

ANNUAL

r4.5

r3.3

-1.1

3.3

1.4

r-1.1

I

r3.0

r2.2

r-0.8

1.5

See footnotes following table 6.
r=revised
p=preliminary




r-0.8

r-1.5

June 2/ 1987
Source : Bureauof Labor Statistics

-11Table 5. Nondurable nanufacturing 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 ( 1 )

Real
compensation per
hour ( 2 )

Unit
labor
cost

Indexes 1977=100

1986

1987

I
II
III
IV

rl!8.1
rl!9.9
r!20.8
r!20.4

rl!6.1
rl!7.4
r!18.6
rl!9.6

98.3
97.9
98.2
99.3

182.2
183.5
184.8
185.1

100.9
102.0
102.1
101.6

r!54.3
r!53.1
r!53.0
r!53.7

ANNUAL

rl!9.8

rl!7.9

98.5

183.8

101.6

r!53.5

I

r!20.8

r!20.8

rlOO.O

r!85.7

100.6

r!53.7

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

1987

I
II
III
IV

r2.4
r6.2
r3.1
r-1.3

r4.5
r4.5
r4.3
r3.2

2.0
-1.6
1.2
4.6

2.2
2.9
2.7
0.7

0.6
4.2
0.3
-1.9

r-0.2
r-3.1
r-0.3
r2.0

ANNUAL

r2.1

r3.4

1.2

2.5

0.6

rO.4

I

rl.3

r4.1

r2.7

rl.3

r-3.7

rO.O

Percent change from corresponding quarter of previous year

1986

1987

I
II
III
IV

rl.7
rl.9
r2.4
r2.6

r2.5
r3.2
r3.6
r4.1

0.8
1.3
1.2
1.5

3.3
2.3
2.4
2.1

0.2
0.6
0.8
0.8

rl.6
rO.4
rO.O
r-0.4

ANNUAL

r2.1

r3.4

1.2

2.5

Q.6

rO.4

I

r2.3

r4.0

rl.7

1.9

-0.3

r-0.4

See footnotes following table 6.,
r^revised
p=preliminary




June 2, 1987
Source : Bureau of Labor Statistic

Table 6. Nonfinancial corporations: Productivity/ hourly compensation, unit labor cost/ unit profits/
and prices/ seasonally adjusted
Year
and
quarter

Output
per allemployee
hour

Output

Real
Employee Hourly
hours compensa- hourly
tion
compen(1)
sation(2)

Unit
labor
co.s-:

Unit
nonldlx>r
cost (7)

Total
unit
cost
(3)

Unit
profits
(9)

Implicit
price
deflator
(4)

