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Historical, technical information: (202) 606-5606 Current data: (202) 606-7828 Media contact: (202) 606-5902 USDL 94-431 Transmission of this material is embargoed until 10:00 A.M. EDT Wednesday, September 7, 1994. PRODUCTIVITY AND COSTS Second Quarter 1994 Business, Nonfarm Business, Manufacturing, and 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 second quarter of 1994. The revised seasonally-adjusted annual rates of productivity change in the second quarter were: -2.7 percent in the business sector, and -2.5 percent in the nonfarm business sector. In the second, quarter output growth slowed while hours rose more rapidly than in the first quarter in both sectors; because hours increased more rapidly than output, productivity declined. In manufacturing, productivity changes in the second quarter were: 4.5 percent in manufacturing, 3.4 percent in durable goods manufacturing, and 6.1 percent in nondurable goods manufacturing. The productivity advance in manufacturing reflects a strong output gain in the nondurable goods industries. Output and hours in manufacturing, which includes about 20 percent of U.S. business-sector employment, tend to fluctuate more from quarter to quarter than in the business and nonfarm business sectors. Second-quarter measures are summarized in table A and appear in detail in tables 1 through 5; the differences between these measures and the preliminary second-quarter figures issued on August 9 are shown in table C. Output measures for business and nonfarm business are based on measures of gross domestic product prepared by the Bureau of Economic Analysis of the U.S. Department of Commerce. Quarterly output measures for manufacturing reflect independent indexes of industrial production prepared by the Board of Governors of the 2 Federal Reserve System. See Technical Notes for further information on data sources (page 7). In nonfinancial corporations, productivity fell 1.3 percent in the second quarter, as output rose 4.8 percent and hours increased 6.2 percent (tables B and 6). Table A. Productivity and costs: Revised second-quarter 1994 measures (Seasonally adjusted annual rates) Sector Productivity Output Hours Real Hourly hourly Unit compen-compen-labor sation sation costs Percent change from preceding quarter Business -2.7 Nonfarm business -2.5 Manufacturing 4.5 Durable 3.4 Nondurable 6.1 2.9 2.7 6.1 5.2 7.4 5.8 5.4 1.5 1.7 1.2 0.3 0.8 -1.6 -2.5 -0.2 -2.4 -1.9 -4.2 -5.1 -2.9 3.2 3.4 -5.8 -5.7 -5.9 0.5 0.6 0.1 0.0 0.2 0.7 0.7 -2.7 -3.9 -0.9 Percent change from same quarter a year ago Business Nonfarm business Manufacturing Durable Nondurable 2.2 2.3 5.4 6.6 3.6 5.2 5.2 6.3 8.2 3.5 2.9 2.8 0.8 1.5 -0.1 3.0 3.0 2.6 2.4 2.6 Business From the first quarter to the second quarter of 1994, business sector productivity decreased at a 2.7 percent annual rate, the largest decline since 1981 (when a 7.0 percent decline occurred in the fourth quarter). In the second quarter of 1994, output rose 2.9 percent and hours of all persons engaged in the sector increased 5.8 percent (seasonally adjusted annual rates). During the first quarter of 1994, productivity