Indexes 1977=100
1986

1987

118.8
119.6

175.4
176.1
176.8
177.8

97.1
97.8
97.7
97.6

164.0
164.8
165.4
165.8

181.1
179.9
182.6
180.9

168.3
168.6
169.8
169.6

131.7
132.3
135.8
136.8

164.0
164.3
165.7
165.7

127.2

119.0

176.5

97.5

165.0

181.2

169.1

134.1

164.9

p!30.0

p!21.2

P177.6

p*>.*

pito.o

PJ.OJ..U

plW.b

pi«/.«

pibb.y

2.7
0.6
2.8

1.3
2.0

11.0

-0.3

2.5
0.7
3.6

2.8

pO.O

I
II
III
IV

106.9
106.8
106.9
107.2

126.9
126.6
127.0
128.3

ANNUAL

10b.9

I

p!07.2

118.7
118.5

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

1987

I
II
III

-0.5
-0.3

0.4
2.9

1.2
2.7

2.0
1.6
1.8
2.3

-0.6
-0.3

2.5
1.9
1.6
0.9

3.1

3.1

IV

0.2
1.4

2.6
-1.1
1.3
4.1

ANNUAL

0.1

1.9

1.8

2.4

0.5

2.3

1.1

2.0

0.7

1.9

I

oO.O

p5.5

p5.5

p-0.6

p-5.6

p-0.6

pO.l

p-0.4

p*>.4

P2.9

1.8
1.6

-0.8

-2.7

6.1

-3.6

Percent change from corresponding quarter of previous year
1986

1987

I
II
III
IV

0.9
0.3
-0.9
0.2

3.2
2.0
0.8
1.7

2.2
1.7
1.7
1.5

3.2
2.6
2.2
1.9

0.1
1.0
0.5
0.6

2.3
2.3
3.1
1.7

1.5
0.0
2.4
0.7

2.1
1.7
2.9
1.4

-4.2
4.2

2.1
1.7
2.1
1.7

ANNUAL

0.1

1.9

1.8

2.4

0.5

2.3

1.1

2.0

0.7

1.9

I

pO.3

p2.4

p2.1

pi. 3

p-0.9

pO.9

p-0.1

pO.7

p!2.2

pi. 8

See footnotes following table 6.
r^revised
p^preliminary




June 2, 1987
Source: Bureau of Labor Statistics

-13SOURCE:
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. Preliminary results are 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 preliminary value
by between -1.9 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 1986
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
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) 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/
rental income of persons/ and indirect taxes.

interest/

(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.




Appendix table 1. Manufacturing sector: Productivity, hourly compensation/ and unit labor cost/
seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Compensation per
hour

Real
compensation per
hour

Indexes 1977=100

103.2
103.5
104.5
103.4

104.9
105.6
106.3
102.6

101.6
102.0
101.7
99.2

141.6
143.9
146.3
149.2

97.6
97.1
96.1
96.4

137.2
139.1
140.0
144.3

ANNUAL

103.6

104.8

101.1

145.2

96.7

140.1

104.1
105.1
107.1
107.4

100.1
98.9
98.2
96.4

96.1
94.1
91.7
89.8

153.8
156.7
159.2
160.6

98.5
98.9
98.8
99.4

147.7
r 149.0
148.7
r!49.6

98.4

92.9

157.5

98.9

148.7

r!09.9
rlll.l
113.5
rl!3.4

99.2
r!02.6
107.3
r!09.8"

90.3
92.4
94.6
96.8

161.9
161.8
162.4
163,5

100.1
98.9
98.2
98.0

r!47.4
145.6
143.1
r!44.2

112.0

104.7

93.5

162.4

98.8

145.0

rl!5.1
rl!5.8
rl!7.5
rl!8.0

rl!3.7
rl!5.5
rl!7.1
rl!7.6

98.8
99.7
99.7
99.7

165.4
166.8
169.1
171.5

97.8
97.7
98.1
98.7

r!43.6
r!44.0
r!43.9
r!45.4

116.6

116.0

99.5

168.2

98.1

144.2

rl!9.1
r!21.8
r!22.9
r!23.2

rl!8.6
119.9
r!21.1
r!22.1

99.6
98.5
98.5
99.1

173.8
175.6
178.1
179.3

99.2
99.2
100.0
99.7

r!45.9
144.3
r!44.9
r!45.6

121.7

120.4

98.9

176.7

99.5

145.1

1982

I
II
III
IV

ANNUAL

1983

I
II
III
IV

ANNUAL

I
II
III
IV

ANNUAL

1985

i

I
II
III
IV

1981

1984

Unit
labor
cost

I
II
III
IV
ANNUAL

r=revised




105.9

June 2/ 1987
Source: Bureau of Labor Statistics

-15Appendix table 2. Durable manufacturing sector: Productivity/ hourly compensation, and unit labor
cost/ seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Output