had risen 2.9 percent, as output and hours rose 5.5 and 2.6 percent, respectively (table 1). Hourly compensation increased 0.3 percent during the second quarter of 1994, compared with a 6.2 percent rise in the first quarter. The second-quarter increase was the smallest since 1960 (when a 0.9 percent decline occurred in 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 3.2 percent annual rate during the second quarter, nearly matching the 3.3 percent increase during the previous quarter. 3 Real hourly compensation, which takes into account changes in the Consumer Price Index for All Urban Consumers (CPI-U), declined at a 2.4 percent annual rate in the second quarter; it had risen 4.0 percent in the first quarter of 1994. The second-quarter decline was the greatest in 5 years. The implicit price deflator for the business sector, which reflects changes in unit labor costs and unit nonlabor payments, increased 3.5 percent in the second quarter, compared with a 1.5 percent increase during the first quarter of 1994. Nonfarm business Productivity fell 2.5 percent in the nonfarm business sector during the second quarter of 1994 as output rose 2.7 percent and hours of all persons increased 5.4 percent. This was the largest productivity decline since 1989 (when it declined 3.7 percent in the first quarter), and the gain in hours was the largest since the second quarter of 1988 (when they rose 6.1 percent). During the first quarter of 1994, productivity had increased 2.9 percent in the nonfarm business sector, reflecting gains of 5.2 percent in output and 2.3 percent in hours (table 2). Hourly compensation increased at a 0.8 percent annual rate in the second quarter, compared with a 6.1 percent increase one quarter earlier. The second-quarter increase was the smallest since 1988 (when it rose 0.6 percent in the first quarter). When the rise in the CPI-U is taken into account, real hourly compensation fell 1.9 percent in the second quarter. Unit labor costs rose 3.4 percent, compared with a 3.1 percent rise during the first quarter of 1994. The implicit price deflator for nonfarm business output rose 4.4 percent in the second quarter, compared with a 1.2 percent rise one quarter earlier. Manufacturing Productivity increased at a 4.5 percent seasonally adjusted annual rate in manufacturing in the second quarter of 1994, as output rose 6.1 percent and hours of all persons increased 1.5 percent (seasonally adjusted annual rates). Productivity grew strongly in nondurable goods industries while posting a smaller gain among durable goods producers (tables 4 and 5). Hourly compensation of all manufacturing workers declined 1.6 percent during the second quarter, compared with a 3.8 percent gain during the January-March period. The second-quarter decline was the largest in this series (which begins with data for 1977). Real hourly compensation fell 4.2 percent in the second quarter when the increase in consumer prices is taken into account. During the first quarter, real hourly compensation had gone up 1.7 percent (seasonally adjusted annual rates). 4 Unit labor costs fell at a 5.8 percent annual rate in the second quarter of 1994, the third decline in succession. These costs had decreased 2.8 percent during the first quarter of 1994. The index of unit labor costs in the second quarter (at 111.0) was at its lowest point since 1990 (when it reached 110.2 in the third quarter). Nonfinancial corporations Preliminary second-quarter 1994 measures of productivity and costs also were announced today for nonfinancial corporations (tables B and 6). Productivity declined 1.3 percent in the second quarter, as output rose 4.8 percent and hours increased 6.2 percent (seasonally adjusted annual rates). The increase in hours was the largest since 1984 (when they rose 7.5 percent in the first quarter). In the first quarter of 1994, productivity had increased 3.3 percent. Nonfinancial corporations include all corporations doing business in the United States, except banks, stock and commodity brokers, and finance and insurance agencies. Hourly compensation did not increase in the second quarter. In real terms, when the rise in the CPI-U is taken into account, real hourly compensation declined 2.7 percent (table 6). This was the largest decrease since 1989 (when it fell 5.0 percent in the second quarter). Table B. Nonfinancial corporations: Preliminary second-quarter productivity and cost measures (Seasonally adjusted annual rates) Period Productivity Output Hours Real Hourly hourly Unit Implicit compen- compen-labor Unit price sation sation costs profits deflator Percent change from preceding quarter 1994 II -1.3 4.8 6.2 0.0 -2.7 1.4 22.1 1.8 Percent change from preceding year 1994 II 2.7 6.1 3.3 2.2 -0.2 -0.5 15.0 0.9 Unit labor costs for nonfinancial corporations increased 1.4 percent in the second quarter, compared with a 1.8 percent rise in the first quarter of 1994. Unit nonlabor costs fell 5.0 percent, and unit profits rose 22.1 percent. During the first quarter, unit nonlabor costs had increased 6.6 percent while unit profits fell 4.9 percent (annual rates). The implicit price 5 deflator for nonfinancial corporate output rose 1.8 percent in the second quarter. Revised Measures Current and previous measures for the second quarter of 1994 for the business, nonfarm business, and manufacturing sectors are compared in table C. The quarterly movements differ from those reported on August 9 based on information then available. In the business and nonfarm business sectors, the growth in output (which is based on information from the national income and product accounts prepared by the U.S. Department of Commerce) was revised downward. On the other hand, manufacturing output (which is based on information from the Federal Reserve Board), was revised upward. Table C. Previous and revised productivity and related measures Quarterly percent change at seasonally adjusted annual rate Sector Real Hourly hourly Unit Produccompen-compen- labor tivity Output Hours sation sation costs Second quarter 1994 Business: Previous.... Current..... -1.4 -2.7 4.3 2.9 5.8 5.8 0.3 0.3 -2.4 -2.4 1.8 3.2 Nonfarm business: Previous.... -1.2 Current..... -2.5 4.1 2.7 5.4 5.4 0.8 0.8 -1.9 -1.9 2.0 3.4 Manufacturing: Previous.... Current..... 