Hours
of all
persons

Compensation per
hour

Real
compensation per
hour

Unit
labor
cost

Indexes 1977=100

I
II
III
IV

1981

ANNUAL

I
II
III
IV

1982

ANNUAL
1983

I
II
III
IV

ANNUAL

1984

I
II
III
IV
ANNUAL

1985

I
II
III
IV
ANNUAL

r= revised




-

102.7
r!02.2
103.1
101.2

105.7
106.0
106.4
rl01.4

102.9
103.7
103.1
100.2

141.4
143.6
145.9
148.7

97.5
96.9
95.8
96.1

137.8
140.4
141.4
147.0

102.3

104.9

102.5

144.9

96.5

141.5

rlOO.2
rl01.2
103.1
103.5

r96.8
94.9
93.3
r90.5

96.6
93.8
90.5
87.5

153.2
156.0
158.9
160.1

98.1
98.5
98.6
99.1

152.9
r!54.2
154.2
154.7

101.9

93.9

92.1

157.0

98.6

154.0

r!06.7
r!08.6
111.7
rl!2.1

r94.1
98.3
104.0
rlOS.O

88.2
90.5
93.2
96.3

161.3
160.9
161.3
162.3

99.7
98.3
97.6
97.2

r!51.2
r!48.2
144.5
r!44.7

109.8

101.1

92.0

161.5

98.2

147.0

rl!4.4
rll5.6
rl!7.9
rl!8.8

rl!3.1
rl!5.8
rll8.7
r!20.2

98.9
100.2
100.7
101.2

164.1
165.3
167.2
169.4

97.1
96.8
97.1
97.5

T143.5
r!43.0
r!41.8
r!42.6

116.7

117.0

100.2

166.6

97.2

142.7

r!21.0
124.4
r!26.2
r!26.9

r!22.2
124.1
r!25.5
r!27.0

100.9
99.8
99.5
100.0

172.0
173.2
176.5
178.0

98.2
97. &
99.1
99.0

124.6

124.7

100.1

174.9

98.5

r!42.1
139.2
r!39.9
r!40.2

140.3

June 2/ 1987
Source: Bureau of Labor Statistics

-16Appendix table 5. Nondurable manufacturing sector; Productivity, hourly compensation, and unit
labor cost, seasonally adjusted
Year and
quarter

Output per
hour
of all persons

Hours
of all
persons

Output

Compensation per
hour

Real
compensation per
hour

Unit
labor
cost

Indexes 1977=100

I
II
III
IV

104.0
105.3
106.5
106.7

103.7
104.9
106.1
104.4

99.7
99.6
99.6
97.8

141.4
143.8
146.4
149.5

97.5
97.1
96.2
96.6

136.0
136.5
137.4
140.1

ANNUAL

105.6

104.8

99.2

145.2

96.8

137.5

I
II
III
IV

110.0
111.0
112.9
112.9

105.0
104.8
105.6
rlOS.l

95.5
94.4
93.4
93.1

154.6
157.9
160.4
162.6

99.0
99.7
99.5
100.6

140.5
142.2
142.0
144.0

ANNUAL

111.7

105.1

94.1

158.8

99.7

142.2

114.4
114.7
116.1
rl!5.4

r!06.7
109.2
112.1
rl!2.5

93.3
95.2
96.6
97.5

163.9
164.2
164.7
166.0

101.3
100.3
99.7
99.5

143.3
143.2
141.9
r!43.8

115.2

110.1

95.6

164.7

100.2

143.1

rl!6.3
116.1
rl!6.8
rl!6.6

rl!4.6
114.9
rl!4.6
rl!3.8

98.6
99.0
98.1
97.6

167.5
169.2
171.9
174.6

99.1
99.1
99.8
100.5

r!44.1
145.7
r!47.1
r!49.7

116.5

114.5

98.3

170.8

99.7

146.6

rl!6.2
rl!7.7
118.0
rl!7.4

rl!3.3
rl!3.8
114.5
rl!4.9

97.6
96.7
97.0
97.9

176.5
179.4
180.4
181.3

100.8
101.3
101.3
100.8

r!51.9
r!52.5
r!52.9
r!54.4

117.3

114.1

97.3

179.4

101.0

152.9

1981

1982

1983

I
II
III
IV
ANNUAL

1984

I
II
III
IV
ANNUAL

1985

I
II
III
IV
ANNUAL

r=revised




June 2t 1987
Source: Bureau of Labor Statistics