5.3 6.1 1.5 1.5 -1.7 -1.6 -4.3 -4.2 -5.2 -5.8 3.8 4.5 Next release date The next release of Productivity and Costs is scheduled for 10:00 AM EDT, Wednesday, November 9, 1994. Second-quarter measures for nonfinancial corporations and preliminary thirdquarter measures for business, nonfarm business, and manufacturing will be released at that time. 6 LABSTAT now on INTERNET! BLS Data Now Available on the INTERNET LABSTAT, the Bureau of Labor Statistics public database, provides current and historical data for many surveys as well as numerous press releases. LABSTAT on the Internet is composed of individual databases (in flat file format) corresponding to each of the surveys. Internet users should use Anonymous FTP to access BLS data: stats.bls.gov. Non-Internet users should use the limited dial-in service through a Bulletin Board Service to access BLS data; phone number (202) 606-7060. The major sector labor and multifactor productivity database containing productivity and costs measures is identified by the two-character survey name MP. For each news release published by the BLS, the two current issues are stored in the */news.release directory. most If you have questions or comments regarding the LABSTAT system on the Internet, address e-mail to labstat.helpdesk@bls.gov. LABOR NEWS At Your Fingertips You can now get this and other U.S. Department of Labor news releases quickly and easily through LABOR NEWS-a free electronic bulletin board providing a variety of labor-related information and available to anyone with a computer, a modem, and communications software. To register directly, load the following parameters into your computer: PHONE number: BAUD speed: PARITY: DATA bits: STOP bit: (202) 219-4784 300, 1200, 2400, 9600, 14,400 none 8 1 After you have made a connection to LABOR NEWS, follow the registration prompts. Users must pay any toll for long-distance calls. For more information call (202) 219-8831, or FAX (202) 219-8699, Monday through Friday, 9 a.m. to 4 p.m. ET. 7 TECHNICAL NOTES Labor Input: 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 hours of production and nonsupervisory workers in nonagricultural establishments. Jobs rather than persons are counted. Weekly hours are adjusted to the hours at work definition 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 of the Department of Commerce and the CPS are used to measure labor input for government enterprises, proprietors and unpaid family workers. Output: Business output is equal to gross domestic product (GDP) in constant 1987 dollars, less 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 NIPA. Corresponding exclusions are also made in labor inputs. Business output was about 78 percent of GDP in 1992. Nonfarm business, which also excludes farming, was about 77 percent of GDP in 1992. Total manufacturing measures are computed by summing series prepared for the durable and nondurable goods sectors. Durables include the following 2digit 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, leather and leather products. Manufacturing accounted for about 19 percent of GDP in 1992. 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 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. Nonfinancial corporate output is equal to GDP in constant 1987 dollars, less the output of nonprofit institutions, output of paid employees of private households, rental value of owner-occupied dwellings, unincorporated business, the output of corporations engaged in banking, finance, stock and commodity trading, and credit and insurance agencies, and the statistical discrepancy in computing the NIPA. Nonfinancial corporations accounted for about 56 percent of GDP in 1992. 8 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: 202-606STAT; 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 1982=100 1992 1993 I II III IV 114.5 114.8 115.9 116.8 133.7 134.4 136.1 137.9 116.8 117.1 117.4 118.1 152.2 153.7 156.0 157.8 105.9 106.0 106.8 107.2 133.0 133.9 134.7 135.1 148.4 148.8 145.8 150.2 138.0 138.8 138.3 140.1 ANNUAL 115.5 135.5 117.4 154.9 106.6 134.2 148.3 138.8 I II III IV 116.3 116.5 117.4 119.1 138.1 139.6 140.9 143.9 118.8 119.8 120.0 120.8 158.9 160.1 161.3 162.3 107.1 107.1 107.5 107.3 136.6 137.5 137.4 136.3 149.5 149.6 150.3 153.8 140.8 141.4 141.6 142.1 ANNUAL 117.3 140.6 119.9 160.6 107.3 136.9 150.8 141.5 1994 I 119.9 145.8 121.6 164.8 108.4 137.4 153.1 142.6 II r119.1 r146.9 123.3 164.9 107.7 r138.5 r154.7 143.8 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 5.4 1.2 3.8 3.3 3.4 2.2 4.9 5.6 -1.9 1.1 1.1 2.2 5.8 4.0 6.2 4.6 3.1 0.7 3.0 1.3 0.3 2.8 2.4 1.2 9.1 1.0 -7.7 12.6 3.3 2.2 -1.3 5.1 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 I II III IV -1.8 0.7 3.4 5.7 0.6 4.2 4.0 8.6 2.4 3.5 0.6 2.8 2.8 3.2 3.1 2.4 -0.2 0.1 1.2 -0.5 4.6 2.5 -0.3 -3.1 -2.0 0.3 2.1 9.4 2.3 1.7 0.6 1.2 ANNUAL 1.6 3.8 2.1 3.7 0.7 2.1 1.7 1.9 1994 I 2.9 5.5 2.6 6.2 4.0 3.3 -1.7 1.5 II r-2.7 r2.9 5.8 0.3 -2.4 r3.2 r4.1 3.5 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.7 2.5 3.1 3.4 1.7 2.0 3.0 4.0 -1.0 -0.5 -0.2 0.6 4.9 4.9 5.3 5.1 2.0 1.7 2.2 2.0 2.1 2.3 2.1 1.7 3.2 2.5 0.3 3.5 2.5 2.4 1.5 2.3 ANNUAL 3.0 2.7 -0.3 5.1 2.0 2.1 2.3 2.2 I II III IV 1.6 1.5 1.4 2.0 3.3 3.8 3.6 4.3 1.7 2.3 2.2 2.3 4.4 4.2 3.4 2.9 1.2 1.0 0.6 0.1 2.8 2.7 2.0 0.9 0.7 0.5 3.1 2.4 2.0 1.9 2.4 1.4 ANNUAL 1.6 3.8 2.1 3.7 0.7 2.1 1.7 1.9 I 3.1 5.6 2.4 3.7 1.2 0.6 2.5 1.2 II r2.2 r5.2 2.9 3.0 0.5 r0.7 r3.4 1.7 --------------------------------------------------------------------------------------------------------See footnotes following table 6. Sept. 7, 1994 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 1982=100 1992 1993 I II III IV 112.6 113.1 113.9 115.0 133.6 134.4 135.9 137.9 118.7 118.8 119.3 119.9 150.9 152.6 154.7 156.5 104.9 105.3 106.0 106.3 134.0 134.9 135.9 136.1 149.5 150.4 147.0 152.1 139.0 139.9 139.5 141.2 ANNUAL 113.7 135.5 119.2 153.7 105.7 135.2 149.7 139.9 I II III IV 114.5 114.6 115.8 117.2 138.3 139.9 141.5 144.3 120.8 122.0 122.3 123.1 157.4 158.3 159.4 160.4 106.1 105.9 106.2 106.0 137.5 138.1 137.7 136.9 151.5 151.8 153.4 156.1 142.0 142.5 142.8 143.1 ANNUAL 115.5 141.0 122.1 158.8 106.1 137.5 153.2 142.6 1994 I 118.0 146.1 123.8 162.8 107.0 137.9 155.2 143.5 II r117.2 r147.1 125.5 163.1 106.5 r139.1 r157.6 r145.1 --------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 4.2 1.9 2.8 3.9 2.4 2.5 4.4 6.2 -1.7 0.6 1.5 2.2 5.7 4.6 5.8 4.6 3.0 1.2 2.7 1.3 1.4 2.6 3.0 0.6 6.5 2.3 -8.6 14.3 3.2 2.5 -1.2 5.1 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 I II III IV -1.8 0.5 4.1 4.9 1.0 4.7 4.9 7.9 2.9 4.2 0.8 2.9 2.2 2.5 2.8 2.4 -0.8 -0.6 1.0 -0.6 4.2 2.0 -1.2 -2.4 -1.5 0.7 4.4 7.1 2.2 1.6 0.7 0.8 ANNUAL 1.6 4.1 2.4 3.4 0.4 1.7 2.3 1.9 1994 I 2.9 5.2 2.3 6.1 3.9 3.1 -2.1 1.2 II r-2.5 r2.7 5.4 0.8 -1.9 r3.4 r6.3 r4.4 --------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 I II III IV 2.4 2.4 2.7 3.2 1.4 1.8 2.6 3.8 -1.0 -0.5 -0.1 0.6 4.8 5.0 5.3 5.2 2.0 1.8 2.1 2.0 2.4 2.5 2.6 1.9 2.8 2.8 0.0 3.3 2.5 2.6 1.7 2.4 ANNUAL 2.7 2.4 -0.3 5.1 2.0 2.4 2.2 2.3 I II III IV 1.7 1.3 1.6 1.9 3.5 4.0 4.2 4.6 1.8 2.7 2.5 2.7 4.3 3.8 3.0 2.5 1.1 0.6 0.2 -0.2 2.6 2.4 1.4 0.6 1.3 0.9 4.3 2.6 2.1 1.9 2.4 1.3 ANNUAL 1.6 4.1 2.4 3.4 0.4 1.7 2.3 1.9 1994 I 3.1 5.7 2.5 3.4 0.9 0.4 2.5 1.1 II r2.3 r5.2 2.8 3.0 0.6 r0.7 r3.9 1.8 --------------------------------------------------------------------------------------------------------See footnotes following table 6. r=revised Sept. 7, 1994 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 1982=100 1992 1993 I II III IV 127.2 128.6 129.1 130.9 129.6 131.5 131.8 133.9 101.9 102.3 102.1 102.4 145.1 146.7 148.4 150.9 100.9 101.2 101.6 102.5 114.1 114.1 114.9 115.3 ANNUAL 129.1 131.7 102.0 147.9 101.7 114.6 I II III IV 132.2 133.8 134.6 137.2 136.0 137.1 137.9 140.9 102.9 102.5 102.5 102.7 150.3 152.6 154.2 155.7 101.3 102.1 102.7 102.9 113.7 114.1 114.5 113.5 ANNUAL 134.5 138.0 102.6 153.3 102.4 114.0 1994 I 139.5 143.6 102.9 157.2 103.4 112.7 II r141.0 r145.7 103.3 r156.6 r102.3 r111.0 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 3.2 4.4 1.7 5.5 1.1 6.1 1.0 6.6 -2.0 1.7 -0.7 1.1 1.3 4.6 4.5 6.9 -1.3 1.2 1.4 3.5 -1.8 0.2 2.8 1.3 ANNUAL 3.7 3.1 -0.6 4.2 1.2 0.5 I II III IV 4.0 5.0 2.6 7.9 6.1 3.5 2.4 8.7 2.0 -1.4 -0.2 0.8 -1.5 6.3 4.1 4.0 -4.4 3.1 2.2 1.0 -5.3 1.3 1.5 -3.6 ANNUAL 4.2 4.8 0.5 3.6 0.6 -0.6 1994 I 6.8 8.0 1.1 3.8 1.7 -2.8 II r4.5 r6.1 1.5 r-1.6 r-4.2 r-5.8 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 3.7 3.9 3.0 3.7 2.5 3.8 2.3 3.7 -1.2 -0.1 -0.6 0.0 3.9 4.0 4.2 4.3 1.0 0.8 1.1 1.2 0.2 0.0 1.2 0.6 ANNUAL 3.7 3.1 -0.6 4.2 1.2 0.5 I II III IV 3.9 4.0 4.3 4.8 4.9 4.3 4.6 5.2 1.0 0.2 0.4 0.3 3.6 4.0 3.9 3.2 0.4 0.9 1.1 0.5 -0.3 0.0 -0.3 -1.6 ANNUAL 4.2 4.8 0.5 3.6 0.6 -0.6 I 5.5 5.6 0.1 4.6 2.0 -0.9 II r5.4 r6.3 0.8 r2.6 0.1 r-2.7 -------------------------------------------------------------------------------------------------See footnotes following table 6. Sept. 7, 1994 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 1982=100 1992 1993 I II III IV 136.9 139.1 139.9 142.8 136.1 138.5 138.8 142.1 99.5 99.5 99.3 99.5 142.9 144.8 146.4 149.5 99.4 99.9 100.2 101.5 104.4 104.1 104.6 104.7 ANNUAL 139.8 138.9 99.3 146.1 100.5 104.5 I II III IV 145.2 147.7 148.8 153.2 145.2 146.7 148.0 153.1 100.0 99.4 99.5 99.9 148.0 150.2 151.6 153.3 99.8 100.5 101.0 101.3 101.9 101.7 101.9 100.0 ANNUAL 148.8 148.3 99.6 150.9 100.8 101.4 1994 I 156.1 156.8 100.5 154.9 101.8 99.2 II r157.4 r158.8 100.9 r153.9 100.5 97.8 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 1.8 6.8 2.1 8.5 -0.3 7.2 1.0 9.7 -2.0 0.4 -1.1 1.0 0.7 5.2 4.5 8.7 -1.9 1.9 1.4 5.3 -1.1 -1.5 2.3 0.2 ANNUAL 5.0 3.4 -1.5 4.5 1.5 -0.4 I II III IV 7.0 7.0 3.0 12.5 9.0 4.4 3.5 14.4 1.9 -2.5 0.5 1.6 -4.0 6.3 3.7 4.4 -6.8 3.1 1.8 1.4 -10.3 -0.6 0.8 -7.2 ANNUAL 6.5 6.7 0.3 3.3 0.3 -2.9 1994 I 7.7 10.2 2.3 4.2 2.0 -3.3 II r3.4 r5.2 1.7 r-2.5 r-5.1 r-5.7 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 5.0 5.6 4.0 4.8 2.9 4.2 2.4 4.3 -2.0 -1.3 -1.5 -0.4 3.9 4.3 4.6 4.8 1.0 1.2 1.5 1.6 -1.1 -1.2 0.6 0.0 ANNUAL 5.0 3.4 -1.5 4.5 1.5 -0.4 I II III IV 6.1 6.1 6.4 7.3 6.7 6.0 6.6 7.7 0.5 -0.2 0.2 0.4 3.5 3.8 3.6 2.5 0.3 0.6 0.7 -0.2 -2.4 -2.2 -2.6 -4.4 ANNUAL 6.5 6.7 0.3 3.3 0.3 -2.9 I 7.5 8.0 0.5 4.7 2.1 -2.6 II r6.6 r8.2 1.5 2.4 r0.0 -3.9 -------------------------------------------------------------------------------------------------See footnotes following table 6. Sept. 7, 1994 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 1982=100 1992 1993 I II III IV 115.4 115.8 116.1 116.5 121.5 122.9 123.2 124.0 105.3 106.2 106.1 106.4 149.5 151.0 152.7 154.3 104.0 104.2 104.6 104.8 129.5 130.4 131.5 132.4 ANNUAL 116.1 122.9 105.9 152.0 104.5 131.0 I II III IV 116.5 117.2 117.7 118.1 124.6 125.3 125.6 125.9 107.0 107.0 106.7 106.6 155.2 157.7 159.6 160.8 104.7 105.5 106.3 106.3 133.3 134.6 135.5 136.1 ANNUAL 117.4 125.4 106.8 158.3 105.7 134.9 1994 I 119.6 127.4 106.5 162.0 106.5 135.4 II r121.4 r129.7 106.8 r161.9 105.8 r133.4 -------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 5.2 1.3 1.1 1.4 3.1 4.8 0.9 2.5 -2.0 3.5 -0.2 1.1 2.4 3.8 4.7 4.2 -0.2 0.5 1.5 0.9 -2.7 2.6 3.6 2.7 ANNUAL 2.0 2.6 0.6 4.0 0.9 1.9 I II III IV -0.1 2.3 2.0 1.3 2.1 2.2 0.9 1.0 2.2 -0.1 -1.1 -0.3 2.5 6.6 4.7 3.1 -0.5 3.4 2.7 0.1 2.6 4.2 2.6 1.8 ANNUAL 1.2 2.0 0.8 4.2 1.1 3.0 1994 I 5.2 4.7 -0.4 3.1 0.9 -2.0 II r6.1 r7.4 r1.2 r-0.2 r-2.9 r-5.9 -------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III 2.0 1.7 1.5 2.0 3.3 2.2 0.0 1.6 0.7 4.1 3.7 3.8 1.2 0.5 0.7 2.0 1.9 2.2 IV 2.2 2.8 0.6 3.8 0.7 1.5 ANNUAL 2.0 2.6 0.6 4.0 0.9 1.9 I II III IV 0.9 1.2 1.4 1.4 2.6 1.9 1.9 1.5 1.6 0.8 0.5 0.2 3.8 4.5 4.5 4.2 0.6 1.3 1.6 1.4 2.9 3.3 3.0 2.8 ANNUAL 1.2 2.0 0.8 4.2 1.1 3.0 I 2.7 2.2 -0.5 4.4 1.8 1.6 II r3.6 r3.5 r-0.1 r2.6 0.2 r-0.9 -------------------------------------------------------------------------------------------------See footnotes following table 6. Sept. 7, 1994 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 1982=100 1992 1993 I II III IV 116.7 117.6 119.1 120.6 137.3 138.8 140.7 143.4 117.6 118.1 118.1 118.9 147.7 149.4 151.5 153.1 102.7 103.1 103.7 104.0 126.5 127.1 127.2 127.0 119.3 118.0 119.0 115.7 124.5 124.5 124.9 123.8 170.4 175.6 171.0 191.2 127.3 127.6 127.7 127.9 ANNUAL 118.5 140.0 118.2 150.4 103.5 126.9 118.0 124.4 177.2 127.7 I II III IV 120.0 121.4 122.7 124.1 143.3 145.9 148.1 150.9 119.4 120.2 120.7 121.6 154.0 154.5 155.4 156.0 103.8 103.4 103.5 103.1 128.3 127.3 126.7 125.7 116.8 115.8 115.8 114.8 125.0 124.1 123.6 122.6 183.7 199.4 202.5 220.9 128.7 128.7 128.5 128.7 ANNUAL 122.0 147.0 120.5 154.9 103.5 127.0 115.8 123.8 201.9 128.6 1994 I 125.1 153.0 122.3 157.9 103.9 126.2 116.6 123.5 218.2 129.4 II 124.7 154.8 124.2 157.9 103.2 126.7 115.2 123.4 229.3 129.9 ---------------------------------------------------------------------------------------------------------Percent change from previous quarter at annual rate(5) 1992 1993 I II III IV 1.2 2.9 5.2 5.1 0.9 4.7 5.5 8.0 -0.4 1.7 0.2 2.7 3.9 4.7 5.7 4.3 1.2 1.3 2.5 1.0 2.6 1.7 0.4 -0.8 -2.6 -4.4 3.5 -10.4 1.2 0.0 1.2 -3.5 14.8 12.8 -10.0 56.4 2.2 1.0 0.2 0.7 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV -1.9 4.5 4.5 4.7 -0.3 7.5 6.0 7.8 1.7 2.8 1.4 3.0 2.4 1.4 2.2 1.4 -0.7 -1.7 0.4 -1.5 4.4 -3.0 -2.1 -3.1 3.6 -3.3 0.0 -3.4 4.2 -3.1 -1.6 -3.2 -14.9 38.9 6.5 41.5 2.3 0.2 -0.8 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 1994 I 3.3 5.8 2.5 5.1 2.9 1.8 6.6 3.1 -4.9 2.2 II -1.3 4.8 6.2 0.0 -2.7 1.4 -5.0 -0.4 22.1 1.8 ---------------------------------------------------------------------------------------------------------Percent change from corresponding quarter of previous year 1992 1993 1994 I II III IV 2.4 2.6 3.3 3.6 1.7 2.7 3.5 4.7 -0.7 0.2 0.3 1.1 4.3 4.5 4.9 4.7 1.4 1.3 1.7 1.5 1.8 1.9 1.6 1.0 -1.2 -2.1 -1.5 -3.6 1.0 0.8 0.7 -0.3 5.2 5.0 3.7 16.2 1.3 1.1 0.9 1.1 ANNUAL 3.0 3.2 0.1 4.6 1.6 1.6 -2.1 0.5 7.6 1.1 I II III IV 2.8 3.2 3.0 2.9 4.4 5.1 5.2 5.2 1.6 1.9 2.2 2.2 4.3 3.4 2.6 1.9 1.1 0.3 -0.2 -0.9 1.4 0.2 -0.4 -1.0 -2.1 -1.8 -2.7 -0.8 0.5 -0.3 -1.0 -1.0 7.8 13.6 18.5 15.5 1.1 0.8 0.6 0.6 ANNUAL 3.0 5.0 2.0 3.0 0.0 0.0 -1.9 -0.5 14.0 0.8 I 4.2 6.8 2.4 2.5 0.0 -1.6 -0.1 -1.2 18.8 0.5 II 2.7 6.1 3.3 2.2 -0.2 -0.5 -0.5 -0.5 15.0 0.9 ---------------------------------------------------------------------------------------------------------See footnotes following table 6. Sept. 7, 1994 r=revised Source: Bureau of Labor Statistics 15 SOURCE: Output data from the Bureau of Economic Analysis, U.S. Department of Commerce, and the Federal Reserve Board. Compensation and hours data from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis. RELIABILITY: Productivity and cost measures are regularly revised as more complete information becomes available. The measures are second published 30 days after the close of the reference period; revisions appear about 35 days later, and third revisions after an additional 60 days. In the business sector, the probability is 0.95 that the third publication (third 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 second quarter of 1976 and the fourth quarter of 1992. Footnotes, Tables 1-6 (1) Wages and salaries of employees plus employers' contributions for social insurance and private benefit plans. Except for nonfinancial corporations, where there are no self-employed, data also include an estimate of wages, salaries, and supplemental payments for the self-employed. (2) Compensation per hour adjusted for changes in the Consumer Price Index for All Urban Consumers. (3) Unit nonlabor payments include profits, capital consumption allowances, interest, rental income of persons, and indirect taxes. (4) Current dollar gross product divided by constant dollar gross product. (5) Quarterly changes: Percent change compounded at annual rate from the original data rather than index numbers. Annual changes: Percent change between annual average levels. (6) 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.
@FedFRASER